August 12, 1976

Lebanese Christians and Moslems have begun in effect to partition country by setting up state adms in their respective territories; Christians control area from eastern Beirut to southern outskirts of Tripoli; Moslems have western Beirut and southern Lebanon as well as Tripoli; Syrian Army controls eastern part of Lebanon; only party that is tightly knit and has will to organize and control citizenry is Phalangist Party headed by Pierre Gemayel and his sons Bashir and Amin; Bashir and group of Western-educated technicians have formed 'shadow cabinet' under name Popular Orgn of Lebanon; want to make town of Junieh new capital; maps (L)

Pres candidate Jimmy Carter accuses Ford Adm of failing to restore public confidence in Govt in aftermath of Watergate scandals, speech, Amer Bar Assn; recounts moral impact of scandals, questions efficacy of subsequent reforms, and challenges Ford's contention he had re-established public faith in Govt; promises a Presidency that will restore that faith by eradicating crime and corruption in high places; illus (L)

NYC Health Dept audit shows as much as $18-million in overpayments for Medicaid patients may have gone to private nonprofit NYC clinics; shows as much as 12.8% of $140-million paid in '75 to nonprofit clinics may not have been justified; dental clinics also show significant abuses; Health Dept says lack of adequate controls, not greed, motivated some of abuses; audit of ambulatory services at 12 voluntary insts estimates as much as $6.7-million of $29-million Medicaid bills are questionable (L)

Nassau County, NY, Health Dept says million gals of sewage that poured into Manhasset Bay because of rupture in main sewer line in Great Neck Sewer Dist possibly caused by extraordinary storm water pressure as result of hurricane (S)

Rhodesia has accused Mozambique's regular forces of firing mortar rounds on the border city of Umtali and a police post. Details on Page 7.