August 31, 1976

NYC officials agree with Sen rept charging massive fraud and waste in Medicaid but differ on who is to blame; NYC Asst Health Comr Martin Paris estimates overpayments by city at 10-20%, rather than 50% suggested by Sen Subcom on Long-Term Care; officials say their chief problem is lack of manpower; State Health Dept aide says city spent only $2.3-million of $2.8-million allotted for enforcement, leaving 100 of 300 job slots unfilled; Mayor Beame commends Sen Frank E Moss, news conf; Robert Sternberg, chief auditor for med payments of Soc Services Dept, says there is not enough help to process bills and accounts; Jerome Sager, lawyer for Empire City Pharmaceutical Assn, says NYC is up to 6 mos behind in payments and his group plans to sue for $10-million; says city leased 300 computer terminals that are unused while invoices are sent out of state to be processed (M)

Ford Adm's chief econ forecaster Alan Greenspan tells Pres Ford and Cabinet that econ recovery, marked by spurts and pauses, is now in period of temporary pause that should end in wks, not mos, and reinforces Adm forecast of strong econ recovery into '77 with moderate rate of inflation; Greenspan, whose remarks are quoted by White House press sec Ron Nessen, and confirmed by Greenspan in telephone int, sees no need for econ policy change; econ recovery rate is expected to be issue in Pres election campaign (M)

Calypso carnival attended by crowds of W Indians turns into riot in London on Aug 30, and at least 400 people are injured, including 272 policemen; stores are looted and windows smashed in Notting Hill area; 69 persons are arrested; police say it is uncertain what set off rioting; witnesses say it began after policeman tried to arrest W Indian suspected of picking pockets; illus (M)

Fed Election Comm unanimously rules that League of Women Voters can finance Ford-Carter TV debates without violating new ban on private campaign contributions during gen election, Aug 30 policy statement; comm holds that league cannot accept direct contributions from corps or labor unions to help finance debates; Carter repts agreement has been reached with Ford reprs regarding format and schedule for debate series, Aug 30 TV int and news conf; White House denies final decision has been made; only remaining obstacle seen as possible ct order barring televised debates; ind candidates McCarthy and Maddox, Amer Party candidate Tom Anderson press for inclusion TV debates, several threaten suits; Carter says tentative agreement has been reached to hold three 75-min debates beginning about 3d wk in Sept; says he favors unstructured format; league protests comm ban on corp funds for debates; comm chmn Vernon W Thomson illus voting for Pres debating proposal (M)

Kissinger and Vorster to meet Sept 4-5, Zurich (S)