SALVATION ARMY LOSING CITY PACTS FOR STAND ON HIRING HOMOSEXUALS
Mayor Koch told the Salvation Army yesterday that its contracts with the city to provide day care and other services would not be renewed until it adopted an unbiased hiring policy toward homosexuals. Mr. Koch, in a letter to the organization, said that he regretted the situation but that he would allow no exceptions to his Executive Order 50, which bans discrimination because of ''sexual orientation or affectional preference.'' Any group doing business with the city must promise in writing to comply with the two-year-old order. 'There Can Be No Exception' ''The city has high regard for the work of the Salvation Army, but there can be no exception to Executive Order 50,'' the Mayor wrote to Lieut. Col. Wallace C. Conrath, divisional commander of the Salvation Army of Greater New York. He said that while religious groups were free to practice any way they wished, they must comply with all city laws when they receive government money to provide services.
