Page Four THE MICHIGAN DAILY Saturday, June 5, 1976
Board claims federal loans Lebanese officer supports
won't help New York City intrusion by Syrian troops

NEW YORK (AP) - Six
months after a federal loan pro-
gram set in motion an aid plan
for New York City, the board
monitoring its progress says
the plan won't work as it is now
designed.
Under the plan, the city was
to be restored to a sound fiscal
basis by mid-1978.
BUT A REPORT issued yes-
terday by the Emergency Fi-
nancial Control Board's execu-
tive director, Stephen Berger,
blamed faulty decision-making
and management systems for
mistaken revenue estimates and
budget cut proposals, most of
Potter

which were called unfeasible.
The report urged a complete
re-evaluation of the city's fiscal
progress with more attention
paid to long-term goals.
At the end of November, when
President Ford announced his
support for a program of fed-
eral loans to the city, it was
mandated that New York must
implement a fiscal reform pro-
gram in three years.
STATE AID PLANS were also
designed around that three-year
schedule.
Bututhere have been a series
of signals this week that the
program is in deep trouble.


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Sidney Schwarz, Gov. Hugh
Carey's watchdog over city
spending, said it was uncertain
that Mayor Abraham Beame
would be able to implement
$238.7 million of a proposed
$313.4-million cut in 1977 spend-
ing.
THE MUNICIPAL Assistance
Corp. (MAC) also cast doubt
on the mayor's plan - especi-
ally plans for a $1100 million
saving in welfare and Medicaid
costs and a hoped-for state take-
over of court and correctional
costs.
Welfare payments are set by
law, and the city can not cut
persons who qualify for welfare.
MAC, set up to convert the
city's short-term obligations in-
to its own long-term bonds, had
already seen them downgraded
by Moody's Investors' Service
from "A" to "B."
AS A FIRST measure, the
control Board now wants to
order the city to identify $150
million in cuts it could actually
implement in fiscal 1977 and
spell out $75 million of them by
July 1 when that fiscal year
begins.
The Control Board also charg-
ed that the semiautonomous
Boards of Education and Higher
Education and the Health and
Hospital Corp. had gotten out
of city control and dir tedtthem
to submit financial plans to the
Control Board.
Gov. Carey approved the re-
port's recommendations, while
the mayor called the criticisms
Lunfounded, arbitrary, conclu-
sionary without facts."

RYAK, Lebanon (AP) - The
commander of Lebanon's main
air base declared support for
Syria's military intervention as
Syrian troops girded for a show-
down with leftist and Palestin-
ian forces.
Lt. Col. Fahim Haj, who con-
trols a dozen Hawker Hunter jet
fighters at this base in the
Bekaa Valley 35 miles east of
Beirut, said he and his 500 sold-
iers backed the Syrians because
"there is no other way to stop
the Lebanese from killing them-
selves."
SYRIAN SOLDIERS broke a
three-month siege of the Ryak
base by leftist Moslems and
Palestinian fighters in the Leb-
anese civil war. Haj had held
his men and planes out of the
conflict.
"We have kept out of this for
14 months," he said in an in-
terview.
"If things get really bad and
if it becomes absolutely neces-
sary, we will use the planes."
Syrian troops who moved into
eastern and northern Lebanon
last Tuesday also secured Leb-
anon's other major base, at Kle-
iaat in the far north. This brings
the air force's 36 planes, includ-
ing 1 unserviceable Mirages,
under Syrian control.
EXCEPT for one isolated at-
tack against Palestinians In Jan-
uary, the jets have not been
brought into the civil war. Sy-
rian control over the bases
means they will not be used
against the Syrians, and could
be used to support them.
Syrian tanks were seen yes-
terday at intersections along the
main highway between Beirut

and the Syrian capital of De
mascus and on the sideroad i
Zahle, a nearby Christian tos
of 50,000 also under siege int
the Syrian takeover,
The forward Syrian ps.itio
lies 20 miles east of Beirut b
low the key Dahr al Baidar pass
1,000 yards from the nearet
leftist Lebanon machine gu
nest on the eastern side of th
pass.
BUT NOT A SHOT has bee
fired," said a Syrian army of
cer car ing a snake-skin-co
ered swagger stick at the lat
Syrian barrier.
Lebanese security officia~
said other Syrian units -no
south to poise their tanks arou
Palestinian guerrilla stronghol
near Nabatiyah, Sidon and Ha
baya. This was to put thema
place for a quick strike if t
confrontation with leftists a
Palestinians becomes an alt-
battle, the officials said.
But there were signs the Le
anese and their Palestinian
lies were looking for a sv
out. Most Lebanese and othI
observers believe the Syrian
mored forces would crush
Leftist-Moslem-Palestinian co
ition in any showdown.
LT. AHMED EL-KHATIB, w
this past Thursday pledged
fight to the last drop of W
with his rebel soldiers ;n t
Lebanese Arab Army, called f
negotiations with the Syrians
the presence of Algerian a
Libyan officers.
Palestinian leaders a1
huddled to redefine their p
Lion, previously restricted
vows to defend the Palestini
cause and the revolution "
all means."
Palestinian spokesmen in Ie
ut insisted their forces on i
overlooking Zahle were still
fying a Syrian warningtn
out. But the Syrian uttimat
was twice extended and negot
tions for a peacefuls
tion were under way.
The Syrians apparently n'
under orders to avoid 'iilt
the Lebanese leftists and ti
Palestinian allies at all coS
and hopefully to restore se,:r
in Leanon bya combinati
threato force and sbtle
gtiations.

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