AT THIS TIME NEXT YEAR, the nine members of the Cambridge City Council will be campaigning for re election Liberal or conservative, they will all tell the voters that they are basically neighborhood politicians. In this city of more than ten well organized neighborhoods, it's really the smart way to go.

But for the past two years, the city council has had the chance to aid one of Cambridge's oldest and largest neighborhoods, and it has chosen not to do so.

Cambridgeport, a proud blue collar area which used to house some of the city's largest manufacturing plants, is in need of rezoning. A huge amount of new development projects are expected in the area within the next 10 years, but unlike the other areas of the city slated for widespread development, the buildings codes have not been updated to reflect new concerns of both businesses and homeowners.

Sometime next month, MIT will select a developer for 27 acres of property that it owns in Cambridgeport. Under the current codes, MIT, which is the single largest landowner in the neighborhood, can build virtually whatever it wants on the property, a prospect which understandably upsets many neighborhood residents and city officials. The conflict is by no means a new one: The residents and MIT have been stalemated for ten years over the question of what should be built. Still, as the deadline for action approaches, the council has not acted.

The arguments are complex, but, in short, MIT wants to hold onto its carte blance in the area. Various neighborhood groups say that because Cambridgeport is the last area in the city that can possibly be reserved for some type of blue collar manufacturing, they don't want to see MIT commit the entire area to white collar office space. The residents also argue that they have the right to request limits on the height and bulk of the new structures, because the buildings will affect the quality of life in their area.

Both sides have viable cases. MIT officials point out that the market is now calling for research and development and other white collar office uses. They correctly say that the old urban manufacturing firms of the Northeast have gone elsewhere, with no plans to return. They further argue that although commonly associated with white collar industry MIT itself employs more blue collar technicians than it does professors.

But for many years in this country, local governments have asserted their right to erect zoning laws to shield residential areas from the effects of rapid large-scale development. While the area in question has always been used for some type of industry, there is no question that whatever MIT builds on the site, and whatever is built in additional areas of Cambridgeport's industrial district will critically affect those living in the neighborhood.

Along with asking for limits on the physical structure, a plan endorsed by the neighborhood in a special referendum several years ago called on MIT to include in the development some public housing units, a public park, and an area reserved for some type of manufacturing--which under current economic conditions, would most likely be in the high technology area.

The need for mediation is obvious, and it has been for several years. But each time it has had the opportunity to settle this dispute, the council has balked.

Some of the blame must rest with the two antagonists. The intransigence of both sides is aggravating. MIT has really no incentive to deal, because by maintaining the status quo, it will be able to build whatever it wants. But the neighborhood's bargaining position is particularly puzzling. By continuing the stalemate, they seemingly have everything to lose and nothing to gain.

But the neighborhood's failures should not be used to shield the council of blame. True, a state law requires the unusually high number of seven councilors to pass zoning changes. But the nine councilors were elected to represent and reconcile the diverse interests of the people of this city --a mandate they have been clearly remiss on in this case.

At least three different plans to zone Cambridgeport have come before the council in the past two years, and none have even reached a final vote. Fortunately, the council still has time to act before MIT finalizes plans for the area and becomes protected by law from any subsequent zoning changes. If necessary, the council members should lock themselves in their chambers with the principals and not emerge until a settlement is reached. The time has come for the council to live up to its elected responsibilities.