The City of Cambridge rescinded its newly adopted AIDS policy for municipal employees last week after several government agencies claimed the regulations could discriminate against the disease's victims.

In a letter to local lawmakers last week, City Manager Robert W. Healy announced that he had decided to withdraw the policy because several state and local agencies found that the regulation could discriminate against those afflicted with AIDS.

"As a result of these inquiries, there appears a need for further analysis of this regulation in light of city ordinances regarding human rights and handicapped persons as well as state and federal rules." the letter said.

"I have elected to withdraw this regulation for further study," said Healy, who is the city's chief administrative officer.

Legal Doubt

The controversial policy calls for any city employee to notify his supervisor if he has AIDS or has been infected with the AIDS-related virus. In addition, the employee must undergo a medical examination by a special team of physicians in order to stay at his post.

"There was enough concern whether [the policy] could stand up legally," said Healy, who formed the guidelines in consultation with the city's health commissioner after the city council called for them earlier this year.

"The intent was to protect to the extent possible all the people in the work force, AIDS victims and non-AIDS victims," Healy said. He added that a new policy will be formed after consultation with several anti-discrimination agencies to carry out those aims.

City Councilor Francis H. Duehay '55, who sponsored the order calling for the policy, said that although the city's AIDS policy may have been illegal, a set of guidelines still needs to be drafted.

"We have an epidemic in this country and people are scared. Cities and schools have to have procedures," Duehay said yesterday. "It may end up it is mostly educational, but you can't remain neutral in the face of an epidemic."

Shortly after the original policy was announced in February, members of the gay community and gay rights advocacy groups protested that the regulations unfairly singled out AIDS victims and required too many city officials to be notified about an employee's condition. One member of a group called Gay and Lesbian Advocates and Defenders claimed the guidelines were blatantly illegal.

Objections to the policy prompted the Massachusetts Commission Against Discrimination (MCAD) to begin an investigation into whether the ordinance ran contrary to state civil rights laws forbidding discrimination on the basis of handicap. MCAD officials say that because AIDS is regarded as a handicap, its victims should be protected by state civil rights laws.

Support for Withdrawal

"We're very excited to see that [Cambridge has] revoked the policy," said Kathleen M. Allen, one of three MCAD commissioners. "There is nothing about AIDS and the AIDS virus that indicates that it should be treated any different then any other handicap."