The War Assets Administration has publicly denied the request of officials of Eastport, Maine, that they be allowed to purchase nearby "Quoddy Village" at a 100 percent discount so that the abandoned power project might be converted into a training center for 25,000 displaced families.

The Eastport officials had hoped to have the Quoddy plan classified aa an educational and public welfare project, which would have enabled it to secure the 100 percent discount under the Surplus Property Act.

According to the WAA statement, Eastport's original bid was rejected because "the application of the city to acquire the property is ineligible for educational public benefit allowances under the provisions of the Surplus Property Act. WAA policy permits such allowances only to educational institutions conducting fundamental educational programs which are normally a part of the curriculum of universities, colleges, high schools or elementary school systems. The basis of the city's program was the establishment of industry with the training program a secondary rather than a primary function. WAA will not deviate from the provisions of the Surplus Property Act."