by Bill Nichols

    Cleveland is still alive in its pursuit of a National Basketball Association franchise, according to Abe Polin, chairman of the league's expansion committee and preident of the Baltimore Bullets.

    "Nick Mileti certainly is not dead," declared Polin when reached by telephone last night.  "Cleveland is still very much in the picture."

    Mileti, head of the Cleveland group hoping to bring the NBA to town, turned down the league's original proposal just prior to yesterday's noon deadline.  Mileti, however, made a compromise offer to the league and it's being taken under advisement.

    "WE INDICATED THERE WAS NO way we could accept the original offer," Mileti said yesterday.  "I just couldn't recommend it.
    "It obviously was not workable.  It all relates to basic issues such as what kind of product we could give to Cleveland fans.
    "There is now a possibility of a compromise," concluded Nick.

    "We hope that things can be worked out with Nick," added Polin.

    "WE HAVE A SLIGHT MODIFICATION to discuss the expansion committee and the board of governors (all 14 owners) and we're very optimistic.
    "We will get back to Nick in the next few days."

    There has been no word as yet from the other applicants, Houston, Buffalo and Portland, Ore.