Just to clarify what SteveJ, S30Driver and ZedHead have said, you most likely have two issues: 1) your water control valve is seized; 2) with the result that your 'TEMP' control cable wire has bent at the point where it connects to the control lever. If you have an early car ('Series 1'), this is almost certainly what's happened. Some pix and comments follow:
The control cable wire for the early Z's ('Series 1') was undersized (1.0mm dia) and therefore prone to bending if anything in the assembly got stuck or balky. In later versions ('Series 2', etc.) the cable diameter was increased to 1.2mm. The cable sheaths were upsized to match.
The Series 2 design incorporated numerous other detail changes to the heater control system's mechanicals in an effort to make it more robust: revised lever frame, levers, and finish knobs; revised control cable wire ends (loop-over-peg).
Lawn mower control cables can be a good replacement. Alternatively, try tempered-steel 'piano wire'. Otherwise, non-tempered wire from the hardware store will probably be ok, unless something gets stuck again and you try to operate the controls at sub-zero temps.
Unfortunately, your water control valve and/or its actuator lever have probably seized. The probable reason is that the valve has a leaky seal. White stains on the outside of the heater plenum box are a clue. NAPA (but not Nissan) used to offer a replacement seal, but it's been NLA for years. So, if your water control valve is leaking you'll need to buy a complete new control valve. If you don't fix this problem, the old valve will leak coolant onto the floor whenever it's left in the 'COLD' position. Also, the actuator lever will probably start to stick again, too.
I suspect that problems with the water control valve stem from PO's who run their cooling systems filled with straight tap water. A stuck water control valve responds nicely to an overnight soak in a de-liming product like 'C-L-R'. If the seal is ok, then you may be good to go. However,
The older-design water control valves were said to also suffer from internal leakage, leading to a situation where the valve isn't able to fully block coolant flow even when it's set to the 'off' (cold) position. That certainly wouldn't help if you plan to drive a Series 1 car on hot summer days.
Make sure you also free up the water control valve's actuator lever. Lubricate its pivot pin and grease the sliding surfaces.
These are some pix that I took when rebuilding the Heater system for my Series 1 car:
Below: Top side of Lever Assy
Note: Control cable on the left side (TEMP) had been removed when this photo was taken)
Below: Bottom side of Lever Assy (photo #1 of 2)
Note: The bottom control lever (DEF/ROOM) and the associated left and right bellcrank plates had been removed before this photo was taken)
Below: Bottom side of Lever Assy (photo #2 of 2)
Note: In this photo, the DEF/ROOM control lever, bellcrank plates, and cables are in place. However, the control lever's centre actuating pin had snapped off so the bellcrank plates had nothing to engage with.
Below: Water Control Valve, c/w actuator lever assy (actuator cable has been removed)
Note: Control valve's actuator rod can be seen here. Actuator lever may need to be freed up and lubricated if it, too, has become frozen because of corrosion.
Below: Water Control Valve's actuator lever assy
Note stains. Presumably caused by leakage from the Water Control Valve. They look like calcium deposits. If they are, then my car's cooling system must have been filled with straight water at some point (probably during the time when it lived in New Mexico).
Below: 'TEMP' actuator cable with bent wire (photo #1 of 2)
Note: Here, the cable is fully extended and the bellcrank has been rotated about 45 degrees CW from its centred position.
Below: 'TEMP' actuator cable with bent wire (photo #2 of 2)
Note: Here, the cable is fully retracted, but the bellcrank has not been rotated CCW any further than its centred position.