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NATION : Tax Debate Perils E. Europe Aid

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<i> From Times staff and wire service reports</i>

Aid to Poland and Hungary will be delayed and perhaps killed by a Republican attempt to inject capital gains tax reductions into the aid debate, Senate Majority Leader George J. Mitchell said today.

“Obviously the capital gains issue has nothing to do with aid to Eastern Europe,” the Maine Democrat told the Senate. “Obviously the only effect can be to delay and perhaps kill aid to Poland and Hungary.”

He called the GOP’s decision to inject capital gains into the aid debate one of a series of “unwise and almost baffling” steps that President Bush and the Republicans have taken.

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