Bush, Congress Chiefs Start Talks on Deficit Cuts

President Bush arrived at budget negotiations with congressional leaders today saying that he is committed to working out a $50-billion deficit-reduction program for next year.

“Nothing has transpired anywhere that makes me less interested in getting this budget deficit under control once and for all,” Bush said as he arrived at Andrews Air Force Base outside Washington, the site of the talks.

Some lawmakers have said that with the weakening economy and the uncertain situation in the Persian Gulf, a smaller deficit-reduction plan could avoid pushing the economy into a recession.

Asked if the figure of $50 billion in savings is carved in stone, the President responded, “Yes.”

Bush said he is “somewhat optimistic” that a budget deal can be worked out quickly.

“I am pleased with . . . the cooperative attitude that exists up there now (on Capitol Hill),” Bush told reporters on leaving the White House. “I am hopeful that this spirit of cooperation . . . will be the catalyst in getting the budget agreement that’s long overdue.”

Bush remained at the negotiations for about half an hour. The budget negotiators, ending a five-week break for Congress’ August recess, hope to work out a deal by Monday.

But the President acknowledged that Democrats and Republicans have a large gap to bridge before reaching a compromise.

“Big differences remain,” he said. “It’s going to take compromise.”

Congressional negotiators said foreign payments for American military forces in the Persian Gulf would help their efforts to reduce the deficit.

“I think the fact that some allies are being helpful will help us,” Rep. Newt Gingrich (R-Ga.) said as bargainers gathered at the air base.

“Obviously we have to take into account the cost of the Desert Shield operation,” said House Majority Leader Richard A. Gephardt (D-Mo.), referring to the U.S. operations in the Middle East. “To the extent those costs can be offset by our allies around the world--that makes our job easier.”

“We’ll put a plan on the table,” said Sen. Pete Domenici (R-N.M.). “From what I understand the Democrats will put their plan on some time this morning, and then we’ll start negotiating.”

Democratic and Republican negotiators said they agree on the amount of deficit reductions they need but disagree strongly over how far to cut military spending.