U.S. BUDGET CHIEF THREATENS VETO, PREDICTS DEAL
U.S. Budget Director James Miller
said President Reagan would veto the Democrat-controlled
Congress' new budget plan out of hand -- but offered to
compromise on raising revenues.
    "If that budget comes down it will vetoed out of hand, I can
tell you that," Miller said on a morning television show.
    He said Reagan would not accept the 19 bln dlr tax increase
in Congress' proposal but said "keep in mind the president has
proposed certain revenues in his budget.
    "They're not taxes," Miller said. "They are user charges and
asset sales. I think there is some room there we can sit down
and talk with the Democrats about."
    Miller said he believed a compromise could be worked out
but he said the administration would need assurance that
whatever compromise it accepted would indeed by passed by
Congress.
    Miller also said in the interview that he did not believe
the new U.S. protection of 11 Kuwaiti tanker ships in the
Persian Gulf would require a supplemental request to Congress
later for more defense money.
 Reuter
