President Reagan said he had orderedthe administration to begin talks with congressional leaders on
a budget deficit reduction plan.
    Reagan said in a statement following a meeting with his top
economic advisers that he was prepared to order across the
board spending cuts to comply with a Federal balanced budget
law, but preferred to negotiate with Congress.
    He said he would consider anything the congressional
leadership proposed, but a spokesman said he remains opposed to
raising taxes as a way to reduce the deficit.
    "I think it is preferable, if possible that the executive
and legislative branches reach a budget deficit reduction
package. Accordingly, I am directing that discussions be
undertaken with the bipartisan leadership of the Congress for
that purpose," Reagan said.
    Asked whether he would consider raising taxes, Reagan said
"I am willing to look at whatever proposal they might have."
    As Reagan boarded the helicopter to visit his wife Nancy at
Bethesda Naval Hospital, he was questioned as to whether that
meant he was softening on his tax stance. Reagan replied "if you
heard that it must have been the helicopter."
    White House spokesman Marlin Fitzwater later told reporters
that Reagan was not changing his opposition to tax increases.
Fitzwater said the administration would accept automatic cuts
under the Gramm Rudman balanced budget law rather than raise
taxes.
    Earlier on Tuesday congressional leaders called for an
economic summit with the White House to address the nation's
budget and trade deficits that some analysts say were partly to
blame for the stock market drop.
    Reagan said he would be willing to participate personally
in any negotiations with Congress.
    The White House earlier seemed to reject the idea of
negotiating with Congress on the budget deficit.
    Fitzwater said this morning that the White House continued
to oppose a budget summit with Congress on the grounds that it
would be used by Democrats as a platform to press for a tax
increase.
    But Reagan announced his willingness to negotiate with
Congress after meeting for about an hour with White House Chief
of Staff Howard Baker, Treasury Secretary James Baker, Federal
Reserve Board Chairman Alan Greenspan and chief economic
adviser Beryl Sprinkel.
 Reuter
