GRIDLOCK FOR CHRISTMAS

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President Clinton and Republican congressional leaders emerged from budget negotiations Friday afternoon with talk of "good meetings," but bad news for 260,000 furloughed federal workers who had hoped to return to work next Tuesday. Senate Majority Leader Bob Dole and House Speaker Newt Gingrich left the meeting without elaborating, and the two sides do not plan to meet face-to-face until next Friday. In the meantime, according to a terse joint statement, aides will "prepare further analysis to clarify options." Beforehand, President Clinton said: "Obviously, today the biggest issues remain, but the process seems to be working, and I'm encouraged and I want to continue to do it until we reach agreement on a balanced budget. That's what I think clearly we all want." At the same time, the House and Senate acted to mute some of the stalemate's more unpopular side effects by voting to let certain government payments be made through Jan. 3, including benefit checks for veterans and welfare recipients under the Aid to Families with Dependent Children. House Republicans have said that they will not pass a continuing resolution to end the partial federal shutdown until the budget deal is completed.