Gop, Clinton Meet In Wary Summit President Warms To Budget Amendment; Gop Keeps Medicare Issue At Arm’s Length

President Clinton and Republican congressional leaders circled each other warily Tuesday in a ritual post-election dance of peace, all the while protecting their flanks for the balanced-budget fight ahead.

The president softened his opposition to a constitutional amendment requiring a balanced budget, bowing to what appears to be its inevitable approval by Congress. House Speaker Newt Gingrich, R-Ga., meanwhile, spoke of working harmoniously with a president he once called a liar.

The election that put Clinton back in the White House and kept Republicans in control of Congress produced more civility than existed a year ago as the old warring sides gathered in the Oval Office to talk about their agendas for the year ahead.

But there was no immediate sign that congeniality will be any more productive than hostility was. Republicans, feeling burned by Clinton’s campaign rhetoric, made no commitments Tuesday and told Clinton, in spokesman Mike McCurry’s words: “You first, Alfonse” in outlining his budget priorities.

Senate Majority Leader Trent Lott, R-Miss., said the GOP would work constructively with Clinton, but added that the president had “important and tough decisions” to make in controlling costs in the Medicare program.

“When he lays out the problem and suggests a solution, we’re certainly going to be prepared to work with him,” Lott added, in effect rejecting White House overtures for a quick bipartisan accord on a balanced budget.

Such issues as the size and shape of tax cuts, the amount of money to be taken out of Medicare and Medicaid, Clinton’s efforts to “fix” the welfare-reform law and the long-range financing problem of Social Security remain to be settled. Compromise promises to be politically difficult.

Clinton pushed for agreement on a balanced budget and campaign finance reform and urged the Senate to move quickly on Cabinet nominations. He is expected to nominate a new secretary of state soon and to fill other key administration posts, such as the vacancy created Tuesday with the resignation of National Economic Adviser Laura Tyson.

In a session with reporters before meeting with congressional leaders, Clinton said the constitutional amendment to balance the budget should be worded to permit the country to run a deficit if there is a recession.

“No country has a trouble-free economy,” he said.

“We just don’t want an amendment to wind up making our recession worse and causing us to do things that are counterproductive that you would never do in a recession.”