Debt deal remains elusive

WASHINGTON (AP) - Grasping for a deal on the nation's debt, President Barack Obama and congressional leaders remained divided Sunday over the size and the components of a plan to reduce long term deficits. Noting the need to work out an agreement over the next 10 days, the president and lawmakers agreed to meet again Monday.

Obama also sought to use the power of his office to sway public opinion, scheduling a news conference for Monday morning, his second one in less than two weeks devoted primarily to the debt talks.

Officials familiar with the meeting said Obama pressed the eight House and Senate leaders Sunday evening to continue aiming for a massive $4 trillion deal for reducing the debt. He especially objected to Republican claims that there was not enough time to negotiate a deal that large, two officials said.

But there appeared to be little appetite for such an ambitious plan and the political price it would require to pass in Congress. Instead, House Speaker John Boehner told the group that a smaller package of about $2 trillion to $2.4 trillion was more realistic.

Officials spoke on the condition of anonymity to describe the private meeting and because of the sensitivity of the negotiations.

One Democratic aide said Obama and Sen. Jon Kyl, the second-ranking Republican leader in the Senate, exchanged some testy words after Obama objected to the way Republicans were negotiating.

A Democratic official familiar with the session said House Majority Leader Eric Cantor, R-Va., was especially adamant that any deficit reduction package could not contain tax increases and that any new tax revenue would have to be used to pay for other tax benefits.

Obama and the congressional leaders met in the Cabinet Room of the White House for the rare Sunday session. Most appeared in casual Sunday clothes, with open-collared shirts underneath blazers.

When a reporter asked, "Can you work it out in 10 days, sir?" Obama replied, "We need to."

Time is becoming increasing precious in the negotiations. The deficit reduction talks are linked to the government's need to increase its borrowing limit, now capped at $14.3 trillion. The Obama administration says if the debt ceiling is not raised by Aug. 2, the nation would default on its obligations, with potentially calamitous financial consequences worldwide.

Officials said Obama time and again pressed for a larger package. He also pointed out that the smaller deal of up to $2.4 trillion still would require tax revenues and that not all of the details had yet been worked out.

Participants appeared to spend a significant amount of time debating whether a bipartisan group, led by Vice President Joe Biden, had actually identified $2.4 trillion in deficit reduction. Obama cautioned the room that the actual number was smaller and would require additional measures.

One Republican briefed about the meeting said Biden pointed out that package also would require tax revenue and urged Boehner to back away from his formula that every dollar increase in the debt limit should equal the amount of deficit reduction. Obama wants the debt ceiling raised through the end of 2012, to avoid having to raise it again during the presidential elections. That would require about a $2.4 trillion increase, and thus, a $2.4 trillion deficit reduction over 10 years.

Boehner would not budge from his formula, however, the Republican officials said.

Attending the meeting were Boehner, Cantor, House Democratic leader Nancy Pelosi and her second in command, Steny Hoyer of Maryland. Representing the Senate were Democratic leader Harry Reid of Nevada and party whip Richard Durbin of Illinois, and Republican leader Mitch McConnell of Kentucky and Kyl, his top lieutenant.

Russian tour boat sinks, 101 missing

MOSCOW - A half-century-old tourist boat with 188 people on board listed and sank quickly in one of the world's largest reservoirs amid wind and rain Sunday, authorities and survivors said, and dozens of children were believed to be among the 101 people missing. Two bodies were recovered.

About 30 children gathered in a cockpit in the double-decker Bulgaria moments before it sank into the reservoir on the Volga River, a survivor told the Interfax news agency. Russia's Vesti 24 television quoted another survivor as saying that the boat "tilted to the right and sank within minutes."

Crew members had time to open only two lifeboats, and could release only one from the ship, survivors told the Itar Tass news agency.

Train derails in India, killing 31

FATEHPUR, India - Rescuers searched for survivors in the wreckage of a packed express train that derailed in northern India on Sunday afternoon, killing at least 31 people, while officials said a second train derailment hundreds of miles to the northeast appeared to have been caused by a remote-controlled bomb.

Rescuers were working to reach the second derailment, which occurred late Sunday night in a rural area of Assam state, injuring at least 100. The two incidents did not appear to be related.

- The Associated Press