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GOP budget plan is OK with Reagan, Baker says

President Reagan is pleased with most of a Republican compromise budget plan, Senate Republican leader Howard H. Baker Jr. said. After a Republican leadership meeting with President Reagan at the White House, Senator Baker said the President was not oppowed to the Republican plan, which provides for a two-year budget with a 7.5 percent increase in defense spending and virtually no tax increases. If the President endorsed it, he added, it was now possible to bridge the gap between Republican moderates and hard-liners and put a package together that might win Senate approval.

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