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Reagan bends, signs bill supported by dairy lobby

President Reagan Tuesday bowed to political pressure and signed a controversial bill creating a 15-month program to pay dairy farmers to reduce milk production.

Mr. Reagan's action came after a nine-member delegation of congressional leaders urged him to approve the measure. White House aides had warned the President that a veto would jeopardize the reelection of several Republican senators, but budget officials had opposed the bill because of its cost. The bill, supported by the powerful dairy lobby, cuts the government's milk price support to $12.60 per 100 pounds from $13.10 and pays farmers $10 for every 100 pounds of milk not produced.

The administration and consumer groups had supported an unsucessful bill that proposed deeper cuts in dairy price supports to reduce government spending and lower milk prices.

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