· Rep. Clyburn (D-SC) Says Dems Short on Votes to Override Veto

In the wake of President Bush’s veto, the explosive debate over children’s health insurance has reached a point of utter gridlock.

And that seems to be exactly what Democrats want at this point. They still say publicly they’re rooting for a dozen or so Republicans to have a change of heart and vote to override the veto.

But both sides admit it’s unlikely, meaning the Oct. 18 veto override vote should be, in theory at least, the starting point for a new round of negotiations.

· Budget Deficit Lowest in Five Years, Bush Admin. Reports

WASHINGTON -- The Bush administration reported Thursday that the federal budget deficit fell to $162.8 billion in the just-completed budget year, the lowest amount of red ink in five years.

The administration credited the president's tax cuts for helping generate record-breaking revenues but warned of an approaching "fiscal train wreck" unless Congress deals with unsustainable growth in Social Security, Medicare and Medicaid.

· US Asks WTO To Rule on Chinese Barriers To US Products

GENEVA (Reuters) - The United States will ask the World Trade Organization (WTO) to examine restrictions on the sale of US films, music, books, magazines and newspapers in China, an agenda for an upcoming WTO meeting showed on Thursday.

In its complaint, Washington says China unfairly limits who can import and distribute entertainment products, including movies for theatrical release.

"It also appears that foreign individuals and enterprises...are accorded treatment less favorable than that accorded to enterprises in China with respect to the right to trade," the US complaint reads.