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A majority of House conferees on Thursday afternoon had signed off on the fiscal 2004 defense authorization conference report, congressional aides said, but a Senate spokesman said that Senate conferees were still considering the report and was not sure when they might come to a decision.

Sources said the Senate participants were considering a House proposal to remove a section in the Senate-passed bill that would have exempted countries engaged in bilateral Declaration of Principles agreements with the United States from so-called "Buy American" laws. Senate conferees were also reported to be considering modifications to, or removal of, a section included in an Office of Management and Budget compromise proposal on tough "Buy American" language included in the House version of the bill that would require the Pentagon's major weapons systems to be manufactured using domestic components.

OMB's proposed language on the section, released to lawmakers last week, had already largely neutralized the tough domestic-source restrictions from House Armed Services Chairman Duncan Hunter, R-Calif., and allowed for waivers for countries that hold Memoranda of Understanding or other bilateral trade agreements with the United States, or which contributed to U.S.-led military operations in Afghanistan and Iraq.

In another defense matter, Senate Armed Services Chairman John Warner, R-Va., praised the Bush administration and fellow committee members today for hammering out a compromise on the acquisition of Air Force aerial refueling tankers. Warner said the Senate proposal to authorize the Air Force to lease up to 20 Boeing 767 aircraft and purchase no more than 80 of the planes through more traditional procurement methods would save taxpayers money.

Warner's statement came in response to a Wednesday letter from Deputy Defense Secretary Paul Wolfowitz in which he indicated that the Air Force planned to implement the Senate proposal. The Air Force's original plan involved leasing all 100 Boeing commercial jets, a $21 billion proposal that was harshly criticized by Warner, Armed Services ranking member Carl Levin, D-Mich., and Sen. John McCain, R-Ariz., a senior committee member, as being too costly.