THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Friday, January 26, 1996               TAG: 9601260558
SECTION: FRONT                    PAGE: A3   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: WASHINGTON                         LENGTH: Short :   44 lines

CLINTON SAYS YES TO DEFENSE BILL EVEN THOUGH IT HITS AIDS CARRIERS THE TRADEOFF WAS A LONG-AWAITED RAISE OF 2.4% FOR MILITARY.

President Clinton has decided to sign a $265 billion defense bill despite objections to a provision forcing service members with the AIDS virus out of the military.

Reluctant to veto a second bill that would raise military pay, Clinton accepted Defense Secretary William Perry's recommendation to approve the measure. A White House memo, a copy of which was obtained Thursday by The Associated Press, indicates the president will work to change the ``remaining objectionable provisions'' in subsequent legislation.

After last month's veto of an earlier version of the bill, congressional Republicans removed two provisions opposed by Clinton and weakened a third.

The Senate was expected to pass the bill today and send it to Clinton. A White House press secretary said Clinton would sign the bill.

McCurry said other measures Clinton opposes include a ban on abortions at overseas military hospitals, ship contracts earmarked for yards in the home states of influential lawmakers, buy-America requirements that Perry says could raise Pentagon costs and ``a lot of micro-managing of the Defense Department itself that we think is unwarranted.''

The defense authorization bill adds $7 billion in military spending beyond what Clinton requested. In addition to the AIDS measure, Republicans added provisions to expand the B-2 bomber fleet, build transport ships and increase research into missile defense.

The bill also provides 2.4 percent military pay raises.

A ``particular concern'' of Clinton's, according to the White House memo, is a provision inserted by Rep. Robert Dornan, R-Calif., requiring the military to discharge service members testing positive for HIV, the virus that causes AIDS. Current military policy allows HIV carriers to remain in the military so long as they are able to perform their duties.

KEYWORDS: MILITARY BUDGET by CNB