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POLISH LEADER SAYS CABINET WON'T RESIGN

Prime Minister Jan Olszewski announced after a two-hour emergency Cabinet meeting Friday that his government will not resign despite Parliament's rejection of its basic economic policy.

Olszewski told at a news conference that his government stands by its austerity program and will "meet its constitutional duty" to submit a budget to Parliament by March 23.The 2-month-old government suffered a major defeat Thursday night when Parliament, in a 171-138 vote, turned down its plan to cautiously relax the tough market reforms in place in Poland since January 1990.

Olszewski attributed the defeat to "political games."