WASHINGTON — President George W. Bush and US congressional Democrats were at loggerheads yesterday as they sparred over when, where and under what conditions they would meet to discuss the Iraq war.Bush is expected to shun an offer by Senate Democrats to meet Friday in Congress, while Democrats are balking at the president's suggestion to brief Democrats next week at the White House because Bush has said there will be no negotiation.

"It can't be his way or no way," said Senate Democratic Majority Leader Harry Reid.

At stake is some $96 billion needed by the Defence Department to finance the wars in Iraq and Afghanistan through the end of September. The Democrats have agreed to approve the money, but want Bush to agree to bring troops home sometime next year; Bush has refused negotiations on the matter, and congressional Republicans have promised to help sustain the president's inevitable veto.

With both sides refusing to back down, the Pentagon says the delay will soon force the Army to begin scaling back upgrades of barracks, repair and maintenance of equipment as well as training of Guard and Reserve units. In a letter to congressional appropriators, Defence Secretary Robert Gates said budget problems would be compounded by the increased number of troops fighting in Iraq.

"Spending rates are higher and, therefore, the impact of a delayed spring supplemental is occurring earlier and is greater in magnitude," Gates wrote.

According to the non-partisan Congressional Research Service, Bush and Congress have several more weeks to produce a bill before the stand-off would adversely affect operations in Iraq.

Despite the urgency, Bush has no plans of going to Capitol Hill to meet with Reid and other Democrats.

"The president of the United States and the commander in chief of our troops yesterday invited the bicameral and bipartisan leadership of the US Congress to meet with him at the White House to discuss how they will get a clean bill to his desk to fund the troops," said Dana Perino, White House deputy press secretary.

"There is a meeting next Wednesday afternoon, and the president looks forward to meeting with those who attend," Perino said.

According to a White House official, all nine members of the bicameral and bipartisan leadership, except for the leader of the House of Representatives, Speaker Nancy Pelosi, have so far confirmed their attendance at the Wednesday meeting at the White House.

Reid's spokesman said the majority leader was open to the invitation when he thought it was the usual monthly meeting to discuss a range of issues. But both Reid and Pelosi have indicated they might decline the invitation if Bush wants to speak only about the war and refuses to listen to their side.

"We owe the American people more," Pelosi told reporters in San Francisco. "We owe them a discussion of how we wind down this war and that's a discussion we would like to have with the president."