'It's not buttoned down yet - we're still working through a number of issues. Discussions will continue this morning,' said the official, who requested anonymity.

'We made progress and hope to continue making progress. We want to move quickly, but it's most important that we get the policy right,' said the official, who refused to detail the sticking points.

White House and congressional negotiators held talks well into the night on Monday after Democrats who control the Congress unveiled a US$15-billion-dollar (S$22 billion) package to help battered US automotive giants, the official said.

The proposal offered less than half of the US$34 billion General Motors, Chrysler and Ford said they would need to stave off a 'catastrophic collapse' of the nation's automotive industry.

The low-cost, government-backed loans - which would give the government an ownership stake in the firms - were intended to sustain the troubled car giants through March, allowing president-elect Barack Obama time to address the problem after he takes office on January 20.

Officials close to the negotiations said earlier Monday that the US Congress could pass the rescue package, which calls for massive restructuring and strict government oversight, by Wednesday.

But the Washington Post, citing congressional officials, said the White House objected to requirements that carmakers notify Washington of any transaction of more than US$25 million and that they pull out of lawsuits against states trying to enforce tougher tailpipe-emissions standards.

Another simmering debate has centered on the definition of 'viability,' as both sides say they want to make sure that taxpayer monies only go to companies with a credible shot at long-term survival. -- AFP