Key U.S. lawmakers said Thursday both parties in Congress had reached an agreement in principle on the US$700 billion bailout plan in an effort to tide over the current financial crisis.

"We've reached a fundamental agreement on a set of principles," Senator Christopher Dodd told reporters after a two-hour negotiating session.

The principles will give Treasury Secretary Henry Paulson "the authority and funding he needs to act," said Dodd, the Senate's Banking Committee chairman.

"We've also dealt effectively, I think, with the issue of effective oversight, with home ownership preservation, as well as executive compensation," he added.

Rep. Barney Frank, D-Mass, chairman of the House Financial Services Committee also said few difficulties actually remained.

"There really isn't much of a deadlock to break," he told reporters.

(Xinhua News Agency September 26, 2008)