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US candidates' debate to go ahead US candidates' debate to go ahead
(about 2 hours later)
US Republican presidential hopeful John McCain will attend a debate with rival Barack Obama, reversing a decision to delay it over the financial crisis. US Republican presidential hopeful John McCain will attend a televised debate with Barack Obama, reversing a move to delay it over the financial crisis.
Senator McCain had vowed not to attend the forum until a financial bailout deal was agreed in Washington. Senator McCain had vowed not to attend the forum in Oxford, Mississippi, until Congress approved a bail-out plan for US banks and financial institutions.
However, his campaign said that enough progress had been made for the head-to-head to take place. However, his campaign said that enough progress had been made for it to occur.
Democratic leaders in Congress earlier criticised Mr McCain over his intervention in the deal negotiations. Democratic leaders in Congress earlier criticised Mr McCain for his appearance there during efforts to agree a deal.
The Senate majority leader, Harry Reid, said the "insertion of presidential politics" had so far been harmful to talks aimed at passing a $700bn (£380bn) government plan to bail out troubled US banks and financial institutions. The Senate majority leader, Harry Reid, said the "insertion of presidential politics" into the delicate negotiations had been "harmful".
Mr McCain and his Democratic rival were among a number of Congressional leaders who met President George W Bush on Thursday evening to discuss the package. All [John McCain] has done is stand in front of the cameras - we still don't know where he stands on the issue Senator Harry ReidSenate Majority Leader class="" href="/2/hi/americas/7638320.stm">Who will show best in the debate? class="" href="/2/hi/americas/7637321.stm">How should foreign policy change?
A spokesman for Mr McCain said that after the debate in Oxford, Mississippi, the senator for Arizona would return to Washington to resume negotiations on the rescue plan. Talks between Congressional leaders and President George W Bush on a proposed a $700bn (£380bn) package resumed on Friday morning after ending in deadlock on Thursday evening.
The government's proposal ran into renewed difficulties when some Republican Congressmen withheld their approval, offering an alternative scheme.
In a statement on Friday, President Bush conceded that there were disagreements over aspects of the plan, but stressed everyone agreed something substantial had to be done.
'Tough debates'
Less than 10 hours before the debate at the University of Mississippi was scheduled to start, Mr McCain's campaign announced it was "resuming all activities" and that the senator would travel there on Friday afternoon.
The senator was now optimistic that there had been "significant progress towards a bi-partisan agreement" on the bail-out, it said.
Mr Obama has already left Washington for the debate in Mississippi
"Following the debate, he will return to Washington to ensure that all voices and interests are represented in the final agreement, especially those of taxpayers and homeowners," it added.
The campaign also defended Mr McCain's intervention in the negotiations on Thursday evening, saying that until then there had been no deal "that included adequate protections for the taxpayers".
The US Commission on Presidential Debates had earlier warned that Friday's debate would go ahead with or without Mr McCain. Mr Obama has always insisted he would attend the event and has already left.
The topics for the debate are national security and foreign policy, considered Mr McCain's strengths, although correspondents say the financial crisis is almost certain to be discussed.
An adviser to Senator Obama said the debate offered the Republican hopeful a "major home-court advantage".
[Barack Obama] was able to, I think, with his eloquence inspire a great number of Americans - so these are going to be tough debates Senator John McCain
"Anything short of a game-changing event will be a key missed opportunity for him," Robert Gibbs said.
Earlier this week, Mr McCain anticipated a major challenge, citing his rival's oratory skills and victory in the Democratic nomination race.
"He's very, very good. He was able to defeat Senator Hillary Clinton, who as we all know is very accomplished," Mr McCain said.
"He was able to, I think, with his eloquence inspire a great number of Americans. So these are going to be tough debates."
'Political theatre'
Earlier, Mr McCain was accused by angry Democrats in Congress of interfering in the financial crisis talks in order to try to promote his electoral fortunes.
"The insertion of presidential politics has not been helpful... It's been harmful," said Senate majority leader Harry Reid.
Senators Harry Reid and Chris Dodd lay out their terms
"A few days ago I called on Senator McCain to take a stand - let us know where he stands on the issue, on this bail-out," he added.
"But all he has done is stand in front of the cameras. We still don't know where he stands on the issue."
The head of the Senate banking committee, Christopher Dodd, meanwhile described the meeting as a "photo opportunity and political theatre that had nothing to do with us getting to work".
Mr Obama also pointed a finger at his rival for the faltering outcome, saying: "When you start injecting presidential politics into delicate negotiations, then you can actually create more problems rather than less."
Mr McCain's campaign accused the Illinois senator of playing politics and said there "never was a deal" and more work was needed to get both Republicans and Democrats on side.
You can follow a live text and video commentary of the first presidential debate from 0100 GMT on the BBC News website.You can follow a live text and video commentary of the first presidential debate from 0100 GMT on the BBC News website.