Senators Agree To Postpone Vote On Chinese Currency.

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Sens. Charles Schumer, D-N.Y., and Lindsey Graham, R-S.C., said Thursday they have agreed to postpone a vote on legislation that would impose a 27.5-percent tariff on Chinese imports if China does not re-value its currency.

The senators announced they hope to vote on the legislation before the end of the session, after meeting Thursday with Treasury Secretary Snow and Federal Reserve Chairman Greenspan.

"After talking with Secretary Snow and Chairman Greenspan a number of times over the last few months, including today, I'm convinced we're making progress on this issue," Schumer said in a statement.

"As a result we want to show some flexibility in giving these new efforts between China and the United States a chance," he added.

The new deadline releases Senate Majority Leader Frist from a commitment he made to schedule a vote on the bill before the end of July, after the Senate earlier this year defeated a motion to table the amendment when it was offered to a State Department authorization bill.

The Treasury Department has already warned China it likely will issue a finding that China is manipulating the value of the yuan in an October currency report, unless China takes steps in the meantime.

The agreement by Schumer and Graham to postpone a vote on their bill likely ensures that Treasury will have a chance to issue that report before the Senate vote.