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World Bank Directors to Continue Wolfowitz Debate Thursday

Top World Bank officials say they will continue to discuss the fate of Bank President Paul Wolfowitz, after allegations of a conflict of interest grew into a political uproar.

Officials adjourned deliberations on Wolfowitz Wednesday without reaching a conclusion on the future of his job at the Bank. They are scheduled to resume their meetings Thursday.

Earlier, news reports said Wolfowitz was reported to be negotiating the terms of his resignation. The reports cited officials familiar with the talks as saying the terms were being discussed.

A special panel investigating his conduct has said Wolfowitz violated the terms of his contract and bank rules when he arranged a promotion and pay raise for his girlfriend, a bank employee.

White House spokesman Tony Snow has said "all options are on the table" concerning Wolfowitz's future. The remark was interpreted by many news organizations as a signal that the Bush administration was prepared to see Wolfowitz step down.

The apparent shift in White House support follows pressure from European officials, particularly Germans, who have been critical of Wolfowitz and pushed for his removal.

Some information for this report was provided by AFP and Bloomberg.