BAGHDAD, Iraq, Sept 1, SPA -- Talks to end bitter fighting between U.S. forces and Shiite militants in the Baghdad slum ofSadr City have stalled, with the government refusingmilitant demands for American troops to keep out of thetroubled district, officials said Wednesday. Naim al-Kaabi, a spokesman for rebel Shiite cleric Muqtadaal-Sadr, said a tentative agreement was initially reachedMonday with government negotiators on a six-point proposalthat would have barred American troops from entering SadrCity without Iraqi government permission. But on Tuesday, government negotiators backpedaled,expressing concern that such a deal would incite residentsof other Baghdad neighborhoods or Iraqi cities to also callfor restrictions on the movement of U.S. troops, al-Kaabisaid. A senior Iraqi government official refused to comment whenasked about the issue and other government officials wereunavailable for comment. Maj. Phil Smith, an Army spokesman for the Baghdad-based1st Cavalry Division, said U.S. commanders were notinvolved in any talks and that as far as he was aware, "noagreement has been reached." Al-Kaabi said that al-Sadr representatives were willing tohold further talks to reach an accord and had issued aproposal that would allow U.S. troops to enter Sadr Citywithout government approval only if they were going thereto carry out reconstruction work. He said he hoped to receive an answer from the governmentlater Wednesday.--SPA1211 Local Time 0911 GMT www.spa.gov.sa/197026