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Children's malnutrition blamed on budget cuts

President Reagan labelled as ''a great exaggeration'' a charge by the Washington-based Food and Research and Action Center.

The center had said Reagan administration budget cuts may have contributed to a sharp increase in malnutrition among children in lower-income families -- and had urged that no further cuts be made.

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''We have not reduced spending to below what it was,'' the President said, ''we have only reduced the rate of increase in spending. We are spending more. . .next year than we did this year.''

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