The ghost of Christmas is a ghost indeed at the U.S. Embassy in Moscow, as the holiday cheer is being cut back due to the U.S. government's continuing budget crisis.


The two-week stalemate between President Bill Clinton and Congress has resulted in a slowdown in embassy functions, including holiday merrymaking.


There have been no embassy-sponsored parties for the two weeks the American government has been partially shutdown, according to Embassy Spokeswoman Olivia Hilton. Ambassador Thomas Pickering has placed a moratorium on embassy-funded receptions, dinner parties and socializing until all employees return to work.


"Celebrations were modified this year because we felt that eating cookies and drinking Russian champagne would be inappropriate," Hilton said. "A number of official functions have been curtailed, a number have not been held."


The partial shutdown also has brought no Christmas cheer to visa and passport seekers. Applicants showing up at the consulate have been turned away, being told that visas are being issued only in emergency situations.


Adding to the holiday anxiety, pay for about half of the embassy's 1,000 employees, including the ambassador's paycheck, will be halted until a budget agreement is reached.


The crisis came about as a result of the failure of Clinton and Republican leaders in Congress to reach a compromise on a plan to balance the federal budget by 2002, leaving some agencies without operating funds.


"This takes a lot of happiness out of the holiday season," said one embassy employee who requested anonymity. "Some people are angry."


To soften the blow, Ambassador Pickering on Friday issued a statement informing cash-strapped personnel that they can apply for cash advances, Hilton said. Russian employees, she said, will continue to be paid in full.


The State Department's financial problems have rebounded around the world. A senior consular official in Washington reported Thursday that a Brazilian soccer team was unable to participate in a tournament in Florida because the players could not get visas. An American couple, the official said, had to cancel a European honeymoon because they could not obtain passports.


Congressmen's traditional holiday trips are also being affected with the embassy saying one such visit to Moscow has been cancelled.


The Washington Post reported that staffers in many embassies who usually handle arrangements for the visiting lawmakers have been furloughed but quoted sources as saying several embassies have called furloughed staff back to work to handle the congressional visitors.