The Yuletide spirit may be settling in in shopping malls and living rooms across the nation this week, but it won't be making any inroads into the Cambridge City Hall this year.

After a bitter debate last night, concerns that Cambridge's large contingent of non-Christians might be offended by the public display of traditionally religious symbols prompted the City Council to nix a proposal to place a Christmas tree in the City Hall lobby.

The council voted instead to set up a "suitable universal symbol" in the foyer of the building.

"We are a city government of all the people," said Mayor Alice K. Wolf, the council's only Jewish member. "And that without getting into constitutional issues it is very important that this city government try to be a government of all the people. It is very important that people know this is a place for them."

At the meeting, two audience members--one Jewish, the other a self-described atheist--spoke out against the proposal for a tree, saying that the city should not endorse specific religious beliefs.

But Councillor Sheila T. Russell, who sponsored the order calling for the Christmas tree, said she was surprised at the objections. She said the tree was a holiday symbol, with no specific religious conotations.

"We are all taking ourselves too seriously," said Councillor William H. Walsh. "A Christmas tree is not a symbol of religion--it is purely a holiday symbol...I don't think this is something to be offended by."

But other councillors maintained that the city has to respect the religious beliefs of all its residents and try not to offend them.

"People are offended. "We don't get to decide what offends people," said Councillor Edward N. Cyr. "We can have the discussion of church and state later, but we can't tell people not to be offended."

Although the order, as passed, did not specify what type of "universal" symbol should be placed in the lobby, Cyr suggested that a snowman might be in order.