VEEP ASLEEP: Vice President Dick Cheney gets caught napping yesterday as Defense secretary Donald Rumsfeld and other White House aides leave a press briefing by President Bush and Chinese leader Hu Jintao. The veep's people later insisted he was reading his notes, but if you ask us, it sure looks as if he's dreaming of quail hunting - and maybe bagging some birds this time.








April 21, 2006 -- WASHINGTON - President Bush said yesterday that he and Chinese President Hu Jintao are now able to openly discuss their disputes "with respect" - but there was no sign that any of those disputes got resolved at their White House meeting.

"He tells me what he thinks and I tell him what I think and we do so with respect," Bush said.

Hu vaguely talked about making China's currency more "flexible" but offered nothing close to a demand for a big revaluation of the yuan that could reduce the giant U.S. trade deficit with China.

Later, National Security Adviser Stephen Hadley said the president privately asked Hu to release six specific people now jailed in China - and hinted China might be willing to act on three of them.

Hadley told CNN: "There are six things that we asked them to do. They have indicated that there are three of them that they are prepared to do after this visit. We are not going to be able to talk about them at this point."

He added: "When - obviously, when the Chinese reform - we will make it very clear that these are contributions to the developing dialogue on human rights."

The protocol-conscious Hu got a 21-gun salute, full military pageantry and an elegant lunch, but not the honor he'd sought of an official "state visit" - a signal of U.S. concern over issues like human rights and Iran.

That meant Hu got lower honors than his predecessor, Jiang Zemin, who was granted the honor of a state visit by then-President Bill Clinton in 1997.

As Bush welcomed the Chinese leader, he stressed "the importance of respecting human rights and freedoms of the Chinese people" - a theme that Bush stressed throughout the visit.

"China can grow even more successful by allowing the Chinese people the freedom to assemble, to speak freely and to worship," Bush added.

He made a special point of stressing the need for Internet freedom, the White House said, in an era where Internet giant Google has agreed to let China censor its search engine in order to gain access to the huge Chinese market.

Bush and Hu looked stiff and somewhat ill at ease as they sat in the Oval Office and took a few questions from reporters. Hu gave speeches in reply.

A reporter asked when China will be allowed to be a democracy, and Hu replied: "I don't know what do you mean by a democracy." He added that he favors the "orderly participation" of Chinese citizens.

China expert Derek Mitchell, a former Pentagon China analyst, said: "The expectations weren't terribly high but it's always good to have face-to-face meetings."

But he said the fact that a Falun Gong protester was able to disrupt Hu's arrival ceremony was "a nightmare scenario" that may have put a big chill on the entire mini-summit and made it harder to accomplish anything.

Still, the White House said the Hu-Bush talks were so cordial that the two men decided to break with protocol and sit at the same table for lunch so they could keep talking.

Key issues that were on the table:

* China's currency: U.S. officials say China undervalues its currency by as much as 40 percent, making U.S. products artificially expensive to Chinese buyers and Chinese products artificially cheap for Americans. The result is a huge trade imbalance that hit $202 billion last year. Despite heavy U.S. pressure, China has only slightly upped the value of its currency.

Sens. Charles Schumer (D-N.Y.) and Lindsay Graham (R-S.C.), who recently traveled to China, have a bipartisan bill to slap stiff tariffs on China unless the yuan is revalued.

It's slated for a Sept. 30 vote - meaning they want China to act by then.

* Human rights: Bush reiterated U.S. support for greater freedom for the Chinese people.

White House officials said he didn't specifically refer to the banned Falun Gong spiritual movement. Hu made vague statements about democracy in the world's largest nation.

* Iran: So far, China, like Russia, balks at joining the United States, Britain, France and Germany in supporting tough economic sanctions against Iran unless it ceases nuclear development that could be used to make weapons.

China is a permanent member of the U.N. Security Council, so it's in a position to help - or veto - sanctions. Bush "made a point of this and said that we expected more help," the White House said.

Iran's role as an oil supplier is a key factor. China's burgeoning development and demand for oil is one of the reasons that oil prices are soaring.

* North Korea: Bush also wants China to push harder on North Korea to give up its nuclear ambitions as part of six-party talks that also involve South Korea, Russia and Japan.

Bush said he urged China to use "its considerable influence" with close ally North Korea. U.S. officials say China agrees in theory that North Korea shouldn't have nuclear power but doesn't do enough in practice.

* Trade: Bush pressed Hu to allow U.S. goods the same access to China's market that Chinese goods get here.

Hu contended that Bush could reduce the trade surplus by relaxing restrictions on sensitive high-tech U.S. exports to China. Bush also pressed China to do more to protect U.S. intellectual-property rights and stop the massive illegal piracy of American software and DVDs.

The formal meal of Hu's visit was lunch rather than dinner by mutual agreement, the White House said - with an East-West fusion menu.

It featured butter-heirloom corn broth with seared ginger-scented dumplings, wild-caught Alaskan halibut with sugar snap peas, spring legumes and sweet carrots and Freckles bibb lettuce with grilled eggplant. The dessert was called "a good fortune" and featured "melon three ways" with candied ginger and almond peel plus warm almond cakes.

The wine was a 2002 Newtown Chardonnay.

Bush offered his guest some all-American entertainment - the Nashville Bluegrass Band.

Among the lunch guests: ice skating star Michelle Kwan, actor Ron Silver, Henry Kissinger and Chicago Mayor Richard Daley, plus a who's who of business execs who trade with China. They included Wal-Mart CEO for procurement Lawrence Jackson and Cisco chief John Chambers.




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