Missile defence:Russian president Vladimir Putin has told US president George Bush he could ease tensions between Moscow and Washington by relocating America's planned missile defence system in the former Soviet republic of Azerbaijan.
The second day of the G8 summit on the German Baltic coast gave leaders time for bilateral talks that yielded agreement to delay a vote at the United Nations on independence for the Serbian province of Kosovo and a Franco-German deal on the EU constitution, but Mr Putin's novel missile defence plan stole the headlines.
Mr Bush said the suggestion was "interesting", hours after he said there was "no need to hyperventilate" about his existing proposal to locate a radar station in the Czech Republic and a missile station in Poland.
"He is concerned that a missile defence system is not an act that a friend would do," said Mr Bush after the talks. "We both agreed to have a strategic dialogue, an opportunity to share ideas and concerns." Mr Bush has said the missile defence system is intended as a deterrent to "rogue regimes" including Iran. Mr Putin has publicly doubted that explanation and, consequently, has offered a site in Azerbaijan, which neighbours Iran.
White House national security adviser Stephen Hadley said Mr Putin's plan would involve rebuilding a Soviet-era radar system built to protect the Soviet Union from an attack from the south. He hinted that a solution may involve combining both proposals.
German officials said that, despite the diplomatic dispute, there was an "outstanding atmosphere" between Mr Bush and Mr Putin during the meetings.
After bilateral talks with Mr Putin, French president Nicolas Sarkozy said he had suggested a six-month window for negotiations to resolve problems surrounding the status of Kosovo.
Moscow has said that a UN report calling for independence for the breakaway Serb province under international control is unacceptable without Belgrade's consent. Mr Sarkozy suggested that rather than going to the UN now on the matter and risk a Russian veto, Mr Putin could bring together leaders in Pristina and Belgrade over the next six months.
"After these six months things will either have worked themselves out or, if not, we would go to an alternative solution," he said. "It would buy Mr Putin time and not put the international community in a position where it is divided, leaving our troops there with no legal status [ in Kosovo] and increasing the risk of violence breaking out there."
Mr Sarkozy also said he had struck a deal with British prime minister Tony Blair to break the deadlock on a new EU constitutional treaty.
"What we want is a new treaty and not a mini-constitution," said Mr Sarkozy, declining to go into details. As British officials tried to play down the deal, their French colleagues said the two leaders favoured a deal that creates a long-term president and foreign minister but without those titles. They also favour a streamlined decision-making system and reject giving the EU trappings of statehood in the document.
