Putin proposes missile shield compromise

Russian President Vladimir Putin, bitterly opposed to a US plan for a missile shield in Europe, told US President George Bush today that Moscow would drop its objections if the radar-based system were installed in the central Asian nation of Azerbaijan.

Mr Bush has proposed putting the radar and rockets in the Czech Republic and Poland. Mr Putin told Mr Bush he would drop his threat to retarget Russian missiles on Europe if the United States agreed to put the system in Azerbaijan.

There was no immediate US reaction.

Later, National Security Adviser Steve Hadley called it an "interesting proposal".

"Let's let our experts have a look at it," Mr Hadley said.

Mr Putin told Mr Bush: "This will create grounds for common work," as they met on the sidelines of the G8 summit of the world's eight major industrialised democracies, being held in Heiligendamm, Germany.

Mr Bush, speaking before Mr Putin, said that the Russian president had presented some interesting suggestions and that they would pursue their talks in July when they meet in Kennebunkport, Maine, at the Bush family's oceanfront compound.