Bush warns Europe not to lift arms embargo against China

BRUSSELS, Belgium -- President Bush and European leaders settled simmering differences about Iraq but plunged into a troublesome new dispute Tuesday over the lifting of an arms embargo against China. Bush warned Congress might retaliate if Europe revokes the 15-year ban.

Bush said lifting the embargo, imposed after the bloody 1989 Tiananmen Square crackdown on pro-democracy activists, "would change the balance of relations between China and Taiwan and that's of concern." But French President Jacques Chirac and German Chancellor Gerhard Schroeder said the ban should go. "It will happen," Schroeder said.

The China quarrel was a jarring note on an otherwise upbeat day of reconciliation, handshakes and hopes for better relations.

"First time I've been called charming in a while," Bush said after a NATO summit. He also met with leaders of the 25-nation European Union. "Europe and America have reconnected," EU's European Commission President Jose Manuel Barroso said afterward at a news conference.

NATO show of unity

In a show of unity after bitter disputes, all 26 countries in NATO pledged money, equipment or personnel to train Iraqi security forces, though many of the pledges were modest.

The European Union and the United States, meanwhile, agreed to jointly hold a conference to rally and coordinate international aid to Iraq.

Bush's broad unpopularity in Europe because of the U.S.-led invasion was evident in the protests on the streets of Brussels.

Many Europeans also are nervous about a possible U.S. strike against Iran to stop its suspected nuclear weapons program, and Bush gave mixed signals about American intentions.

"This notion that the United States is getting ready to attack Iran is simply ridiculous," the president said with a slight smile. "Having said that, all options are on the table."

He made a similar statement last week, saying a president never says never about military action.

Europe is trying to persuade Iran to abandon its uranium enrichment program in return for technological, financial and political support. The United States, reluctant to reward Iran, has refused to get involved in the bargaining and has suggested asking the United Nations Security Council to impose sanctions.

"It's in our interests for them not to have a nuclear weapon," Bush said.

Schroeder said he urged Bush to fully back Europe's diplomatic approach toward Iran.

"We have to go down the road of negotiations together," the chancellor told reporters.

Bush also signaled his unhappiness with Putin's retreat from democracy.

"It's very important for President Putin to make very clear why he's made some of the decisions he's made, and as well as respect his neighbors," Bush said. "I'm confident that can be done in a cordial way."

Putin, speaking in Moscow, defended his approach.

"Russia chose democracy 14 years ago not to please anyone, but for its own sake, for the sake of the nation and its citizens," Putin said. "Naturally, basic principles and institutions of democracy must be adapted to today's realities of Russian life, to our traditions and history."

Before Bush's trip, Congress sent a clear warning to Europe about lifting the arms embargo on China. In a resounding 411-13 vote, the House said revoking the ban would endanger both Taiwan and U.S. troops stationed in Asia and would harm U.S. relations with Europe.

Hinting at trade retaliation, the House resolution noted that the United States and Europe cooperate on the governmental and industrial level. It said lifting the embargo "would necessitate limitations and constraints in these relationships that would be unwelcome on both sides of the Atlantic."

Bush said he understands that the Europeans are working on a way to address U.S. worries about allowing China to modernize its military with arms and communications, intelligence and surveillance equipment that would give Beijing an edge over Taiwan.

"They know the Congress is concerned," Bush said. "And so they'll try to develop a plan that will ease concerns. Now, whether they can or not, we'll see."

Chirac said security guarantees could be worked out.

In Beijing, Chinese Foreign Ministry spokesman Kong Quan said that abolishing the "erroneous and outdated measure" would help move forward China-EU relations.