Russia, U.S. need talks despite missile row: Medvedev

By Jeremy Pelofsky and Oleg Shchedrov

TOYAKO, Japan (Reuters) - Moscow and Washington should keep up dialogue despite failing to overcome differences on U.S. missile defense plans in Europe, a key irritant in ties, Russian President Dmitry Medvedev said on Monday.

"There are certain questions on our agenda where we agree, and these are the matters pertaining to Iran and North Korea," Medvedev said after meeting U.S. President George W. Bush for the first time on the fringes of a Group of Eight rich nations' summit in northern Japan.

"But then certainly there are others with respect to European affairs and this missile defense where we have differences," Medvedev, who took office in May, told reporters after his hour-long meeting with Bush. "We would like to agree on these matters as well."

The assertive foreign policy of Medvedev's predecessor Vladimir Putin, who presided over eight years of economic boom in Russia, has put Moscow at odds with Washington over a series of issues ranging from Kosovo to NATO expansion.

Still, warm personal ties between Bush and Putin helped prevent disagreements on specific issues from souring bilateral relations overall.

Russia watchers were keen to see whether Medvedev would follow suit, and the new Russian leader made clear he would.

Bush, whom Medvedev called by his first name, was equally keen to show a budding relationship with the new Russian leader, whom he described as "confident".

"I believe that when he tells me something, he means it," Bush said.

Medvedev's chief foreign policy adviser, Sergei Prikhodko, described the conversation between Medvedev and Bush as "friendly, constructive and open".

"The main result is that the leaders confirmed they are firmly committed to the existing formats of cooperation important for both bilateral relations and the situation in the world," he told reporters.

"The leaders stressed the importance of top-level political contacts," Prikhodko said.

DISAGREEMENTS PERSIST

Despite the generally positive tone of the meeting, Moscow's frustration over U.S. plans to deploy elements of its missile shield in Europe showed through.

The United States is due to sign a treaty this week with the Czech Republic to build a missile defense radar there. Washington is also negotiating to put 10 interceptor rockets in Poland that it says will protect the United States and European allies from threats from "rogue states" such as Iran.

But Russia rejects this and says the whole project threatens its national security.