US President George W Bush has again tried to soothe a row with Russia at the start of a G8 summit in Germany.
President George W Bush has described as "interesting" a proposal by Russia's president for resolving the row over the planned US missile defence shield.
Mr Bush said the row over a missile defence shield was "nothing we ought to be hyperventilating about".
Vladimir Putin said their two countries could use a radar system in Azerbaijan to develop a shield covering all of Europe, during talks at the G8 summit.
Mr Bush, who is to meet Russian leader Vladimir Putin for private talks, again urged Moscow to send generals to the US to be reassured about the plan.
Mr Putin said the base could detect incoming missiles from so-called rogue states aimed at Europe or the US.
Meanwhile, pressure is growing for a deal on climate change with UK PM Tony Blair saying it is still possible.
Russia has been critical of US plans to extend the shield into central Europe.
Tension remains high outside the summit.
Mr Putin has repeatedly scoffed at US claims the defence shield is targeting rogue states, and has said Moscow may in response aim its missiles at Europe.
Anti-globalisation groups called off the main protest planned for Thursday after it was banned.
'Common work'
However, protesters vowed to continue blocking roads until the meeting ended on Friday.
But after the meeting on the fringes of the summit in Germany, the Russian leader said the threat to re-target Russian missiles could be withdrawn if Washington agreed to use the former Soviet radar base at Gabala in Azerbaijan.
This will make it possible for us not to change our stance on the targeting of our missiles Vladimir Putin
Several police were hurt on Thursday as officers fired water cannon at stone-throwing demonstrators.
"This will make it possible for us not to change our stance on the targeting of our missiles," Mr Putin said. "On the contrary, this will create the necessary grounds for common work."
Two boats operated by environmental group Greenpeace were intercepted as they broke into a Baltic Sea cordon to try to deliver a message to G8 leaders.
"This work should be multi-faceted with the engagement of the states concerned in Europe."
For a short time on Wednesday protesters had cut off all ground access to the summit. Scores were arrested as police tried to clear roads.
Mr Putin added that if Washington and Moscow co-operated transparently on missile defence, "then we will have no problems".
Some 16,000 officers have been deployed to deal with what are estimated to be around 6,000 protesters.
Mr Bush said his Russian counterpart had presented some interesting suggestions and that they would discuss the issue further during two days of talks beginning on 1 July in Kennebunkport, Maine.
Rogue states
"We both agreed to have a strategic dialogue," he said.
Mr Bush and Mr Blair held a breakfast meeting on Thursday ahead of the full talks in Heiligendamm.
"This is a serious issue."
Mr Bush said he was looking forward to his private meeting with Mr Putin on Thursday afternoon.
Mr Bush's national security adviser, Stephen Hadley, said the Russian proposal was a "positive development".
The US president said he would tell his Russian counterpart that the missile defence shield is "not something we should hyperventilate about".
He said it showed President Putin acknowledged the potential threat from rogue states and that officials from Russia and the US would sit down in the future to discuss the development of the shield.
"Let's let our experts have a look at it," Mr Hadley told reporters.
Mr Bush said: "I will reiterate the proposal I made: Send your generals to the US, send your officials to the US and hopefully that will clear things up."
The US says its shield, which will include facilities in two former Soviet satellites, the Czech Republic and Poland, is targeted at rogue states like North Korea and Iran, not Russia.
Mr Bush said: "We're not at war with Russia. Russia is not a threat."
He also sought to play down earlier criticism of Russia's record on democracy saying Russian society had "moved a long way since the Soviet era".
Mr Putin has scoffed at US claims the defence shield is targeting rogue states and says Moscow may in response aim its missiles at Europe.
Mr Bush also insisted the US would play a full role on climate change but said that any global accord would have to include key developing nations.
"Nothing is going to happen in terms of substantial reduction unless China and India participate," he said.
Police intercept protesting Greenpeace boats
Mr Blair was upbeat, saying there was a "very substantial coming together" on climate change.
"It is possible that we leave this summit - I am not saying that will happen - with a commitment on the part of everyone to substantial reductions in greenhouse gas emissions by 2050," he said.
Climate change will form the afternoon debate, with German Chancellor Angela Merkel pressing for industrialised nations to increase fuel efficiency by 20% and limit the world's temperature rise to 2C above pre-industrial levels.
Other key issues will be Kosovo, African poverty and Iran's nuclear programme.
BBC diplomatic correspondent James Robbins says all G8 summits expose contentious issues but not usually as many as this one.
Russia is expected to fight plans for Kosovo to be granted a high level of independence, our correspondent says.
