However the resolution, which calls for the resumption of the stalled Six-Party Talks, was immediately rejected by the DPRK, which said its army "will go on with missile launch exercises as part of its efforts to bolster deterrents for self-defence in the future."

The two leaders also talked about the current Middle East conflict, as well as bilateral economic relations.

Their discussions were the continuation of the dialogue that began in Washington, said Bush.

Describing the talks as "friendly and candid," Hu said he is "satisfied" with the discussions.

"We both believe the two nations should respect and consider each other's concerns and handle sensitive issues in bilateral relations properly," he said.

The two leaders are also expected to attend an outreach session of the G8 summit slated for today, when the eight heads of the industrialized countries and other invited leaders from developing nations such as South Africa, Brazil, Mexico and India will hold discussions on global energy security, prevention and control of infectious diseases, education, Africa's development and other topics.

At the G8's annual summits economic themes are supposed to prevail, but are often overshadowed by global politics. At this year's session the DPRK's recent missile tests and the nuclear crisis in Iran are expected to be inevitable topics.

Besides Bush, Hu also met with presidents of South Africa and the Republic of the Congo yesterday, exchanging views on bilateral relations and major international and regional issues of common concern.

Meanwhile, Hu and leaders of other five developing countries also met to discuss ways to deepen South-South co-operation.

Hu will meet with Russian and Italian leaders today. He will also attend the first trilateral summit meeting of leaders of China, India and Russia, which will be attended by Indian Prime Minister Manmohan Singh and Putin today.