George is at one with new friend Angela

GERMANY: President Bush has said the deadline has expired for Iran to respond to a package of incentives designed to halt its…

GERMANY: President Bush has said the deadline has expired for Iran to respond to a package of incentives designed to halt its uranium enrichment programme, accusing Tehran of trying to "wait out" the international community.

Speaking in the German Baltic port city of Stralsund, the constituency of chancellor Angela Merkel, he said the process was now moving on to the UN Security Council because "when we said weeks not months we meant it".

Last month Iran was offered a package of trade and technology incentives on the condition that it cease its enrichment programme which western countries fear will lead to production of a nuclear bomb.

"They think it's a matter of time before people lose their nerve, or a matter of time before different interests are able to influence the process, and I think they're going to be sorely mistaken," said Mr Bush.

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"The door to negotiations is not closed," added Chancellor Merkel, saying that future negotiations could take place should Iran wish it. "If we do not receive a reply, there will be concerted action and specific steps."

The Schröder-era diplomatic row over Iraq seemed like a long time ago yesterday as Dr Merkel pulled out all the stops as host, spoiling her guest with a meal of wild boar and a rare appearance of her publicity shy husband, Joachim Sauer.

As if to underline the new era, Dr Merkel said she enjoyed "open, private talks" with Mr Bush. "We don't have to drag everything out into the market square," she said, in a reference to chancellor Schröder's anti-war election rallies in 2002.

Her discretion seems to have been rewarded by Washington, searching for a new, reliable partner in Europe following the departure of Italy's Silvio Berlusconi and the questions about the future of British prime minister Tony Blair.

Mr Bush greeted his host with a kiss on the cheek and showered her with compliments, praising her "bold vision and heart full of humility".

After a walkabout in the Hanseatic town market square, shaking hands with a carefully screened crowd, the two leaders visited the 13th century church of St Nicholas.

Most locals stayed away from Stralsund, turned into a fortress for the day, with residents in the old town held under virtual house arrest and forbidden even from going out onto their balconies.

Around 500 demonstrators, far fewer than expected, turned out to protest against the visit, including members of the state government of Mecklenburg West-Pomerania.

State premier Harald Ringstorff of the Social Democrats caused a minor incident by suggesting that, as the chancellor had invited the president, Berlin should cover the €12 million cost.

He declined to attend yesterday evening's barbecue in the town of Trinwillershagen. Just 50 of the town's 770 residents were allowed into the barbecue, guarded by 800 security personnel.