UPDATE 1-Putin hopes for deal on U.S. missile plan

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MOSCOW, Sept 10 (Reuters) - Russian President Vladimir Putin said on Monday he still hoped to reach a compromise with the United States over its plans to set up a missile shield in eastern Europe.

Moscow is unnerved by Washington's plan to deploy interceptor missiles in Poland and a radar station in the Czech Republic, seeing it as a threat to Russia's security.

The United States says it needs to defend itself from missiles possibly launched by "rogue states" such as Iran and North Korea.

"We have not lost all chances yet, there is still a certain degree of healthy optimism," Russian news agencies quoted Putin as telling journalists during a visit to the United Arab Emirates on his way home from a summit in Australia where he held talks with U.S. President George W. Bush.

"As for contradictions, they exist and will exist. It is important not to resort to sabre-rattling and not to bring the case to confrontation. The main thing is to seek a compromise and reach agreement."

Russian and U.S. officials held talks about the plans in Paris on Monday, but the head of the U.S. delegation said there had been no breakthrough.

Putin has invited the U.S. military to use jointly a radar station Russia rents from Azerbaijan and a site in southern Russia instead of the sites in Poland and the Czech Republic.

Washington has not given its final reply yet, and U.S. military experts are expected to visit the Qabala station later this month.

In Paris, U.S. Assistant Secretary of State for International Security and Nonproliferation John Rood told reporters Washington had made new proposals on how both sides might work together on missile defence.

"We made new proposals from the United States for cooperative missile defence activities. And it's something that our Russian colleagues, I think it's fair to say, have agreed to study further," said Rood, who headed the U.S. delegation.

There was no sign, however, that Washington was prepared to back down on its plans to set up the sites in Poland and the Czech Republic, which is what Moscow objects to.

"We are prepared to do things in addition to our plans," Rood said, giving few details on the proposals.

"We have not simply incorporated what our Russian colleagues have proposed. We've had some ideas of our own, some substantial ideas," he told a news conference, but he stuck to Washington's line on pressing ahead with setting up sites in eastern Europe.

"What we've said is we're going forward with our discussions with the Poles and the Czechs," Rood said.

He and his Russian interlocutor, Deputy Foreign Minister Sergei Kislyak, would meet for a third round of talks in early October in Moscow, Rood said, adding that both countries' foreign and defence ministers were also due to meet.

Keywords: RUSSIA US/SHIELD