PARIS, June 5: The United States and France hope an agreement will soon be reached on a UN Security Council resolution on Iraq's future, presidents George Bush and Jacques Chirac said on Saturday.

After a one-hour meeting intended to mend relations strained by the Iraq occupation, Mr Chirac said at a joint news conference the two countries had differences over Iraq but agreed on the need for peace.

Thousands of protesters marched through Paris under banners declaring "Bush - terrorist number one!". But they made less of an impact than demonstrations in Rome on Friday as Mr Bush met Italian Prime Minister Silvio Berlusconi.

Britain and the United States submitted a new text on the transfer of power in Iraq on Friday after France and the other veto-wielding members of the UN Security Council, Russia and China, called for improvements.

But Mr Bush said at a news conference in Rome before leaving for Paris: "I'm confident we will get one (a resolution) soon.

"I sense a spirit of unity in terms of working with the new Iraqi government," he said.

He thanked Mr Berlusconi, one of his closest allies in Europe, for helping to negotiate with some Security Council members who opposed the Iraq invasion.

In contrast, presidents Bush and Chirac avoided eye contact with each other during their brief news conference at the Elysee Palace and there was little warmth in their handshakes before cameras.-Reuters