Guantanamo row to cast shadow over EU-U.S. summit

BRUSSELS, June 19 (Reuters) President George W Bush meets EU leaders this week seeking to bolster cooperation in fighting terrorism, but he will also hear loud calls for closure of the Guantanamo prison camp and for easing US visa requirements.

Bush will be in Vienna for an annual European Union-US summit on Wednesday at which issues trade and investment and securing long-term energy supplies will also be on the agenda.

Trans-Atlantic tensions have eased since a split between Washington and many EU countries in the run-up to the Iraq war, raising hopes the two powers can jointly push key interests including attempts to crack down on terrorism financing.

But differences remain, notably over Guantanamo and European concerns that the fight against terrorism is making the United States more protectionist, leading to attempts by Congress to tighten rules on foreign ownership of US companies.

Johannes Laitenberger, a spokesman for European Commission President Jose Manuel Barroso, said Brussels agreed with Washington that terrorism was a global threat.

''But we must be sure that in combating terrorism we do not ourselves damage our democratic and legal systems. Nobody should be in a legal vacuum,'' he told reporters on Monday.

Last week, current EU president Austria said the deaths of three Arab detainees at Guantanamo further underlined the need to close the US prison camp, which holds about 460 foreigners.

''But I would like also to point out that there is quite a lot in the way of positive deliverables we are expecting (from the summit),'' Laitenberger said.

ENERGY, TRADE Topics in Vienna include strengthening EU-US cooperation when dealing with energy providers such as Russia and trying to narrow differences that are blocking the World Trade Organisation's Doha round to boost global commerce.

The two sides are also likely to agree to start discussing climate change, which would be a success for Europe after years of failing to get Washington to talk about global warming.

Bush will also discuss US and European attempts to persuade Iran to curb sensitive nuclear activities but leaders of key EU players Germany, France and Britain will not be in Vienna, meaning no decisions are expected.

''I think what you'll hear is simply an opportunity to assess where we're headed with the EU leadership and a reaffirmation of where we are (on Iran),'' U.S. National Security Advisor Stephen Hadley told reporters in Washington last week.

Bush will also face fresh calls from the EU to relax immigration rules which exclude citizens of most of the bloc's 10 mostly former Communist new members from visa waivers that are enjoyed by almost all of its older 15 member states.

An EU official said retaliatory measures -- such as requiring US military and diplomats to seek EU visas -- remained an option if there is no ''clear commitment'' by the United States in Vienna to ease its restrictions.

REUTERS MP PM2248