Paulson previews agenda for next China talks

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Paulson said the discussions, which will take place in December in Beijing, will advance efforts by the two countries to work on a 10-year cooperative agreement aimed at addressing energy security and environmental pollution issues.

The talks also will seek to make progress in negotiating an investment treaty between the two nations. The two countries announced the launch of the investment negotiations in June at the last round of high-level talks in Annapolis, Md.

The investment negotiations are not expected to be concluded until the next administration is in office.

Paulson refused to say whether he had received any types of assurances from either the Democratic or Republican presidential candidates on whether they would continue the talks, known as the Strategic Economic Dialogue. Paulson was the leading force in getting the discussions started when he took over as President Bush's third Treasury secretary in 2006.

He said his discussions with Democratic Sen. Barack Obama and Republican Sen. John McCain were "private and off the record."

Paulson also refused to answer questions on whether this week's plunge in the stock prices of Fannie Mae and Freddie Mac made it more likely the administration will have to help bail out the mortgage giants. The Treasury Department last month gained the authority to boost Fannie and Freddie through an investment or a loan should the companies need a financial boost due to soaring losses from bad mortgages.

"I am here to talk about China," Paulson said on a conference call with reporters to discuss an article he had written for Foreign Affairs magazine. "We are not going to speak about Fannie and Freddie."

Asked whether he was seeing in the financial data any less willingness from foreigners to hold U.S. investments, Paulson said he had been conferring with foreign officials to explain the actions the government is taking to deal with the severe credit crisis that hit a year ago.

"I talk with Europeans. I talk with Asians and I talk with the people in Latin America," he said. "It is important that they understand what is going on in the markets."

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