KENNEBUNKPORT, Maine (AP) -- Vladimir Putin, fiercely opposed to U.S. plans for missile defense in Europe, tried out new Russian alternatives on President Bush on Monday. Bush called the ideas "innovative" but said the U.S. still wants to anchor the defense in Poland and the Czech Republic.

The two leaders, meeting at the oceanfront compound of Bush's father, sought to restart U.S.-Russian relations after months of acrimony.

"Do I trust him? Yes, I trust him," Bush said about Putin, who stood alongside him on the lawn of the estate that overlooks the rocky Atlantic coast. "Do I like everything he says? No. And I suspect he doesn't like everything I say. But we're able to say it in a way that shows mutual respect."

On Putin's missile defense ideas, Bush said: "I think it's very sincere. I think it's innovative. I think it's strategic. But as I told Vladimir, I think that the Czech Republic and Poland need to be an integral part of a system."

Last month, Putin surprised Bush in Germany by proposing a Soviet-era early warning radar in Azerbaijan as a substitute for the radar and interceptors the United States wants to place in Poland and the Czech Republic. Washington has been clear it doubts the Azerbaijan facility is up to becoming a substitute.

The Russian leader fleshed out his suggestion on Monday.

Putin proposed possibly modernizing the Azerbaijan station. He suggested bringing more European nations into the decision-making process about how the shield is structured, and maybe incorporating a radar system in southern Russia. He suggested information-exchange centers in Moscow and possibly Brussels as a way to strengthen the Washington-Moscow national security relationship.

"The relationship of our two countries would be raised to an entirely new level," Putin said.

Bush said he agreed with having a more regional approach to missile defense, but he didn't budge on his desire to put installations in Poland and the Czech Republic, something Russia has opposed.

Stephen Hadley, Bush's national security adviser, acknowledged that the two leaders do not have completely "harmonious" views about missile defense. But he said Putin's idea showed the Russian leader was serious about cooperating on the issue.

Both leaders, who dined on pancakes and omelets for breakfast and curried zucchini soup and chicken salad for lunch, smiled and seemed eager to portray a strong, stable relationship between the two nations. Putin is the first head of state to be hosted at the Maine summer home by President Bush, an attempt to warm relations in a place of sparkling views and summertime weather.

Putin went so far as to say that the striped bass he caught on a morning fishing trip with Bush and his father, former President George H.W. Bush, was a "team effort."

Bush said that while Putin sometimes says things he doesn't like to hear, he is convinced that Putin is telling the truth. He commented on "an amazing transformation" that's taking place in Russia, such as eliminating its debt, growing its middle class and becoming a "significant international player" -- all points sure to resonate with Putin and his pride in his country.

"Is it perfect in the eyes of Americans? Not necessarily. Is the change real? Absolutely," Bush said. "And it's in our interests, the U.S. interests, to have good solid relations with Russia and that's what Vladimir and I have worked hard to achieve."

Trying to portray a solid relationship, Hadley told reporters that the two nations have reached a civilian nuclear cooperation agreement to be signed Tuesday by Secretary of State Condoleezza Rice and Russian Foreign Minister Sergey Lavrov.

The agreement assures countries that want peaceful nuclear power programs that they will have support of the international community as long as they don't contribute to nuclear weapons proliferation. Hadley said there also will be a document addressing the two nations' strategic nuclear forces after the expiration of the START I agreement in 2009.

Bush would not say whether or not the United States and Russia have agreed on tougher sanctions against Iran, saying only that the two countries stand together in opposition to Tehran's nuclear program. He said he is counting on the Russians' support to send a clear message to the Iranians.

"We're close on recognizing that we got to work together to send a common message," Bush said without elaborating.

U.N. Security Council members have begun discussing a U.S. proposal for sanctions against Iran because of its refusal to stop enriching uranium. The U.S., Russia and their fellow permanent U.N. Security Council members, however, have told Iran they will hold off on new sanctions if it stops expanding its enrichment activities while they seek to restart talks about the program with Tehran. Diplomats say the Iranian government has not yet responded to the proposal.

Putin, who has been less willing to rush to imposing tougher sanctions if diplomacy could be effective, said, "I think all of this would contribute to further substantial intercourse on this issue."