Schroder in talks with Blair

London - Germany's newly-elected Chancellor, Mr Gerhard Schroder, on his first trip abroad since being confirmed in office, visited…

London - Germany's newly-elected Chancellor, Mr Gerhard Schroder, on his first trip abroad since being confirmed in office, visited the British Prime Minister, Mr Tony Blair, yesterday ahead of a major economic policy speech to business leaders.

Mr Blair greeted Mr Schroder (54) on the doorstep of his official residence at 10 Downing Street. A spokesman said they were meeting with just an interpreter present before being joined by their officials for a wider session followed by lunch and a joint news conference.

Mr Schroder drew on Mr Blair for his successful election campaign against Dr Helmut Kohl, but there has been strong speculation that a gap is emerging between them over economic policy. British officials deny any divergence but are watching closely to see the degree of influence exerted over Mr Schroder by his Finance Minister, Mr Oskar Lafontaine, whose ideas are well to the left of Mr Blair's.