Anger in streets over Bush, economic policies as leaders gather

MAR DEL PLATA, Argentina (CNN) -- Protesters set one building on fire Friday and threw objects at police in the streets of this resort city as the leaders of 34 nations began the fourth Summit of the Americas.

Video showed flames and smoke on the bottom floor of one multistory building just blocks from the summit site.

CNN Producer Alec Mirian said that in response to the violence police officers showed up on motorcycles followed by officers on foot in riot gear.

Many of the protestors wore bandanas and carried wooden sticks several feet long, while some had rocks. Some threw small explosives similar to Molotov cocktails.

The demonstrators retreated after about an hour, and two hours later there was an eerie calm on the streets just before sundown, Mirian said.

Earlier in the day, Venezuelan President Hugo Chavez led thousands of protesters in a rally against President Bush's policies.

Chavez, who U.S. leaders have said is a source of instability in the hemisphere, condemned what he called U.S. imperialism while demonstrators opposed to the Iraq war and U.S.-led trade policies called Bush a "fascist" and a "terrorist."

Argentine soccer legend Diego Maradona also participated in the protest, wearing a T-shirt accusing Bush of war crimes. (See video of the protest -- :28)

Chavez, a left-leaning populist, routinely denounces Bush as "Mr. Danger" and refers to the United States as "the Empire."

Bush was expected to see Chavez at the summit later in the day. At a brief news conference, Bush said he would be "polite."

He also said he viewed his participation in the summit as an "opportunity to positively affirm our belief in democracy and human rights and human dignity."

Bush said he was gratified by his meetings with leaders of several Central American countries, which he described as "young democracies" eager to implement a free trade agreement.

Bush's first meeting Friday was with leaders of nations that joined the Central American Free Trade Agreement. CAFTA was narrowly approved by Congress in July after an intense push by the White House. (Full story)

No comment on leak scandal
Bush began his day with praise for Argentine President Nestor Kirchner and, at a joint news conference, made an apparent reference to his unpopularity in the region.

"It's not easy to host all these countries -- particularly not easy to host, perhaps, me. But thank you for doing it," Bush said to Kirchner.

The Argentine president, speaking through a translator, said the two had "a very important meeting" and were "quite candid" in discussions on numerous issues "related to our bilateral relations."

Neither leader took questions at a brief media appearance together.

Later, speaking alone with reporters, Bush deflected questions about political problems at home. It was the first time he had taken questions since the indictment of I. Lewis "Scooter" Libby, Vice President Cheney's former top aide.(Watch: Bush leaves, troubles follow -- 2:27)

Bush said he would not talk about the indictment, or the future of his chief political adviser, Karl Rove. (Full story)

Economics on the agenda
One of the top economic issues for Friday's host nation involves the International Monetary Fund.

Argentina is seeking a new IMF loan agreement like the one that helped the country out of a major economic crisis in 2002. Argentine leaders have complained that they're not getting the kind of deal they need now.

"The president was quite firm in his belief that the IMF ought to have a different attitude toward Argentina," Bush said.

He did not express support for Argentina's position, instead sticking by previous assertions that he would leave that between Argentina and the IMF.

Bush said Kirchner has made "wise decisions" that helped Argentina's economy change "in quite dramatic fashions." He added that Kirchner's economic track record makes it possible for him to "take his case to the IMF with a much stronger hand."

Chavez leads rally
"Peoples of the Americas are rising once again, saying no to imperialism, saying no to fascism, saying no to intervention -- and saying no to death," Chavez yelled to the cheering crowd of demonstrators.

Carrying anti-U.S. signs and large images of regional figures such as Marxist rebel Che Guevara, thousands of protesters began their march on the streets and then moved into Mundialista Stadium, where Chavez led the rally.

Among the other ways Chavez has chosen to tweak Washington's nose is by embracing Cuban President Fidel Castro, who was not invited to the summit because the communist leader is not recognized as an elected head of state.

U.S. officials downplayed any Bush-Chavez subplot at the proceedings.

"This summit is not about Hugo Chavez," U.S. national security adviser Stephen Hadley told reporters Wednesday. "We've had some long-standing concerns about the policy for his government. This is not news."

Early in the day, thousands of protesters had welcomed a train bringing a group of fellow demonstrators from Buenos Aires -- including Bolivian presidential hopeful Evo Morales.

Chanting "Fascist Bush! You are the terrorist!" the protesters massed along the sides of the train, trying to shake hands with those inside. (Full story)

The violent protests were not limited to Argentina. Associated Press photographers took images showing police battling demonstrators in Uruguay on Friday.

Controversy over free trade
Bush wants to create a free trade zone throughout the Americas, from Canada to Argentina. He has argued that all nations involved will benefit economically.

But leaders of several nations reject the notion, saying the United States would take advantage of smaller nations. Chavez is one of the most prominent critics.

"We bury the free trade agreement today here," Chavez said at the rally.

Bush will also make stops in Brazil on Saturday and Panama on Sunday.

CNN's Dana Bash, Alec Mirian and Lucia Newman contributed to this report.

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