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Putin backs terror fight, says Russia reforms work 
By Patrick Lannin

SHANGHAI, Oct 19 (Reuters) - Russian President Vladimir Putin affirmed his strong support on Friday for the United States in its war against terrorism, but said the world needed a clear legal mechanism to fight terror groups.

In a wide-ranging address to business leaders on the fringes of the Asia Pacific Economic Cooperation (APEC) forum, Putin also said Russian reforms were bringing greater growth and a more open economy.

Putin will get a chance tell U.S. President George W. Bush directly of his support when the two leaders meet on Sunday, but he told the business leaders his backing for Washington was firm.

"We have declared our outright support for the United States. If you want to know whether our position has changed, no it has not," he said in a speech punctuated by jokes and showing the confidence of a leader whose national economy is one of the few in the Asia-Pacific region still expanding.

His remarks came after a week in which Russia made friendly gestures to the United States in closing a spying centre in Cuba and confirming its return of a naval base to Vietnam.

Such actions have helped firm ties and Putin's talks with Bush are also expected to be warm.

Rumours have abounded the two countries are close to a deal on the tricky issue of missile defence systems, one of the key questions which divide them, but a close Bush aide played down expectations of major breakthroughs on Sunday.

"They're moving steadily along, but there certainly isn't any expected agreement or anything like that," U.S. National Security Adviser Condoleezza Rice said after Bush and Chinese leader Jiang Zemin held a news conference.

REFORMS PAYING OFF

Putin said on Friday the fight against terrorism would be helped by having legal mechanisms to say what counts as a terrorist act.

"Today the threats are so severe and so global that they need a quick and adequate response. Unfortunately, the legal instruments do not exist today to give us (this) possibility," he said.

"The fight with terrorism should be multi-faceted and long-term."

He said globalisation should not create new bases for terrorism by impoverishing countries.

As for Russia, Putin said tax cuts and investment-boosting laws were paying off in faster ecomic growth. He saw gross domestic product (GDP) rising up to 5.8 percent this year and Russia exporting grain for the first time in decades.

"Today, Russia sees itself as a vital part of the world economic system and is ready to work with its partners to guarantee its stability, security and solidity," he said.

Russia was also ready to take part in big projects to supply oil and gas to Asia, where demand is expected to grow, and help transport projects such as connecting the railway systems of North and South Korea to Russia.

Putin answered a range of questions after his set speech and joked with one member of the audience, who asked what the youth of Russia thought about today's world.

"By asking me what the young people of Russia think you add me to their ranks, which is also very pleasant," he said.

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