It also cannot simply walk away from the interventionist financial diplomacy of the Clinton administration.

Mr. Soros says self-interest played no part in his financial diplomacy during the meltdown.

But thus far, the administration's financial diplomacy has yet to produce any tangible results.

Having failed to budge Chinese leaders with polite financial diplomacy, administration officials are struggling to find ways to apply pressure without resorting to import barriers.

After nearly two years of fruitless financial diplomacy toward China over exchange rates, the Bush administration faces a growing rebellion from Congress.

"Our policy of aggressive engagement with China and financial diplomacy is making progress."

The direct American language marked at least a partial abandonment of the Bush administration's two-year attempt to cajole China, using "financial diplomacy."

John B. Taylor, the under secretary of Treasury for international affairs, told the Reuters news agency today that the administration preferred "financial diplomacy."

"You can see it as a constructive initiative, which I'm sure was cleared with the Germans," said Cary Clyde Hufbauer, professor of financial diplomacy at Georgetown University.

"I think the financial diplomacy here of the sort that we are engaged in is the surest course to get the result we want."