Poland spurned as insufficient on Friday a U.S. offer to boost its air defenses in return for basing anti-missile interceptors on its soil but said it remained open to talks with Washington.

The decision by Poland, a staunch NATO ally, is a setback for the Bush administration drive to counter perceived threats from what Washington calls "rogue states," particularly Iran.

"We have not reached a satisfactory result on the issue of increasing the level of Polish security," Prime Minister Donald Tusk told a news conference after studying the latest U.S. proposal.

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Source (British): Reuters