China said it would allow a second meeting between US diplomats and 24 detained American air crew on Friday, the US embassy said in Beijing, as diplomatic efforts intensified to end the standoff.

It was the first concrete sign of progress since US and Chinese leaders sought to cool a growing crisis that threatens to spin out of control and unravel China-US ties.

The spokesman said the meeting would take place at 4 pm (0800 GMT) in Haikou, capital of Hainan Province, where a US spy plane with 21 men and three women aboard made an emergency landing on Sunday after a mid-air collision with a Chinese fighter.

Earlier, Chinese President Jiang Zemin called on leaders on both sides to place top priority on China-US ties and find a solution.

US President George Bush, too, spoke of the need to preserve relations.

"I want to emphasize that Chinese and US leaders should manage this situation with maximum interest in bilateral relations in order to find an adequate solution," Jiang told reporters in Chile at the start of a 12-day tour of Latin America.

GOOD SIGNS

Bush sought to make it easier for Chinese leaders to allow the release of the air crew by publicly expressing regret for the loss of a Chinese pilot.

China has demanded an apology for the collision, which it says was caused by the US plane veering towards the fighter.

"I regret that a Chinese pilot is missing and I regret that one of their airplanes is lost. Our prayers go out to the pilot, his family," Bush told the American Society of Newspaper Editors.

"The message to the Chinese is we should not let this incident destabilize relations. Our relationship with China is very important. But they need to realize that it's time for our people to be home," Bush said.

The Chinese airman bailed out of his F-8 fighter after the collision and is now missing and presumed dead.

The first US contact with the crew came on Tuesday night.

In Beijing, US Ambassador Joseph Prueher prepared for a heavy round of diplomatic contacts. "We are looking forward to a hard-working productive day today," he told reporters. "Yes, it is a good sign and we are having good contacts," he said.

(Agencies)