During the telephonic conversation, which was initiated by Yeltsin, Jiang condemned the bloody NATO bombing of Chinese embassy, as ``absolute gunboat diplomacy,'' Yeltsin's press secretary Dmity Yakushkin said.

A spokesman for the Russian foreign ministry said, Yeltsin and Jiang discussed the ``further aggravation'' of the situation in Yugoslavia, caused by what Yeltsin described yesterday ``barbaric and inhuman'' bombing of the Chinese embassy.

Yeltsin's foreign policy aide Sergei Prikhodko told mediapersons, Chernomyrdin will continue consultations in Beijing on the framework of a peace plan.

Chernomyrdin returned Sunday from Bonn where he held talks with German Chancellor Gerhard Schroeder,who is expected to pay a visit to Beijing next week.

Protesting against NATO bombing, Beijing has already scaled down Schroeder's state visit to a ``working visit''.

After his return from Bonn, Chernomyrdin had said, important new circumstances related to a peaceful settlement in Kosovo emerged during the talks in Germany.

``I can say, there are some encouraging results from the conversation with Yugoslav President Slobodian Milosevic, but I will not say anything yet'', Itar-Tass news agency quoted Chernomyrdin as saying.

Russian media said, Yeltsin is concerned that Chinese anger over the embassy bombing may affect Russian efforts for a diplomatic solution to the Kosovo crisis.

As a permanent member of the Security Council, China is a veto power, and it could block the peace deal, reached last week by G-8 foreign ministers.

Jiang has already made Chinese stand clear that the Security Council should not discuss any peace plan for Kosovo unless NATO ceases bombings.