"We just want to make sure that we let everybody know that the president did not suggest a quid pro quo, but he did talk about the merits of free trade," White House press secretary Dana Perino told reporters.

Detroit has asked for up to $25 billion in additional loans to stave off collapse. U.S. auto sales are plunging and General Motors Corp, Chrysler LLC and Ford Motor Co, are burning through billions of dollars of cash monthly.

Top congressional Democrats asked Treasury Secretary Henry Paulson on Saturday to consider using the $700 billion financial bailout initiative that has so far covered banks and other financial services companies to help automakers as well.

A collapse of any of the U.S. automakers would lead to huge job losses. Obama and his team worry there could be huge ripple effects on an already weakening economy.

Bush, a proponent of free trade, sees the agreement with Colombia as important in part because he also considers the country a crucial ally in Latin America where antipathy toward the United States has grown.

Podesta also said reports of a quid pro quo on the request for a stimulus package and auto industry help were not true.

"The president didn't try to link Colombia to the question of an economic recovery package going forward. They talked about both of them," he said in a briefing with reporters and added he had spoken earlier in the day with White House chief of staff Josh Bolten about the media reports.

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