ABC19980627.1830.0066 NEWS CAPTION Good evening. I'm Aaron brown. at noon today in China, taxi cab drivers pulled to the side of the road to listen to their radios, and shoppers clustered around TVs in electronics stores. Wh fascinated the nation was something not usually heard on the state-controlled media in China -- Frank criticism of their government over its most sensitive issue, human rights. It came from President Clinton, and it was heard live. ABC's Sam Donaldson is in Beijing with the president. There it was, Tiananmen square, with its echoes of bloodshed and martyrdom. And here they were, President Clinton and Jiang Zemin at wco Con the critics said Mr. Clinton should have shunned. The two sides met in the great hall of the people and conferred for over two hours, agreeing to detarget their strategic nuclear missiles so they will no longer be aimed at each other's cities. And China pledged not to devalue its currency, important to shoring up crumbling Asian economies. But the test on human rights came in an extraordinary joint public appearance at which President Clinton hit the sensitive issue of what happened in Tiananmen square head-on. I believe, and the American people believe, that the use of force and the tragic loss of life was wrong. I believe, and the American people believe, that freedom of speech, association and religion are, as recognized by the U.N. charter, the right of people everywhere and should be protected by their governments. China's President Jiang shot back -- with regard to the political disturbances in 1989, had the Chinese government not taken the resolute measures, then we could not have enjoyed the stability that we are enjoying today. To which President Clinton replied -- I believe stability in the 21st century will require high levels of freedom. It was an amazing give and take, particularly since in an unprecedented move, Jiang allowed it all to be telecast live throughout China. Jiang brought up Tibet's Dalai Lama, who opposes China's occupation of Tibet. I myself AM an atheist, but this will by no means affect my respect for the religious freedom in Tibet. President Clinton was ready with a suggestion. I have spent time with the Dalai Lama. I believe him to be an honest man. And I believe if he had a conversation with President Jiang, they would like each other very much. It was a virtuoso performance for both presidents, delicate disagreements aired without rancor. This atmosphere of good feeling continuing at tonight's state dinner held in the great hall of the people, featuring appropriate toasts and the music of both countries. There probably won't be any dramatic big changes immediately resulting from today's summit. But if the test was how the president stood up for human rights, Mr. Clinton will probably be judged to have passed it. Tonight, jubilant White House officials are saying the day vindicates the president's approach to constructive engagement with China. Sam Donaldson, ABC News, Beijing.