By Ray Furlong BBC Diplomatic correspondent

The military action initiated by the United States and Britain has caused a poisoned atmosphere between Berlin and Washington.

But at their Hanover talks, the two leaders tried to put their quarrels behind them, and indicated that they were ready to reach agreement on post-war reconstruction.

While British ire has largely been turned against the French, who also opposed going to war, Mr Blair has been careful not to criticise Germany's position.

"Whatever differences there were before the conflict began in Iraq, the state of our bilateral relations is extremely strong and will remain so," he said, after the talks.

Equally, some Germans have found the British view more acceptable than Washington's.

Blair and Schroeder want to stay friends

"When Blair made his now-famous speech in the House of Commons, many Germans found his reasoning for war much more profound than anything George W Bush was able to put over," says Tom Levine of Berliner Zeitung newspaper.

The big issue now is, of course, rebuilding Iraq, and both leaders agreed that the UN should be central.

"There is an agreement that, in principle, the UN must have a key role," in the reconstruction of Iraq, said the British leader after the meeting.

However, both men avoided getting bogged down in specifics at this stage.

"I am very pleased that we agree in principle about the role of the United Nations," said Mr Schroeder.

"What that means in detail will be clarified by diplomats in their talks."

Transatlantic split

Mr Blair is keen to avoid another damaging rift between Europe and America, which is sceptical of UN involvement in Iraq.

Germany, like France and Russia, has called for a "central role" for the UN. But Mr Schroeder is also keen to avoid another diplomatic clash like the one that preceded military action.

Schroeder is mightily rowing back, trying to mend fences Sabina Rosenbladt International relations analyst

When the French, German and Russian leaders met at the weekend in St Petersburg to discuss post-war reconstruction, they broke with practice from earlier meetings of the anti-war trio - issuing no joint declaration at the end of their talks.

"Schroeder is mightily rowing back, trying to mend fences," says Sabina Rosenbladt, chief analyst in international relations at the German Foreign Policy Association think-tank.

'You could see that at St Petersburg. He was very careful in his wording, not to offend the Americans and the British. I think Chirac was actually a bit angry with him.

The anti-war trio have already changed tactics

"He will try to use his good relations with Blair to reopen channels to Washington."

So Mr Schroeder could be useful for Mr Blair, in seeking to bridge the transatlantic gap.

Germany has also hinted at the possibility of providing troops for peacekeeping in Iraq, and Mr Schroeder has played to British sensibilities by calling for the UK to join him in forming common EU foreign and defence policies.

Federal concerns

However, the plans - drawn up together with the French - may go a step too far towards a federal Europe for Mr Blair.

"EU foreign ministers should draw up common European interests, and then adopt initiatives for action on them - the majority of decisions should be taken by qualified majority voting," Mr Schroeder said, when outlining the proposals in the Bundestag recently.

His calls for a "common defence identity", giving the EU its own military capability, may also go too far - but will be discussed.