LOS ANGELES, November 2, 1997 (AP) -- About 700 protesters chanted and burned Chinese flags as Chinese President Jiang Zemin met privately Sunday with California Gov. Pete Wilson and asked business and political leaders for patience and cooperation.

"As the old Chinese saying goes: A 10,000-mile journey begins with the first step," Jiang said in a luncheon speech in Beverly Hills on the final day of his eight-day U.S. tour.

Speaking first in Chinese and then in English, Jiang said efforts to enhance relations between China and the United States shouldn't be deterred by "differences that cannot be ironed out for the time being."

"The differences between us should be handled properly and with mutual respect," he said.

The crowd of 700 chuckled when Jiang, who ordinarily speaks good English, stumbled with courtesy titles as he toasted the prosperity of the heirs of the governor and his "madam" and those of Los Angeles Mayor Richard Riordan and his "madam."

His other listeners were a powerful and eclectic group: News Corp. Chairman Rupert Murdoch, Arco Chairman Mike Bowlin, Occidental Petroleum chief Ray Irani, opera director Peter Sellars and Los Angeles Dodgers owner Peter O'Malley.

Jiang made no reference to the noisy but peaceful demonstration outside the Beverly Hilton by protesters against China's human rights record and policies toward Taiwan and occupied Tibet.

Chanting "Free Tibet," demonstrators burned three Chinese flags. In a mock display, protesters in outfits representing Chinese Communist soldiers "arrested" Tibetan monks, whose faces were painted to show they had been bloodied and bruised.

Before the luncheon speech, Jiang met privately with Wilson-the kind of reception he was denied in New York when Gov. George Pataki refused to sit down with him.

Wilson nudged Jiang on human rights.

"Their interests in terms of increasing trade with the United States and ultimately gaining access to the World Trade Organization as a member would be enormously enhanced and accelerated if they were to make some rather high-profile changes," Wilson said.

Wilson, who advocates negotiating on trade issues as a means to force changes in human rights policies, also met with Jiang last January during a trade mission to China.

"I think that if you fail to meet with people, it is very hard to communicate," Wilson said.

China is California's sixth-largest trading partner with exports of more than $3 billion in the first half of this year.

Jiang met with evangelist Billy Graham and with Stanford University Nobel laureate Steven Chu, who shared the prize this year in physics with two others.

He also met with officials from a firm with a big stake in China trade: GM-owned Hughes Electronics. General Motors Corp. and Hughes do billions of dollars in business with China.

Company executives gave Jiang the red-carpet treatment during a tour of their offices and showed him automotive and satellite technology being sold to his country. Jiang reciprocated by wishing Hughes "continued success."

Jiang looked at exhibits describing communication satellites that Hughes builds and China launches with its rockets.

He sat in the passenger seat of a Buick Regal, which will be built in China next year.

Jiang joked about the two Smith brothers in attendance: Michael T. Smith, head of Hughes Electronics, and brother John F. Smith, head of GM.

"Now I know you are brothers because your face is very similar," said Jiang, prompting laughter from hundreds of Hughes and GM employees.

In welcoming Jiang, Michael Smith said he hoped the trade agreement accomplished more than economic benefits.

"It has been my belief that we cannot calculate the value of our business activities in jobs and economic growth alone," he said. "Such interaction as we have enjoyed also brings us together as peoples."