BUSH REJECTS AMERICAN ISOLATION; GOP FRONT-RUNNER OUTLINES HIS POLICIES.

Byline: Rick Orlov Staff Writer

Seeking to overcome his recent image of unfamiliarity with foreign affairs, Republican presidential candidate George W. Bush on Friday outlined what his foreign policy would be: a ``distinctly American internationalism'' that rejects isolationism.

The Texas governor spoke to 500 people at the Ronald Reagan Presidential Library, giving a wide-ranging talk focusing on Europe and Asia and offering some pointed criticism of the foreign policy of President Clinton - in particular the lack of an overall strategy to meet America's goals.

``America must be involved in the world,'' Bush said. ``But that does not mean our military is the answer to every difficult foreign policy situation - a substitute for strategy. American internationalism should not mean action without vision, activity without priority and missions without end.''

The speech is the second major policy address by Bush delivered in Southern California, which his campaign aides say will be a key state in his bid for the GOP nomination over Arizona Sen. John McCain, who also has campaigned heavily in the state. Earlier this year, Bush spoke on his education plans if he were elected.

It was an important address for Bush, who was embarrassed earlier this month when he failed what has come to be known as a ``pop quiz,'' and was unable to name three out of four foreign leaders.

The state Democratic Party took note of that, posting five people wearing dunce caps outside the Reagan Library.

The governor was introduced by former Secretary of State George Shultz to an audience that included former first lady Nancy Reagan, former Gov. Pete Wilson and donors to the library.

Bush's carefully prepared and delivered remarks, which aides said were developed over a period of weeks, were designed to lay out a broad vision of what he would do as president in dealing with both adversaries and allies.

To be successful as a country, he said, the United States needs to be involved in world affairs.

``America's first temptation is withdrawal - to build a proud tower of protectionism and isolationism,'' Bush said.

``In a world that depends on America to reconcile old rivals and balance ancient ambitions, this is a shortcut to chaos. The vacuum left by American's retreat would invite challenges to our power. And the result, in the long run, would be a stagnant America and a savage world.''

Bush said the nation needs to change its position toward Russia and China. He said his administration would regard them as U.S. competitors in the world, instead of the Clinton administration's view of them as ``strategic partners.''

He described China as ``an espionage threat to our country'' and said he would push for stronger U.S. alliances with democratic nations in Asia.

``If I am president, China will find itself respected as a great power, but in a region of strong democratic alliances,'' Bush said. ``It will be unthreatened, but not unchecked.

``We welcome a free and prosperous China. We predict no conflict. We intend no threat. Yet the conduct of China's government can be alarming abroad and appalling at home.''

Bush also said that while he would have a one-China policy, he would not leave Taiwan to fend for itself.

``As I said before, we will help Taiwan defend itself,'' he said.

On Russia, Bush said patience is needed if the country is to embrace democracy.

At the same time, he said the United States must work to ensure that Russia is able to account for its nuclear material, and work together to restrict the proliferation of nuclear weapons.

Alluding to the Russian government's crackdown against civilians in the breakaway republic of Chechnya, Bush said America cannot excuse brutality.

``When the Russian government attacks civilians - killing women and children, leaving orphans and refugees - it can no longer expect aid from international lending institTutions,'' Bush said. ``The Russian government will discover that it cannot build a stable and unified nation on the ruins of human rights.''

Bush's speech drew criticism from Democratic rival Al Gore. The vice president's national security adviser Leon Fuerth told The Associated Press that Bush's speech seemed ``well-designed for some period that we have already passed through.''

He criticized the lack of comment on the global economy and whole continents.

``Latin America is an also-ran credit here, but if you look at the trade figures and what it means to the world, it's huge and meaningful,'' Fuerth said. ``There's also no mention of Africa.''

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Photo: George Shultz, left, and Nancy Reagan applaud as George W. Bush speaks to people at the Ronald Reagan Library in Simi Valley.

John Lazar/Staff Photographer

(2 -- color) Bush