VATICAN CITY (Reuters) - Pope Benedict will unusually host talks with U.S. President George W. Bush in a restored medieval tower on Friday, to repay him for a warm reception at the White House, the Vatican said.
The pope usually receives heads of state in his private study in the Apostolic Palace, overlooking St Peter's Square.
But Vatican spokesman Federico Lombardi said the change was to repay Bush for "the cordiality of the meeting at the White House" when the pope visited the United States in April. - Reuters
I think it is safe to say that the two are on good terms. There has been some speculation of Bush converting to Catholicism, but of course that is just speculation.
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