WASHINGTON - US President Barack Obama and Chancellor Angela Merkel of Germany agreed on Wednesday to hold high-level bilateral talks between their security officials in coming days on US surveillance activities and security issues, the White House said in a statement.

Obama and Merkel spoke by telephone in the wake of an uproar in the European Union about a report in a German magazine that Washington was spying on the EU.

"The president assured the chancellor that the United States takes seriously the concerns of our European allies and partners," the White House said, noting U.S. and EU officials would discuss intelligence and privacy issues as early as July 8.

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