Thousands filled the streets in protest and welcome as Chinese Premier Zhu Rongji gave a speech downplaying U.S. trade deficit concerns at MIT's Kresge Auditorium yesterday.

Zhu's speech began just before 11 a.m., but demonstrators began to gather at 6 a.m. outside. The crowd grew to more than 4,000 by late morning, according to the MIT news office.

Zhu's visit to MIT was the last stop on his nine-day, six-city U.S. tour expected to draw protests of China's human rights abuses.

The demonstrations were lively as protestors and Zhu's supporters squared off. According to Cambridge Police Department spokesperson Frank T. Pasquarello, the police made three arrests for disorderly conduct.

In Zhu's address, he told American not to be concerned with economic competition as China attempts to become part of the World Trade Organization.

"Don't make such a big deal out of this trade deficit," Zhu said. "This is not such a serious problem."

The U.S. estimate of $57 billion is bloated, he said. According to Zhu, the deficit is actually closer to $21 billion.

He explained the difference by saying that Chinese manufacturers often assemble from raw materials and then export the goods. Thus, many Chinese exports to the U.S. "represent a transfer of exports to the U.S. by these other countries and regions," he said.

After speaking at MIT, Zhu attended a luncheon in Boston with a group from Harvard including President Neil L. Rudenstine, University Marshall Richard M. Hunt and Ford Professor of the Social Science Ezra F. Vogel, also director of the Fairbanks Center for East Asian Studies.

While Vogel praised Zhu as a "very effective communicator," he said that his equivocal responses on human rights concerns, including the recent sentencing of political dissident Xu Wenli, are indicative of internal political pressure.

"In answering those questions, he has to answer to the political right at home. I think those answers have been less than satisfactory for Americans," Vogel said.

Although the most visible demonstrators were human rights protestors burning

several Chinese flags, most at yesterday'sspeech welcomed the premier.

Lin liu, a senior at Tufts Universityoriginally from Beijing, said he supported hiscountry by waving two flags, Chinese and American.

Liu was part of the Tufts Association forChinese Students, which sent 40 students to therally.

Just a few feet away, Sonam Palder, a native ofTibet, wore a bright yellow vest proclaiming"China Out of Tibet" as he wove the Tibetan flag.