Pakistan's president calls Palin 'gorgeous'

From CNN's Peter Hamby and Wes Little

NEW YORK (CNN) - Sarah Palin and the foreign leaders she has been meeting with in New York have said very little to reporters over the last two days, but the press happened to be in the room on Wednesday for one eyebrow-raising exchange, as the new president of Pakistan lavished praise on the GOP vice-presidential candidate's looks.

When Pakistan's new president Asif Ali Zardari entered the room Wednesday for a meeting, Palin rose to shake his hand, saying she was "honored" to meet him.

Zardari then called her "gorgeous" and said: "Now I know why the whole of America is crazy about you." She responded, "You are so nice. Thank you."

A handler from Zardari's entourage then told the two politicians to keep shaking hands for the cameras. "If he's insisting, I might hug," Zardari said. Palin smiled politely in response.