This is the point where President Bush should stop floating along on his comfy cloud of patriotic fervour and go to Nepal at short notice to meet with both nations' Leaders.
If he is actually of statesmanlike dimensions he will let them both know unequivocally where they stand. He should offer them a salve for saving face, getting over the interim crisis created by Pakistani radicals and a vision for a prosperous future for the whole region (an evolving Marshall Plan for South Asia - including Afghanistan - to be constructed via an international summit of World Leaders). China would go along with this fully because Pakistan is an ally and China does not wish to be drawn into a nuclear war of its own making (having provided all the Pakistani nuclear know-how, materials and technical assistance).
But this is a great opportunity for a missed opportunity. I personally doubt that George Bush has the prescience and omniscience to see far enough ahead. If he does take some positive steps to resolve this crisis he will be halfway to becoming one of the "great" Presidents. If he doesn't, and the nuclear trigger is pulled, it will be the tragedy that marks his truly indecisive nature and blights his Presidency forever.
A required terpsichorean response to a national outrage is wholly different to dancing adroitly and playing accord on the international stage. I'm betting that he will blow it.