UPDATE 2-Obama, Republican Christie tour storm-hit New Jersey, trade praise

* Obama promises to cut through red tape in storm relief

* Christie keeps up praise for Obama's response to storm

* Obama set to resume campaigning on Thursday

ATLANTIC CITY, N.J., Oct 31 (Reuters) - Putting aside

partisan differences, President Barack Obama and Republican

Governor Chris Christie toured storm-stricken parts of New

Jersey on Wednesday, taking in scenes of flooded roads and

praising each other for their response to superstorm Sandy.

Riding in the Marine One presidential helicopter, Obama and

Christie got an aerial view of some of the hardest-hit areas of

the New Jersey shoreline, and afterward the president promised

to cut through red tape to help storm victims.

Despite being a top surrogate for Obama's rival Mitt Romney

in the Nov. 6 election, Christie kept up his compliments about

Obama for guiding federal support during and after the

devastating storm, which also crippled New York City and other

parts of the eastern seaboard.

"I cannot thank the president enough for his personal

concern and his compassion," said Christie, known for his blunt,

in-your-face political style, after the two men completed their

tour.

He said the affected areas needed clean drinking water,

restored power, and children back in school. "I discussed all of

those issues today with the president and I'm pleased to report

that he has sprung into action immediately to help get us those

things while we were in the car riding together," Christie said.

Obama has suspended campaign events since Sunday while

overseeing federal relief efforts and holding public events to

show Americans he is focused on handling a major natural

disaster instead of pressing his quest for a second term.

He returned the praise from Christie, seen by some

Republicans as a potential presidential candidate in 2016.

"Governor Christie, throughout this process, has been

responsive, he has been aggressive in making sure that the state

got out in front of this incredible storm," Obama said, calling

the Republican's leadership "extraordinary."

Obama said restoring electricity was a top priority.

"We are here for you and we will not forget, we will follow

up to make sure you get all the help you need until you

rebuild," he said.

U-TURN BY CHRISTIE

The storm and the government's relief efforts have prompted

a U-turn in the tone of Christie's rhetoric about Obama. The New

Jersey governor leveled harsh criticism at Obama during a

keynote speech at the Republican convention in August.

But all that has changed with the damage wrought by Sandy,

which bashed the mid-Atlantic coast on Monday and Tuesday.

On Tuesday, Christie said Obama's response to the storm

damage in New Jersey was "outstanding."

With an extremely close election looming on Tuesday, Obama

has remained in the public spotlight, while Romney has had to

suspend campaign appearances to avoid coming across as overly

political while millions of people were affected by the storm.

Romney was back campaigning on Wednesday, but his campaign

seemed at a loss about how to deal with Christie's praise of

Obama.

Romney senior adviser Kevin Madden, asked by reporters

whether he agreed with Christie that Obama was doing a good job

handling the hurricane response, said: "I believe the response

is still going on so I'm not in a position to qualify the

response by the federal government. I believe it's still

ongoing."

Obama is set to resume campaigning on Thursday with visits

to Nevada and Colorado, followed by stops on Friday in Ohio -

considered the most critical election swing state.

From the air in and around the gambling resort of Atlantic

City, Obama saw whole streets underwater, beachfront homes

swamped by flooding and piers partially blown away.

He also saw the still-burning remnants of about eight homes

set afire during the 1,000-mile (1,600-km) -wide storm, the

biggest to hit the U.S. mainland in generations.

"If your homes aren't too badly damaged we can hopefully get

you back in," Obama told residents at an evacuation shelter in

the town of Brigantine. "The entire country's been watching.

Everyone knows how hard Jersey has been hit."