"This is not something new to her," said one senior Clinton adviser.
Clinton advisers have tried, so far without success, to explain away the contradiction.
Still some Clinton advisers say they are not worried about public outrage.
Clinton economic advisers say the suits would open American companies to retaliation.
"From the very beginning they were friendly, but careful," said a top Clinton adviser who attended the meeting.
Clinton advisers said the protections the Administration had called for were weak and would not have the force of law.
"The big issue out there is what should be in the first legislative package," a leading Clinton economic adviser said.
"Now's not even time to talk about a deal," one senior Clinton adviser said.
Clinton advisers said she had no major political travel plans or speeches in the near future.
"Any one of these nominations could have blown up in a similar way," said another Clinton adviser.