United States President George W Bush says Prime Minister Kevin Rudd is a loyal ally on Iraq despite the planned withdrawal of Australian troops.
Mr Bush and Mr Rudd held talks in Washington at the White House this morning (local time) and the US leader says he understands Australia is withdrawing troops from Iraq as part of an election promise.
Mr Bush had strongly urged that there be no military withdrawals from Iraq, but Mr Rudd explained his position and announced a new $165 million aid package for Iraq.
Mr Bush welcomed it and says Australia's position on troops is not a problem for the alliance.
"Thank you for stepping forward to help Iraq develop a civil society and a strong economy that will enable this young democracy to thrive and help yield peace," he said.
"People, I'm sure the press corp is gonna say, 'Well aren't you mad at the Prime Minister for fulfilling his campaign pledge?' and the answer's no, no need to ask the question now."
A spokesman for Mr Bush says the meeting reinforced the close bilateral relationship between the United States and Australia.
Mr Rudd's stay in Washington is the first phase of his 17-day overseas tour aiming to build Australian foreign policy.
Source: By Australian Broadcasting Corporation
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