US-Australian security relationship closest ever

NEW YORK - Treasurer Peter Costello says Australia's security and defence relationship with the United States is as close as he has ever seen it.

After meeting US Vice President Dick Cheney in Washington yesterday, Mr Costello said the Australia-US relationship was very strong from a defence and security point of view.

Mr Costello, in New York to address investors at the Merrill Lynch Australia Investment Conference, pointed to the coalition involving US, British and Australian troops in Iraq.

"From a defence point of view and a security point of view the relationship is very close," he told the conference.

"I must say to you I think that the relationship is as close as I've ever seen it."

Australia, the US and New Zealand have had a defence alliance through the ANZUS Treaty since 1952, although New Zealand opted out of it in the 1980s.

Mr Costello received intelligence briefings during a series of meetings with US officials in Washington this week, moving beyond his economic portfolio as he aims to broaden his political profile.

Mr Costello also held talks with US Deputy Secretary of State Robert Zoellick and Director of National Intelligence John Negroponte.

In addition, he had meetings with World Bank and International Monetary Fund representatives as well as US Federal Reserve chairman Alan Greenspan.

Mr Costello called on the US to cut the amount of red tape imposed on Australian companies operating in the world's most powerful nation, raising the issue with the US Securities and Exchange Commission during his visit.

- AAP