KEY POINTS:
Australian Prime Minister Kevin Rudd formally told United States President George W. Bush on the first full day of his working visit to the United States that Australia would withdraw its combat troops from Iraq.
Welcoming Rudd as "a straight shooter and leader of one of America's closest allies", Bush backed the withdrawal decision and predicted America's alliance with Australia would strengthen and endure under Rudd, the Sydney Morning Herald reported.
During a press conference in the East Room of the White House, Bush pre-empted questions about whether the US was disappointed by Australia's troop withdrawal, saying he appreciated Rudd had made an election commitment and that he had kept his word.
"I respect somebody who does what they say they are going to do," Bush said. "But he also acted like you expect an ally to act and he has consulted closely with us."
Bush dismissed suggestions Australia and the US were moving further apart on foreign policy under the new Labor Government, which has highlighted its intention to pursue an independent and activist strategy on foreign affairs.
That point of view depended on whether you were a pessimist or an optimist, the President suggested. He saw a lot of shared positions continuing between the two countries.
Both men went to great lengths to point out the alliance between Australia and the US was bigger than the people leading the two countries.
The Howard Government promoted a view that the strength of the ties in the recent past was a function of the close relationship between Bush and Howard.
But Rudd pointed out it had survived 12 US Presidents and 14 Australian Prime Ministers - under leaders of both political persuasions in each country.
"I'm confident that this alliance has a strong, robust future, because it's rooted in shared values," he said.
"The challenge for the future is how do we partner with America and other friends and allies in providing other forms of assistance to the Government of Iraq," he said.
"I'm confident of our policy setting and I'm confident we'll do so in close co-ordination, consultation and harmony with the United States."
Australia is to compensate for its withdrawal by increasing financial and humanitarian help and by training Iraqi security forces outside the country.
The seemingly sanguine meeting of leaders came just a day after Bush gave a speech in Ohio in which he warned that retreating now from Iraq "would carry enormous strategic costs for the United States".
"It would incite chaos and killing, destroy the political gains the Iraqis have made and abandon our friends to terrorists and death squads," he said.
Bush called Iraq "the convergence point for the twin threats of al Qaeda and Iran" and claimed the surge of 30,000 extra US troops into the country last year "was bringing America closer to a strategic victory".
Bush is becoming increasingly isolated in the US over Iraq. Even the Republicans' presidential candidate, John McCain, this week turned his back on the Bush Administration's unilateral approach to foreign policy.
Strategists in Washington said Rudd's position on Iraq had been accepted by the Administration and was unlikely to raise concerns about further discussions on climate change, the global economic meltdown and security in Asia. Bush was also keen to hear Rudd's opinions on China.
The US National Security Adviser, Stephen Hadley, said the relationship remained in good shape and the important aspect of the meeting was for the leaders "to get to know one another".
By urging European countries to do more in Afghanistan, Rudd has avoided angering the US.
He and Bush will attend the Nato summit in Bucharest next week and Rudd said while Australia had no intention of adding to the 1000 troops it already had in Afghanistan, it was there for the "long haul".
