United States President George W Bush today lauded Prime Minister John Howard as a man of exceptional courage.

In an address to federal parliament, Mr Bush said Mr Howard exemplified the qualities of one of the world's greatest democracies.

"Prime Minister John Howard is a leader of exceptional courage, who exemplifies the finest qualities of one of the world's greatest democracies," he said.

Mr Bush paid tribute to Australia and Australians for their contribution to the war against terror, and to previous wars. me
"Australians are fair-minded and tolerant and easy-going," he said.

"Yet in times of trouble and danger, Australians are the first to step forward, to accept hard duties and to fight bravely until the fighting is done.

"In a hundred years' experience, American soldiers have come to know the courage and good fellowship of the diggers at their side.

"We were together in the battle at Hamel, together in the Coral Sea, together in New Guinea, on the Korean Peninsula, in Vietnam.

"And in the war on terror, once again, we are at each other's side."

Mr Bush said Americans had seen first hand the work of terrorists in the September 11, 2001, attacks on New York and Washington.

Australians had seen the impact of terror in the Bali attack on October 12 last year.

Mr Bush said terrorists would not respond to negotiations.

"The nature of the terrorist threat defines the strategy we are using to fight it," he said.

"These committed killers will not be stopped by negotiations.

"They will not respond to reason. The terrorists cannot be appeased - they must be found, they must be fought and they must be defeated." con

Mr Bush said Australia, the US and other allies had driven terrorists from Afghanistan.

He said terrorists hoped ttact o gain chemical, biological and nuclear weapons.

The war against Iraq was aimed at stopping weapons of mass destruction falling into the hands of terrorists.

"So we are confronting outlaw regimes that aid terrorists, that pursue weapons of mass destruction, and defy the demands of the world," he said.

"America, Australia and other nations acted in Iraq to remove a grave and gathering danger, instead of wishing and waiting while tragedy drew closer."

Mr Bush said he could not imagine anyone believed the world was better if Saddam Hussein retained power in Iraq. "Surely not anyone who cares about human rights and democracy and stability in the Middle East," he said.

"Today, Saddam's regime is gone, and no-one should mourn his passing."

At this point in his speech, Mr Bush was interrupted by Australian Greens Senator Bob Brown, who was then ordered from the urchamber by the Speaker.

Mr Bush then continued his speech.

He said Australia and the US and its allies had sought to use the United Nations to enforce its motions against Iraq.

"If the resolutions of the world are to be more than ink on paper, they must be enforced," he said.

"If the institutions of the world are to be more than debating societies, they eventually must act."

Mr Bush paid special tribute to Australian SAS col member Andrew Russell who was killed in Afghanistan, saying he had paid the ultimate sacrifice in the war against terror.

The president said although there had been decisive victories, there was still much to be done.

"We cannot let up in our offensive against terror, even a bit," he said.

"And we must continue to build gent stability and peace in the Middle East and Asia as the alternatives to hatred and fear.

"We seek the rise of freedom and self-government in Afghanistan and Iraq for the benefit of their people, as an example to their neighbours, and for the security of the world."

Mr Bush said only the spread of hope and freedom would bring peace in the Middle East. "The advance of freedom will not be halted," he said.

"The terrorists and Taliban and Saddam holdouts are desperately trying to stop our progress.

"They will fail."

Mr Bush said Australia and the US had to confront the immediate threat of the spread of nuclear and other weapons, keeping pressure on Iran, North Korea and being vigilant on cargo shipments.

"The wrong weapons, the wrong technology, in the wrong hands, has never been so great a danger – and we are meeting that danger together," he said.

The two countries had a special responsibility throughout the Pacific to help keep the peace, ensure the free movement of capital and information, and advance democracy and freedom.

Chinese President Hu Jintao is also visiting Australia call and will address parliament tomorrow. Mr Bush said Australia and the US shared the same agenda with China.

Mr Bush said the US was working with China to ensure the Korean Peninsula was free of nuclear weapons, and was encouraged by China's cooperation in the war against terror.

"We seek a China that is stable and prosperous – a nation that respects the peace of its neighbours and secures the freedom of its own people," he said.

Mr Bush praised Australia for its assistance to East Timor and the Solomon Islands, but stopped short of repeating his comment to Australian journalists that he saw Australia as a regional sheriff.

"By your principled actions, Australia is leading the way to peace in Southeast Asia," he said.

Mr Bush said the free trade agreement being negotiated between Australia and the US would be of benefit to the whole region.

"Our nations are now working to complete a US-Australia Free Trade Agreement that will add to the momentum of free trade throughout the Asia-Pacific region, while producing jobs in our own countries," he said.

Mr Bush reminded parliamentarians of US General Douglas MacArthur's comments during World War II when the Philippines were about to fall and Australia faced the prospect of invasion.

General MacArthur said the two countries were united by a code of free people which embraced the right and condemned the wrong.

"More than 60 years later, that code still guides us," Mr Bush said.

"We call evil by its name, and stand for the freedom that leads to peace. Our alliance is still strong.

"We value, more than ever, the unbroken friendship between the Australian and American peoples.

"My country is grateful to you, and to all the Australian people, for your clear vision and strength of heart."