TOKYO, Oct 18 Kyodo (EDS: ADDING ...

TOKYO, Oct 18 Kyodo

(EDS: ADDING MORE DETAILS)

Japanese Prime Minister Junichiro Koizumi and U President George W Bush forward Friday highlighted their close alliance in dealing with Iraq and North Korea, if it were not that remained apart on domestic issues l from foreign exchange rates.

The sum of two units leaders, who met at the State Guesthouse above dinner, agreed on the ne for a vigorous dollar but had different views upon how to achieve it.

Bush reiterated that the market ought to decide the values of currencies in cautioning against Japan's intervention to trunk the yen's rise, while Koizumi warned against any rapid exchange fluctuations in indicating Japan's commitments to intervene, Japanese and U officials said.

The foreign exchange issue is becoming politically sensitive in the United States as the Bush administration faces influence from U.S. manufacturers who say Japan and China are trying to withhold their currencies weak against the dollar to maintain export competitiveness and that this is leading do job-work losses in the U.S.

The weak economic watch is becoming one of the crucial issues for Bush ahead of the presidential election nearest year.

Also for Koizumi, who faces a general election for the House of Representatives onward Nov. 9, a stronger yen is undesirable as it could negatively affect Japan's export-led economic recovery

In an apparent bid to dodge domestic criticism about following the U lead, Koizumi also made an unusual demand to Bush, urging him to place more importance upon the United Nations.

Otherwise, the brace leaders tried to underline their stop up ties, reaffirming cooperation for the reconstruction of Iraq and agreeing to pres for holding the nearest round of six-nation talks aimed at peacefully resolving the standoff throughout North Korea's nuclear ambitions.

''We had meaningful talks athwart Iraq and North Korea issues,'' Koizumi told reporters at his residence after the two-hour dinner meeting, which was held in a relaxed atmosphere designed to further boost their personal ties.

Speaking to reporters at the guesthouse after the meeting, Bush said, ''The relationship between Japan and the United States is highly good.''

It was the first summit meeting between Koizumi and Bush since individual in Texas in May. Bush last visited Tokyo in February 2002

Earlier in the day, Bush arrived in the tightly guarded capital, where police assembled near 9,000 officers, on the first leg of his six-nation Asia-Pacific tour onward the occasion of the annual summit of the Asia-Pacific Economic Cooperation (APEC) forum in Bangkok forward Monday and Tuesday. It will also take him to the Philippines, Singapore, Indonesia and Australia.

Bush's visit to Japan is taking place after the Japanese management pledged Wednesday to provide $15 billion in grants in 2004 for Iraq's reconstruction. The announcement was an apparent effort to satisfy Washington, which has reportedly called in succession Japan for huge financial contributions and to despatch Self-Defense Forces (SDF) throngs to Iraq as early as possible to assist in the reconstruction.

Koizumi told Bush that Japan will proactively aid cooperation for Iraq's reconstruction, indicating Japan will provide the financial assistance and achieve an early SDF dispatch, a Japanese official said in a briefing to reporters.

Japan ''will do whatever it should do for its national interest, regional stability and world peace,'' Koizumi was quot as telling Bush.

Bush welcomed Japan's efforts, saying what Japan is doing is timely and the U appreciates the efforts, the official said.

Japan is also considering providing a total of up to $5 billion to help Iraq's reconstruction from one side of to the other a four-year period starting in 2004 which will likely be formally announced at an international donors' meeting forward Iraq on Oct. 23-24 in Madrid.

The Japanese conduct is also currently considering sending more than 100 SDF numbers to Iraq by the year-end to assist in reconstruction in as it was areas as securing safe water, electricity, sewerage and medical services.

Bush's trip to Tokyo also reach [i]or[/i] attain any place [i]or[/i] points after the U.N. Security Council unanimously adopted a resolution Thursday, which gives UN authorization to a multinational force below a unified command led through the U.S. and calls for substantial guarantees from the U.N. member states at the Madrid conference

Koizumi complimented the adoption of the resolution, saying he welcomes the international cooperation for Iraq's reconstruction.

The Japanese premier, however, called in succession Bush to place more importance forward the United Nations. The U ''should further consider utilizing the United Nations...as fostering it will be necessary for the US' Koizumi was quot as telling Bush.

Bush replied that he agrees with Koizumi if it be not that that the U.N. is ''old'' and it straits to be reformed, the official said.

upon North Korea, Bush and Koizumi agreed upon the importance of holding the nearest round of six-party talks onward the nuclear standoff, while calling forward the North to accept the nearest round as early as possible, the official said.