He made the comment before talks here with US military chief, General Richard Myers, on security issues, including Australia's contribution to the US-led reconstruction program in Iraq and the missile program.

Howard, who interrupted his holidays for the meeting which was also attended by Australian Defence Force chief General Peter Cosgrove, said the allies hoped to sign an agreement on the controversial project, dubbed "Son of Starwars".

"There's been some discussion between our people this week which I hope will lead to a memorandum of understanding being signed between Australia and the United States," Howard told reporters.

Myers, chairman of the US Joint Chiefs of Staff, announced after his meeting with Howard and later detailed talks with Cosgrove in Canberra that they had also agreed to consider setting up a joint military training facility in Australia, although it was described as being at the "embryonic" stage.

Its purpose, scope and location still have to be decided by experts of both countries, although Myers said Australia and the United States sought to improve the "interoperability" of their forces working together in theatres of conflict.

But he told reporters in Canberra that US forces would not be permanently based in Australia.

Howard denied Australia's role in the missile program could offend regional neighbours, particularly China and Indonesia, which have expressed concerns about it.

"Just as we don't agree with the United States on everything, we don't agree with Indonesia and China on everything," he said.

"The first requirement of the Australian government is to protect Australia.

"It stands to reason that if there is available to us a mechanism that can provide us with defence against a missile attack in the future, we would be foolish, in fact recklessly negligent, not to take advantage of the opportunity of acquiring that capacity."

He said Australia was "very interested" in exploring ways in which it might take part in the missile program.

"It seems to me a fairly commonsense proposition if Australia can have access to a system that defended missiles directed at Australia from arriving in Australia, then it's something we ought to be part of."

Myers, who was visiting Australia at the end of a four-nation tour that also took in Japan, China and Mongolia, said in Canberra that Australian participation in the missile program was not the major reason for his visit.

Myers said he was here to thank Australia for its contribution to the alliance in Iraq. "We are partners in a war we must fight, in a war that we must win, in a war that we are winning and will win," he said.

Cosgrove said the two countries were still at the early stages of a scoping study on the missile program and a lot of work was needed before either government would be in a position to agree to a memorandum of understanding.

WAR.WIRE