IRAQ "DIFFICULT"

Australia was one of the first countries to commit to the U.S.-led invasion of Iraq, while Japan sent troops in a non-combat role to help with post-war reconstruction.

Rice traveled to Melbourne later on Friday where she thanked troops at Victoria Barracks, who had served in Iraq and Afghanistan, and said that the situation in Iraq was difficult.

She said the United States, Australia and Japan would also discuss on Saturday trying to ensure the Asia-Pacific region was spared the proliferation of weapons of mass destruction.

"We need to be able to deal, for instance, with the problems of a state like North Korea, which is clearly outside its obligations in the NPT (Nuclear Non-proliferation Treaty)," she said.

Although not a party to six-way talks aimed at persuading North Korea to scrap its nuclear programs, Australia has used its alliance with the United States and rare diplomatic ties with Pyongyang to encourage negotiations.

The nuclear crisis erupted in late 2002 after Washington said isolated North Korea had admitted to developing highly enriched uranium for weapons. North Korea denies having such a program.

The six-way talks between North Korea, the United States, South Korea, Japan, China and Russia began in 2003 to try to break the nuclear deadlock.

Howard and Rice said they had also discussed a U.S. deal to supply India with nuclear technology in return for separating its military and civil facilities and opening the civilian plants to international inspections.

New Delhi wants to buy uranium from Australia, which has more than 40 percent of the world's known reserves of the mineral, but Canberra maintains it will not sell to countries -- like India -- that have not signed the Nuclear Non-Proliferation Treaty.

But Howard said he would send a team of officials to India and the United States to get more information on the deal.

"There isn't going to be an immediate change in government policy. Obviously like all policies you never say never," he said.