Bush backs Koizumi reforms

Bush thanked the Japanese people for their "condolences and compassion" in the wake of September 11

TOKYO, Japan (CNN) -- Drawing his visit to Japan to a close U.S. President George W. Bush has proclaimed the country's troubled economy "on the path to reform" and urged the Japanese government to do its part in stopping the spread of terrorism in Asia.

In a speech Tuesday morning to the Japanese parliament, known as the Diet, he said Washington saw Japan as one of its strongest allies and said the two countries share a desire to create a peaceful Asia where "the proliferation of missiles and weapons of mass destruction does not threaten humanity."

"Civilization and terrorism cannot co-exist," Bush told legislators. "By defeating terror, we will defend the peace of the world."

His comments came shortly before he heads for the South Korean capital, Seoul, the next stop on this six-day, three nation tour of East Asia that finishes up in China later this week.

On Wednesday he is due to visit the Demilitarized Zone that divides North and South Korea, one of the most dangerous border regions in the world.

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Referring to that upcoming visit he said Washington was seeking to build a future for the region "in which demilitarized zones and missile batteries no longer separate people with a common heritage, and a common future."

Bush has signaled he intends to take a hard line with North Korea, labeling the country part of what he called an "axis of evil" along with Iran and Iraq.

'Firm resolve'

In his State of the Union address last month he said the three countries "threaten the peace of the world", but his comments have raised fears in Asia that the U.S. might be rushing toward military confrontation.

In talks Monday with Japanese Prime Minister Junichiro Koizumi Bush defended his tough stance on North Korea -- a position backed by the Japanese leader who said it reflected "the firm resolve of the United States and President Bush against terrorism."

"This fight against terrorism is not going to be a short one. I understand it is going to be a drawn out and tough fight," Koizumi said. "Japan shall continue to support the United States."

He said Bush had been "very calm and cautious" in his stance on Iraq, Iran and North Korea and had not ruled out any possibility to prevent the proliferation of weapons of mass destruction or terrorism.

"He will resort to all possible means to fight terrorism and I believe this resolve was behind the phrase 'axis of evil'," Koizumi said.

However, much of the talks between the two leaders focused on Koizumi's efforts to get the Japanese economy back on track and out of its third recession in a decade.

'Bedrock'

Praising Japan as "the bedrock for peace and prosperity" in the Pacific, Bush said he had full confidence that Japan would turn around its ailing economy.

"It is important for the world's second-largest economy to grow," Bush said. "It will help the region and it will help the world."

It was a subject Bush returned to in Tuesday's address to Japanese lawmakers.

"Japan has some of the most competitive corporations, some of the most educated and motivated workers in the world. And Japan, thanks to my friend Junichiro Koizumi, is on the path to reform," he said.

Giving the Japanese leader his own vote of confidence Bush said: "I value my relationship with the prime minister. He is a leader who values the energy and determination of his country."

Bush has used the visit to give his personal vote of confidence in Koizumi's reform efforts

Before traveling on to Seoul, Bush is due to have lunch at the Imperial Palace in Tokyo with Emperor Akihito.

Much of the South Korean visit is expected to focus on relations with the communist North, with political leaders in Seoul keen for Bush to elaborate on his "axis of evil" remarks and what that means for North-South relations.

South Korean President Kim Dae-jung has vowed to push on with his so-called "sunshine policy" of engagement with the North, despite an almost total lack of progress in the past year.

South Korean officials have expressed unease at Bush's "axis of evil" tag for North Korea but opposition leaders have backed the U.S. president's stance saying efforts at engaging the country's secretive leadership have failed.

On Monday about 30 student activists occupied an office of the American Chamber of Commerce in Seoul in protest at what they said was Bush's undermining peace effort with his criticism of North Korea.

Police stormed the building and arrested the protesters, but supporters have vowed more action during Bush's visit.