"I told the prime minister (Thaksin Shinawatra) that this country is willing to grant major non-NATO ally status to Thailand, which is a very important recognition of your friendship and your strong support," Bush told reporters at the beginning of a state visit to Thailand.

During a speech to members of the Thai military, Bush said he was "confident in the strength of our alliance and I have acted to designate Thailand a major non-NATO ally of the United States".

Bush is in Thailand ahead of a two-day summit of 21 Asia Pacific Economic Cooperation (APEC) leaders which he will attend Monday with the likes of China's Hu Jintao and Russian President Vladimir Putin.

Thaksin hailed the announcement of greater defense cooperation with the world's lone superpower.

"If we need any weapons assistance, we will be given priority by the United States," Thaksin said.

Thailand is joining an exclusive club of countries that enjoy a privileged security relationship with the United States.

Its members, which include Japan, Australia, Israel, Egypt, South Korea, Argentina, New Zealand and the Philippines, are granted significant benefits in the area of foreign aid and defense cooperation.

Bush bestowed the status on Manila on October 6 ahead of his eight-hour official visit there Saturday.

Major non-NATO allies are eligible for priority delivery of defense materiel and the purchase, for instance, of depleted uranium anti-tank rounds.

They can stockpile US military hardware, participate in defense research and development programs, and benefit from a US government loan guarantee program, which backs up loans issued by private banks to finance arms exports.

However, the designation does not afford them the same mutual defense guarantees enjoyed by members of the North Atlantic Treaty Organization (NATO).

Thailand has steadily strengthened its ties to Washington since the September 11, 2001 attacks on the United States, and this year after prolonged domestic debate committed to sending troops to Iraq.

Nearly 500 Thai troops departed late last month for the Middle East nation, where they are participating in humanitarian efforts to rebuild Iraq under a Polish-led multinational brigade.

Bush also expressed his thanks to Thailand's security authorities for arresting top Southeast Asian terror suspect Hambali in central Thailand in August.

Thailand annually plays host to the largest US war exercises in Asia.

The so-called Cobra Gold maneuvers took place during two weeks in May, with the participation of some 13,000 army, navy and air force troops from the United States, Thailand and Singapore.

WAR.WIRE