"The German government has said that it does not want to send Bundeswehr soldiers to Iraq," Ambassador Daniel Coats told Bayerischer Rundfunk.

"We accept that. We are happy that the federal government announced it would not stand in the way of a NATO engagement in Iraq. There is no need for German troops there," he said, in comments translated into German.

NATO is considering deploying troops to help stabilize the war-torn country. Foreign Minister Joschka Fischer said earlier this month that Germany would not stand in the way of a consensus in favor of NATO involvement but has ruled out supplying troops for the effort.

Coats said President George W. Bush wanted to put aside its differences with Germany, which was one of the most vocal critics of the US-led invasion of Iraq.

"We need to move forward and the president's meeting with the chancellor is a positive step forward," Coats said.

Schroeder will embark on a two-day visit to the United States Thursday and meet Bush Friday for their first talks at the White House in more than two years.

Coats said the two leaders would discuss a proposal made by Fischer at an international security conference in Munich this month for a new transatlantic initiative to foster prosperity in the Middle East.

The initiative was well-received in Washington and will be discussed at the Group of Eight summit of the world's wealthiest nations in the United States in June, Coats said.

Coats said Washington would like to see Germany take on a larger role in world affairs.

"As the third largest economy in the world and the largest country in Europe, we see Germany as a leader that together with us, is active in Africa, in the Middle East and in other areas," we said.

"We would welcome it if Germany strengthened its economy, its military and its foreign policy."

WAR.WIRE