The Cobra Gold exercises involving 13,000 troops at the Utapao naval base, 200 kilometres (124 miles) southeast of the Thai capital, were inspired partly by the US-led conflict in Iraq, an embassy spokesman said.

"Our militaries understand that they must train and equip forces to defend their nations' security from a range of threats -- from large-scale conventional attacks to peace enforcement operations and other 'military operations other than war,'" Deputy Chief of Mission Ravic Huso told the closing ceremony.

"As we have seen recently in Iraq, commanders must be prepared to cope with complex situations involving civilians and non-governmental actors," he said.

Huso said the exercises, involving navy, army and air force units, had also focused on dealing with terrorist threats.

"We have also improved our ability to defeat some of the emerging threats we must face in today's world, including terrorist incidents," he said.

The manoeuvres took place despite ongoing US operations in Iraq and Afghanistan, and as several Western countries continue to warn of possible terrorist attacks in Southeast Asia.

Two Thai men were arrested on suspicion of belonging to the Jemaah Islamiyah regional terrorism network in Cambodia this week.

WAR.WIRE