Paul Cellucci, who last week lambasted the Canadian decision, which also sparked ire in the White House and State Department, pointedly did not even mention the system in a speech on defence.

And he sidestepped questions from delegates and reporters on the issue -- only a week after saying he "could not understand" Canada's move.

"We are great friends, we are great neighbours, we are great allies ... we are family," he told the Canadian Conference of Defence Associations.

Questioned by a delegate on Canada's refusal to join the Iraq war and to stay out of missile defence, Cellucci replied: "It is in our interest to work together. We are too interconnected."

The ambassador chose instead to praise Ottawa's decision last month to boost military spending by nearly 13 billion dollars (more than 10 billion US) over the next five years.

Canada's Chief of Defence Staff, General Rick Hillier, also sidestepped the furore over Canada's refusal to join missile defence.

Prime Minister Paul Martin's minority government has tried to improve relations with President George W. Bush, frayed badly by his predecessor Jean Chretien's decision not to back the US-led invasion of Iraq.

But he opted not to take part in the missile defence shield under heavy political pressure in Canada where Bush and the system are highly unpopular.

In response to the move, Canadian officials admitted Tuesday that Bush had yet to return a call from Martin to explain it, and Secretary of State Condoleezza Rice put off a visit to Canada partly as a result of the decision.

But she did meet Canadian Foreign Minister Pierre Pettigrew on the sidelines of a Middle East conference in London.

And the White House and Canadian government on Thursday announced that despite the spat, Martin would attend three-way talks in Texas later this month with Bush and Mexico's President Vicente Fox.

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