A majority of Canadians opposed the war in Iraq

Mr Bush made his remarks at the end of a two-day visit to Canada at a ceremony in Halifax, Nova Scotia.

The visit to Canada, Mr Bush's first since taking office, has been viewed as a chance to renew ties strained by Canadian opposition to the war in Iraq.

But Mr Bush, who met Canadian premier Paul Martin for talks on Tuesday, has faced criticism for declining to address Canada's parliament.

The ceremony in Halifax was billed as an opportunity for Mr Bush to say a formal "thank-you" to residents who offered rooms to thousands of Americans left stranded in a time of extreme security fears.

More than 200 airliners, carrying 33,000 people, mostly Americans, were diverted to Canada when the US closed its airspace in the immediate aftermath of the attacks on the World Trade Center and the Pentagon.

'Generous heart'

Mr Bush paid a fulsome tribute to Canadian hospitality, despite complaints that his failure to visit the country during his first term in office amounted to a snub.

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"Let me say directly to the Canadian people, and to all of you here today who welcomed Americans: Thank you for your kindness to America in an hour of need," he said.

"For days after 11 September, Canadians came to the aid of men and women and children who were worried and confused and had nowhere to sleep.

"That emergency revealed the good and generous heart of this country, and showed the true feelings of Canadians and Americans toward each other."

Iraq disagreement

Acknowledging past differences over the wisdom of war in Iraq, which Canada's former Prime Minister Jean Chretien and a majority of Canadians opposed, Mr Bush said he looked forward to "a strong partnership" with Canada during his second term.

The US and Canada shared an interest in establishing peace and democracy in Iraq and the Middle East, he said.

Mr Bush stressed his commitment to a "relentless" pursuit of terrorist networks and repeated assertions that peace in the Middle East could be achieved by fostering democracy in Iraq and in an independent Palestinian state.

"We have important work ahead. A new term in office is a perfect time to reach out to our friends."

The BBC's Lee Carter in Ottawa says that Mr Bush's words will be interpreted as a signal to European nations that the president wants to work with allies by his side.

But Mr Bush is the first US president in living memory who has declined the offer to speak in parliament while on an official visit, our correspondent notes.

During Mr Bush's first day in Canada, on Tuesday, protesters scuffled with police in Ottawa, where he met Mr Martin for talks and attended a gala dinner.