Mr Latham insisted he was not anti-American

"We intend to have them home by Christmas," Mr Latham said of the 800 soldiers currently serving in Iraq.

Just hours earlier, US President George Bush warned it would be "disastrous" for Australia to withdraw her troops.

During a joint press conference with Australian leader John Howard, he said such a move would embolden insurgents.

Mr Latham said the Labor Party strongly supported Australia's alliance with Washington, but was looking forward to the day when "the mistakes of Iraq could be left behind".

"Labor never wanted the troops there in the first place," he said.

But Mr Latham resisted the opportunity to criticise Mr Bush, whom he has described in the past as "incompetent" and "dangerous".

Instead, he insisted that his opposition to the war did not mean he was anti-American.

"Nothing President Bush has said today changes our hopes and expectations about the future," he said.

Mr Bush unleashed his attack on Mr Latham's stance following talks in Washington with Australian Prime Minister John Howard.

Standing side-by-side with the Australian leader, he said: "It would be a disastrous decision for the leader of a great country like Australia to say that 'we're pulling out'.

"It would embolden the enemy. It would dispirit those who love freedom in Iraq. It would say that the Australian Government doesn't see the hope of a free and democratic society leading to a peaceful world."

Mr Howard is a staunch ally of Mr Bush, and joined him in pressing other US allies to keep their troops in Iraq.

"It is the worst time imaginable for allies to be showing any weakness in relation to the pursuit of our goals in Iraq," Mr Howard said at the press conference.

Like the US leader, Mr Howard faces a tough re-election battle later this year.

Mr Howard has compared Mr Latham, his main rival, to Spain's new socialist leader, Jose Luis Rodriguez Zapatero, who won office after the Madrid train bombings.

Mr Zapatero also promised to withdraw Spanish forces from Iraq if he won.

Australians in Guantanamo

During Mr Howard's visit to Washington, the two leaders also discussed the cases of two Australians held as suspected terrorists at Guantanamo Bay, Cuba.

Mr Bush assured the Australian leader that the two men would be treated fairly, and the US military would investigate any cases of alleged mistreatment.

David Hicks, 28, was captured fighting with the Taleban in Afghanistan in late 2001, while Mamdouh Habib, 48, was arrested in Pakistan at about the same time.

"It is my understanding that... the Hicks case will be referred to the military shortly, and that the other case is proceeding as well," Mr Bush said.