While both eagerly looked forward to a visit to Elvis Presley's Graceland mansion on Friday, the two concentrated on international problems, particularly North Korea, at their talks Thursday.

Koizumi is on a farewell North American tour before he stands down in September and both leaders stressed the close relationship they have built up over the past five years.

Highlighting that 60 years ago, the United States and Japan were at war, Bush told a press conference, "today we talked about North Korea, Iran and Iraq, and trade, and energy cooperation.

"It's an amazing fact that we are able to have these discussions. To me it shows the power of liberty and democracy to transform enemies to allies."

Bush said that Washington and Tokyo wanted to send "a clear message" to North Korean leader Kim Jong-Il over the Stalinist state's nuclear weapons and reported plans to launch a long range missile.

"We discussed this issue at length. We both agree that it's important for us to remain united in sending a clear message to the North Korean leader that first of all launching the missile is unacceptable."

The US president said Kim "has an obligation" to inform other countries of his plans.

Bush denounced Pyongyang's kidnapping of Japanese nationals to train its spies, a issue extremely emotional in Japan.

Koizumi said different tactics could be used to dissuade North Korea from launching the missile and that "various pressures" would be applied if the missile was fired.

Bush said the United Nations could be one avenue and hinted that work on missile defenses would also be an "interesting opportunity".

"The Japanese people cannot afford to be held hostage to rockets," the president said in a pointed comment.

Meanwhile, Koizumi called the Iranian nuclear crisis "a grave issue," despite Tokyo's traditionally close ties with Tehran.

The United States has backed a package of incentives crafted with Britain, France, Germany, China and Russia in an effort to convince Iran to limit its nuclear program.

Japan has been a major investor in Iran's energy sector, as it is heavily dependent on Middle Eastern oil.

"The Iranian issue remains a grave issue for the entire world economy. And Japan wishes to cooperate with the United States and other countries concerned on this matter as well," Koizumi told the press conference.

But the two leaders did not discuss possible sanctions that could be taken against Iran, said a Japanese official who was at the summit.

Koizumi also declined to give outright support to a controversial US deal to help India develop civilian nuclear facilities, telling Bush that Japan was reviewing the issue, said the official.

Bush briefly touched on the need to pressure Myanmar to democratize itself, with Koizumi agreeing to cooperate with the United States over the issue, the official said.

In a symbolic joint statement, the two leaders said the US-Japan partnership is "one of the most accomplished bilateral relationships in history."

The bilateral political, economic and military alliance has contributed to stability in Asia-Pacific, the statement said.

Koizumi got a welcome worthy of a state visit as he and Bush emphasized their close personal ties.

Hundreds of US military in full dress uniform laid on an elaborate ceremony in sweltering heat for the prime minister.

"Americans cherish our friendship with the Japanese people. We value our alliance with the nation of Japan. And we honor the leadership of Japan's Prime Minister Koizumi," said the president.

"He is a man of vision. He's a man of integrity. And I'm proud to call him my friend," Bush said.

"It is no exaggeration to say that over the past five years there has been no world leader, alongside President Bush, among the world leaders with whom I've felt so much heart-to-heart, felt so deep a friendship and trust," Koizumi replied through an interpreter.

Bush joked that the high point of Koizumi's visit would likely be a visit on Friday to the Memphis mansion of the late Elvis Presley.

"Officially, he's here to see the president, but I know the highlight of his visit will be paying his respects to the King," said Bush, who will also go to Memphis in a sign of their friendship.

During an official toast at a gala dinner later at the White House, Koizumi summed up Japan's policy toward the United States by citing the lyrics of an Elvis tune he said was the first English song he had memorized as a youth.

"I would like to propose a toast to the further enhancement of Japan-US relations," the prime minister said lifting his glass. "In the words of Elvis, 'I want you, I need you, I love you.'"