Australian Prime Minister John Howard and visiting Indonesian President Susilo Bambang Yudhoyono held talks on Monday, stressing their commitment to strengthening bilateral ties and cooperation in fighting terrorism.

Speaking at a press conference after the talks, Yudhoyono described the meeting as very productive, saying they discussed the issue of terrorism and how the two countries can strengthen cooperation in many areas relating to counter-terrorism.

"I stressed the need to address the roots and causes of terrorism," said Yudhoyono.

"Prime Minister Howard and I agreed we should continue with our joint initiative to promote interfaith dialogue," he said.

The two leaders signed a joint declaration to provide a framework for future relationship between the two countries.

"In general we agreed to have a positive and constructive cooperation in the field of defense and security," Yudhoyono said.

"What we are doing now, cooperation in combating terrorism in dealing with transnational organized crimes, and the education and training between our two armed forces is one example and a model that bilaterally we could cooperate better," said Yudhoyono.

For his part, Howard said both leaders had a strong personal commitment to strengthening the relationship.

Australia would finance 600 scholarships for Indonesian students to study here to further build the relationship.

Agreements on transport, aviation security, social protection and technology were also signed.

The two leaders also discussed the Australia-Indonesia Partnership for Reconstruction and Development in the wake of the Boxing Day tsunami last year which caused great losses to Indonesia.

Yudhoyono arrived here Sunday night, a day after nine Australian military personnel were killed when their relief helicopter crashed on Indonesia's quake-devastated island of Nias.

"Tragedy has brought our two countries together in recent months," Howard said at the press conference.

"But before the terrible tsunami tragedy overwhelmed the province of Aceh there had already been many positive developments in the relationship between our two countries," he said.

Source: Xinhua