The Taiwan issue was among key topics discussed between Goh, who is on a five-day visit to Washington, and Bush at the White House.

"Emphasising the importance of maintaining stability, they agreed that there would be grave consequences for regional and international security if cross-strait relations were mismanaged," Burhan Gafoor, Goh's press secretary, said in a statement.

Singapore, the only majority-Chinese nation in Southeast Asia, has strong cultural and economic links with China.

The warning by Bush and Goh after their third meeting in a year comes ahead of the inauguration this month of Taiwanese President Chen Shui-bian, who won re-election on March 20 in tense elections.

Chen had angered China with his plans to write a new constitution for the island, a move Beijing thinks could snowball to demands for independence.

China, which claims Taiwan as part of its territory despite their split 55 years ago at the end of a civil war, has said it would invade if the island declared independence or descended into chaos.

Taipei-Washington ties were damaged by Chen's controversial referendum on the threat faced by China and his recent remarks on enacting a new constitution, both of which were strongly condemned by the United States.

The referendum, held alongside the turbulent presidential elections, failed due to a lack of response but Chen was re-elected by a razor-thin majority. The result is however disputed by the opposition.

Chen insists he is not moving towards independence.

Bush and Goh last discussed geopolitical issues in October last year when the US leader stopped over in Singapore for a 15-hour visit during a Southeast Asian trip.

Singapore is a staunch supporter of the US-led war on terror. It will rejoin the US campaign in Iraq this month with the deployment of an air force tanker aircraft to the Gulf.

White House spokesman Scott McClellan and Gafoor said the two leaders also discussed the latest developments in Southeast Asia, Iraq, the Middle East peace process, the North Korean nuclear crisis, the war on terrorism, regional trade and bilateral economic ties.

Describing the discussions as "good," McClellan said the leaders underlined the importance of reaching out to the Muslim world to help in the war against terror.

Singapore currently has 37 accused men under indefinite detention as part of a sweeping crackdown on Islamic militants that began after the September 11, 2001 terror attacks in the United States.

Goh "emphasised the importance of the US staying the course in Iraq as the situation in Iraq had a broader significance for the global fight against terror," Gafoor said.

Goh found Bush "determined and resolute on Iraq," he pointed out.

On the abuse of Iraq detainees by US soldiers at Abu Ghraib prison outside Baghdad, Bush told Goh that "he will deal with the issue in an open and transparent manner and that justice will be done."

McClellan said Bush was "deeply sorry" for the abuse of the Iraqi prisoners, after the US leader denounced the mistreatment in two interviews aimed at the Arab world but stopped short of apologizing.

The army revealed Tuesday that 25 prisoners in Iraq and Afghanistan had died in custody since December 2002, with two alleged killings at Iraqi detention centers.

Singapore is the 11th largest trading partner of the United States and there are 1,300 American firms with a substantial presence and 330 with their regional headquarters in the city state.

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