Bush praises Bahrain plan to name Iraq ambassador

WASHINGTON (Reuters) - President George W. Bush told Bahrain's king after an Oval Office meeting on Tuesday that the Gulf island state showed leadership by deciding to reopen its embassy in Iraq and name a new ambassador there.

Bush said Bahrain's announcement on Monday was "a very strong move that indicates a willingness to lead, as well as a willingness to send a signal that when a young democracy like Iraq is beginning to make progress, that it is important for the neighborhood to recognize that progress."

Bahrain's charge d'affaires was shot and wounded in an attack on a convoy in Iraq in 2005.

"Iraq is an Arab state. Iraq is a founder of the Arab League so it deserves all the support that it can get from other brother Arabs," said King Hamad bin Isa al-Khalifa, whose country hosts the U.S. Navy's Fifth Fleet.

The king said he and Bush discussed regional and bilateral security, a U.S.-Bahraini free trade agreement and a nuclear energy accord signed on Monday by the U.S. secretary of state and Bahrain's foreign minister.

"We talked about security matters, which really are the most important issue for maintaining the development and prosperity in our region," the king said, thanking Bush for his efforts "in fighting terrorism and extremism."

The U.S.-Bahraini agreement on civil nuclear power was presented by the State Department as a model for nations to meet their energy needs, cut their greenhouse gas emissions and prevent the spread of sensitive atomic technology.

Bahrain, which exports oil and gas, said it would not seek sensitive nuclear fuel cycle technologies and would buy fuel on the international market. The State Department contrasted the deal with Iran's nuclear effort.

The United States accuses Iran of trying to perfect the process of uranium enrichment to produce fissile material for nuclear weapons. Iran denies this, saying it wants nuclear power to be able to export more of its valuable oil and gas.

(Reporting by David Alexander; Editing by Xavier Briand)