Australia will be forever indebted to Ireland for shaping its national identify, Prime Minister John Howard said in Dublin tonight.
As he continued a four-day official visit, Mr Howard noted that the historical links between both countries had also forged a positive bilateral relationship.
Mr Howard was speaking after hour-long talks with Taoiseach Bertie Ahern at Government Buildings.
He will tomorrow pay a courtesy visit on President Mary McAleese and later address the Dáil. Australia will forever be indebted to the Irish people for the contribution it made to the shaping of our national identity," he told a joint news briefing.
"It is also very much a contemporary relationship as well." He remarked that up to 60,000 young Irish people go backpacking in Australia every year.
He also said he expressed to Mr Ahern his admiration at the growth and vitality of the Irish economy.
He noted that the ability of Ireland to transform it from a country with net emigration to a state which exported software components was a remarkable tribute to the versatility and resilience of Irish people.
"It's a great delight to be here and I bring to Mr Ahern and his nation the good wishes of 20 million Australians," he added.
Mr Howard, who has committed troops to the war in Iraq and is a key ally of the US and UK, refused to be drawn when asked to comment on Ireland's stance on the war in Iraq.
"I don't make a habit of telling other countries how to conduct their affairs. I speak for Australians and how Ireland conducts itself in these matters is an issue for the Irish Government and the Irish people."
But he noted that Irish people had been among victims of terrorism, particularly in the 9/11 attacks and the Bali bombings.
Mr Howard said sent good wishes to the Government of National Unity and said he was still hopeful of a diplomatic solution to the stand-off with Iran over its nuclear programme.
On the issue of Iraq, he added: "Once there was a UN resolution, we assisted in every way we could. All of us want to work to see a better future for the Iraqi people so that they will be free from everything they had to live through.