Putin 'derailed reforms' in Russia, says Bush

But he said certain values were universal to all democracies, and criticised several countries for not embracing them.

"In Russia, reforms that once promised to empower citizens have been derailed, with troubling implications for democratic development," Bush said, speaking at a democracy conference in Prague.

The US president claimed that this discussion of democratic backsliding in Russia under the leadership of President Vladimir Putin was just one part of a strong relationship.

"America can maintain a friendship and push a nation toward democracy at the same time," Bush said.

But the lecture, however gentle, was not likely to be well-received by Putin, already riled over what he sees as unwelcome meddling by the United States in Russia's sphere of influence.

Most recently, Moscow has become increasingly irritated by US plans to build a missile defence system in Eastern Europe, on Russia's doorstep.

US officials have been alarmed by threatening statements from Putin and others over the proposed network.

Russia believes the system - with a radar base planned for the Czech Republic and interceptor missiles in neighbouring Poland - is meant for it. Putin has claimed he has no choice but to boost his nation's own military potential in response.

Putin warned over the weekend that Moscow could take "retaliatory steps" including aiming nuclear weapons at US military bases in Europe. China today joined Russia in saying the shield could touch off a new arms race.

"Part of a good relationship is the ability to talk openly about our disagreements," Bush said in the speech at Czernin Palace. "So the United States will continue to build our relationships with these countries and we will do it without abandoning our principles or our values."

Bush said this same approach applied to other allies with difficult democratic records, naming Egypt, Saudi Arabia, Pakistan and China.

"China's leaders believe that they can continue to open the nation's economy without also opening its political system," Bush said.

The conference was hosted by Natan Sharansky, a former prisoner of the Soviet regime who has continued to champion freedom, and former Czech President Vaclav Havel, who led the Velvet Revolution that ended communism in the former Czechoslovakia in 1989. Bush planned to meet with current and former dissidents from around the world.

With the Iraq war raging and that country in disarray, critics say there is widespread scepticism worldwide about Bush's "freedom agenda" - the by-product of his promise to advance democracy in every corner of the globe.

But Bush said: "I pledged America to the ultimate goal of ending tyranny in our world.

"Some have said that qualifies me as a dissident president. If standing for liberty in the world makes me a dissident, then I'll wear the title with pride."

Earlier, Bush and the Czech Republic's leaders defended the plans for the missile shield here against fierce opposition the local population as well as Russia.

"The people of the Czech Republic don't have to choose between being a friend of the United States or a friend with Russia," Bush said at a joint appearance with Czech Prime Minister Mirek Topolanek and President Vaclav Klaus in the medieval Prague Castle. "You can be both. We don't believe in a zero-sum world."

Bush made a declaration not thought necessary for decades: "The Cold War is over."

The once-obvious statement has been rendered less so lately amid an escalating war of words between Washington and Moscow.

So far, the Bush administration has mostly held its rhetorical fire, giving muted reaction such as calling Putin's remarks "not helpful" and repeating its insistence that the network is meant to protect Nato allies against a missile launch from Iran, not Russia.

But the system is unpopular in the Czech Republic, too, among its citizens if not its leaders. People fear becoming a terrorist target, and they worry about creating tension with Russia.

So Bush, Topolanek and Klaus sought to calm those fears, with remarks aimed as much at the wary Czech people as at Russia.

Bush said he would make his case directly to Putin on Thursday when they meet on the sidelines of the G8 summit in Germany.