Iran, West Asia peace and democracy in the region topped the agenda for US President George W Bush during talks on Monday with Saudi Arabia.

Bush’s first visit to the kingdom came as his administration notified Congress of its intent to sell US $20 billion in weapons, including precision-guided bombs, to the Saudis. The announcement was timed to coincide with the President's arrival in the Saudi capital.

It is “a pretty big package, lots of pieces”, US National Security Advisor Stephen Hadley told reporters on Air Force One.

The sale is an important part of the US strategy to bolster the defences of its allies in Saudi Arabia and other oil-producing majority Sunni Muslim Gulf nations against threats from Shiite Iran.

The official announcement will start a 30-day review period during which Congress could try to block the sale, which has raised concern among some lawmakers.

Saudi Arabia and other Gulf states harbour deep suspicions about Iran’s apparent designs to establish itself as a major power and have reacted sceptically to the conclusions of intelligence estimate about Iran.

Bush, who flew to Riyadh from Dubai, was to meet with King Abdullah. The King was expected to urge Bush to keep up the pressure on Israel to halt settlements in Palestinian territories. The administration was able to persuade the Saudis to participate in the US-sponsored peace conference in Annapolis, in November. Bush also has promoted democratic principles during his trip.

While Abdullah has tried to push some reforms on education and women’s rights, and there have been limited municipal council elections, the King has been cautious and limited in his efforts. He apparently has been hampered by others in the royal family worried that fast changes could upset the country’s conservative clerics and citizens.

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