WASHINGTON - US President George W Bush's administration said Tuesday it opposed tying RM4.56 million (US$1.2 million) in military aid for Malaysia to religious freedom as an expression of displeasure with outgoing Prime Minister Dr Mahathir Mohamad's recent criticism of Jews.

The State Department said the Bush administration believed that Mahathir had already been adequately rebuked for his remarks and that his successor deserved a chance "to take a different stance" before being punished financially.

"We have stated publicly our view on the offensive remarks that Prime Minister Mahathir made," spokesman Richard Boucher said, noting that the subject had been raised repeatedly during Bush's trip to Asia last week.

Bush and Secretary of State Colin Powell had both personally protested the remarks, making unnecessary the move by the US Senate to link Malaysian military aid to religious freedom, he said.

"We definitely share the concern that underlies the Senate language," Boucher said.

"At this point, however, we believe the incoming Malaysian administration should be judged on its own actions and its own views.

"I think we should leave the opportunity for the new administration to take a different stance," he said.

Ruling by proxy

The Senate voted unanimously on Monday to tie the aid to State Department certification that Malaysia "supports and promotes religious freedoms, including tolerance for people of the Jewish faith."

The move still needs to win support from the House of Representatives, which has already passed a resolution condemning Mahathir over his remarks at the summit of the Organization of the Islamic Conference in mid-October.

Mahathir said then: "The Europeans killed six million Jews out of 12 million. But today the Jews rule this world by proxy. They get others to fight and die for them."

Earlier Tuesday, Mahathir brushed off the threat, saying that withholding the money "wouldn't make any difference to us" and appeared to imply that the Senate vote was proof of his claim about Jews was correct.

"They are very annoyed about what I said about the Jews," he told an impromptu news conference in Putrajaya. "This is their reaction, so what I say is true."

Mahathir retires on Friday after have run Malaysia for 22 years. - AFP