"Elections next year are so critical that only a level playing field and elections that are free and fair will give the winners legitimacy," she told a crowded media conference at the American Center in the city, wrapping up her 3-day visit yesterday.

On the government-opposition conflicts over election issues, Rocca said, "Our hope is that parties will manage to deal together in order to close together on the day of election so the people of Bangladesh can choose."

About opposition's threat to abandon the election if the government does not accept their reform proposals, she said, "Our hope is that all parties will participate in the elections and the principle of level playing field will be maintained to give legitimacy to winners."

About reform of the caretaker government system as demanded by the opposition, the US assistant secretary said, "It is not US policy to get into internal politics of a country."

She said Bangladesh can be proud of its tradition of democracy, of having three consecutive free and fair elections and peaceful turn over of power and of its people who are very vibrant about their democratic rights.

Suggesting that the opposition hold debates in parliament, she said, "There is more to a strong democracy than elections: We would also like to see the opposition contribute to public debate in a meaningful way through public institutions such as parliament rather than disruptive means such as hartal."

About her meetings with government officials and leaders of the major political parties, she said all would agree that Bangladesh faces some important challenges right now and that overcoming those challenges will require joint efforts by all the parties concerned.

"One of the most immediate challenges right now is countering terrorism. The JMB bomb attacks in Bangladesh demonstrate that terrorism is a global problem that confronts us all," she noted.

Pledging US assistance to combat terrorism, Rocca said, "We would like to see the government arrest and convict those responsible, and we are prepared to offer assistance as requested."

Asked if it would be possible for the government to curb militancy effectively keeping Jamaat as an ally, she said there are lots of allegations, but Jamaat chief Nizami, whom she met yesterday morning, clearly stated that they strongly oppose militancy and this kind of violence.

"We hope that they [Jamaat-e-Islami] would continue to oppose this violence and they would join in countering terrorism," she added.

On the possibility of establishing a US-Bangladesh counter-terrorism bureau, she said they are discussing it to see how the US could provide further assistance to enhance Bangladesh's capability. This discussion virtually started right after 9/11, she said, adding presently the USA is providing technical assistance and training to Bangladesh.

"Bangladesh is a strong ally in the war on terrorism... We are working since after 9/11 ... We are trying to work out a framework," she told the media.

Asked about the concerns expressed Wednesday by a visiting EU troika over a possible rise in minority repression in the run-up to the elections, she said, "I cannot predict what will happen in future. But it is extremely important that the religious minorities are protected and we hope no violence will be unleashed against the minorities."

Asked about the letter of President George W Bush to Prime Minister Khaleda Zia, Rocca said in it the president appreciated the anti-militancy drive of the Bangladesh government. President Bush, she said, also expressed the hope that strong efforts would be made to bring it to its logical conclusion and perpetrators of the violence would be prosecuted and punished.

The president also hoped for a free and fair election in Bangladesh, Rocca added.

Asked why President Bush is not coming to Bangladesh during his upcoming visit to India and Pakistan, the US high official said there is no specific reason. "He is now on a very tight schedule and has very little time."

On whether the US is contemplating sanctions if Bangladesh fails to implement the anti-money laundering act as reported by The Daily Star, Rocca said, "We hope that the money laundering act will be complete, but the word [sanction] never crossed my lips.

I don't know how they got that word."

She also denied the report of $100 million US aid to Bangladesh to upgrade its capacity to deal with terrorism.

On a question about the assassination of Shah ASM Kibria, Rocca said she visited the wife of the late Kibria in the morning and offered deep condolence on behalf of her government. "I hope that the perpetrators of the heinous act would be brought to justice in a transparent way," she added.

In her opening remarks at the conference, the US assistant secretary said, "Bangladesh can be proud of its tradition of democracy, but maintaining that tradition requires constant diligence." She said supporting democracy is one of America's top priorities around the world. So, the US wants to do what it can to help Bangladesh maintain and strengthen its democracy.

She said Bangladesh faces the challenge of achieving an economic growth that will be shared by all sectors of the society. Americans would like to see Bangladesh grow economically and believe that trade is the most effective motor of economic development.

"Bangladesh is very close to achieving levels of growth that would lead to real poverty reduction," she observed, adding many experts believe that corruption is a huge drag on the economy that prevents Bangladesh from achieving that level of growth.

About her visit, Rocca said this is probably her last visit here in the capacity of assistant secretary and, "I think that the fact that I am taking this opportunity to visit Bangladesh is an indication of how important Bangladesh is to the US government."