Malaysia's foreign minister said the project was 'a big step forward'
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A new South East Asian counter-terrorism centre has been launched in Malaysia.
The project - strongly backed by the United States - is part of the region's drive to combat terrorism in the wake of the 11 September attacks on the US and last October's Bali bombings.
But correspondents say the centre's launch comes amid strained diplomatic ties between the US and Malaysia, over Malaysia's disapproval of American foreign policy.
The Malaysian Government has stressed that although the centre has been proposed by Washington, US involvement will be minimal.
Malaysian Foreign Minister Syed Hamid Albar told those gathered for the centre's opening that the project was "a big step forward in our war against terrorism".
The centre is expected to have a dedicated research unit to monitor terrorist operations in the region.
While it will offer training by world class experts, it will not be an intelligence agency, Syed Hamid Albar said.
The centre is temporarily based at the Foreign Ministry in the government administrative centre of Putrajaya, south of Kuala Lumpur, but is expected to move to new premises in Kuala Lumpur by December or January.
It is due to organise its first conference to
study terrorist financing and money laundering next month.
Militant groups
Terrorism is among South East Asia's biggest concerns.
Since late 2001, many countries in the region have arrested
suspected Islamic militants - including alleged members of the extremist group Jemaah Islamiah, which is thought to have links to Osama Bin Laden's al-Qaeda network.
Dr Mahathir has been an outspoken critic of US foreign policy
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Malaysia is well placed to take a lead in counter-terrorism in South East Asia, according to BBC correspondent Jonathan Kent.
Like neighbouring Singapore, it has escaped most of the violence that has beset the region.
It also has a successful history of counter-insurgency dating from 50 years ago, when it neutralised a threat from communist guerrillas by conducting a public relations campaign to erode their support.
The Malaysian Government says this approach will be at the heart of the strategy advanced by the new centre.
Relations with the US
Hosting the centre has meant that Malaysia has had to tread very carefully, our correspondent says.
It has had to appear tough on terrorism, while not being too friendly towards the US, he says.
US Secretary of State Colin Powell visited Malaysia a year ago, and suggested that Kuala Lumpur was an ideal place to set up a counter-terrorism centre.
President Bush repeated the request later in the year.
But since then, relations between the US and Malaysia have become acrimonious.
Malaysian Prime Minister Dr Mahathir
Mohamad's description of those who died in the 11 September attacks as collaterals, and his vociferous condemnation of the invasion of Iraq, has angered Washington.
But Dr Mahathir is no friend of radical Islamic groups either.
More than 70 alleged militants have been arrested and held without charge in Malaysia in the last two years.