Mr Bush signed a Presidential Determination on Wednesday that granted Kosovo eligibility to receive defence articles and defence services under the Foreign Assistance Act and the Arms Export Control Act, which require that the president determine that military assistance 'will strengthen the security of the United States and promote world peace.'

The United States was among the first countries to recognise Kosovo after its Feb 17 declaration of independence. It had been a province of Serbia but with an ethnic Albanian majority population.

The White House said Mr Bush's move would strengthen US security relations with Kosovo, promote security and stability throughout the Balkans and improve Kosovo's capacity to participate in peacekeeping activities, deter terrorists and deal with humanitarian emergencies.

Tensions have been high since Kosovo's declaration of independence, which Serbia says is illegal under international law.

'The actual provision of defence articles or defence services will be considered on a case-by-case basis, including with respect to relevant guidelines and criteria established in the existing Conventional Arms Transfer policy,' the White House said. 'Each request will also be reviewed to ensure that all legal requirements and constraints existing at the time with regard to the sale, lease, or other transfer are satisfied.' -- AP