The Prime Minister, John Howard, has hit back at criticism over his attack on US presidential candidate Barack Obama's Iraq policy.

Mr Howard said the Labor Party had no right to attack him because it often criticised US President George Bush over the Iraq war and no one accused Labor of putting the US alliance in jeopardy.

Opposition Leader Kevin Rudd today moved a censure motion in Parliament against  Mr Howard.

Labor's censure motion refers to Mr Howard's "false statement'' that his comments were directed only at Senator Obama and criticised Mr Howard for damaging the Australia-US alliance.

It also accuses Mr Howard of "gross insensitivity'' for lecturing the United States on Iraq when the war has claimed the lives of more than 3000 US servicemen and women.

Mr Rudd demanded that Mr Howard withdraw his comments unreservedly.

Mr Howard said the debate centred on the strength of Australia's alliance with the United States.

He rejected Mr Rudd's assertion that the statement in question was a general criticism of the Democrats or damaging to the alliance between Australia and the United States.

Mr Howard had said Senator Obama's call for US troops to be withdrawn from Iraq by March 2008 would deliver a victory for terrorists and destabilise the entire Middle East.

"If I was running al-Qaeda in Iraq, I would put a circle around March 2008 and pray, as many times as possible, for a victory not only for Obama, but also for the Democrats," he told the Nine Network's Sunday program.

Senator Obama hit back, accusing Mr Howard of "cowboy rhetoric".

"I think it's flattering that one of George Bush's allies on the other side of the world started attacking me the day after I announced [my presidential] candidacy," he said.

"I would also note that we have close to 140,000 troops in Iraq and my understanding is Mr Howard has deployed 1400.

"So if he is ... to fight the good fight in Iraq, I would suggest that he calls up another 20,000 Australians and send them to Iraq, otherwise it's just a bunch of empty rhetoric."

Mr Howard said this morning that Australia's troop commitment was "very significant and appropriate" for a nation the size of Australia.

Labor foreign affairs spokesman Robert McClelland said Mr Howard was risking the strength of the alliance by siding so strongly with Mr Bush and offending the majority of the US population, which now supports the Democrats.

AAP reports: It was hard to avoid Mr Howard on American TV today.

That's what happens when a foreign head of state attacks Senator Obama, the hot new star in American politics.

"Australian PM slams Obama on his war stance", a banner on the 24-hour TV news network CNN blared at the bottom of the screen during a story on the controversy.

Rupert Murdoch's American TV news channel, FOX News, ran the banner: "Australian PM: Terrorists will hope for Obama victory".

The Obama-Howard stoush received second billing on the ABC TV network's main news bulletin, watched by 9 million American viewers.

The top story on the ABC news was new evidence linking Iran to weapons used to kill American troops in Iraq.

The American media largely viewed the Obama-Howard story as a baptism of fire for the 45-year-old Illinois senator, who announced only yesterday that he would run for president.

"In this, his first full day as an official candidate, Democratic senator Barack Obama got a taste of the rough and tumble world of presidential politics,'' senior ABC correspondent Jake Tapper told his American audience.

"Obama, often criticised for his lack of foreign policy experience, had his plan to withdraw US troops from Iraq by March 2008 attacked by an unlikely source - the Prime Minister of Australia, an ally of President Bush."

FOX News political correspondent Carl Cameron told his viewers Senator Obama had found "himself in a sparring match on the international stage''.

"A controversy has erupted with the Australian Prime Minister John Howard, who has criticised Mr Obama and Democrats in general suggesting al-Qaeda and terrorists would benefit if [Senator Obama is] elected in  2008," Cameron told his audience.

"At a news conference, Senator Obama slapped back at John Howard."

Rudd moves censure against Howard

Opposition Leader Kevin Rudd today moved a censure motion against Mr Howard over his attack on Senator Obama.

Labor's censure motion refers to Mr Howard's "false statement" that his comments were directed only at Senator Obama and criticises Mr Howard for damaging the Australia-US alliance.

It also accuses Mr Howard of "gross insensitivity" for lecturing the United States on Iraq when the war has claimed the lives of more than 3000 US servicemen and women.

Mr Rudd demanded that Mr Howard withdraw his comments unreservedly.

Mr Rudd said it was a most serious charge to accuse the party of Franklin D Roosevelt, Harry S Truman and John F Kennedy of being the terrorists' choice.

"It is never in this country's interest to have that kind of generic criticism made," Mr Rudd said.

The Democratic Party already controlled the house and senate in the United States and in a year and a half might control the White House as well, Mr Rudd said.

He questioned whether an experienced prime minister, as Mr Howard claimed to be, would make such an irresponsible and reckless statement.
"This is a serious matter," he said. "This is a grave mistake."
 
Mr Rudd said the prime minister was given multiple opportunities during parliamentary question time today to retract his statement.

Mr Howard's decision to pass them up said much about the partisan nature of his relationship with the United States Administration, Mr Rudd said.

Mr Howard said the debate centred on the strength of Australia's alliance with the United States.

"I hope out of this debate we can make a proper judgement about which side of politics is better able to maintain that strength of alliance," Mr Howard said.

Mr Howard said he had co-operated with the Clinton administration and rejected the argument that the Liberal Party could not co-operate with the Democrats.

He also rejected Mr Rudd's assertion that the statement in question was a general criticism of the Democrats.

Mr Howard denied his statement was damaging to the alliance between Australia and the United States.

He said Iraq was undeniably America's most difficult diplomatic and foreign policy issue and it would be very much against it and Australia's interests for troops to leave Iraq.

"I would say the greatest current threat to the quality of the alliance would be a sense in the United States that Australia had deserted her in her hour of need,'' Mr Howard said.

Mr Howard said Mr Rudd supported former Labor leader Mark Latham when he launched a character attack on US President George Bush, calling it a robust exercise in free speech.

The Opposition frequently criticised the Republicans, Mr Howard said.

"I don't apologise for criticising Senator Obama's observation because I thought what he said was wrong,'' Mr Howard said.

"The truth is the Leader of the Opposition has double standards on this issue.''