Jakarta – The United States congratulated Indonesia Wednesday for reaching a draft peace deal with rebels in Aceh province, and said the accord would make it easier for Washington to resume frozen military-to-military ties with Jakarta.

The US Congress severed most military links with Indonesia in 1999 after military-led violence in the former Indonesian province of East Timor led to the deaths of 1,500 people.

Rights groups have urged Washington not to restore ties because of the army's continuing record of abuses, especially in Aceh province.

The government and Acehnese rebels plan to sign an accord to end the 29-year-old war in Aceh on Aug. 15 after agreeing to the deal at talks last month in Helsinki, Finland.

"Our congratulations go to the government and president and vice president on what appears to be an agreement in respect to Aceh," said Brig. Gen. John Allen, director for Asian and Pacific affairs at the US Defense Department.

Allen said the deal, along with the internal reforms within the Indonesian military and cooperation in the aftermath of the Asian tsunami, "were important indications for the future" restoration of ties.

"We are very encouraged by all these developments in Indonesia," Allen told reporters after two days of meetings between Indonesian and US defense officials aimed at strengthening their relationship.

The Bush administration is lobbying Congress to drop the ban, arguing Washington should be strengthening its ties to Indonesia, the world's most populous Muslim nation and a key battleground in the war on terror.