Tony Blair and his Australian counterpart are meeting tonight for talks over dinner in Downing Street.

The discussion is expected to focus on how the coalition in Iraq will proceed in the face of continuing terrorist attacks.

British and Australian troops played a key role in the initial battles to end the regime of Saddam Hussein.

But they are now locked into a deadly guerrilla war against Saddam loyalists and foreign fighters.

Ahead of the visit, John Howard defended Australia's role in the reconstruction of Iraq. "We have contributed $120 million, on top of that we made a very effective significant military contribution, we still have 800-900 force personnel there," he said.

The continued fight against terrorism was also set for discussion - with the focus on Islamic terrorist groups that have carried out attacks in the Asia Pacific region.

Britons and Australians were killed in several of the recent major terrorist outrages - most notably in Bali.

Next month will see Commonwealth countries gather in Abuja, Nigeria, and the two men are expected to discuss key issues for the negotiations.

Howard began the day by joining the Queen and Tony Blair at an event in Central London.

They marked the 85th anniversary of the Armistice of World War One with the dedication of the Australian War Memorial in London's Hyde Park.