Winding up a week-long tour of Asia, she and her entourage stopped at this remote, sparsely populated former Soviet ally the size of Alaska for about six hours, the first US secretary of state to do so since James Baker in 1991.

She held talks with senior leaders, addressed parliament and conducted discussions with non-governmental organisations that work on women's issues."The United States wants Mongolia to succeed," she told parliament, which last week elected a new government that was the focus of street protests on Friday.

"Because we are a nation that believes in freedom, law, open markets and respect for human rights, we admire the example you are setting," she said.

"In some countries there are leaders who embrace economic reform but reject political openness. That is not the Mongolianmodel," Albright said.

"Here you are building economic and political democracy at the same time while still remaining true to your national heritage, culture and values. There are other ways to build democracy but I am convinced this is the best way," she added.

Albright just spent three days in China, where economic reforms have moved forward but there has been no effort to couple these with political liberalisation.

She was to cap her lightning visit with a visit to a "ger", the traditional felt-walled tent of Mongolia's nomadic people.

A tip-sheet for officials provided by the US embassy warned American diplomats it would be impolite to refuse a host's offer of tea, food or vodka and advised the local custom is to yell "catch your dog" before entering a ger.

At a news conference with Albright, prime minister Tsakhiagiin Elbegdorj noted that some held that "simultaneous transition in the political and economic fields is not the way for Asian countries." "We are challenging and breaking thisstereotype. I think we are showing by this that twin reforms in politics and the economic field, by cherishing the human rights, is the common value and it's the universal value," he said.

Mongolia, a mineral-rich country of 2.5 million people with the world's coldest capital, captured Washington's attention after fledgling democrats routed former communists in 1996 and swiftly sought to replace seven decades of Stalinist central planning with a free market economy. Although economic growth was 3.3 per cent last year and rampant inflation has been tamed, many poor Mongolians feel abandoned by the dismantling of state industry and welfare benefits, such as free housing and health care.

Albright stressed that the United States had given Mongolia $85 million in aid over the last five years and would provide about $12 million this year, including $200,000 for women's programmes. She said Washington would back Mongolia's membership in the ASEAN regional forum and do more to help safeguard its environment andnatural resources.

"This is definitely a feel-good stop. Mongolia is a staggering success story," a senior US Official said. On Friday, thousands of fist-waving protesters swarmed into Ulan Bator's main square demanding the resignation of the government and more social welfare.

Dozens of police guarded the square on Saturday. A senior police officer said the Mongolian capital's entire police force had been mobilised to maintain order during Albright's visit. An organiser of Friday's protest said no demonstrations were planned for Saturday. "We know that her excellency the US secretary of state Madeleine Albright is coming. We don't want to make noise and give her a bad impression," G. Boshigt said. Albright was later to fly to London, where she is to hold separate meetings on Monday with Israeli prime minister Benjamin Netanyahu and Palestinian leader Yasser Arafat.