SOFIA, June 2 (Xinhuanet) -- Bulgaria and the United States have reached an agreement on the compensations for the use of Bulgarianmilitary bases by US troops in its transfer to eastern Europe, local media reported here on Wednesday.

    Washington would pay "financial subsidies" to Sofia for its troops' use of bases in Bulgaria, the Labor newspaper reported, citing the defense ministry.

    The report said that the US has promised to provide 10 million US dollars of military aid to Bulgaria before 2005 but the sum of money must be used to purchase US- made weapons.

    Washington is re-deploying its troops stationed all over the world under new international situation. Most of the 112,000 troops that are stationed in western Europe will be transferred to central and eastern Europe.

    Bulgaria, which lies on the Balkans which connects Europe and Asia, has a high strategic importance. The United States views thecountry as one of the most ideal countries for its troops' easterndeployment.

    Washington has chosen five military bases in Bulgaria for the new deployment, including two military airports, a land force base,a marine base and a missile base, which all lie in the areas on the Black Sea. Enditem