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Emerging from a one-to-one meeting, Bush told reporters in Shanghai that Mahathir is concerned about the death of innocent people in Afghanistan.
"I assured him I am, too," Bush said.
Speaking to reporters, Mahathir said, "It was a good meeting. I explained to him our support (against terrorism) and the reason why we find ourselves unable to support the (US) operation against Afghanistan."
"I explained to him the need to remove the cause of terrorism and I singled out the problem in Palestine as the most important cause," the Malaysian leader said.
There have been protests in Malaysia and Indonesia over the US-led strikes in Afghanistan.
Earlier, Bush said the US-led strikes in Afghanistan are making 'very great progress'.
"We are dismantling the Taleban defences, its military, we are destroying terrorists' hideaways. We are slowly but surely circling the terrorists so we can bring them to justice," Bush said while addressing a joint press conference with Japanese Prime Minister Junichiro Koizumi.
Bush, Koizumi and Mahathir met on the sidelines of the informal meeting of leaders from the Asia-Pacific Economic Cooperation, which opened in Shanghai on Saturday.
PTI
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