MOSCOW, May 22 (RIA Novosti) - Bolivia's president has urged better relations with the U.S. that have been strained in recent years, but cautioned any ties should be based on "mutual respect" for Bolivia's internal affairs, local media said.

Diplomatic relations between the countries became further strained last September after President Evo Morales expelled the U.S. ambassador, declaring him persona non grata for allegedly assisting separatists.

Washington expelled the Bolivian ambassador to the U.S. in a tit-for-tat move. In March, Bolivia sent another U.S. diplomat packing after accusing him of a conspiracy against the government.

A U.S. delegation led by Thomas Shannon, Assistant Secretary of State for Western Hemisphere Affairs, arrived in La Paz on Wednesday for two-day talks with Morales and high-ranking officials.

During the talks, the sides discussed all the thorny issues that have strained bilateral ties and signed an agreement, based on "sovereignty, territorial integrity while not interfering in each other's domestic affair."

After the talks, Shannon said he "found the Bolivian government very willing and deeply interested in building a new stage in relations."

Morales, Bolivia's first indigenous president, was elected in 2005 and is seen as an ally of Fidel Castro in Cuba and Hugo Chavez of Venezuela.