The US government Friday signalled its intent to keep relations with Thailand despite its concern about last week's military coup, according to DPA. But US State Department spokesman Sean McCormack said it is "watching the situation ... very closely." McCormack said he did not know if the US suspension of nearly 24 million dollars in military aid to Thailand earlier this week would change plans for a joint military exercise next year. But the military funding denial "does not mean we are going to break our relations with Thailand or sever all of the ongoing programmes of cooperation," he said. The US has said it was "extremely disappointed" with the coup that ousted Thai Prime Minister Thaksin Shinawatra. "We've clearly stated that it's a setback for Thai democracy," McCormack said.