Embarrassed Georgian officials were forced to admit today that a hand grenade was found in the Tbilisi square where President Bush gave a speech to a crowd of 120,0000 cheering people.

But they denied a claim from the US Secret Service that the grenade had been deliberately thrown at the stage on which Mr Bush, and his Georgian counterpart, Mikhail Saakashvili, appeared behind a bullet-proof screen yesterday morning.

Gela Bezhuashvili, secretary of Georgia’s Security Council, told a news conference: "There was no threat to the presidents."

The device was found about 50 metres from the stage in Freedom Square where Mr Bush addressed the crowd. Mr Bezhuashvili said the grenade could not have been detonated. "A (Soviet-made) RPG-5 hand grenade was found at the square," he said.

"It was not in working condition. In fact there was no chance it could explode. I think the aim was to scare people and attract attention."

Mr Bezhuashvili described it as an "engineering grenade" used for demolition or to simulate the effect of an artillery shell. The blast-effect from such devices can be fatal at close range, but they are not designed to spread shrapnel.

He confirmed that the grenade was thrown while Mr Bush and Mr Saakashvili were giving their speeches, but said it had not been thrown at them.

But the US Secret Service gave a different version of events, saying it had been told by Georgian officials that the device was thrown close to the podium.

Jonathan Cherry, Secret Service spokesman, said: "It was reported that a device hit an individual in the crowd and the device fell to the ground. A Georgian security officer picked up the device which did not detonate and removed it from the area."

The Secret Service said it had been informed of the incident only after Mr Bush had left Georgia yesterday.

The Georgian Government, clearly embarrassed by the major security breach, had initially denied outright that any grenade had been found. Guram Donadze, a spokesman for the Interior Ministry, told the Associated Press news agency last night: "This is an absolute lie. This did not occur."

But they were forced to change their story after the US confirmation. Khatiya Dzhindzhikhadze, a spokeswoman for the US Embassy in Tbilisi, said questions over the incident "will be resolved jointly by American and Georgian specialists".

US security officials faced a difficult task in ensuring Mr Bush’s safety during his speech. A huge transparent bullet proof screen was erected on the stage and soldiers were posted on surrounding rooftops.

But attempts by Georgian police to control the excited crowds and screen everyone entering the square with metal detectors failed when thousands of people forced their way through barriers.

The Georgian capital was a sea of US and Georgian flags as ecstatic, cheering crowds holding banners and hand-drawn pictures crammed into the square to hear the two presidents’ speeches.

Many waited for hours in hot sunshine and the crowd was so tightly packed that many could barely move.

After being introduced as a "freedom fighter" by Mr Saakashvili, Mr Bush told the crowd: "Your courage is inspiring democratic reformers and sending a message that echoes across the world: freedom will be the future of every nation and every people on Earth."

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