By Matt Robinson and Margarita Antidze

TBILISI, Sept 16 (Reuters) - NATO cautioned Georgia on Tuesday it should not allow last month's war with Russia to stall reforms crucial to Tbilisi's bid for membership in the military alliance.

Secretary-General Jaap de Hoop Scheffer issued the appeal in Tbilisi at the end of a two-day visit by NATO envoys -- a gesture of support for the aspiring member after its crushing defeat by Russia over breakaway South Ossetia.

De Hoop Scheffer said that "despite the very serious situation, the crisis that Georgia finds itself in after what happened in August ... should not be used, and I think is not used, as an argument to stall the important process of reform."

He said Georgia had made "great strides", but added: "There's more to do, and that 'more to do' means that the process should be vigorously followed up and continued despite the very difficult situation."

After a joint news conference with de Hoop Scheffer, Georgian President Mikheil Saakashvili gave a State of the Nation address to parliament proposing "a wave of democratic reforms" that included increased funding for opposition political parties.

Georgia was denied a Membership Action Plan -- a roadmap for accession -- in April, in large part due to reluctance among some west European allies to ignore Russian opposition to the alliance's further expansion in ex-Soviet space.

But Georgia's Western allies also harbour doubts over Tbilisi's commitment to democracy, five years after Saakashvili was swept to power in the "Rose Revolution" that brought down longtime leader Eduard Shevarnadze.

A police crackdown on opposition protests late last year, and the closing of an opposition television station, tarnished Saakashvili's record.

De Hoop Scheffer also noted criticism by international monitors of Georgian parliamentary elections in May. "I know that everybody is doing their very best to prevent that from happening again," he said.

The Georgian military was routed last month in a five-day war with Russia, after Moscow poured troops and tanks over its southern border to repel a Georgian assault to retake South Ossetia from pro-Moscow separatists.

Saakashvili's opponents accuse him of walking into a war he could not possibly win. Some have called for snap elections.

In his address to parliament, the president said his reform package would result in "a stronger parliament, more effective control over the executive power, more independent media and independent and fair courts".

NATO will review whether to grant Georgia a Membership Action Plan in December, but diplomats say the 26-member alliance remains deeply divided. De Hoop Scheffer shied away from making any commitment on when Tbilisi would be invited to join. (Editing by Caroline Drees)

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