Pakistani Prime Minister Zafarullah Khan Jamali says he believes Indian Prime Minister Atal Behari Vajpayee is serious about trying to resolve the two nuclear powers' long-standing differences.
Jamali told the BBC the Line of Control was 'porous
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Mr Jamali told the BBC the two men could take their place in "the good annals of history" if they could resolve the dispute over Kashmir.
However, he warned of the dangers of hardliners on both sides derailing attempts at reconciliation.
And he accepted that there are "volunteers" who cross the Line of Control in Kashmir to fight the Indian security forces.
Mr Jamali made his comments in an exclusive interview in Islamabad with the BBC's Zaffar Abbas.
'Step-by-step'
It was the Indian prime minister who began the current thaw in relations by offering the "hand of friendship" to Pakistan last month.
Mr Jamali told the BBC that when he then phoned Mr Vajpayee to invite him to Islamabad for talks, the latter was "cordial" and "positive".
"I wish we had the videophones for myself and the Indian prime minister so we could see each other's gestures and figures," he said.
The two rivals are taking steps to ease the tension
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But he warned of problems.
"The unfortunate part is having some of the hawks on both sides... of course more in India than Pakistan."
And Mr Jamali cautioned against hope that formal talks could begin soon.
"You can't just jump up and start talking at once," he said. "It has to be a step-by-step measure."
Mr Jamali was asked if the time had come for India and Pakistan to show flexibility on their stated positions on Kashmir.
"Either we convince India on our principles, or they convince Pakistan on their principles on the issues, and I think this is how we go through it... Either they convince us or we convince them - and this can only happen through dialogue."
'Porous border'
Mr Jamali appeared to be ruling out any formal change on Pakistan's position on Kashmir ahead of talks and until a negotiated settlement with India has been reached.
India is still insisting that Pakistan stamps out cross-border infiltration by militants based in Pakistan.
Mr Jamali upheld Pakistan's traditional argument on this point. "We have never encouraged the militants fighting in Kashmir. We have always discouraged it."
However, he described the Line of Control in Kashmir as "a very porous line, you see, a porous border".
"No country is in a position to seal off the border all together."
And because of that, he tacitly conceded that some fighters do cross over from Pakistani-administered Kashmir.
"There are people, there are volunteers... at times you just try to talk to people to put some sense into them. But they are not bound by Pakistan, you see. This is the whole point."