India launches surprise peace bid

India has unveiled a series of measures aimed at improving relations with its nuclear rival Pakistan and forging progress in the Kashmir dispute.

The two sides came close to war last year

The proposals, revealed by Foreign Minister Yashwant Sinha, include resuming cricket ties and boosting transport links.

Pakistan replied by saying it would consider the proposals positively but also expressed disappointment that they did not include a direct dialogue on Kashmir.

Earlier in the day, Delhi had agreed to meet members of the main separatist alliance in Indian-administered Kashmir for the first time.

Correspondents say that decision signals the start of a new effort to end more than a decade of conflict in the Himalayan region, which has cost tens of thousands of lives.

As far as dialogue is concerned, that is not possible unless we see evidence on the ground that cross-border terrorism is being brought to an end Yashwant Sinha Indian foreign minister Analysis: India seizes peace initiative

Mr Sinha's news conference on Wednesday caught observers largely off guard, correspondents say.

His offer to encourage what he called people-to-people contact comes amid mounting violence in Kashmir and follows several months of hostile rhetoric from leaders in both India and Pakistan.

But the proposals continue a series of incremental, confidence-building steps taken in recent months by both sides to help normalise relations after war was narrowly averted last year.

Pakistan 'disappointed'

Among the most dramatic of the 12 measures India suggested on Wednesday was the opening of the main highway linking Indian and Pakistani-administered Kashmir.

Others were:

• Two new bus links, including one between the two Kashmirs
• A ferry service between Bombay (Mumbai) and Karachi
• The resumption of full sporting ties, including cricket
• Free medical treatment for 20 Pakistani children in India
• And more talks on restoring air and rail links

However, Mr Sinha ruled out direct talks with Pakistan until Islamabad had ended "cross-border terrorism" in Kashmir.

"As far dialogue is concerned, that is not possible unless we see evidence on the ground that cross-border terrorism is being brought to an end," he said.

"Pakistan, we hope, will be persuaded to give up the path of confrontation, the path of violence and come to the negotiating table in a spirit that is necessary to sustain those negotiations."

This is a positive change in the Indian outlook over Kashmir Separatist leader Umar Farooq Cheers for cricket offer

In response, a foreign ministry statement from Islamabad read: "Pakistan's response to any proposal that is substantive and unconditional and genuinely designed to improve relations will, as always, be positive."

However, the ministry was "disappointed" India had rejected Pakistan's offer "to resume substantive and sustained dialogue to resolve all issues", including the Kashmir dispute.

Islamabad denies backing Kashmiri militants, saying it offers them only diplomatic and moral support.

In Kashmir, people were stunned at the pace of Wednesday's events.

"It is an astonishing change of heart," said one man in the summer capital, Srinagar. Another said he could not believe his ears.

Dialogue with separatists

Moderate Kashmiri separatists, meanwhile, welcomed the talks offer from Delhi, which would be the first high-level contact between the two sides aimed at resolving the long-running separatist movement.

Indian Deputy Prime Minister LK Advani, a noted hardliner, has been nominated to speak to Maulana Abbas Ansari, the moderate chairman of one of two factions in the All Party Hurriyat Conference.

Advani will spearhead negotiations with the Hurriyat

The Hurriyat, which groups 27 separatist parties, is currently in crisis, with its leaders bitterly divided.

Earlier attempts at dialogue were made by relatively junior officials who the separatists refused to meet.

Junior Home Minister ID Swamy told the BBC that the decision had been made after the separatists agreed to drop a demand to include Pakistan in the discussions.

"We have always been open to talks with [the separatists]," he said.

The announcement came as three leading separatists were held by Indian security forces in Kashmir.

Yasin Mallik, Shabir Shah and Syed Ali Shah Geelani were all detained ahead of a planned meeting on the 10th anniversary of the death of 40 civilians, killed by the Indian security forces in Kashmir.

Mr Geelani, who leads hardliners in the Hurriyat, dismissed India's talks offer.

"We have had 55 years experience of India's gimmickery. We know what they are up to," he said.

India and Pakistan have fought two of their three wars since independence over Kashmir.

Shelling by India on Tuesday night killed five people and wounded more than half a dozen on the Pakistani side of the Line of Control, authorities there said on Wednesday.