Pakistan wins big aid deal

Relations between Pakistan and the US warmed quickly

The United States has promised Pakistan more than a billion dollars in aid as a reward for its support of the war on terrorism.

The US announcement came as President George W Bush met the Pakistani military ruler Pervez Musharraf at the United Nations on Saturday.

Pakistan hopes the US will release 28 F-16s

It is not clear how much of the promised aid is new. Washington had already pledged Pakistan some $600 million.

The package includes for funds for border security, refugee relief and anti-terrorism measures, plus debt forgiveness and trade and investment incentives, an unnamed US official told the Reuters news agency.

Pakistan also hopes the US will allow the transfer of 28 fighter planes it purchased in the 1980s, Mr Musharraf told The New York Times newspaper.

The US withheld the F-16s as part of a package of sanctions against Pakistan for developing nuclear weapons in 1998. It imposed further sanctions when General Musharraf seized power in a 1999 coup.

Washington is unlikely to release the fighters, an unnamed US official told Reuters.

Prize

But the BBC's Rob Watson at the UN says the warming of relations with Washington would be a prize for General Musharraf to take back to his restive people.

Many Pakistanis support Osama Bin Laden

Pakistanis have held sometimes violent demonstrations in support of Afghanistan's Taleban regime and militant Osama bin Laden since the US launched its war on terror.

Addressing the United Nations General Assembly on Saturday, General Musharraf said his country needed "financial and commercial support on an urgent basis".

Mr Bush stressed the urgency of the war on terrorism in his own address to the General Assembly - his first speech to the UN.

No neutrals

He said no country could be neutral at a time when terror groups were reported to be seeking weapons of mass destruction.

We should be vigilant to avoid the pitfall of fuelling rather than suppressing terrorism through unilateral practices

Iranian President Mohammad Khatami

"Civilisation itself - the civilisation we share - is threatened. History will record our response and judge or justify every nation in this hall."

Those who supported terrorism, he said, were guilty by association and would pay a price.

Other world leaders took to the podium to urge that the war on terrorism should also address root causes, including poverty and political repression.

Iran and Pakistan both warned the US that its military campaign in Afghanistan might increase support for terrorism.

President Mohammad Khatami of Iran, addressing the General Assembly shortly after Mr Bush, condemned the 11 September attacks in the United States as "inhumane" and "un-Islamic".

Violence not justified

But he added: "Resorting to violence and revenge to counter such acts can hardly be justified under ethical and humane considerations."

President Musharraf said extremists thrived in environments where millions of people - such as the Palestinians - suffered injustice.

He said a solution also had to be found for the disputed territory of Kashmir - claimed by both Pakistan and India.

General Musharraf also offered talks with India on nuclear and conventional arms in an effort to calm tensions in South Asia which correspondents say have increased since 11 September.