Warm praise for Musharraf in US

A new and closer relationship since 11 September

President George W Bush has warmly welcomed visiting Pakistani President Pervez Musharraf as a key ally against terrorism.

"Together our nations will continue to cooperate against terror and trafficking in drugs," Mr Bush said at a joint news conference with General Musharraf in Washington.

President Musharraf is a leader with great courage and vision, and his nation is a key partner in the global coalition against terror

President Bush

Mr Bush pledged help towards erasing $1bn of Pakistani debt, but correspondents say Islamabad's hopes for trade benefits and new military hardware were dashed.

General Musharraf urged the United States to help resolve his country's bitter dispute with its nuclear rival India over Kashmir - a territory claimed by both countries.

"We believe the United States can facilitate a solution," General Musharraf said.

Describing Pakistan as a "key partner in the global coalition against terror," Mr Bush commended General Musharraf's "courage and vision" in opposing extremism in Pakistan and elsewhere.

Limited aid

White House spokesman Ari Fleischer said Mr Bush offered Pakistan $200m in addition to $600m offered previously as debt relief.

The president is looking for economic support

But he said there was no change in Mr Bush's opposition to the proposed sale of 28 US F-16 fighters to Pakistan. The sale was blocked by Congress when Pakistan developed nuclear weapons.

General Musharraf said he had warned Mr Bush of India's "massive and aggressive" build-up of forces on their border.

India and Pakistan deployed large numbers of troops on the border after India blamed Pakistani-based militants for an attack on the Delhi parliament in December.

Pakistan strenuously denied the Indian accusation that it had masterminded the attack.

US officials say they will press both India and Pakistan to start pulling back their troops.

Praise for modernisation

The two presidents appeared relaxed as they spoke to reporters in the White House.

Mr Bush praised what he said was the unelected General Musharraf's aim to modernise Pakistan and eliminate extremism.

But he added: "I am particularly pleased he is holding elections."

Musharraf urged India to withdraw forces

Members of the Bush administration have said they will press the Pakistani leader to stick to his promise of democratic elections in October.

General Musharraf, who seized power in a 1999 coup, said the momentous events since the 11 September attacks on the United States had demonstrated the depth and strength of the relationship between the United States and Pakistan.

"I am gratified that my vision of Pakistan as a dynamic, liberal, progressive, peaceful and genuinely democratic Muslim country... has evoked a supportive response in the United States," he said.

Nuclear test

Our correspondent says Mr Musharraf has received the kind of reception that would have been unthinkable before 11 September and is clearly trying to use it to improve his standing at home and abroad.

On Tuesday General Musharraf said he believed India may be planning to carry out a new nuclear test - a claim denied by India.

There has been a moratorium on testing since 1998, when India and Pakistan carried out tit-for-tat tests that led to international sanctions.