The BBC's Daniel Lak: "Tensions do appear somewhat lower"

Indian Prime Minister Atal Behari Vajpayee says he is willing to talk to the Pakistanis, but that there will be no let up in the military campaign to eject alleged infiltrators from Indian territory.

Pakistan's offer came on day four of the air and ground offensive in Indian-administered Kashmir.

India has admitted that one of its downed war planes had strayed into Pakistani airspace before it crashed. The body of one its pilots has been returned by Pakistan.

The admission was made at a military briefing, where Indian officials reported significant gains in their campaign.

K Nachiketa was captured after his plane came down in Pakistani territory

The army spokesman, Major General JJ Singh, said around 300 infiltrators had been killed and nearly 700 wounded - more than half of the original number who had taken positions in Indian territory.

He said India now had evidence of Pakistan regular army involvement in the intrusion.

BBC Delhi Correspondent Daaniel Lak says that despite the continuing military campaign, tensions appear somewhat lower after the Indian and Pakistani prime ministers spoke on the telephone hotline between them on Friday.

The BBC's Nick Bryant: "The raids won't stop until the 'infiltrators' are flushed out"

Pakistani Prime Minister, Nawaz Sharif, has written to the UN Secretary General, Kofi Annan, asking him to send a special envoy to the region and enlarge the UN observer mission there.

Altogether, India has lost three aircraft - two warplanes and a military helicopter.

Officials said the helicopter was brought down by a shoulder-launched Stinger missile during operations to dislodge what they describe as Pakistani-backed infiltrators, high in the Himalayas. All four crew members were killed.

(Click here to see a map of the area)

On Thursday, two Indian fighter jets were downed by Pakistani armed forces, but they have denied any involvement in bringing down the helicopter.

Airspace 'violated'

Pakistan says the two jets were shot down after violating its airspace above Pakistani administered Kashmir.

The BBC has confirmed that one jet, a MiG-27, crashed some 10-12km inside the Pakistani line of control.

In Kashmir itself, thousands of people have fled their homes following fighting near the line of control with Pakistan.

India says the infiltrators are mostly Islamic insurgents from Afghanistan, but with some Pakistani army regulars included.

Pakistan says it has no knowledge of a recent infiltration of rebels from Pakistani territory, and has denied helping the infiltrators.

It has warned that it reserves the right to retaliate if Indian attacks spill over the line and say its army is on high alert.

The two countries have fought three wars in the past 52 years, two of them over Kashmir.

The intensification of the conflict is of particular concern following Indian and Pakistani nuclear tests last year.

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• The balance of firepower
• The Kashmir conflict in pictures
• Q & A: Kashmir dispute

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