South Asian PMs hold key meeting

Kashmir "core issue" for Aziz (L) in talks with Manmohan Singh

Pakistani Prime Minister Shaukat Aziz has held talks in Delhi with his Indian counterpart, Manmohan Singh, with Kashmir high on the agenda.

Mr Aziz said after the meeting that progress on bilateral issues would depend on progress in finding a solution for the disputed region.

But he stressed: "Pakistan wants peace with India."

Mr Aziz is on a tour of South Asia as outgoing chair of a regional co-operation organisation.

The trip comes as peace talks between India and Pakistan on Kashmir are finely balanced. The nations have fought two of their three wars since independence in 1947 over the region, which both claim.

Factions

Mr Aziz said the talks with Mr Singh, including the "core issue" of Kashmir were "friendly and cordial".

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Kashmir dispute

Mr Aziz has also met Indian Foreign Minister, Natwar Singh, members of the Indian opposition and leaders of Kashmiri separatist groups.

However, one key separatist who attended talks between Mr Aziz and the All Party Hurriyat Conference, which is campaigning for independence from India, said he failed to unite the hardline and moderate groups.

Indian has pulled back some of its troops from Kashmir

"The prime minister tried his best to unite the two factions but there was no progress," the separatist told AFP, blaming hardliners for not being "flexible".

After the first round of talks between Mr Aziz and Foreign Minister Singh on Tuesday, Indian foreign ministry spokesman Navtej Sarna said: "Both sides felt the dialogue should continue to move forward."

India's position has been to discuss all bilateral issues, not necessarily dependant on progress on Kashmir.

The construction of a gas pipeline between Iran and India which would pass through Pakistan, and a bus service linking Indian with Pakistan-controlled Kashmir were also on the agenda of the two premiers.

But the BBC's Nick Bryant in Delhi says the upshot of two days of talks between Mr Aziz and Indian officials was that much was discussed, little firmly agreed.

Cool reception

Last week, India began a limited withdrawal of troops stationed in Indian-administered Kashmir to coincide with a visit by Prime Minister Singh.

But the Indian leader rejected a proposal by Pakistan President Pervez Musharraf to consider redrawing the borders in Kashmir, which both countries claim.

His words received a cool reception in Islamabad.

However, our correspondent Nick Bryant says Mr Aziz made it clear on Wednesday that President Musharraf's comments were intended to spark debate within Pakistan, rather than form the basis of talks with India.

Mr Aziz is visiting the seven South Asian capitals in his capacity as chairman of the South Asian Association for Regional Co-operation (Saarc).

The regional body, which aims to promote closer economic relations in a region where some of the world's poorest people live, has made little headway because of the tense relations between India and Pakistan.