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Last Updated: Saturday, 16 September 2006, 20:13 GMT 21:13 UK
South Asia rivals to resume talks
Pakistani President Pervez Musharraf and Indian Prime Minister Manmohan Singh
India and Pakistan say they will work together against terrorism
Nuclear rivals Pakistan and India have agreed to resume formal peace talks, after the leaders of the two countries met for the fourth time in two years.

The long-disputed Kashmir and Jammu regions, as well as other matters, will be on the agenda.

Pakistan's Pervez Musharraf and India's Manmohan Singh said they hoped for a "peaceful negotiated settlement".

Mr Musharraf and Mr Singh met on the sidelines of the Non-Aligned Summit in the Cuban capital, Havana.

"It was agreed the peace process must be maintained and respected, and success is important for both countries and the future of the entire region," said Mr Singh, as he stood alongside the Pakistani president.

'Frank exchange'

The two leaders said they had instructed their foreign ministers to resume a formal dialogue. The first meeting is due to take place soon in the Indian capital, Delhi.

Our correspondent in Havana, Shahzeb Jillani, says there had been a sense of cautious optimism about the much anticipated India-Pakistan talks.

Mr Musharraf said he was "very happy" at the outcome of the meeting.

"We had a cordial, frank exchange of views on all aspects of India and Pakistan relations."

The talks between the two leaders were the first to take place since the Mumbai train bombings of 11 July which killed at least 180 people.

India had blamed the attacks on Pakistan-based militant group, Lashkar-e-Taiba.

The two leaders also announced that they would be co-operating on terrorism by setting up a joint agency to tackle the problem.

Mr Singh announced that he had accepted an invitation to travel to Pakistan at some stage in the future to further the peace process.

See the leaders at the summit

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