BBC News Online: World: Americas

US lifts India and Pakistan sanctions

Nuclear proliferation is no longer a US prime concern

Mr Bush said in a White House memorandum that the sanctions were "not in the national security interests of the United States".

The move is being seen as a reward in particular for Pakistan, which has offered support for Washington's pursuit of Osama Bin Laden. The Saudi-born militant, based in Afghanistan, has been named as the chief suspect in the 11 September suicide attacks on New York and Washington.

Both countries have welcomed Mr Bush's announcement.

A Pakistan foreign ministry spokesman said the lifting of any sanctions would be a positive development.

BBC correspondent Stephen Cviic says the lifting of sanctions is the clearest example of how the rest of US foreign policy - in this case fears of nuclear proliferation - is being subordinated to the fight against terrorism.

US forces are continuing to mass in the Gulf and Indian Ocean for a possible strike against Afghanistan.

The ruling Taleban in Afghanistan have reiterated their refusal to hand over Bin Laden.

A Taleban spokesman, Abdul Hai Mutamaen, said the US demands "are not in favour of Muslims and Afghans and we are not ready to accept this".

One possible setback to US plans emerged when an unnamed Saudi official told Associated Press that his country would not allow the use of its bases for strikes.

In other developments:

• Former US President Bill Clinton says that while in office he gave orders to arrest and if necessary kill Bin Laden
• President Bush discusses the Afghan crisis by phone with Russian President Vladimir Putin
• Pakistan cancels the South Asian Games, which were due to be held in Islamabad from October 6 to 15
• Afghanistan's exiled former king, Zahir Shah, says he is ready to return to "serve his people"
• 13 British warships pass through Suez Canal, heading for military manoeuvres in Oman
• 
  The UN comes under intense pressure to resume wheat imports to famine-stricken Afghanistan
• New York Mayor Rudolph Giuliani says New Yorkers should honour those who died in the World Trade Center by returning to their normal lives
• Taleban officials say more than 100,000 people are being trained and armed to face possible attack
• European finance ministers order an investigation into suspicious share-trading in the days before the attacks
• The head of Israeli military intelligence, Major-General Amos Malka, says he sees no direct link between Iraq and the suicide attacks in the US.

Build-up

US defence officials say more warplanes are being sent to bases or aircraft-carriers near Afghanistan, adding to the estimated 350 planes already in the region.

Five thousand extra air national guard and air force reservists have been called up, bringing the total number to 15,000.

And in a separate move, Mr Bush ordered the freezing of assets in the US of various people and groups suspected of terrorist links.

Meanwhile, the UK defence ministry has played down newspaper reports that crack SAS troops are already inside Afghanistan working with the anti-Taleban Northern Alliance.

Coalition-building

Efforts to build a broad coalition of states willing to help fight terrorism are bearing fruit, with Turkey and other strategically important countries offering their help.

US officials said President Putin assured Mr Bush that Russia would co-operate in any US efforts against Bin Laden and would not oppose any similar help from ex-Soviet states in Central Asia.

The Russian military talks with the Afghan opposition Northern Alliance were also attended by several other countries opposed to the Taleban, including Iran, the BBC's Monica Whitlock reports from Tajikistan.

Washington received the strong support of European Union leaders on Friday, who agreed that targeted US retaliation for the attacks would be "legitimate".

The United Arab Emirates said on Saturday it had cut diplomatic ties with the Taleban, after failing to persuade them to hand over Bin Laden.

Only two countries - Pakistan and Saudi Arabia - still recognise the Taleban. Pakistan said it had no plans to follow the example of the UAE.