"India has for the first time told Pakistan that it was prepared to consider any proposal which does not effect its sovereignty and not asks for re-drawing of borders," said Syed Iftikhar Geelani of the Kashmir Times.

Geelani said the India-Pakistan peace process could head in the right direction if Islamabad responds positively.

He said Pakistan has also shown its seriousness to work toward finding an amicable and peaceful solution to the decades-long Kashmir problem as it agreed to continue to sustained dialogue in a purposeful and forward-looking manner.

The foreign secretaries of India and Pakistan opened a third round of composite dialogue Tuesday. The two sides agreed to establish more people-to-people contacts.

"They reiterated their commitment to start a bus service between Poonch and Rawalkot and a truck service on Muzaffarabad-Srinagar route for trade in permitted goods as soon as the infrastructure is restored," said a joint statement issued after the two-day meeting between Indian Foreign Secretary Shyam Saran and his Pakistani counterpart, Riaz Mohammad Khan.

The Muzaffarabad-Srinagar road was damaged after a devastating earthquake hit the region on Oct. 8 last year.

The two sides agreed experts would continue to discuss ways of reducing the risk of nuclear accidents or unauthorized use of nuclear weapons.

Khan left for Washington after the meeting Wednesday.

"India wants to have a permanent friendship with Pakistan," Indian Prime Minister Manmohan Singh told Khan during a separate meeting.

The two foreign secretaries dwelt upon several issues, including security, terrorism and Jammu and Kashmir

Singh told Khan India was willing to discuss anything short of territorial readjustments.

"India is committed to whatever was required for free flow of people, goods and ideas on either side of the divide," Singh said.

"We want the Line of Control to become a line of friendship and the international border to be a border of peace and tranquility," Saran said.

He said the peace process has not reached a point of stalemate and there was certain progress.

Before the meeting, it was expected the Pakistani side would officially present two proposals moved by President Gen Pervez Musharraf on self-rule and demilitarization of either side of Kashmir.

"They have not presented any such proposal," said Saran.

"No specific proposals were tabled as composite dialogue is part of an overall peace process," said Khan.

He said there are other channels and high-level contacts to promote such ideas.

Pakistan did not officially present the proposals at the meeting because it knew India would reject them, leaving no scope for further discussion.

"They (Pakistan) want to keep it (proposals) alive and to discuss them through back channels," said Geelani.

India has already rejected the proposals on demilitarization, saying it is linked with the elimination of militancy in the strife-torn northern state of Jammu and Kashmir.

India asked Pakistan to expand on the notion of self-rule for the people of Kashmir, saying it has an elected assembly to rule its side of Kashmir.

India suggested assemblies on either side of the divide could establish contact to promote bilateral relations.

"They can work together on various projects relating to health, education and trade. It would make the border non-existent," said Saran.

India conveyed its anguish on terrorism. It said terror activities in Kashmir and other parts of India have not reduced.

"Terror infrastructure still exists in Pakistan-occupied Kashmir," Saran said. "There is no end to cross-border terrorism despite assurances at the highest level."

New Delhi asked Islamabad to dismantle the infrastructure, as it would hurt the peace process.

Pakistan said it is determined not to allow its soil to be used for any terrorist activity.

The two South Asian nations are currently engaged in a peace process to improve their relations. Kashmir has been at the center of their relations since independence in 1947.

They have fought three wars, two over Kashmir, a region both claim in full.

India, which says Muslim-majority Kashmir belongs to it, softened its stand at the beginning of the peace process and said it was ready to discuss the issue for the first time.

"India views the resolution of the Kashmir problem as part and parcel of developing friendly relations with Pakistan," said the Indian foreign secretary.

In his meeting with Singh, Pakistani Foreign Secretary Khan also extended an invitation to Singh on behalf of Musharraf to visit Pakistan. Singh accepted the invitation and said the tour should be substantive. He did not specify the date, however.

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