Berlin: Observing that the resolution of the Kashmir problem would require "serious compromises", Prime Minister Atal Behari Vajpayee has said he is prepared to negotiate with Pakistan President Pervez Musharraf.

"I am prepared to negotiate with him", Vajpayee, who is on a two-day visit here, said in an interview to widely-circulated German daily 'Der Speigel' when asked if he considered Musharraf "trustworthy".

Welcoming the restriction imposed by Pakistan on militant outfit Hizbul Mujahideen, Vajpayee said, "other steps will have to follow".

"Just now Pakistan seems to have prohibited the most radical group of Mujahideen, who operated in Kashmir. If this is the case and has real consequences, I can only welcome this step. Others have to follow, however," he said.

Asked if he was concentrating in achieving improvement in everyday life together with Pakistan like in trade relations, transport, and cultural exchanges and that the most important question of the Kashmir issue was not answered this way, Vajpayee said after all the years of tensions and mutual distrust the views about the other have hardened.

"The solution of the Kashmir problem will, however, demand serious compromises, for that we have to build confidence first. This includes better economic co-operation and the chances of people from both the countries to meet.

"If Indians and Pakistanis understand that living together peacefully brings advantages, they will be much more willing than today to find creative solutions for the complicated central problem," he said.

PTI