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Islamabad: Notwithstanding India's fresh peace initiative, Pakistan President Pervez Musharraf has talked about the just struggle of Kashmiris and said terming it as "cross border terrorism" is a "dishonest portrayal of facts".

Jammu and Kashmir is a disputed territory and recognised as such by the United Nations, he said in an interview to a Saudi daily 'Okazm', which was published coinciding with his visit to Saudi Arabia on June 12.

Referring to the new peace process between India and Pakistan, Musharraf was quoted as saying that Pakistan wants a peaceful and just resolution of the Kashmir issue and hoped a similar spirit will prevail in India.

Musharraf said, "Pakistan welcomed Indian Prime Minister Atal Behari Vajpayee's recent offer of dialogue to settle all outstanding issues, including Jammu and Kashmir."

"We are and will remain optimistic about achieving a negotiated settlement to the dispute," he said and hoped that "a similar spirit will eventually prevail on the other side and we will make progress towards a lasting peace in South Asia."

"We are also looking forward to the restoration of full diplomatic contacts leading to a meaningful and result-oriented dialogue with India," Musharraf said adding that although the two countries did not enjoy the best of relations "at least we have agreed to talk to each other and hopefully we will gradually move forward with time".

Responding to a question, Musharraf described the latest initiative for talks with India as a positive development, which followed nearly 17 months of tension between the two countries.

As a first step the two countries have already announced the appointment of their respective High Commissioners.

Similarly, the bus service was scheduled to start shortly which would soon be followed by the resumption of all severed air and rail links, he added.

PTI