Hyderabad: Expressing happiness that Pakistan has, though late, "clutched" his hand of friendship, Prime Minister Atal Bihari Vajpayee today (Jan 11, 2004) said this has opened a new chapter to usher in peace and prosperity between the two neighbours.

"The accord in Islamabad (to resume a composite dialogue) has opened a new chapter for peace and promotion of trade between the two countries and I am confident that it would be implemented," Vajpayee said while addressing a public meeting in Hyderabad on the opening day of two-day National Executive of BJP (Bharatiya Janata Party).

Regretting the failure of the Lahore and Agra Summits, the Prime Minister said this time the Pakistani leadership had "clutched" the hand of friendship extended by him in Srinagar on April 18, 2003.

"I am happy, though late, the Pakistan leadership has clutched my hand of friendship which I had extended in Srinagar after completion of the successful Assembly elections in Jammu and Kashmir where people rejected the gun.

"We want to resolve all our disputes through negotiations and dialogue," he said amid applause from the gathering.

Recalling that he discussed increase in trade ties with Pakistan President Pervez Musharraf during his talks with him, Vajpayee said that it was strange that Pakistan imported goods through air and sea routes whereas the commodities were readily available in India.

"We are absolutely ready to fulfil the needs of the neighbour and I am confident that the New Year would bring peace and harmony," he said.

Maintaining that India wanted friendly ties with all its neighbours, Vajpayee said, "India wants peace on its borders and peace within the country."

He did not understand why countries in South Asia could not unite for their welfare on the lines of those joining hands in different parts of the world, Vajpayee said, adding "Whatever changes are needed should be brought about peacefully and not with the use of force".