New Delhi: The United States today (Mar 23, 2004) sought to dispel concerns in India over its decision to accord "major non-NATO ally" status to Pakistan, saying this was aimed at facilitating cooperation in the fight against terrorism.

"The US Secretary of State Colin Powell has indicated that this decision will facilitate cooperation between the US and Pakistan in the war against terrorism. This is also an objective that India shares," the new American Ambassador to India David Mulford said in New Delhi.

Powell's announcement in Islamabad had led to a sharp reaction from New Delhi, which said it was disappointing that he did not share with the Indian Government Washington's decision while he was here.

India also stated that the US decision has "significant implications" for Indo-US relations.

"The US will continue to build strong bilateral relationships with India and Pakistan. Each of these relationships stands on its own merits," Mulford stressed.

Asked about US recognising that India merits permanent membership in an enlarged United Nations Security Council, he said, "these issues take a long time to develop" and were under "regular review".

Observing that it was "premature" to move it further, he said, "There is no immediate plan to do these things. One really doesn't know when this will happen. But when it happens, the US will review its strategic interest around the world."

Mulford said the peace initiative launched by Prime Minister Atal Bihari Vajpayee and Pakistan President Pervez Musharraf, "as well as a series of Indo-Pak confidence building measures, are reasons for optimism, and the US strongly supports these important steps".

The "core" of Indo-US relationship was the strategic partnership outlined by Bush and Vajpayee, he said adding, "The 21st century looks very bright for India."

Over the past two years, the two countries have witnessed the beginning of a transformation that would open new opportunities for them, he said adding, "we have taken important steps forward to bridge previous mistrust and lay the foundation" for a "crucial" partnership in the 21st century.

He also referred to the next steps in the strategic partnership initiative involving cooperation on civilian nuclear issues, peaceful use of space technology, high-technology commerce, besides expanding dialogue on missile defence.

"These areas of cooperation are very complex, requiring attention to detail and patience to create the framework, which will ensure that we meet our shared objectives," he observed.

Emphasising on the importance for evolving a "comprehensive" bilateral relationship, he spoke of greater involvement of the private sector in this endeavour.

"Barriers need to be removed and disincentives cleared away, so that we strengthen the strategic partnership that now exists between the world's two largest democracies," he said.