Washington: Praising the leaders of both India and Pakistan for their desire to resolve the long-standing confrontation over Kashmir and other issues, the United States has ruled out its involvement as a mediator between the two South Asian neighbours.

The US does not seek to impose itself as a mediator, "but will try to use the trust we have established with both sides to urge them towards reconciliation by peaceful means," US Assistant Secretary of State Christina Rocca said at the American Chamber of Commerce in Dhaka yesterday (May 19, 2004).

Describing Indo-US relationship as "probably better than it has ever been since 1947" due to cooperation against terrorism and bilateral dialogue on strategic stability, Rocca said cooperation on strategic issues including missile defence "will be transparent and threaten no other country".

The US Assistant Secretary asserted America's desire to improve its bilateral trade with India. She also thanked Pakistan for its cooperation in the global war on terror, describing the country as a "key ally".

Bush administration hopes to see Pakistan emerge as a "secure, prosperous, moderate and democratic (country) and secure a source of growth and stability in the region," Rocca said.