New Delhi: Displaying a "new spirit" in their composite dialogue, India and Pakistan today (June 28, 2004) agreed to continue their "sustained and serious" engagement to find a "negotiated final settlement" to the Jammu and Kashmir issue, affirming their determination to implement the Simla Agreement in letter and spirit.

The two-day dialogue between Foreign Secretaries Shashank and Riaz Khokhar, resumed after a gap of six years, ended on a positive note in New Delhi with the two neighbours agreeing on a series of confidence building measures (CBMs) which include a decision to reach an accord on pre-notification of missile tests. Immediate restoration of strength of their respective missions to 110 from 75 and to carry forward the peace process in an atmosphere free from terrorism and violence were also agreed upon.

A two-page joint statement issued after the talks made an unexpected reference to the Charter of the United Nations that both sides reiterated their commitment to its principles and purposes. This was clubbed with an affirmation to the determination to implement the Simla Agreement in letter and spirit.

India had been insisting on implementation of the 1972 Simla Agreement as the basis for resolution of all bilateral issues, including Jammu and Kashmir, while Pakistan had been harping on the UN resolutions on the subject, which New Delhi finds to be outdated.