New Delhi: Pledging to carry forward the Composite Dialogue Process, India and Pakistan today (Sep 5, 2004) made "good progress in some areas" and were looking at a series of Confidence Building Measures (CBMs) including continuation of ceasefire, disengagement in Siachen and operationalising the Srinagar-Muzaffarabad bus service.

A "good beginning" has been made, official sources said in New Delhi after External Affairs Ministers K Natwar Singh and Khurshid Mehmood Kasuri held an hour-long one-on-one followed by delegation level talks.

The two sides are also exploring the possibility of working out a Memorandum of Understanding (MoU) on cooperation between respective coast guards and exchange of visits by Foreign Service probationers.

Both sides voiced their willingness to consider measures for using Line of Control (LoC) as a "bridge" between the two countries by enhancing "cross-border contacts".

The Foreign Ministers shared keen desire to have another round of Composite Dialogue Process. A Joint Statement may be issued at the end of the two-day talks tomorrow (Sep 6, 2004).

During the talks, New Delhi registered its concerns over continued cross-border terrorism and infiltration and reminded Islamabad of its commitment in January this year of not allowing its territory to be used for acts of terror against India.

"The meetings were held in a friendly, cordial, affable and constructive atmosphere," External Affairs Ministry spokesman Navtej Sarna told reporters at the end of the first day's session.

At a separate briefing, Pakistan Foreign Office spokesman Masood Khan said in principle, the two sides have agreed on starting the Srinagar-Muzaffarabad bus service "but some issues have to be settled".

Asked about India's concerns on cross-border terrorism, he said, "We reject the allegation," and disagreed that there had been an increase in the level of infiltration.

"Let us hope that this current phase leads to a just and lasting solution to the Kashmir issue," Khan said while pointing that efforts were being made to "overcome difficulties on complex issues in the dialogue process".

Asked about Kasuri's meetings with Hurriyat leaders, he said Pakistan "lauded and commended" the efforts by the separatists among themselves to iron out their differences.

To a question on the proposed meeting between Prime Minister Manmohan Singh and Pakistan President Pervez Musharraf on the sidelines of the UN General Assembly session in New York later this month, Khan said, "There is no doubt about it." The two leaders are also expected to interact on the fringes of next year's SAARC (South Asian Association for Regional Co-operation) Summit in Dhaka.

Sarna said the two Ministers reviewed the recommendations of the Foreign Secretaries and "assessed positively" the results of the meetings held in the first round of the composite dialogue.

Underlining that there was certainly a commitment and determination on both sides to take the dialogue process forward, he said several proposals on ways and means to move forward were explored.