Thursday, March 3 2005 15:41 Hrs (IST) - World Time -

Washington: Observing that India and Pakistan have made "real compromises" in agreeing to start bus service across the Line of Control in Kashmir, the US said this was a "significant development" and it would "encourage" further progress in Indo-Pak engagement.

"Reducing the threat of conflict between India and Pakistan is of critical importance to both countries as well as to the US and the international community," Principal Deputy Assistant Secretary of State for South Asia Donald Camp stated while deposing before the Senate Committee on Foreign Relations.

Camp said the US has for long encouraged Indo-Pak engagement while working to reduce the tensions between the two neighbours.

"The rapprochement and composite dialogue that began nearly two years ago between India and Pakistan has seen a number of successes," he said.

"Most recently, during Indian Foreign Minister Natwar Singh's visit to Islamabad, both sides made real compromises in agreeing to begin bus service....this is one of the most significant developments since the composite dialogue began in January 2004," Camp said.

"It shows that the parties are committed to increasing their engagement, and we will encourage further progress," he said.

Describing India as "the pre-eminent power in the region", Camp said it "increasingly fills a global leadership role".

Highlighting the importance of India and the US building a strong bilateral partnership, he said, "our partnership is growing across multiple fronts, including our security and economic ties and we are working together to solve regional problems".

Through the Next Steps in Strategic Partnership, the two countries were working to expand cooperation on civilian nuclear, civilian space and high technology trade development as well as an expanded dialogue on missile defence and enhanced non-proliferation export regime in India, he said.

On Pakistan, he said a return to full democracy in that country was "central" to long-term stability and a "primary objective" of Pakistan policy of the US.