Sunday, September 4 2005 12:22 Hrs (IST) - World Time -

London: Expressing optimism that the current Indo-Pak dialogue will facilitate a lasting resolution of all issues between them, the European Union has said sustained progress in the peace process would ease its business involvement in the region for mutual economic benefit.

"This will facilitate a lasting resolution of all issues, an improvement in the well-being of the people of India and Pakistan and an improvement of the situation in Kashmir," the European Union (EU) foreign policy chief Javier Solana said.

"Sustained progress with the peace process would also ease European business involvement in the region for our mutual economic benefit," he said in an interview to 'India News in Europe Programme' on the eve of the India-EU summit in New Delhi on September 7.

Asked to comment on the current developments in relations between India and Pakistan, and the situation in Kashmir, Solana said, "The EU welcomes warmly the positive turn in India-Pakistan relations. We appreciate the courage and flexibility shown by the two sides in taking steps to normalize relations.

"We are ready to support all efforts that contribute to a peaceful settlement of all bilateral issues. At this juncture, we are encouraged by the results achieved so far and by the commitment of the two sides to taking the dialogue forward."

At the same time, Solana said, "We think that the peace process must be strengthened further. It is very important to continue to develop confidence-building measures and to truly build an atmosphere of trust."

At the one-day Summit in New Delhi on Wednesday, the 25-member European Union and India would adopt an Action Plan for intensifying cooperation in many areas including security, peacekeeping and counter-terrorism, Solana said.

"Dialogue and cooperation will be intensified in many areas, across the whole spectrum of issues and subjects in the political field.

"Our goal is to maximize our contribution to global peace and security, contribute to the resolution of regional crisis situations and promote an effective multilateral approach," he said.

Describing India as a 'natural partner of EU,' Solana said the launch of a strategic partnership between the EU and India and its implementation through a comprehensive Action Plan would take their relationship to the same strategic level as that of its partnerships with Canada, China, Russia and the US.

"As with other strategic partners, we are keen to engage substantively on all issues and to develop to the fullest all dimensions of interaction, including the political dimension.

"The potential to take forward dialogue and cooperation in the political field is very significant especially with regard to India. After all, we share the same values, a belief in democracy and a commitment to pluralism and human rights.

In this regard, the EU and India are natural partners," he said.

Asked whether EU would discuss India's efforts to secure a permanent seat in the UN Security Council at the summit, Solana said it was not for him to comment on the specific question of seats on the Security Council.