Military

DATE=10/26/04

TYPE=CORRESPONDENT REPORT

TITLE=KASHMIR/DIPLOMACY (L-ONLY)

NUMBER=2-319914

BYLINE=ANJANA PASRICHA

DATELINE=NEW DELHI

HEADLINE: India Reacts Coolly To Pakistan Gesture of Flexibility on Kashmir

INTRO: A call by Pakistani President Pervez Musharraf to debate bold new ways of solving the decades-old Kashmir dispute has met with a lukewarm response from India. From New Delhi, Anjana Pasricha has a report.

TEXT: Pakistani President Pervez Musharraf's proposals were made Monday during an address in Islamabad. He said options include giving Kashmir independent status, putting the region under joint Indian-Pakistani control, or placing it under U.N. administration.

He also called for a debate on the possibility of demilitarizing some or all of Kashmir, which is divided between the two rivals. Overall, he said in a combination of Urdu and English, the time had come for flexibility.

/// MUSHARRAF ACT, STARTS IN URDU, PHASES INTO ENGLISH ///

" [Urdu to start: We have arrived at a stage where] we have to consider options - options with an "s" - in a purposeful manner, going towards a solution."

/// END ACT ///

But Mr. Musharraf ruled out the position most favored by India: turning the Line of Control that divides Kashmir between India and Pakistan into a permanent border.

Some separatist leaders in Indian-controlled Kashmir welcomed Islamabad's willingness to rise above traditional positions, and called the proposals path-breaking.

But Indian Foreign Ministry spokesman Navtej Sarna reacted coolly on Tuesday, saying Islamabad should present its ideas through diplomatic channels.

/// SARNA ACT ///

"We do not believe that Jammu and Kashmir is a subject on which discussions can be held through the media...It is one of the subjects in the composite dialogue process...so if there are any proposals, suggestions, that is the forum we expect they will be brought to."

/// END ACT ///

The two countries are presently in the midst of peace talks that include discussions on Kashmir.

Indian officials who did not want to be quoted said India is pleased that Islamabad is looking at new ways of solving the dispute - but stressed that New Delhi will never consider a change in the status quo in Kashmir.

Kashmir is claimed by both India and Pakistan and has triggered two of their three wars. It is India's only Muslim-majority state, and the scene of a violent separatist insurgency. (Signed)

NEB/HK/AP/BK/KBK/FC