NEW YORK (AFP) - The leaders of India and Pakistan hailed a new chapter in bilateral ties following peace talks in New York that included discussions on their bitter dispute over Kashmir.
"I sincerely believe today is an historic day. We have made a new beginning," said Indian Prime Minister Manmohan Singh as he addressed reporters with Pakistan President Pervez Musharraf after their hour long, one-on-one summit.
"I feel confident that despite the difficulties on the way, I and President Musharraf will together work and succeed in writing a new chapter in the history of our two countries," he added.
It was the first meeting between the two South Asian leaders since Singh became prime minister following his Congress party's surprise election victory in May.
A carefully-worded joint statement read by Musharraf said the two sides had agreed to explore possible options for a peaceful negotiated settlement of the Kashmir dispute "in a sincere spirit and purposeful manner."
They also agreed that all confidence building measures under discussion between their two government should be implemented in an attempt to normalize relations.
The discussions, which were described as "constructive and frank," also touched on a proposed 3.5 billion dollar pipeline designed to transfer gas from Iran to India through Pakistan.
"I hope this augurs well for the future of Indo-Pakistan relations," Musharraf said after reading the joint statement, in which both leaders reaffirmed their commitment to pursuing the dialogue between the nuclear-armed rivals.
Singh and Musharraf had originally planned to brief the press separately, and officials from both sides said their joint appearance and the agreement on a joint statement was a sign that the talks had gone as well as could be expected.
The meeting on the sidelines of the UN General Assembly was aimed at injecting some momentum into a peace process that has made little progress since Musharraf met with Singh's predecessor Atal Behari Vajpayee eight months ago.
The attempt at a rapprochement was initiated in April 2003 when Vajpayee extended a symbolic "hand of friendship" in a speech that startled even his close aides.
Past peace initiatives have generally foundered on the thorny issue of Kashmir. The Himalayan state, divided between Pakistan and India, has been the cause of two of their three wars since their independence from Britain in 1947.
India accuses Pakistan of stoking a deadly insurrection against New Delhi's rule in Indian Kashmir that has raged since 1989. Pakistan denies the charge, saying it only supports a freedom struggle.
Negotiations on the gas pipeline began in 1994 but little progress has been made because of the volatile nature of the bilateral relationship.
"It was felt that such a project could contribute to the welfare and prosperity of the people of both countries, and should be considered in the larger context of expanded trade and economic relations," the joint statement said.
Musharraf had built a cordial working relationship with Vajpayee in the belief, analysts say, that the Hindu nationalist premier would be able to bring on board India's hawks.
Singh's Congress party is seen as less likely to make territorial concessions for fear of a backlash from the Hindu right which is now in opposition.
Since Musharraf and Vajpayee met on the fringes of a South Asian summit more than eight months ago, the two sides had completed just one round of formal talks between the Indian and Pakistani foreign ministers earlier this month.
Before their meeting on Friday, Musharraf presented Singh with paintings of the village where he was born in what is now Pakistan. Musharraf was born in New Delhi.