Pakistani President Pervez Musharraf made unexpected public calls for “rethink” on Kashmir; ideas included defining, demilitarising and changing status of areas of Pakistan- and Indian-administered sections of Kashmir and some form of joint India-Pakistan or U.N. control. Indian official reaction muted; received mixed reactions from domestic and Indian press. Talks between Pakistan and India on proposal to start bus link in Kashmir set for 7-8 December in New Delhi. Team of Pakistani journalists visited Indian-administered Kashmir 4-6 October for first time since 1947. Sporadic violence continued included killing of former Kashmir minister 21 October; suicide bomb attack on Indian army convoy 9 October, killing 5; and failed assassination attempt on Jammu and Kashmir opposition leader and former chief minister Farooq Abdullah. Pakistani PM Shaukat Aziz to meet Indian PM Manmohan Singh in November in capacity as chairman of South Asian Association for Regional Cooperation. Pakistan tested nuclear-capable “Hatf-V Ghauri” missile 12 October; India tested medium-range nuclear-capable “Prithvi-III” missile 27 October.

Indian PM Manmohan Singh and Pakistani President Pervez Musharraf met for first time on sidelines of UN General Assembly in New York 24 September. Both leaders pledged commitment to dialogue. Foreign ministers previously met New Dehli 5-6 September; claimed modest progress, mainly on normalisation process. Major obstacles remain - Pakistan’s insistence on time frame for resolving dispute, India’s insistence Pakistan do more to stop cross- border infiltration of militants. Violent clashes continued, including incidents 18 September that killed 18.

Clashes between separatists and security forces continued as talks between India and Pakistan stalled. India’s ruling Congress party repeatedly expressed disappointment over what it says is Islamabad’s failure to curb Kashmiri guerrillas. Ten killed – including Manzoorul Islam, head of Jamiat-ul-Mujahideen separatist group – during 19 August visit by Indian President Abdul Kalam to Jammu and Srinagar. Further violence killed at least 18 in separate incidents. Possible talks between Indian government and Kashmiri separatist All Parties Hurriyat (Freedom) Conference (APHC) faltered at outset as government insisted next round should take place “within” constitution: rejected by APHC.

Violence worsened in run-up to Indo-Pakistan peace talks; over 200 killed including numerous civilians. Indian Foreign Minister Natwar Singh met Pakistani President Pervez Musharraf 23 July. India expressed disappointment with Pakistani statement stressing “time-frame” for settling Kashmir dispute. Current round of talks to culminate in New Delhi foreign ministers’ meeting 5-6 September.

Indian and Pakistani foreign secretaries met 27-28 June to discuss nuclear confidence-building measures and Kashmir as part of ongoing peace process. Expert-level talks on nuclear CBMs in Islamabad 19-20 June and low-level and unscheduled talks between foreign ministers on sidelines of Asia Cooperation Dialogue conference in China 20-21 June resulted in renewed ban on nuclear tests, and agreement to set up hotline between foreign ministries and reopen Karachi, Mumbai consulates. Attacks on civilians, clashes between security forces and militants continued. Three separate grenade attacks in Pahalgam, Handwara and Kunzer killed 7; 1 attack claimed by little-known Al-Nasreen group. Twelve Muslims, including 4 children, killed in shooting 26 June. India’s interior minister indicated government likely to hold peace talks with Kashmiri separatists in July.

Separatist violence continued. Mine blast killed 33 Indian soldiers and relatives in Indian-administered Kashmir 23 May; claimed by Hizbul Mujahideen, who lost senior commander in clash in outskirts of Srinagar 11 May. Kashmir's main separatist alliance, All Parties Hurriyat Conference (APHC), called strike in Srinagar to mark anniversaries of killings of key Muslim cleric and separatist leader. Top APHC leader Moulvi Umar Farooq targeted by militants in grenade attack. Farooq was part of January delegation for talks with former Indian PM; new talks due in July. New India PM Manmohan Singh vowed to act against militants and cooperate with Pakistan over disputed region.

Indian elections held in Jammu and Kashmir marred by violence. Grenade attack on rally of ruling People's Democratic Party 8 April killed 11. At least 5 more killed in separate attacks in Srinagar. Kashmiri separatist politicians and rebels rejected election, called for poll boycott. Office of main opposition Congress Party attacked.

Fighting continued between Indian security forces and Kashmiri separatists with several incidents in and around Srinagar. Main separatist alliance, All Parties Hurriyat Conference, held second round of talks with Indian government March 27. Separatist group Jammu Kashmir Liberation Front (JKLF) and militants Hizbul Mujahideen urged Indian Kashmiri voters to boycott April elections.

Promising developments in peace talks but violence continued between Indian troops and Kashmiri separatists; 7 killed in 20 February clash southeast of Srinagar; 17 killed 6 February in separate incidents. Pakistan urged militants to call ceasefire to allow diplomacy and peace talks to continue. United Jihad Council, umbrella organisation of different Kashmiri groups, split over ceasefire. Moderate faction of the All Parties Hurriyat Conference threatened to pull out of talks with Indian government over civilian deaths and allegations of human rights abuse.

Breakthrough announcement of bilateral India-Pakistan 16-18 February talks after 6 January meeting between Indian PM Vajpayee and Pakistan’s President Musharraf. All Parties Hurriyat Conference (Kashmir separatist alliance) met Vajpayee in New Delhi 23 January and confirmed their commitment to peaceful resolution of Kashmir issue. Violence continued between hardline Kashmiri separatists and Indian forces. Grenade thrown by suspected militants at mosque in Jammu 8 January wounded 18. Separate clashes between Indian troops and Kashmiri militants claimed 3 soldiers, 22 militants including several separatists leaders. Pakistan proposed March talks to discuss bus service between Kashmir capitals Muzaffarabad and Srinagar, opposed by Kashmiri militants.