The two sides nearly went to war last year

US Deputy Secretary of State Richard Armitage says he is "cautiously optimistic" about tensions easing between Pakistan and India.

Speaking after meeting President Pervez Musharraf in Islamabad, he said the recent thaw between the two countries was encouraging.

The nuclear neighbours have announced a series of steps in recent days aimed at defusing the tension between them, particularly over Kashmir.

But India has turned down a proposal by Pakistan to get rid of their nuclear arsenal.

The quest for peace is no crime. We may succeed or fail but we must keep trying Atal Behari Vajpayee Indian Prime Minister

Speaking after a debate in the Indian parliament, Prime Minister Atal Behari Vajpayee said India's nuclear programme was not Pakistan specific.

"We are not just concerned about Pakistan. We are also concerned about others," he said.

Mr Vajpayee however added that he was committed to the peace process.

"The quest for peace is no crime. We may succeed or fail but we must keep trying."

'Surprise'

Both governments have already said they intended to restore full diplomatic ties and India has asked Pakistan to approve the name of its new high commissioner.

The United States has welcomed the moves, which correspondents say took Washington by surprise.

President Musharraf gave me absolute assurance that there was nothing happening across the Line of Control US envoy Richard Armitage Have Your Say: Can the rivals disarm?

Even as the US deputy secretary of state began his talks in Islamabad, a group of Pakistani MPs crossed into India on a goodwill visit.

The 12 MPs walked across the Wagah checkpost in Punjab to begin a visit which is part of an unofficial peace initiative.

Besides the Pakistani president, Mr Armitage met Prime Minister Zafarullah Jamali and Foreign Minister Kasuri.

The US envoy sought fresh assurances from Pakistan on the issue of the infiltration of Islamic militants into Indian-controlled Kashmir from Pakistan.

"President Musharraf gave me absolute assurance that there was nothing happening across the Line of Control and that there are no camps in Azad Kashmir [Pakistan-administered Kashmir] and if there were any camps they would be gone tomorrow," Mr Armitage said.

On Wednesday, the Indian Government repeated demands that Pakistan should do more to end the infiltration and "dismantle terrorist infrastructure" on its soil.

At least 28 people have been killed in the disputed territory since Tuesday evening.

'No roadmap'

Mr Armitage's visit to the region has prompted speculation that the US might have drawn up peace proposals for Kashmir, rather like its Middle East "roadmap".

But the US envoy on Wednesday told the BBC he had no such concrete proposals.

India accuses Pakistan of fomenting militants in Kashmir

Mr Armitage leaves for Afghanistan later on Thursday, before heading for talks in Delhi.

On Wednesday, a statement from the Indian External Affairs Ministry said moves were under way to reappoint a high commissioner to Pakistan.

But it said India would consider other suggestions on closer diplomatic ties only once there was evidence that Pakistan was taking firm and credible action against cross-border militancy.

"It is quite clear that several specific steps would need to be taken by Pakistan to move this process meaningfully forward," foreign ministry spokesman Navtej Sarna told reporters.

But India has welcomed Islamabad's decision to ease trade restrictions and restore travel and sporting links.