GENERAL PERVEZ MUSHARRAF, PAKISTANI PM (16 June 2001): The chances of moving forward have never been brighter than they are now, at this moment.

If forthcoming talks between India and Pakistan live up to General Musharraf`s optimism, then a resolution to 54 years of hostilities may be in sight. Since the partition of India and Pakistan in 1947, Kashmir has been at the core of the tension between the two neighbours. India maintains that Kashmir is an integral part of India and will not consider a referendum to allow the Kashmiris to decide on their future. Pakistan claims that as the province has a Muslim majority, it should belong to Pakistan. India and Pakistan have fought two wars over Kashmir and border hostilities have never totally subsided. In May 1998, the world was alerted to the potential of a nuclear war on the sub-continent when first India and then Pakistan tested nuclear weapons and boasted of it.

GEORGE FERNANDES, INDIAN DEFENCE MINISTER: What we have done is to ensure that our security concerns are taken care of and on that there is no compromise with anybody at any point in time.

The reaction of many Western nations, including the US and Australia, was to break off diplomatic relations and freeze loans.

MADELEINE ALBRIGHT, FORMER US SECRETARY OF STATE: Until India and Pakistan do make up their minds to choose negotiation over nuclearisation, our nations say with one voice that there will be no drift back to business as usual.

ALEXANDER DOWNER, FOREIGN MINISTER: Just as India and Pakistan were starting to move into a period of what we hoped would be some reconciliation, this test has taken place and obviously it is deeply regrettable.

In an attempt to resolve their differences over Kashmir and nuclear weapons, the then PM of Pakistan, Nawaz Sharif, invited the Indian PM Atal Behari Vajpayee, to Pakistan in February 1999. Mr Vajpayee travelled to the meeting on the inaugural run of the Delhi to Lahore bus service.

ATAL BEHARI VAJPAYEE, INDIAN PM: Put aside the bitterness of the past and together, let us make a new beginning.

The Lahore talks produced a Memorandum of Understanding and the Declaration of Lahore, but did little to resolve the Kashmir issue. Within a couple of months, fighting had broken out in Kargil on the Line of Control between Indian-administered and Pakistan-administered Kashmir. Australia and the US blamed Pakistan.

JAMES RUBIN, US SPOKESMAN: We the US and the G8 want to see withdrawal of forces supported by Pakistan from the Indian side of the Line of Control.

When then prime minister Nawaz Sharif took a delegation to Washington, he was persuaded to withdraw his troops from Kargil back across the Line of Control. Pakistanis at home protested and it`s believed the withdrawal, precipitated General Musharraf`s overthrow of Sharif and the installation of the General as a military dictator.

GENERAL PERVEZ MUSHARRAF: I wish to inform you that armed forces have moved in as a last resort to prevent any further destablisation.

Again the west condemned Pakistan.

JAMES RUBIN, US SPOKESMAN: We would seek the earliest possible restoration of democracy in Pakistan and clearly we would not be in a position to carry on business as usual with Pakistani authorities.

Meanwhile, India has been mending fences with Western nations. It established a good relationship with the Clinton Administration and that relationship is being strengthened under President Bush.