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Powell Talking Peace In Pakistan

By CBSNews.com staff CBSNews.com staff

January 11, 2002 / 7:52 AM EST / CBS

Secretary of State Colin Powell, trying to bridge differences between Pakistan and India, said Wednesday any lasting settlement of the Kashmir issue must take into account the wishes of people in the disputed region.

Powell commented in an interview with Pakistani television before a dinner meeting with Pakistani President Pervez Musharraf. He will travel to New Delhi on Thursday for talks with Indian Prime Minister Atal Bihari Vajpayee.

He said he will take what he learns here to New Delhi and get the Indian assessment of the situation. His goal is to "bridge whatever outstanding differences there are that will keep us from de-escalating as soon as possible."

He stressed the need for dialogue once the current confrontation is over and said any such discussion should take into account the history of the region, the competing views of the two nations "and especially takes into account the wishes of the Kashmiri people."

En route here, Powell said Musharraf's conciliatory speech on Saturday and the Indian response "certainly showed that this rush toward conflict, I think, has been slowed quite a bit."

In his talks here, Powell said he wants "to see what we have to do now to bring this to a complete halt and then start going in reverse."

Powell said the key issue now is not a troop pullback but progress on diplomatic and political fronts.

Once that is achieved, "then the armies can pull back in due course."

On Wednesday, Musharraf coupled his hopes for a peaceful end to the standoff with a statement that he still backs Kashmir's struggle against "Indian occupation."

Powell said he was pleased by the large numbers of arrests of Pakistani militants by Pakistani authorities in recent days.

There were more than 70 arrests Tuesday, bringing the four-day total to more than 1,600. Almost 500 offices have been closed, authorities said.

But Pakistan's crackdown on militants may not resolve the problem, reports CBS News Correspondent Barry Petersen.

Allama Kazmi leads a major Muslim group now banned by the government as terrorists - a charge he denies. In an exclusive interview with CBS News, he said his followers will not disband; they will start operating under new names in new places.

"The force of the masses cannot be stopped," Kazmi said. And he promised to fight back on the streets.

"The government will feel the negative reaction of its citizens very soon," he said.

Powell has been in almost constant telephone contact with the two sides since the crisis erupted on December 13 when a terrorist attack on India's Parliament killed nine Indians and the five attackers.

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Powell said the good relations the United States has with the two countries has been helpful in preventing the conflict from getting out of cntrol.

He also will visit Afghanistan during his South Asia visit to discuss the country's reconstruction needs.

"I hope I'll be able to give them good news," Powell said, alluding to $250 million in Afghan assets that were frozen during the period of Taliban rule. The assets can soon be made available to the interim government.

There are three accounts due to be released, including $193 million in gold reserves.

Powell said it remains to be seen whether the Kabul government wants to use the funds to back its currency or meet operating expenses.

The Bush administration has access to accounts containing $25 million, Powell said, and a similar amount is being held in escrow for Afghanistan by the International Air Transport Association.

The funds represent fees to which Afghanistan is entitled for overflights of its territory since United Nations Security Council sanctions were imposed several years ago.

Powell's last stop will be Japan, where he will attend an international conference on reconstruction assistance for Afghanistan on Monday.

En route to Japan he will stop in Nepal to show support for the government as it attempts to cope with what he called a "Maoist terrorist insurrection."

He will be the first U.S. secretary of state to visit Nepal. The highest ranking U.S. official to travel to the Himalayan mountain kingdom was Vice President Spiro Agnew in 1970.