"The two leaders agreed to commence the process of composite dialogue in February 2004," Sinha told a press briefing in the Pakistani capital Islamabad.

Indian Prime Minister Atal Behari Vajpayee and Pakistani President Pervez Musharraf held their first talks since near-war in 2002 on the sidelines of a seven-nation summit Monday.

The two leaders also spoke by phone Tuesday when Vajpayee phoned General Musharraf at the conclusion of the three day summit to thank him for its success and for arrangements for the Indian delegation, Sinha said.

In a joint statement issued after the summit's closure, Vajpayee and Musharraf agreed violence and terrorism had to end.

"Prime Minister Vajpayee said that in order to take forward and sustain the dialogue process, violence, hostility and terrorism must be prevented," Sinha said, reading from the statement.

"President Musharraf reassured Prime Minister Vajpayee that he will not permit any territory under Pakistan's control to be used to support terrorism in any manner," the statement said, according to Sinha.

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