"I don't share the optimism that everything will be solved," former Pakistani foreign secretary Najimuddin Sheikh said. "It is going to be a slow process in terms of resolving the thorny issue of Kashmir."

The talks between Indian Prime Minister Atal Behari Vajpayee and Pakistani President Pervez Musharraf on the sidelines of a South Asia summit generated optimism that the region's giants could begin dialogue to lasting peace.

Most significantly they produced a joint pledge to resume dialogue, stalled since July 2001 when the two men last met in India's Agra city and failed to make headway on Kashmir, in February.

"To carry the process of normalisation forward the president of Pakistan and the prime minister of India agreed to commence the process of the composite dialogue in February 2004," they said in the historic statement issued Tuesday.

The picturesque Himalayan region, claimed by both countries, has caused two of the neighbours' three wars and brought them to the brink of a fourth war, which many feared would turn nuclear, in 2002.

Since April both sides have taken steps to normalise relations, largely by restoring diplomatic and transport ties severed in the wake of the December 2001 attack on India's parliament, which triggered the mobilisation of almost one million troops to their common border.

"There will (have to) be discussion on Kashmir because Pakistan will not be satisfied without a settlement of the issue," said Pakistani military analyst Talat Masood, a retired general.

India controls around half of Kashmir and Pakistan around one-third. Pakistan has long demanded Kashmiris be given a referendum to choose between rule by India or Pakistan, while India insists Kashmir is an integral part of its territory and refuses to give it up.

Since 1989 Islamic militants, many based in Pakistan, have waged a bloody insurgency against Indian rule in Kashmir. India puts the death toll at around 40,000 while separatists and Pakistan say around 90,000 have died in the 14-year battle.

"India has to address the Kashmir problem in the valley politically, not through its military occupation," Masood added.

"India will have to take measures indicative of a change in its attitude in Kashmir. This is the feeling that is emerging now in India also."

Muchkund Dubey, who has served as India's foreign secretary, was upbeat on prospects of a result on Kashmir.

"If the talks resume...then Kashmir has to come as the main subject or else Pakistan will not accept any talks," Dubey said, warning against instant results.

"India should go the farthest and grant autonomy because that is the only way to keep Kashmir with India but I am not quite sure it is on the agenda of (Vajpayee's Hindu Nationalist) BJP (Bharatiya Janata Party).

"A solution has to be found and this solution relates to what steps India takes to win the hearts and souls of the Kashmiris."

Another former Indian foreign secretary S.K. Singh said the question of granting autonomy to the people of Indian Kashmir would depend on the course of the talks.

"Autonomy would depend on how far the two sides travel together. And it cannot be done within a day or two and they will have to watch us and we will have to watch them," the ex-diplomat told AFP.

"It will have to step-by-step approach before full discussions on Kashmir and our disputes on the subject can be fruitful."

Former Pakistani foreign minister Agha Shahi detected "a new atmosphere" but cautioned: "To say the meeting will resolve the crisis, is too much to expect."

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