"Frankly, the initial statements coming from the new government certainly suggest that both in terms of US-Indian relations, and if I may say so, India and Pakistan relations, remain on track," Powell said.

He was speaking alongside Pakistan Foreign Minister Khurshid Kasuri after their talks at the State Department.

Kasuri said he was encouraged by the positive signals from New Delhi.

"In view of the good work that has already been done and the good vibes that are coming from the new government, even before it's been formed, by leaders of the would-be government, we both agreed that these were positive signals and that we need to continue with that," he said.

Kasuri said the Pakistan government was committed to continuing with the peace process and "look forward to the government of India doing the same."

"We've invested a lot of time and effort. And, of course, it would be a pity if that were not the case, and I have no reason to believe that it was otherwise."

Some analysts have cautioned that the dramatic election defeat of India's Hindu nationalists, led by Prime Minister Atal Behari Vajpayee, would slow the fledgling peace process, predicting more caution from the new Congress-led government.

The Congress party had pledged to forge ahead with the peace process.

The new government is be led by Prime Minister designate Manmohan Singh, the architect of India's economic reforms.

India and Pakistan decided to resume talks after a groundbreaking meeting between Vajpayee and Pakistan's President Pervez Musharraf on January 6 in Islamabad on the sidelines of a regional summit.

Following Vajpayee's meeting with Musharraf, senior officials of both sides met in mid-February for talks, which they said would continue in June.

The often-hostile neighbours' possession of nuclear arsenals has made South Asia one of the world's most feared potential nuclear flashpoints.

Many observers believed the subcontinent was on the verge of a nuclear conflict when the two sides came close to their fourth war two years ago over the disputed territory of Kashmir.

Powell, who played a pivotal role in coaxing the hostile neighbours back from the brink of war, said Wednesday that Washington looked forward to working with the new Indian leadership.

"We have a solid agenda with the Indian people covering all aspects of our bilateral relationship. And we see no reason that that agenda should not continue to be pursued with a new government," he said.

Powell also said that he expressed Washington's appreciation for Pakistan cooperation in the war against terrorism, especially in dealing with the threats from the al-Qaeda terror network and Taliban Muslim militants along the border with Afghanistan.

Kasuri said he had conveyed to Powell Islamabad's concerns over a number of Pakistani detainees who continue to be held by the United States at the US naval base in Guantanamo Bay, Cuba.

Most of the detainees at Guantanamo are suspected al-Qaeda or Taliban fighters captured in Afghanistan.

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