At his first major news conference sketching the new Indian administration's foreign policy, Foreign Minister Natwar Singh said the talks would focus on the Kashmir issue and nuclear confidence-building.

"We certainly have welcomed the new government, and we're glad to see that it is, as it said it would, continuing that policy of peaceful dialogue," US State Department spokesman Richard Boucher told reporters.

He said the United States had supported the process of dialogue and discussion that had been under way between the two countries.

Singh said India and Pakistan would hold discussions on easing nuclear tensions in New Delhi June 19-20 followed by a foreign secretaries meeting on the peace process June 27-28.

Tuesday's announcement was the latest step towards reconciliation between the neighbours since they launched the peace drive a year ago after coming to the brink of war in 2002.

WAR.WIRE