"We do think this is an opportunity for them to make further progress and comprehensive engagement, while at the same time, agreeing on concrete steps to lower the risk of accidental or intentional use of nuclear weapons," department spokesman Richard Boucher said.

He was asked what message Secretary of State Colin Powell's wished to convey to India and Pakistan ahead of a landmark meeting of their foreign secretaries next weekend in New Delhi for negotiations to enhance peace.

The talks would include the half-century dispute over Kashmir which has triggered two of three wars between the rival nuclear neighbours and almost led to another one in 2002.

Boucher said the United States applauded efforts made by India and Pakistan to try to make progress in their bilateral dialogue backed by Washington, which he pointed out was continuing to have contacts with both governments.

"We're glad to see that these are going forward and we really appreciate the efforts on both sides to reduce tensions," he said.

Boucher said there were opportunities for India and Pakistan to lower the risk of using their nuclear weapons and "we are glad to see the parties are pursuing them."

The South Asian neighbours agreed Sunday to set up a hotline to avoid nuclear confrontation and continue a ban on nuclear tests, saying they wanted to "promote a stable environment of peace and security."

The South Asian neighbours had held nuclear tests two weeks apart in 1998.

The hotline will link the top civil servants in their foreign ministries, according to a joint statement at the end of the two countries' first talks on nuclear risks since the 1998 atomic tests.

It said an existing hotline between senior military commanders, who have conversations scheduled once a week, would also be "upgraded, dedicated and secured."

The two countries also reaffirmed a 1999 agreement and said neither country would conduct another nuclear test "unless, in exercise of national sovereignty, it decides that extraordinary events have jeopardised its supreme interests."

Neither India nor Pakistan is party to the Non-Proliferation Treaty and both were hit by US-led military sanctions in 1998 amid concern about the stability of the developing countries' nuclear arsenals.

The sanctions were eased after the South Asian countries joined the US-led coalition formed after the September 11, 2001, terror attacks in the United States.

The weekend meeting marked the first negotiations between the two countries since a left-leaning coalition took office in India May 22 after its upset election defeat of the Hindu nationalist government.

Former Hindu nationalist prime minister Atal Behari Vajpayee had championed peace moves with Pakistan and agreed to the nuclear talks when he visited Islamabad in January for a regional summit.

WAR.WIRE