Straw said he also supports a diplomatic solution to a standoff between Iran and the United States over its uranium enrichment programme. Iran was one of three countries to which Khan admitted passing nuclear technology.

"I have not directly raised the matter with the Pakistanis but we have very substantial confidence in President Musharraf and the Pakistani government about the way in which they are dealing with the issue in the aftermath of Dr. Khan," he told a news conference in Islamabad.

Straw was speaking after meeting Pakistan's military ruler President Pervez Musharraf, Prime Minister Shaukat Aziz and his counterpart Khurshid Kasuri on the first day of a week-long tour of South Asia.

The talks concentrated on nuclear arms, counter-terrorism, the fragile peace process between Pakistan and India and the rebuilding of war-shattered Afghanistan, officials said.

General Musharraf has repeatedly refused to allow the United States or the International Atomic Energy Agency to question Khan, who in February 2004 confessed to passing nuclear know-how to Iran, North Korea and Libya.

Although Khan has been under effective house arrest ever since, Musharraf gave him a conditional pardon and said no government or military body was involved in the scandal.

Kasuri told the joint conference that Pakistan would continue to cooperate over the rogue scientist and had earned the international community's confidence.

"If our British and American friends bring forth more evidence we will confront A.Q. Khan and will convey the information again. That is a reflection of our commitment to non-proliferation," he said.

Musharraf also escaped British censure for keeping hold of his post as head of Pakistan's army, just three days after Commonwealth foreign ministers rebuked him for doing so.

Straw said Britain was "delighted" at the grouping's decision last year to readmit Pakistan, which had its membership suspended following Musharraf's seizure of power in a bloodless coup in 1999.

"It is a very good sign of Pakistan's maturing as a democracy and the recognition of the great leadership which President Musharraf has shown during a difficult time for the world," Straw told state-run television.

On Iran, the British minister said he believed there "can be and ought to be a diplomatic solution to the problem".

The United States accuses Iran of trying to obtain nuclear weapons under cover of developing a civilian atomic energy programme and has not ruled out a military option against it.

Britain, along with France and Germany is trying to persuade Iran it should dismantle its enrichment programme in return for economic and political rewards.

Straw said the peace process between nuclear rivals India and Pakistan, which has stalled in recent months on a number of key issues, had the "best chance in two generations" of succeeding.

Indian Foreign Minister Natwar Singh is due in Islamabad on Tuesday for a rare visit in a bid to push the fragile peace dialogue along.

Straw and Kasuri also discussed counter-terrorism. Both Islamabad and London are allies of Washington in its so-called war on terror and Pakistan has caught a number of key Al-Qaeda militants since 9/11.

Straw was due to deliver a lecture in the eastern city of Lahore later on Monday. He is scheduled to travel to the Afghan capital Kabul on Tuesday and then on to New Delhi later in the week.

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