President Musharraf and Prime Minister Dr. Manmohan Singh had one hour meeting this morning. Their discussions were held in a constructive and frank spirit. They welcomed the opportunity of making each other's acquaintance during the first meeting.

Both leaders reiterated their commitment to continue the bilateral dialogue to restore normalcy and cooperation between India and Pakistan.

They agreed that confidence building measures (CBMs) of all categories under discussion between the two governments should be implemented keeping in mind practical possibilities. They also addressed the issue of Jammu and Kashmir and agreed that possible options for a peaceful, negotiated settlement of the issue should be explored in a sincere spirit and purposeful manner. In the spirit of the Islamabad joint press statement of January 6, 2004, they agreed that CBMs will contribute to generating an atmosphere of trust and mutual understanding so necessary for the well being of the peoples of both countries.

The possibility of a gas pipeline via Pakistan to India was also discussed. It was felt that such a project could contribute to the welfare and prosperity of the people of both countries and should be considered in the larger context of expanding trade and economic relations between India and Pakistan.