Noting a "positive resonance" generated by his recent peace initiative, Prime Minister Atal Bihari Vajpayee has said India would continue with the "step-by-step" process of normalisation of diplomatic and other links with Pakistan.

Vajpayee, who is on a three-day visit to Russia, said it was incorrect to say that India rejected talks with Pakistan.

"India remains committed to discussing all  outstanding issues with Pakistan peacefully through bilateral dialogue in accordance with the Simla Agreement and the Lahore Declaration, both of which are bilateral agreed documents", he said in interviews to the Russian media in Moscow.

The PM made it clear that for any meaningful political dialogue, cross-border terrorism unleashed in Jammu and Kashmir from across the borders, has to stop. "Dialogue and terrorism do not go hand in hand," he said.

He said that following his April 18 initiative of extending a hand of friendship to Pakistan, there have been a number of significant developments including appointment of respective high commissioners, resumption of Delhi-Lahore bus service and release of prisoners.

"Certainly, a great deal of positive resonance has been generated amongst the people in the two countries" by these measures, he said. 

On the recent proposals announced by India to encourage more economic cooperation, cultural exchanges and people to people contacts, Vajpayee said, "We believe that greater interaction in these areas could help create a climate of friendship and trust in which more difficult political issues can be addressed."

"We intend to continue with the step-by-step process of normalisation of diplomatic and other links with Pakistan, building on the success achieved and the support generated, so that lasting peace is established between the two countries."

Decrying "selective approaches" and "differing standards" in combating global terrorism, he dismissed the proposition that Islam was a source of the menace. "We cannot afford selective approaches, which sacrifice the long-term goal for short term interests. Differing standards cannot be applied for judging terrorism," he said.