Pakistan President Pervez Musharraf, whose country does not have diplomatic relations with Israel, shook hands with former premier of the Jewish state, Shimon Peres, when the two leaders ran into each other in a hotel lobby in Davos, Switzerland.

The news hit the front pages in a number of newspapers.

Peres, who has been urging Pakistan in the recent months to recognise Israel, extended an open invitation to Musharraf during their brief chat to visit Israel, reports said.

For this Musharraf responded: "If the relations between the two countries are established, then I would be pleased to make a visit to Israel."

Musharraf  also told Peres that "Israel will have to give fundamental rights to the Palestinians."

Peres said there were a lot of misunderstandings between Israel and Pakistan, and the two countries should make an effort to iron them out.

Musharraf reportedly responded by saying that an effort can be made to remove these misgivings, but the responsibility lies with Israel to give the due rights to the Palestinians.

For this, Peres said: "Our friends are working to reach an agreement with the Palestinians for the sake of peace in the Middle East. However, only a strong leadership can wage war against terrorism."