The foreign secretaries of India and Pakistan, Shashank and Riaz Khokhar, agreed on a series of confidence building measures on Monday as a step towards resolving Kashmir and other issues plaguing the two nations.

Among other things, these measures include advance notification of missile tests, the reopening of consulates in Mumbai and Karachi, restoring the staff strength at their respective high commissions to 110, and the release of fishermen held in each others waters.

Most of these were recommendations suggested during the series of secretary level talks held over the past two weeks.

The two foreign secretaries met for the second day today to discuss the Kashmir issue, having discussed peace and security a day earlier.

Talks on six other subjects identified for the composite dialogue -- Siachen, Wullar Barrage/ Tulbul Navigation Project, Sir Creek, Terrorism and Drug Trafficking, Economic and Commercial Cooperation, and Promotion of Friendly Exchanges in Various Fields -- would take place between the third week of July and the first half of August.

A joint statement released after the 90 minute discussions at Hyderabad House in New Delhi said the foreign secretaries were hopeful the composite dialogue process would lead to the 'peaceful settlement of all bilateral issues, including Jammu and Kashmir, to the satisfaction of both sides'.

The Foreign Secretaries will meet again in the third week of August to review progress achieved in the Composite Dialogue and prepare for the meeting of the Foreign Ministers which will immediately follow. 

Also Read What satisfies Pak will satisfy Kashmiris: Pak spokesman India, Pak Foreign Secretaries end talks on 'positive' note Pak justifies meeting with J&K separatist leaders

"They held detailed exchange of views on Jammu and Kashmir and agreed to continue the sustained and serious dialogue to find a peaceful negotiated final settlement," said Indian external affairs ministry spokesman Navtej Sarna.

"I don't want to project what is their and our stand... both sides are engaged in a process of composite dialogue and Jammu and Kashmir is one of the issues. Both sides are resolved to sort out all issues bilaterally and peacefully," he said.

India had 'underscored' that terrorism was not good for either nation or the region, and both countries should make efforts to remove the 'scourge from our midst'. "It was felt that the peace process should not be allowed to be overshadowed by terrorism," Sarna said.

Today, both sides proposed several measures to help resolve the Kashmir issue, including the starting of a bus service between Srinagar and Muzaffarabad. "India's proposals included the facilitation of transport
links, trade, people-to-people contacts, cultural cooperation, environment and tourism," he said. The bus service proposal would be discussed at the level later, he added.

Expressing a commitment to principles and purposes of the United Nations Charter and "their determination to implement the Simla Agreement of 1972 in letter and spirit," the two sides agreed to forge a pact on advance notification of missile tests, the statement said.

The nuclear capability of both nations were 'a factor for stability' in the region, it added.

Other proposals included 'comprehensive framework of conventional confidence-building measures aimed at initiating and enhancing communication, coordination and interaction', which would be discussed
later, the statement said.

"Today's talks on Kashmir were held in a cordial and constructive atmosphere, where 'both sides put forward their proposals and there was a free and extensive exchange of views," said Sarna. Asked whether troop reduction along the border was discussed, he said, "A number of proposals have been exchanged. Naturally, they are going to be studied."

Sources in the army said several military CBMs including regular contacts between the two army commanders and troop reductions along the border were discussed, though not finalised.

Earlier, Khokhar, who cut short his visit to India by a day owing to political turmoil in Pakistan following the resignation of Mir Zafarullah Jamali, also met Prime Minister Manmohan Singh, External Affairs Minister Natwar Singh and National Security Adviser J N Dixit, among other senior officials.

After his half hour early morning meeting with Prime Minister Manmohan Singh, Khokhar said, "He has given me a message for the Pakistan President (General Pervez Musharraf) which I am carrying."

Talking to journalists after meeting Khokhar, Natwar Singh said the talks on Kashmir had ended on a "positive" note, and the two sides had made "forward movement" on a number of confidence-building measures. "The talks were "positive and the outcome is concrete. "They have identified areas of future work," he said.