India is not satisfied with Pakistan's response to its peace initiative, Deputy Prime Minister Lal Kishenchand Advani told CNN in an interview on Saturday.

But he was optimistic the Kashmir issue can be resolved and maintained that even the 'most contentious issues' across the world have been resolved through dialogue. "It is not impossible and beyond ingenuity of the two countries to resolve the issue. But it would require some kind of compromises from both sides on extreme positions they have taken," he said.

"The moment talks start (between India and Pakistan) after conducive atmosphere is created, India is ready to discuss all issues, including Kashmir on which both sides have extreme and different positions," Advani told CNN in an interview in New York.

"While I have been here, I have been getting reports of repeated efforts of infiltration, which have been frustrated by our security forces," he said.

To a question, Advani said he had 'no doubt that Pakistan is in control' of terrorist organisations.

"It is not that the terrorist organisations are doing something on their own. There is a full-fledged infrastructure of terrorism that has been built up (in Pakistan) over the years," he said.

Advani pointed out that Prime Minister Atal Bihari Vajpayee while announcing the peace initiative had spelled out that he expected an end to infiltration and dismantling of terrorist infrastructure in Pakistan.

Immediately after that India decided to send its ambassador to Pakistan and announced several confidence-building measures, including resumption of bus service between the two countries, he said.

"Nearly a month has passed and we are still awaiting a similar response from Pakistan," he said.

On his current US trip, Advani said it was different from his earlier trip in January 2002 when his entire focus was on terrorism because of December 13, 2001 terrorist attack on Indian Parliament.

"This time, the focus of the trip was not on terrorism or Pakistan but to promote warm relations between the two countries," he said, pointing out that US President George W Bush had stressed on the need to develop 'strategic relations' between the two democracies.

Complete Coverage: Advani's visit to the US