US Secretary of State Colin Powell on Monday said he had spoken to both Indian Foreign Minister K Natwar Singh and his Pakistani counterpart Khurshid Mahmud Kasuri late last week before the two met in New Delhi this week for talks. 'I was pleased to learn from both of them that they are entering into the dialogue in a positive way,' he told reporters in Washington, DC, yesterday.

He also added that Kashmir is a 'very difficult issue' that will take time to resolve, but pointed out that the environment for positive discussions between India and Pakistan has greatly improved. Both the countries know it has to be dealt with and it is part of their agenda, he said.

Powell's comments came after talks between Singh and Kasuri concluded in New Delhi on Monday.

'Both ministers recognise that Kashmir is an issue among many issues that have to be dealt with between the two nations. I am pleased they are actually talking to one another at this level and at any many other levels and that the environment for positive discussions has improved so greatly over the last year and a half, two years,' he said. 'You'll recall that less than about two years ago we were concerned about a major conflict between the two nations and now they are in discussions with one another.'

He also noted that this week's meeting was the first between the two ministers in a fairly long period of time. 'So let's take heart in the reality that they are discussing all issues between the two countries, of which Kashmir is one, and both have acknowledged that.'