WASHINGTON, Jan 10: US Secretary of State Colin Powell, who leaves next week for a trip to Pakistan and India, said on Wednesday he remained hopeful that the crisis between the two countries could be dealt with through political and diplomatic means.

Talking to reporters outside the State Department following an afternoon meeting with visiting Indian Home Minister L.K. Advani, the secretary referred to the steps taken by Gen Pervez Musharraf to defuse the stand-off, and said he thought the general’s expected speech this week would send out a powerful signal to the world. He emphasized the need for condemnation of terrorism

The focus of efforts to tackle the crisis, which is rooted in the Kashmir dispute, has become reduced to Pakistan’s response to Indian demands for action against militants and extremists since last month’s suicide attack on the Indian parliament.

Mr Powell said: “I think President Musharraf has taken some steps. He has arrested the leaders of the JEM (Jaish) and the LET (Laskhar). He has closed down offices. He has spoken out against terrorism. He has also arrested other individuals. But I think there is room for additional work on his part. We’re looking forward to the speech he will be giving later this week, which I think will be a powerful signal to his nation and to India and the rest of the world.”

“But it’s not just the speech. We will be looking to see what additional action he has taken. I believe he has taken quite a bit of action in recent months, but as you well know, the Indians believe more action is required, and we will see what happens in the days and weeks ahead. But I think it is in the interest of all of us to continue to do everything we can in our power to solve this through political and diplomatic channels, and not let it go to conflict. The problem will not be solved by a conflict in South Asia.”

During his current visit, Mr Advani, known as a hardliner and billed by sections of the Indian press as prime minister-in-waiting, is said to have brought a list of 20 persons whom India wants Pakistan to extradite and to be seeking US backing for its demand. Washington is already believed to have taken up the matter with Islamabad.

Asked about the list, Mr Powell said: “With respect to the list of 20, I have seen that list and I know that President Musharraf has the list. We have discussed the list with him. I know he is examining it, and I hope he will take appropriate action on the list. But it is in his hands. Yes, we have discussed it and I know that the (Indian) home minister also discussed it with Attorney-General (John) Ashcroft earlier.”

Despite America’s apparent endorsement of some aspects of the Indian position on terrorism, Mr Advani was uncharacteristically non-committal in reply to reporters’ questions at his press appearance and did not once mention Pakistan by name. But at a news conference at the Indian embassy later during the day, he was reportedly back in form, outlining India’s stand and repeating New Delhi’s demands for the handing over of the 20 men wanted by it and against whom Mr Advani said “copious evidence” was available for involvement in “terrorist activities”.

He also said Indians wanted closure of all “training facilities” in Pakistan, stopping of cross-border infiltration of men and arms, and a “categorical and unambiguous renunciation of terrorism wherever it exists” on Pakistan’s part.