HELSINKI, July 7: President General Pervez Musharraf and Finnish Prime Minister Matti Vanhanen on Wednesday held substantive talks to strengthen bilateral relations.

The two leaders agreed that there was a great scope for expanding bilateral trade through increased cooperation in industrial and technological fields. President Musharraf and Mr Vanhanen explored ways and means to widen the economic cooperation to the mutual benefit of two countries, agreeing that the excellent political and diplomatic ties between them should be matched by an equally good trade and economic relationship.

They also exchanged views on various regional and international issues of common concern, including the fight against terrorism, peace and security in South Asia, and the situation in Iraq and Afghanistan.

Later, President Musharraf told a press conference that his meetings with the Finnish leadership would help augment bilateral ties. "My visit has been successful. A lot of Finnish entrepreneurs have shown keen interest in the business prospects that Pakistan offers in a congenial investment environment.

"I am satisfied with the outcome of the visit. We will have harmonious political relations and futuristically, both will have great economic, trade and commercial ties as well." He also hinted at the possibility of joint business ventures between Finland and Pakistan.

SECURITY SITUATION: The president said that the security situation in Pakistan was good. "I think the security situation is good. Unfortunately, there have been some terrorist acts in some areas of Pakistan, but that doesn't mean that the security situation is bad."

Referring to the closure of the US and British embassies in Islamabad on Monday due to threats of rocket attacks from militants, Gen Musharraf said the step was unnecessary.

"I would like to say that the easiest weapon in any extremist's hand is to send a message and terrorize, even though they don't have the capability or means to do anything. So one should guard against any undue alarm," he said.

"We feel that all terrorist acts in Pakistan have been masterminded by the Al Qaeda (members) that are hiding in those (South Waziristan) mountains. We are therefore acting against the root of terrorism in Pakistan, and I'm very sure that we will eliminate them from that place," he concluded.

Asked whether Pakistan had sought any defence equipment from Finland, the president said the country was open to acquisition of hi-tech equipment and modern conventional arms.

Referring to a thaw in the Indo-Pakistan relations, he said the two sides had initiated a peace process by holding talks and taking confidence building measures. He said the new Indian leadership had shown desire to take the peace process forward and expressed the hope that all the outstanding issues, including the Kashmir dispute, would be resolved amicably.

Answering another question, he said there was no question of Pakistan's nuclear assets falling into the wrong hands. "We have a very strong control and command system." -APP/AFP

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