ISLAMABAD, July 21: Foreign Minister Khurshid Mehmood Kasuri and Indian External Affairs Minister Natwar Singh on Wednesday discussed in a 'forthright manner' the substantive issues of concern to both sides - the cross-border terrorism and Kashmir.

Briefing newsmen later, Mr Kasuri said that they had an almost two-hour session on the sidelines of the Saarc Council of Ministers meeting. "Every issue of concern to India and Pakistan was discussed at the meeting and the discussions took place in a candid, warm and friendly manner," the foreign minister stated when questioned about the issues discussed.

He declined to specify the issues raised by the two sides, saying: "It is not appropriate for me to say more, I have hinted enough." When asked how much ground was covered on the bilateral track he was evasive.

But when asked if after the meeting he was more optimistic about the Pakistan-India dialogue, his response was affirmative. "Yes, I am," he said, calling himself an 'incorrigible' optimist.

He said that both sides had agreed to continue talks, giving the impression that perhaps no tangible progress had been made during the meeting on any substantive issue.

Other issues that figured in discussions included the Srinagar-Muzaffarabad bus link, Baglihar dam issue and re-opening of consulates, besides the overall review of the talks held so far and the confidence-building measures taken, it is learnt.

Confirming the dates and venue of the foreign minister-level dialogue, Mr Kasuri said the talks would be held in New Delhi on Sept 5-6. Ahead of the foreign ministers' talks the two foreign secretaries would meet on Sept 4, he added.