WASHINGTON, Aug 11: The United States made a major mistake when it severed its ties with the Pakistani military in early 1990s, says US Deputy Defence Secretary Paul Wolfowitz.

"I think one of our problems in Pakistan today is that for too long we deprived ourselves of one of the most important instruments of influence," Mr Wolfowitz told the House Armed Services Committee on Tuesday.

"In a country where the military is one of the most important institutions, the United States severed the contact between our military and their military," he added. The committee, one of the key policy-making bodies in the US Congress, had summoned Mr Wolfowitz and two senior generals to discuss policy and operational implications for the US military of the war on terror.

Mr Wolfowitz said he did not disagree with the US policy of using economic assistance for promoting reforms in a country "but you don't promote military reform in a country like Pakistan by cutting off education for Pakistani military officers here and pushing them into the one alternative, which is the Islamic extremists."

"It's not as though if we leave them alone, nobody else will go out to recruit them," he warned the US policy makers. The Bush administration, he said, realized the importance of restoring relations with Pakistan and increased US assistance to Islamabad from $4 million in 2000 to $700 million requested for the next fiscal year.

Another major challenge in the war against terror, according to him, is the existence of a vast "ungoverned" area in northwestern Pakistan. "It's truly wild country. The control of the government up there is fairly limited," said Mr Wolfowitz, adding: "We think that possibly Osama bin Laden himself could be hiding up there."

He outlined a two-prong strategy for dealing with this problem: an enormous increase in US economic assistance for Pakistan and working with the Pakistani military in a cooperative way.

This strategy also included sharing intelligence with Pakistani security agencies, he said. Mr Wolfowitz said the US success in Afghanistan would not have been possible without the extraordinary, courageous decision of President Pervez Musharraf to support the United States in the struggle against terrorism.

"It's a decision that's cost him two near misses in people attempting to assassinate him. It's a decision that's taken enormous courage. But it's a decision that I believe also will bear fruit for him and for his country," said the US deputy defence secretary.

He said the US forces had driven terrorists out of Afghanistan into Pakistan where they've been captured, leading security agencies to terrorists elsewhere in London and Chicago.

"Our victory in Afghanistan has strengthened his (President Musharraf's) hand in Pakistan, and his support in Pakistan," said Mr Wolfowitz. He was interrupted by Congressman John B. Larson, a Democrat from Connecticut, who said the US engagement in Iraq was preventing Washington from focusing on Osama bin Laden's reported sanctuary in Pakistan.

Mr Wolfowitz disagreed and said that the war against terror was a global war and the United States was focusing on every sector. In countries like Pakistan, he said, the United States could relieve a burden from itself by helping to build up what other people could do.

"Yes," said Mr. Wolfowitz when Congressman Frank A. LoBiondo, a Republican from New Jersey, asked if the United States continued to be pleased with the level of cooperation from Pakistan. "If I had to give a short answer, the answer is yes. Is it perfect? No," said Mr Wolfowitz.

"And I think there's a lesson there, too. I don't want to excuse every mistake of theirs, but I think by cutting off the Pakistani military as we did for a long period of time, we've made it more difficult to work with them," he added.

Congressman John Spratt, a Democrat from South Carolina, quoted from the recent report of the 9/11 commission which says that endemic poverty, widespread corruption and often ineffective governance in Pakistan create opportunities for the recruitment of militants. The report, Mr Spratt said, also pointed out that the US presence in Karachi was extremely over stretched.