ISLAMABAD, Jan 24: Pakistan on Monday accused India of violating the 14-month-old cease fire along the Line of Control in the disputed Kashmir region, saying small-arms fire came on Friday from the Indian side.

Foreign office spokesman Masood Khan denied an Indian allegation that Pakistan troops had fired mortars into the Indian-held Kashmir, and said that mortars had been fired by Indian troops.

"There was no cease fire violation from our side, it was the Indians who violated it. But in the Indian media, they have hyped it up. India should investigate what happened," said Mr Khan.

He said: "On the 21st of January, between three pm and six pm, there was a violation from the Indian side." Giving brief details of the firing, Mr Khan said small arms were fired into Pakistan territory in the Mendhar section in Poonch district.

Affirming Pakistan's resolve to adhere to cease fire, he said Pakistani forces showed restraint and no-one was hurt. "Pakistani troops observed restraint and did not fire back. There was no damage to life or property in the incident," he said.

"We would continue to observe the cease fire and we expect that India would do the same," said the spokesman. Referring to two hotline contacts between the Director-Generals of Military Operations of India and Pakistan last week, Mr Khan said senior military officials of the two sides were in frequent contact and both sides had renewed assurances that cease fire would be observed.

The accusations and counter-allegations of firing across the LoC by India and Pakistan were traded for the first time since the cease fire became effective in November 2003 and both countries embarked on a composite dialogue process.

The spokesman, however, said Pakistan did not believe there were any ulterior motives on the Indian part to sabotage the peace process. He said it was incumbent on India to inquire into such incidents and inform Pakistan.

Mr Khan denied any link between the reported violations and Pakistan's decision to approach the World Bank on the Baglihar dam issue. "It is unfortunate. We saw an artificial correlation between the Baglihar issue and the so-called cease fire violations. That was uncalled for," he said.

In reply to a question about the possible effect of the LoC firing on the peace process, Mr Khan said: "Let us hope that the cease fire is observed in the coming days and it will have no impact on the expected meeting between the prime ministers of Pakistan and India on the sidelines of the Saarc summit."

He said India had given assurances that it was serious about resolving all outstanding issues between the two countries. In response to a question, the spokesman said Pakistan was considering an Indian proposal to declare five places along the LoC as meeting points for the divided Kashmiri families on the two sides.

However, he said Pakistan would not enter into any agreement which did not take into account the dignity and honour of the Kashmiris. He said that with barbed wires on one side it was not possible to herd the Kashmiris to meeting points.

About the proposed Muzaffarabad-Srinagar bus service, Mr Khan said both countries should try to start the bus service at the earliest. However, he said if India did not insist on the use of passport as travel document, Pakistan was ready to start the bus service soon.

Explaining the rationale for Pakistan's reservations on the use of passport, Mr Khan said Kashmir was a disputed territory and as such travel on passport and visa would give it a quasi-permanent status.

In reply to a question about the appointment of a special envoy by India for Pakistan, he said that no formal communication had been received by Islamabad in this regard so far.

On the Baglihar issue, Mr Khan said the World Bank would take action in accordance with the provisions of the Indus Water Treaty. He rejected an impression that the World Bank had turned down Pakistan's request for the appointment of a neutral expert.

He said the World Bank had a dispute settlement mechanism and it had a clearly defined role in that process. In reply to a question, Mr Khan said the International Court of Justice had not been considered as an option by Pakistan on the Baglihar dam.

Replying to a question about the Indian offer of autonomy talks to Kashmiri leaders, Mr Khan said such proposals from New Delhi had not worked in the past and were not likely to work in the future as well.

He said for the success of any talks between Kashmiris and the Indians, India would have to recognize Kashmiris as the third most important party to the core issue.