NEW DEHLI/WASHINGTON, April 7: The US urged India and Pakistan on Friday to work out a mutual understanding for building confidence in both conventional and nuclear fields.

US Assistant Secretary of State Richard Boucher, speaking at a business club in New Delhi after official talks at the foreign ministry, asked India to show leadership in stabilising nuclear and defence relations with its neighbours.

“We, and previous American administrations, have pushed for India to further define its ‘minimum credible deterrent,’ and we continue that today,” said Mr Boucher while asking New Delhi to clarify its nuclear policy.

“... [W]e see this as an absolutely necessary step toward decreasing tensions in Asia.”

India insists that it does not want more nuclear weapons than what’s necessary to defend itself, but it has never explained what nuclear capability it needs to do so.

Mr Boucher said: “We look not only to India, but to Pakistan, to work out mutual understandings to build confidence in both conventional and nuclear areas.”

The speech, delivered by the State Department’s new in charge for Central and South Asian affairs, outlines the Bush administration’s policy towards the two regions.

“Imagine the day when one can travel and bring goods and services from India, through Pakistan and Afghanistan, to Central Asia,” he said.

The policy, as outlined by Mr Boucher, tantamount to re-opening the old Silk Route that brought great prosperity to both South and Central Asian regions but was abandoned after Britain occupied India and Russia seized Central Asia and later Afghanistan, separating the two regions.

“We would welcome India’s participation in endeavours that reinforce Afghanistan’s newfound status as an open corridor, rather than a barrier that separates South Asia from Central Asia,” Mr Boucher said.

The top US diplomat for the two regions arrived in New Delhi on Friday from Pakistan.

As a friend, he said, the US was also encouraging the Indian government to continue the progress seen recently in relations with Pakistan. “As we have said many times, we would like to see a peaceful solution on Kashmir that is acceptable to both India and Pakistan, and can foster lasting peace and prosperity not only in Kashmir, but throughout South Asia and right into Central Asia,” he said.

Noting that recent statements by Prime Minister Singh and President Musharraf have attracted ‘considerable favourable international interest,’ he said that there’s no dearth of ideas circulating for ways the two countries can establish greater trade, transport linkages and people-to-people contacts.

“I think everyone believes now is the time for India and Pakistan to press for further progress and achieve the unlimited potential that occurs when two neighbours trade openly and freely with each other,” he said.

Mr Boucher rejected the suggestion that America was promoting ties with India as a counterbalance to China as ‘too simplistic’ and said that Washington wanted good relations with both China and India.

Reviewing the future of Indo-US relationship, Mr Boucher said: “If we can come to an agreement on civil-nuclear cooperation — and we did after struggling with the issue for 30 years — we can do anything.”

He said that the nuclear initiative was ‘a strategic achievement,” which will help further transform the partnership between the world’s oldest and largest democracies.