WASHINGTON, May 24: The United States might be willing to reward India and Pakistan if they agree to end their disputes peacefully, diplomatic sources told Dawn.

Diplomatic sources say that Washington is urging both the nations to build up the momentum for peace before addressing the 56-year Kashmir dispute.

In return for these moves toward peace, Washington is willing to reward India by accepting its demand for dual-use technology, such as supercomputers, which can be used for both civil and military purposes. India has long desired this technology which will help scientific research and will also help improve its weapons-delivery systems.

The Bush administration’s decision to approve the sale of Israel’s Phalcon airborne early warning system to India is also seen as a step meant to encourage the ongoing peace process, the sources said.

Pakistan, which has already had a $1 billion debt written off, is asking for more debt retirement and a five-year economic package to allow it to rebuild its shattered economy.

The sources say that Washington may announce a major economic incentive for Pakistan when President Pervez Musharraf visits Washington in late June for talks with President Bush.

Indian Deputy Prime Minister L.K. Advani, who in the past has openly opposed improving relations with Pakistan, is also visiting Washington in early June.

Washington hopes that before President Musharraf’s visit, both countries would have taken some concrete efforts toward peace, creating the right climate for America to help them resolve the Kashmir dispute as well.

Media reports have claimed that Washington also has prepared a “roadmap for peace” in Kashmir, along the lines of the Middle East plan.

A State Department official told said that such reports were apparently based on “routine papers which are prepared by various departments to justify the budget allocations sought they do not represent US policies or official decisions.”