NEW DELHI, Feb 1: Indian Prime Minister Manmohan Singh said on Wednesday that he wants to resolve all problems with Pakistan, including the Kashmir issue, with pragmatic and practical solutions but he had no mandate to seek transfer of territories if it came to that.

Dr Singh, who was asked to explain his Kashmir policy at a press conference here, said his approach involved two separate elements. There was the internal problem, in which the government had to work harder in treating all Kashmiris humanely, as equal and empowered citizens.

He had met the region’s elected leaders. He had also met leaders of Kashmiri resistance, including those from the Hurriyat Conference. Separately he had met Mr Sajjad Lone and Mr Yasin Malik, Dr Singh said. “I will be happy to meet them again,” he said

The other aspect of the Kashmir policy involved engagement with Pakistan. “We have said we are for pragmatic, practical solutions between India and Pakistan including the issue of Jammu and Kashmir. However, I have no mandate to negotiate the transfer of Indian territory,” Dr Singh said.

He maintained there had been a major change in relations with Pakistan under his 20-month old stewardship of India. “Look at the sea change that has come about in our people to people contacts.” He mentioned the opening of the bus routes in Kashmir and similar facilities being extended on the border.

Asked to react to President Gen Pervez Musharraf’s reported comments that trade and business could not be normal between enemy countries, Dr Singh said: “India and Pakistan are neighbours and I have often said we can choose our friends, but we have no choice with neighbours. We have to stay engaged despite the difficulties we may face.”

He said he did not want to understate the difficulties between the two countries. “But I do believe that the history of our two countries oblige us to stay engaged.” Dr Manmohan said, he wanted to have the friendliest of ties with Pakistan.

The Indian PM hailed the recent visit by Saudi King Abdullah to New Delhi as a landmark event. He said the Saudi monarch shared India’s views on terrorism, including cross-border terrorism.

India’s first prime minister Jawaharlal Nehru did not have a foreign minister, Dr Singh said in response to a question about the absence of a full fledged foreign minister in his cabinet.

He however indicated that Mr Natwar Singh could return to his job if a commission probing his alleged involvement in the Iraq oil scandal cleared him.

The prime minister declined to comment on statements by US Ambassador David Mulford pressing India to vote against Iran at the IAEA. He said India would take a decision at Thursday’s meeting in Vienna based on its “own enlightened self interest.”

“I do not wish to comment on the comments of the ambassador. The basic objective of our foreign policy is to promote our enlightened national interest. We have not worked in any pressure. These pressures will not detract us.”

The Indian economy is growing at around 7.5 per cent. It could soon go up to 8 to 10 per cent growth. Given also its cultural diversity and democratic record, India was a major factor in world affairs as never before. Ties with China and South East Asia were soaring.

The presidents of France and the United States are due to visit soon. India is keen to resume trade in nuclear technology with the Nuclear Suppliers’ Group of which these two are members.

On the Iran-IAEA standoff he reiterated that India supported Iran’s claim to have nuclear technology commensurate with its status as a signatory to the NPT. “”By the same token Iran has its obligations to abide by the provisions of the NPT.”

India’s dialogue with the United States was not restricted to a proposed deal on civilian nuclear energy. He listed defence, agriculture and other areas of science and technology along with proposed boost to regular business as important components of the strategic dialogue. It was not clear whether President George Bush would address the Indian parliament, as his predecessor had done in March 2000.

Dr Singh ruled out any mid-term elections that are often feared to be a possibility because of the Left Front’s criticism of his polices, which also shores up his government.

He said discussion and differences were part of a healthy coalition. Congress president Sonia Gandhi was a source of strength to his government, not an alternative power centre, he said.

Denying opposition leader Lal Kishan Advani’s description of him as India’s weakest prime minister, Dr Singh shot back: “I have done nothing to deserve all these epithets. I have already answered that. I should be judged by my action. Mr Advani went to Karachi, paid homage to Mr Jinnah’s mazaar, the RSS didn’t like it. Where is Mr Advani and his strength?”