India’s prime minister called on South Asia’s nations to put aside a long history of suspicion and “petty rivalries” and embrace a future of trust and understanding, before a historic meeting with his Pakistani counterpart.

Hopes for peace were signalled alongside threats of war by both India and Pakistan, as the nuclear-armed neighbours exchanged deadly shelling in the disputed region of Kashmir, killing at least six people.

India’s prime minister held talks with senior Cabinet ministers and military officials in disputed Kashmir today, as shelling between nuclear-armed India and Pakistan pounded villages on both sides of the border.

US President George W Bush today urged Pakistani President Pervez Musharraf to take new steps to rein in extremists who threaten to destabilise the United States coalition against terrorism.

Talks between the leaders of India and Pakistan were deadlocked tonight when both sides failed to reach an agreement on a joint declaration over the disputed Himalayan province of Kashmir.