Powell says India and Pakistan are pulling back from brink

The US Secretary of State says he believes India and Pakistan are pulling back from the brink of war.

Colin Powell says the leaders of both countries are assuring him that dialogue is possible if certain steps were taken.

He is concluding his three-day South Asian mission to urge the nuclear-armed rivals to end their stand-off.

"I leave here very encouraged that we can find a solution to this troubling situation," said Powell after meeting with Indian Prime Minister Atal Bihari Vajpayee, Foreign Minister Jaswant Singh and other officials.

"I think we are on a path that could lead to the restoration of dialogue," Mr Powell said. "But it will take further action before we can really start walking down that path more aggressively."

Mr Powell said that India had handed over more evidence to Pakistan about 20 men accused of terrorists acts in India.

President Musharraf has said he would never hand over the Pakistanis, but left open the possibility that some of the 14 Indians on the list could be extradited.

"He doesn't rule out appropriate action against those non-Pakistanis who are on that list of 20," Colin Powell said, adding that "more information was given to them and to us."

"We hope that President Musharraf will examine all the information and do what is the appropriate thing to do in the case of each one of those 20."

India and Pakistan have massed hundreds of thousands of troops on their frontier since a December 13 attack on the Indian Parliament, which New Delhi blamed on Pakistan-based Islamic militant groups and Pakistan's spy agency. Pakistan has denied involvement.