Talks and Other Confidence Building Measures
In 1997, high-level Indo-Pakistan talks resumed after a three-year pause. The Prime Ministers of Pakistan and India met twice and the foreign secretaries conducted three rounds of talks. In June 1997, the foreign secretaries identified eight "outstanding issues" around which continuing talks would be focused. The dispute over the status of Kashmir, (referred by India as Jammu and Kashmir), an issue since Independence, remains the major stumbling block in their dialogue. India maintains that the entire former princely state is an integral part of the Indian union, while Pakistan insists that UN resolutions calling for self-determination of the people of the state/province must be taken into account. It however refuses to abide by the previous part of the resolution, which calls for it to vacate all territories occupied.
In September 1997, the talks broke down over the structure of how to deal with the issues of Kashmir, and peace and security. Pakistan advocated that the issues be treated by separate working groups. India responded that the two issues be taken up along with six others on a simultaneous basis.
Attempts to restart dialogue between the two nations were given a major boost by the February 1999 meeting of both Prime Ministers in Lahore and their signing of three agreements.
A subsequent military coup in Pakistan that overturned the democratically elected Nawaz Sharif government in October of the same year also proved a setback to relations.
In 2001, a summit was called in Agra; Pakistani President Pervez Musharraf turned up to meet Indian Prime Minister Atal Behari Vajpayee. The talks fell through.
On 20 June 2004, with a new government in place in India, both countries agreed to extend a nuclear testing ban and to set up a hotline between their foreign secretaries aimed at preventing misunderstandings that might lead to a nuclear war.
Baglihar Dam issue was a new issue raised by Pakistan in 2005.
Read more about this topic: India-Pakistan Relations
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