World leaders hail decision to resume talks

Vajpayee and Jamali after SAARC summit in Islamabad on Tuesday

"It's an act of statsmanship" was how a State Department official described the decision of India and Pakistan to begin composite dialogue next month and said it looked forward to helping in the process.

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The Indo-Pakistan joint statement "lays out a plan for future meetings between the leaders of the two countries, he said adding this step forward towards peace between India and Pakistan was important for regional stability and for the whole world.

"We commend the acts of statesmanship which led India and Pakistan to this point and look forward to helping continue this process," the official said.

In London, British Foreign Secretary Jack Straw said in a statement that the announcement to start composite dialogue "shows their commitment to building a mutually beneficial relationship between Pakistan and India which should deliver peace, stability and increased prosperity for all the people of South Asia, including Kashmiris".