NEW DELHI, Feb 26: US Senator Hillary Rodham Clinton told India on Saturday to work with President Gen Pervez Musharraf to build durable peace in South Asia, saying he had proved to be a trustworthy ally of the United States against terrorism.

In a landmark address to an international conclave in New Delhi, Ms Clinton also urged the US administration to accept the reality that both India and Pakistan were now nuclear weapons states and, therefore, to consider an "inclusive" doctrine that would not violate their sovereign right to be that.

Ms Clinton, who is seen as a front-runner for the Democratic ticket in the 2008 US presidential race, recalled her meeting with President Musharraf, when she met him as part of a delegation of US Senators in Islamabad a few days ago.

"I believe that under President Musharraf, the complicated relationship between India and Pakistan has the potential for progress because he has demonstrated that he is a legitimate potential partner for a stable productive and mutually beneficial way forward."

Ms Clinton lavished fulsome praise on Pakistan's military head of state.

"He is working to deal with the problems in his own country against great odds. It's an enormous task," she told an audience that included Indian businessmen and anti-Pakistan hawks.

Ms Clinton told the India Todayconclave that was addressed on Friday by the prime ministers of India and Pakistan, that she hoped the progress being made in their composite dialogue would continue.

She said she was especially impressed to hear "the announcement" of the establishment of the bus service in Kashmir.

"This development represents the ability of India and Pakistan to work together on simultaneous compromise without requiring once side or the other to yield first. It may be a model for going forward," she said.

She had great expectations from the "the conversations that are occurring between your commerce secretaries on trade." The imminent arrival of the Pakistan cricket team for its much-anticipated tour was a positive development, she said.

Turning to the problem of nuclear proliferation, Ms Clinton said she was hoping India and the United States would become effective leaders to combat it.

"The example of North Korea is a stark reminder of the dangers that arise when 'unstable or irresponsible regimes' acquire the tools and technical expertise to build nuclear weapons.

"Now, obviously the United States has had differences with India over the issue of nuclear weapons. But in the post-9/11 world we have a shared interest in working together to prevent the transfer of nuclear materials and know-how to stateless terrorists and irresponsible states.

"There isn't an easy answer to this, but that shouldn't stop us from trying, and in a very forthright way, looking for constructive approaches to trying to prevent the development and spread of nuclear technology and weaponry.

"We need to think creatively about ways to reconcile India's and Pakistan's decision to be nuclear states with the United States' commitment to the Non-Proliferation Treaty.

"I believe there are ways that are compatible with India's sovereignty, self-interest and the deterrence doctrine. And I would hope that my own government would address the need for such an inclusive global system," Ms Clinton said.