NEW YORK, Nov 11: Convergence of views on the current military campaign and a future dispensation in Afghanistan, a US pledge of increased economic assistance and agreement on diplomacy and dialogue to resolve the Kashmir issue marked President Pervez Musharraf’s first meeting with President Bush here on Saturday.

A joint statement issued after the talks was short on specifics, but Pakistani spokesmen described the discussions between the two presidents spread over two hours as marking the revival of an old relationship and the beginning of a new one.

Talking briefly to reporters after the meeting, Gen Musharraf said Pakistan and the US had identical views on a post-Taliban setup based on the wishes of the people, and Mr Bush indicated that while the Northern Alliance would be encouraged to move south, the US would not want the alliance forces to enter Kabul.

This was described as the most specific comment so far by the US president on the direction of the war in Afghanistan and apparently backed the assessment of Gen Musharraf, who said his view that Kabul should not be taken by the alliance was based on the past experience of mayhem in the Afghan capital.

President Bush, in his brief appearance before the press with Gen Musharraf following his talks with the Pakistani leader, said the US would give up to $1 billion in aid to Pakistan, but it remained unclear whether this included the $600 million previously pledged by Washington after the campaign crisis began and sanctions were lifted from Pakistan. Perhaps more important was Mr Bush’s remark that the administration hoped for legislation that would enable the US to improve market access for Pakistani goods.

Mr Bush also said he was pleased to hear from Gen Musharraf that the Pakistan president remained committed to his promise to return his country to democratic rule.

Mr Bush praised Pakistan’s efforts in the fight against terrorism which, he said, benefited the entire world and linked Pakistan more closely with the international community. “The US wants to help Pakistan build these linkages. I’ve authorized a lifting of sanctions, and over $1 billion in US support. I will also help debt relief for Pakistan.”

Asked to comment on the Osama bin Laden’s interview published in Dawn on Saturday in which he warned he had nuclear and chemical weapons and would use them if similar weapons were deployed by America, Mr Bush said he did not know what to believe and what not to believe in what Osama bin Laden said. But one thing he knew was that Osama bin Laden was “evil” and that what he had said only made it more pressing to bring him to justice.

In this first encounter between two leaders most deeply involved in the Afghanistan imbroglio, President Musharraf was assisted in the talks by the foreign and finance ministers, Ambassador Maleeha Lodhi and Brigadier Nadeem. The US side included Secretary of State Colin Powell, National Security Adviser Condoleezza Rice and General Downer, the newly-appointed National Security Council deputy adviser for counter-terrorism.

Gen Downer presence in the talks was seen a sign that the Pakistani delegation also brought up the issue of the problems confronting the Pakistani American community and Pakistanis here in the US following the Sept 11 attacks.

The discussions between the two leaders were described as extremely warm and cordial and representing a meeting of minds. Both the military situation, particularly in the light of the reported fall of Mazar-i-Sharif to the Northern Alliance, and Pakistan-US relations beyond Afghanistan were discussed.

According to the joint statement, President Bush said he was committed to working with international financial institutions to provide additional support for Pakistan, and undertook to consider ways to respond to Pakistan’s market access expectations.

There was, however, no word later from the Pakistani delegation of any details, and it seemed that the US side was still in the process of considering how best to help Islamabad meet the economic challenges it faces.

The two leaders expressed shared concern about the threat to global stability posed by the proliferation of ballistic missile and weapons of mass destruction. They agreed on the need for a comprehensive approach to counter these threats, including enhanced non-proliferation measures at the global and regional level.

Referring to South Asia, the joint statement said Gen Musharraf and Mr Bush “discussed ways to promote stability in South Asia. President Bush praised President Musharraf’s recent call to Prime Minister Vajpayee of India. President Bush and President Musharraf agreed that India and Pakistan should resolve the Kashmir issue through diplomacy and dialogue in mutually acceptable ways that took into account the wishes of the people of Kashmir.”

The Bush-Musharraf meeting followed a meeting between the US president and Mr Vajpayee a day earlier in Washington. Despite some reports that President Bush would invite Gen Musharraf for a more formal visit to Washington, the joint statement did not contain any mention of this, and the Pakistan briefing after the talks brought no clarification either on this point.