Washington, March 3 (IANS) Stressing that both India and Pakistan have legitimate security interests in Afghanistan, the United States says it encouraged a dialogue between the two neighbours but has ruled out any mediation between them.

Afghanistan, Pakistan, and India "are vastly different in culture, socio-economic standing, and political development, but they share a common strategic space," Richard Holbrooke, US Special Representative for Afghanistan and Pakistan, said Tuesday.

"And in order to understand America's policy and America's policy dilemma, one has to understand that both India and Pakistan have legitimate security interests in the region," he said briefing reporters on his trip to the region.

"India has a legitimate interest even though they don't have a common border (with Afghanistan)," Holbrooke said suggesting a dialogue between the two South Asian neighbours. "And if one country says the other has no interest, then it's hard to have a dialogue."

"That's why President(Barack)Obama has said we encourage any sort of dialogue between the two countries, and Afghanistan is not the core of the issue, but it is a part of the issue," he said.

Among other very critical issues "water is a huge issue...and increasingly on our trips, people in both countries talk about water - and overall security relationships," Holbrooke said. "Other issues have arisen continually."

Noting that the US has "good relations with both India and Pakistan," the envoy said: "It is our view that it is in our national interest to improve relations with both countries - not at the expense of the other."

On the contrary, "by improving relations in both countries, we can move forward a general search for peace and stability in the region," Holbrooke said noting that this policy really began in 2000 when President Bill Clinton went to both countries, the first president to visit either country in 22 years since Jimmy Carter had gone in 1978.

"And since then, President (George) Bush has done the same thing. And we will - this is the overriding approach we have to the issue. And that's our starting point for the strategic overview of the region," he said.

Later State Department spokesman Philip J. Crowley also reaffirmed that US has "encouraged both India and Pakistan to continue their dialogue."

"They are neighbours. As Richard just said, share the same strategic space. So we will continue to talk to both countries and encourage the very kind of dialogue we saw in recent days," he said referring to the recent foreign secretary level talks in New Delhi.

Asked if the US was playing a role other than encouraging it," Crowley said: "This is about the future relationship between two important allies. It is really for India and Pakistan to establish the kind of dialogue we think is in the long-term interest of both countries."

The spokesman responded with a "No" when asked if there was any kind of mediation at this time by the US.

US to offer smart-bomb kits, drones to Pakistan: WSJ 

Washington, March 3 (IANS) The United States will transfer sophisticated laser-guided-bomb kits to Pakistan as part of a recent push to better arm Islamabad for its military campaign against Islamic militants, the Wall Street Journal reported.

Pakistan will soon receive equipment capable of converting 1,000 traditional munitions into 'smart bombs' that can more precisely strike targets on the ground, the leading US financial daily said Wednesday citing unnamed US military officials.

American officials hope the reconfigured bombs will help Pakistan minimise civilian casualties as it battles insurgents in the country's tribal regions. Pakistan will also soon take possession of a dozen American-made surveillance drones and 18 late-model F-16 fighter jets, sharply expanding the Pakistani military's ability to track and strike targets in remote, insurgent-controlled parts of the country, the Journal said.

The daily acknowledged that "The laser-guided-bomb kits could spark some unease in India, where officials have been warily watching the expanded US military aid to Pakistan and wondering if the weapons would one day be turned against them."

The smart bombs should help Pakistan expand its military offensive in the insurgent stronghold of South Waziristan, the Journal said.

The laser-guided munitions can be dropped from Pakistan's current fleet of US-made F-16 fighter jets, allowing Islamabad to improve the accuracy of its bombing runs while it waits to take possession of new F-16s later this year, it said.

"This is sort of a short-term discussion, but it's one that's important to them because they're involved in current operations right now," the Journal quoted Air Force Secretary Michael Donley as saying. "They've been trying to improve their capabilities in the short term while they wait for these aircraft."

Pakistan will receive 700 kits capable of converting 500-pound traditional bombs into laser-guided munitions, as well as 300 kits that can be used with larger 2,000-pound bombs, it said citing Lt. Col. Jeffry Glenn, an Air Force spokesman.

The kits, which are made by Lockheed Martin Corp. and Raytheon Co., contain computerised guidance systems for the fronts of the bombs and fins that are designed to be attached to the backs of the munitions for better lift and stability.

Once the kits have been properly configured, pilots or ground-based troops can use laser beams to guide the smart bombs to their targets, the Journal said.

As part of stepped-up US military aid to Pakistan, a new American counterinsurgency assistance fund for Pakistan is slated to increase to $1.2 billion in fiscal year 2011 from $700 million in fiscal year 2010, allowing Islamabad to acquire more US-made helicopters, night-vision goggles and other military equipment.

The new weapons transfers are unlikely to spark much controversy in Washington, the journal said noting concern about Pakistan has ebbed in recent months as Islamabad deepens its military and intelligence cooperation with the US.

US officials cited by the Journal say they believe the leadership of both Al Qaeda and the Afghan Taliban are hiding in Pakistan, with several top officials allegedly operating out of the Pakistani city of Quetta.