Delegations led by Indian Foreign Secretary Salman Haidar and his Pakistani opposite number, Shamshad Ahmad, met in an apparently cordial atmosphere at Hyderabad House in New Delhi. The two sides have agreed to maintain a virtual news blackout until Monday, when the talks are due to end.
"We had formal discussions followed by informal discussions. We discussed all topics," Haidar told reporters after the session. "The atmosphere was very amicable and friendly, and we are very hopeful something will emerge from it."
Ahmad, who had his arm around Haidar's shoulders as the two emerged from Hyderabad House, said: "We'll resume our work tomorrow and continue to have discussions on all subjects. We met in a cordial atmosphere ... and we are hopeful."
The arch rivals were resuming a dialogue that collapsed in January 1994 over the disputed Himalayan territory of Kashmir.
For Pakistan, Kashmir remains the "core issue," but India is hoping for progress on trade and economic cooperation as a means of easing tensions.
"Naturally, Indian sovereignty is not negotiable," Indian Foreign Minister Inder Kumar Gujral said in an interview published in the latest issue of the English-language "Frontline" magazine.
"Unless both of us understand this, difficulties will continue," he said.
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