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DATE=5/16/99 TYPE=CORRESPONDENT REPORT NUMBER=2-249438 TITLE=PAK / KASHMIR FIGHTING UPDATE (L) BYLINE=SCOTT ANGER DATELINE=ISLAMABAD CONTENT= VOICED AT: INTRO: INDIA SAYS ITS TROOPS HAVE NOW PUSHED BACKED MOST OF THE PAKISTANI INFILTRATORS WHO SEIZED BORDER POSTS ALONG THE DISPUTED KASHMIR REGION LAST WEEK. THIS AFTER ARTILLERY EXCHANGES WERE REPORTED TO BE ESCALATING BETWEEN INDIA AND PAKISTAN. FROM ISLAMABAD, CORRESPONDENT SCOTT ANGER REPORTS. TEXT: ARTILLERY AND MORTAR FIRE FROM INDIAN ARMY UNITS HAS REPORTEDLY DRIVEN HUNDREDS OF PEOPLE FROM THEIR VILLAGES EAST OF MUZAFFARABAD IN KASHMIR. ROSHAN MUGHAL, A JOURNALIST IN THE AREA, SAYS THE SHELLING STARTED LATE SATURDAY NIGHT AND HAS CONTINUED IN THE KOTLI BORDER REGION. ///MUGHAL ACT/// THERE, INDIAN TROOPS ARE FIRING UPON THE CIVILIAN VILLAGES AND PEOPLE ARE GOING TO SAFER PLACES TO ESCAPE THE INDIAN SHELLING. ///END ACT/// BUT INDIAN OFFICIALS HAVE REFUSED TO CONFIRM THEY ARE ENGAGED IN ACTIVE COMBAT WITH PAKISTAN. AND PAKISTAN'S FOREIGN MINISTER SARTAJ AZIZ SAYS SKIRMISHES OCCURRED IN THE KARGIL AREA BUT DECLINED TO GIVE ANY DETAILS. PAKISTAN DOES SAY IT IS CONCERNED ABOUT THE INCREASE IN FIRING INCIDENTS BETWEEN THE TWO COUNTRIES. INDIA AND PAKISTAN HAVE FOUGHT TWO WARS OVER THE HIMALAYAN REGION SINCE THE COUNTRIES DIVIDED IN 1947. INDIA NOW CONTROLS TWO-THIRDS OF KASHMIR AND PAKISTAN THE REST. /// REST OPT /// NEW DELHI ACCUSES ISLAMABAD OF FUNDING AN ARMED MUSLIM INSURGENCY IN KASHMIR -- THE ONLY MUSLIM MAJORITY STATE OF HINDU-DOMINATED INDIA. PAKISTAN DENIES THE CHARGE AND SAYS IT ONLY PROVIDES MORAL AND POLITICAL SUPPORT TO THE ONGOING STRUGGLE BY SEPARATISTS GROUPS WHO ARE FIGHTING FOR INDEPENDENCE -- OR FOR MERGER WITH PAKISTAN. (SIGNED) NEB/SA/JO 16-May-99 12:34 PM EDT (1634 UTC) NNNN Source: Voice of America .