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DATE=3/21/2000 TYPE=CORRESPONDENT REPORT TITLE=INDIA / KASHMIR (L-UPDATE) NUMBER=2-260418 BYLINE=JIM TEEPLE DATELINE=NEW DELHI CONTENT= VOICED AT: INTRO: A senior Indian official says two separatist militant groups were behind the killing of 40 Sikh villagers late Monday in Kashmir. Indian officials are indirectly blaming Pakistan for the massacre that took place on the eve of President Clinton's official trip to India. Correspondent Jim Teeple reports Indian officials also say the issue of mediating the Kashmir dispute was not discussed by Mr. Clinton and Prime Minister Atal Behari Vajpayee. TEXT: Brajesh Mishra - India's national security advisor says he has evidence the separatist militant organizations, Lakshar-e-Toiba and Hizbul Mujhadeen were involved in the killing of Sikh villagers Monday. Both groups are based in Pakistan and Mr. Mishra says Islamabad is indirectly responsible for the massacre. // MISHRA ACT // It was a combined group of Laskhar-e-Toiba and Hizbul Mujhadeen. Now these outfits are supported by the government of Pakistan. // END ACT // Mr. Mishra will not say what his evidence is. Both groups named by him have denied involvement in the killings. Pakistan has condemned the massacre and denies offering anything other than moral and diplomatic support to Kashmir separatists. // OPT // The killings are the first major attack on a Sikh village in Kashmir's 10-year insurgency. Although about 300-thousand Hindu inhabitants of Kashmir have left the area, Sikhs who control much of the trucking business in Kashmir, have stayed and have been left largely undisturbed by the wide-scale violence. // OPT // Mr. Mishra says President Clinton and Prime Minister Vajpayee did not discuss the issue of third-party mediation on Kashmir. He says India would reject the proposal if were brought up. At the same time, India's national security advisor says India welcomes Mr. Clinton's call for both India and Pakistan to respect the "line of control" which divides Kashmir between India and Pakistan sectors. Mr. Clinton has called the "line of control" the - most dangerous place on earth. // REST OPT // Mr.Mishra also says the United States and India have agreed to disagree about the issue of nuclear non- proliferation. President Clinton has called on India to sign the Comprehensive Nuclear Test Ban Treaty which bans all testing of nuclear weapons. Mr. Mishra and other senior Indian officials say that will not happen until a national consensus can be developed on the issue. India's national security advisor says India made its position clear to Mr. Clinton. // MISHRA ACT // We will have a minimum credible deterrent, but we do not intend to engage in a nuclear arms race with any country. // END ACT // Mr. Mishra says there is recognition by both countries of the need to work together on the question of nuclear proliferation. (Signed) NEB/JLT/LTD/ 21-Mar-2000 09:53 AM EDT (21-Mar-2000 1453 UTC) NNNN Source: Voice of America .