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DATE=7/9/99 TYPE=CORRESPONDENT REPORT NUMBER=2-251592 TITLE=PAK KASHMIR (L-ONLY) BYLINE=SARAH HORNER DATELINE=ISLAMABAD CONTENT= VOICED AT: INTRO: PAKISTAN HAS ANNOUNCED IT WILL APPEAL TO ISLAMIC MILITANTS FIGHTING IN INDIAN KASHMIR TO "HELP RESOLVE" THE CRISIS THERE. BUT AS SARAH HORNER REPORTS FROM ISLAMABAD, THE GOVERNMENT STOPPED SHORT OF URGING THE MILITANTS TO WITHDRAW FROM INDIAN-CONTROLLED TERRITORY. TEXT: AFTER MEETING FRIDAY (TODAY), PRIME MINISTER NAWAZ SHARIF AND THE CABINET'S DEFENSE COMMITTEE SAID IN A STATEMENT THAT THEY WOULD APPEAL TO THE MUJAHIDEEN TO -- AS THEY PUT IT -- "HELP RESOLVE THE CURRENT SITUATION" IN (KARGIL) INDIAN KASHMIR. THEY ALSO URGED THE MUJAHIDEEN FIGHTERS TO ALLOW THE WORLD COMMUNITY TO PLAY ITS ROLE IN RESOLVING WHAT IT CALLS THE LEGITIMATE ASPIRATIONS OF THE KASHMIRI PEOPLE. THE STATEMENT COMES AFTER A MEETING SUNDAY IN WASHINGTON BETWEEN PRIME MINISTER SHARIF AND PRESIDENT CLINTON IN WHICH THEY AGREED THAT CONCRETE STEPS NEED TO BE TAKEN TO DEFUSE THE CRISIS. IT WAS REPORTED THAT MR. SHARIF HAD AGREED DURING THOSE TALKS TO WITHDRAW ISLAMIC MILITANTS FROM INDIAN KASHMIR. THE PAKISTANI GOVERNMENT STATEMENT DID NOT, HOWEVER, CALL ON THE MILITANTS TO WITHDRAW. PAKISTAN HAS COME UNDER INTENSE INTERNATIONAL PRESSURE TO RESOLVE THE CRISIS IN THE DISPUTED HIMALAYAN REGION OF KASHMIR, WHICH HAS BROUGHT INDIA AND PAKISTAN TO THE VERGE OF AN ALL-OUT WAR. INDIA SAYS PAKISTAN-BACKED GUERRILLAS HAVE BEEN FIGHTING INDIAN TROOPS IN THE KARGIL SECTOR SINCE EARLY MAY. PAKISTAN SAYS THE FIGHTERS ARE KASHMIRI INSURGENTS WHO RECEIVE ONLY MORAL SUPPORT FROM PAKISTAN. THE TWO NEIGHBORS HAVE ALREADY FOUGHT TWO WARS OVER KASHMIR. INTERNATIONAL CONCERNS ARE HEIGHTENED OVER THE LATEST DISPUTE AS BOTH INDIA AND PAKISTAN ARE NOW NUCLEAR POWERS. (SIGNED) NEB/SLH/AG/RRM 09-Jul-99 9:42 AM EDT (1342 UTC) NNNN Source: Voice of America .