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DATE=7/10/99 TYPE=CORRESPONDENT REPORT NUMBER=2-251621 TITLE=PAK / KASHMIR / INDIA (L-ONLY) BYLINE=AYAZ GUL DATELINE=ISLAMABAD CONTENT= VOICED AT: INTRO: THE PAKISTAN GOVERNMENT SAYS ISLAMIC MILITANTS FIGHTING IN INDIAN KASHMIR HAVE EXPRESSED A WILLINGNESS TO HELP RESOLVE THE CRISIS IN KASHMIR. THE GOVERNMENT MADE THE ANNOUNCEMENT AFTER A CABINET MEETING SATURDAY. BUT AYAZ GUL REPORTS FROM ISLAMABAD THAT A GROUP REPRESENTING THE KASHMIR MILITANTS VOWED ON SATURDAY THAT THE MILITANTS WOULD REMAIN IN THE DISPUTED REGION. TEXT: IN A STATEMENT ISSUED AFTER THE CABINET MEETING, THE GOVERNMENT SAID ISLAMIC MILITANTS IN KASHMIR HAVE RESPONDED POSITIVELY TO THE GOVERNMENT'S APPEAL TO HELP DEFUSE THE CRISIS. THE GOVERNMENT'S APPEAL, ISSUED FRIDAY, STOPPED SHORT OF URGING THE MILITANTS TO WITHDRAW FROM INDIAN KASHMIR. INSTEAD, IT ASKED THEM TO "HELP RESOLVE" THE CRISIS. BUT AN UMBRELLA ORGANIZATION FOR THE MUSLIM GUERRILLAS -- THE MUTTAHIDA JIHAD COUNCIL -- HAS STRONGLY DENIED THEY HAVE AGREED TO THE GOVERNMENT'S APPEAL TO WITHDRAW FROM (THE KARGIL) INDIAN KASHMIR. THE GUERRILLA GROUP, IN A STATEMENT ISSUED SHORTLY BEFORE THE GOVERNMENT'S, VOWED THE GUERRILLAS WILL CONTINUE TO FIGHT INDIAN RULE IN THE DISPUTED REGION. ACCORDING TO THE STATEMENT, A WITHDRAWAL FROM THE STRATEGIC HEIGHTS (IN KARGIL) ON THE INDIAN SIDE WOULD BE DETRIMENTAL TO THE MILITANT'S CAMPAIGN AGAINST INDIAN RULE IN KASHMIR. PRIME MINISTER SHARIF MINISTER'S SHARIF'S POLITICAL OPPONENTS, ALONG WITH THE RELIGIOUS PARTIES, ARE CONDEMNING MR. SHARIF'S EFFORTS TO SEEK THE WITHDRAWAL OF THE GUERRILLAS FROM KASHMIR. THEY HAVE ACCUSED HIM OF TREASON AND ARE CALLING FOR HIS REMOVAL FROM OFFICE. MR. SHARIF IS DUE TO ADDRESS THE PAKISTANI PARLIAMENT ON MONDAY, WHEN HE IS EXPECTED TO DEFEND HIS KASHMIR POICY. (OPT) ISLAMABAD'S APPEAL TO THE MUJAHIDIN (HOLY WARRIORS) FOLLOWED A MEETING LAST SUNDAY IN WASHINGTON BETWEEN PRIME MINISTER NAWAZ SHARIF AND PRESIDENT CLINTON IN WHICH THEY AGREED CONCRETE STEPS NEED TO BE TAKEN TO END THE CRISIS. THE TWO COUNTRIES HAVE FOUGHT THREE WARS, TWO OF THEM OVER KASHMIR. (SIGNED) NEB/AG/KL 10-Jul-99 1:12 PM EDT (1712 UTC) NNNN Source: Voice of America .