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DATE=7/12/99 TYPE=CORRESPONDENT REPORT NUMBER=2-251680 TITLE=U-S/KASHMIR (L ONLY) BYLINE=GIL BUTLER DATELINE=STATE DEPARTMENT CONTENT= VOICED AT: INTRO: THE UNITED STATES HAS WELCOMED THE AGREEMENT DESIGNED TO END THE FIGHTING IN KASHMIR. THE U-S STATE DEPARTMENT SAYS NOW THE "LAHORE PROCESS" FOR A DIALOGUE ON ALL THE ISSUES SHOULD BE RESTORED. V-O-A'S GIL BUTLER HAS MORE ON THE STORY. TEXT: INDIA HAS SET NEXT FRIDAY AS A DEADLINE FOR FORCES THAT CROSSED THE LINE OF CONTROL IN KASHMIR TO RETURN TO THE PAKISTAN-CONTROLLED SIDE. FOR HIS PART, PAKISTAN'S PRIME MINISTER NAWAZ SHARIF URGED INDICA TO ENTER INTO TALKS OVER KASHMIR. AT THE STATE DEPARTMENT, SPOKESMAN JAMES FOLEY SAID BOTH COUNTRIES ARE REPORTING SIGNIFICANT REDUCTIONS IN FIGHTING AND SAID THE UNITED STATES WELCOMES THESE DEVELOPMENTS. /// FOLEY ACT /// ONCE THE FIGHTING HAS ENDED, WE URGE BOTH COUNTRIES TO RESUME THEIR DIALOGUE UNDER THE LAHORE PROCESS AND WE BELIEVE RESOLVING THIS CURRENT CRISIS ALONG THE LINE OF CONTROL WAS THE PREDICATE INDEED, TO RESTORING THE LAHORE PROCESS IN WHICH INDIA AND PAKISTAN WILL BE ABLE TO DISCUSS THE ENTIRE RANGE OF ISSUES BETWEEN THEM, OBVIOUSLY INCLUDING KASHMIR. /// END ACT /// THE UNITED STATES HAS NOT OFFICIALLY DESCRIBED THE INFILTRATORS WHO CROSSED OVER THE CONTROL LINE, SETTING OFF THE LATEST CRISIS, EXCEPT TO SAY THEY CAME FROM THE PAKISTAN SIDE OF THE LINE. BOTH INDIA AND PAKISTAN HAVE CONDUCTED NUCLEAR WEAPONS TESTS, AROUSING INTERNATIONAL CONCERNS. THE TWO COUNTRIES HAVE FOUGHT TWO WARS SINCE INDEPENDENCE IN 1947 OVER KASHMIR. (SIGNED) NEB/MGB/AG/RRM 12-Jul-99 3:59 PM EDT (1959 UTC) NNNN Source: Voice of America .