• Nuclear rivals India and Pakistan began a cease-fire along their frontier in the disputed Kashmir region, one of the world?s most heavily militarized and volatile borders.

The new move to calm ties between the long-time foes appeared to be at least initially successful with both sides saying the cease-fire was holding. But analysts cautioned against reading too much into the agreement, noting that fighting usually slows during winter, while one of the main Islamic groups fighting in Kashmir said it would continue attacks in the Indian part of the territory.

?We haven?t fired a single bullet, nor has there been any report that India has fired,? said a Pakistani officer commanding the Chakothi sector, south of Muzaffarabad, the capital of Pakistani Kashmir.

In Srinagar, the biggest city in Indian Kashmir, thousands of residents swarmed mosques to offer prayers and many said it was the most peaceful Eid they had seen in years. ?Oh Allah! return peace with dignity to our mother Kashmir,? the chief mullah in a Srinagar mosque cried.

The Indian army said no firing had been reported since the cease-fire took effect at midnight Indian time on the Line of Control dividing Kashmir and positions on the Siachen glacier, the world?s highest battleground.

Pakistan and India have gone to war three times since they were carved out of British colonial India in 1947, twice over Muslim-dominated Kashmir, which they both claim, where tens of thousands have died in a 14-year insurgency.

Prodded by the world outside, especially Washington, they have traded peace overtures this year having gone to the brink of a fourth war last year, but troops have continued to exchange fire almost daily along the 460 mile control line.

Analysts say the cease-fire will help improve the atmosphere ahead of an expected visit to Islamabad by Indian Prime Minister Atal Behari Vajpayee for a summit in early January. But India has so far rejected talks between Vajpayee and Pakistani leaders on the sidelines of the South Asian Association for Regional Cooperation summit, saying Islamabad must first stop helping militants in Kashmir, a charge Islamabad denies.

India?s Defense Minister George Fernandes expressed hope the cease-fire would help the countries resolve their differences.

?There is reason to believe that this could take us to a point where we can find some solutions which have plagued us for some time,? he told state-run Doordarshan television.