Pakistani President Pervez Musharraf yesterday welcomed steps to improve ties with rival India, including a bus service across divided Kashmir, but said a real solution to their dispute had to be found.

Speaking at a National Day parade at which Pakistan?s armed forces showed off nuclear-capable missiles, as well as jets and tanks, Musharraf said Pakistan wanted peace but would continue to support the people of Kashmir in their struggle. ?Between India and Pakistan, confidence-building measures and meaningful negotiations should continue. But if the real issues remain unsolved, then these confidence-building measures will also lose their impact,? he said.

<B>Great struggle </B>

The nuclear-armed neighbours have fought three wars since 1947, two of them over Muslim-majority Kashmir, but they have taken steps to improve ties since nearly going to war again in 2002. They have strengthened diplomatic, commercial, sporting and transport links but have made little headway over Kashmir, which is at the heart of their hostility, apart from an agreement to launch a bus service across the Himalayan region on April 7. ?I welcome the Muzaffarabad-Srinagar bus service,? Musharraf said, referring to the main cities in Pakistani- and Indian-controlled Kashmir.

?This will bring relief to the hardship of the Kashmiri people and will provide opportunities to families to meet on both sides. But this bus service is not a solution to the Kashmir issue. It?s only a step toward confidence building.? Muslim separatist rebels have been battling security forces in Indian Kashmir since 1989.

Tens of thousands have been killed in the violence although it has fallen off with improving relations between Pakistan and India. India has long accused Muslim Pakistan of helping the rebels. Pakistan denies arming them but says it provides moral and diplomatic support for the Kashmiri ?freedom struggle?. Musharraf, clad in a traditional sherwani tunic rather than his uniform of armed forces? commander, said that support would be maintained. ?We are with the Kashmiris in their struggle. And our moral, diplomatic and political support will continue for them in their great struggle until they are successful in their great cause.? The National Day military parade has not been held for several years amid concern over tension with India and other security worries. Musharraf has survived at least two assassination attempts by Islamist militants since his decision to back Washington in its war on terrorism launched after the Sept. 11 attacks in 2001. Referring to threats of ?terrorism, extremism and sectarianism?, Musharraf called on the people to support his drive to make Pakistan a country of moderate Islam.

?We have to project the true sprit of Islam ? enlightenment and moderation. This cannot be done by the government alone. I appeal to the nation to project peace, brotherhood and the true spirit of Islam.? Afghan President Hamid Karzai, an ally of Musharraf?s in the campaign against militancy, was guest of honour at the parade. Karzai, on a two-day visit, was due to sign agreements on several issues, including tourism and transport.