Indian Prime Minister Atal Behari Vajpayee wound up a two-day tour to strife-torn Kashmir with peace offers to Pakistan and separatists, as well as a promise of jobs for ordinary Kashmiris. Vajpayee launched his tour to Kashmir -- the second within a year to the region -- by offering a hand of friendship to Pakistan Friday during a massive rally in Srinagar, the summer capital. Responding to that speech, Pakistan Prime Minister Zafarullah Jamali Friday welcomed Vajpayee's offer, but said Islamabad would not compromise on its stand on the disputed territory.

Pakistan wants a UN-sponsored plebiscite to allow Kashmiris to exercise their right of self-determination.

"We welcome wholeheartedly Indian Prime Minister Atal Behari Vajpayee's offer for negotiation to resolve disputes between the two countries," said Pakistani Foreign Minister Khurshid Mahmud Kasuri.

The Indian premier at the end of his tour reiterated that New Delhi wants peace with Islamabad, but said Pakistan's alleged support to the 14-year-old war of independence in Kashmir was a big stumbling block.

"It is possible to make a new beginning, but it depends on Pakistan," Vajpayee told a news conference Saturday evening at the conclusion of the tour.

Some 38,000 people have been killed since the war for independence was launched. Separatists put the toll at twice as high.

During his stay, the prime minister also met with Kashmiri traders and laid the foundation for a four-lane superhighway that will connect Indian-ruled Kashmir, to the southern most state of Kerala.

Vajpayee laid a foundation stone at the airport marking the start of an upgrade of the facility -- a long pending demand of the Kashmir government -- and also announced that international flights would be started.

He announced that railway reservation counters in six Kashmir districts, including Srinagar had been made functional on Saturday.

PHOTO CAPTION

Indian Prime Minister Atal Bihari Vajpayee greets the crowd during convocation of Kashmir University in Srinagar. (AFP/Tauseef Mustafa)