India and Pakistan said they made progress on the opening day of their first formal peace talks in more than two and a half years yesterday, with the dispute over Kashmir high on the agenda. Three days of talks between foreign ministry officials opened in what both sides called a "cordial atmosphere and constructive manner." They are seen as "talks about talks" and aim to set the agenda, structure and timeframe for the dialogue process. "Both sides expressed satisfaction with the progress made on the first day," Pakistan's Foreign Ministry said in a statement. The talks will build on a groundbreaking meeting between Indian Prime Minister Atal Behari Vajpayee and Pakistani President Pervez Musharraf last month, a year and a half after the two sides came to the brink of a fourth declared war. "Right now what you have is the political will of President Musharraf and Prime Minister Vajpayee behind these talks," Pakistan's Foreign Ministry spokesman Masood Khan said. "There is a new momentum. This momentum must be maintained," he told a news conference. "You should have a clear timeframe and a sustainable process. These talks have to be substantive, structured and sustained." Diplomats and analysts say this week's exchanges in Islamabad could provide clues about how open both sides are to addressing the disputes that have divided them, particularly over control of the Himalayan region of Kashmir, which both claim. The two delegations were led by Jalil Abbas Jilani, the director-general for South Asia in Pakistan's Foreign Ministry, and Arun Singh, a joint secretary in India's External Affairs ministry. The teams will talk for a second day today to pave the way for a meeting tomorrow between foreign secretaries, the highest-ranking bureaucrats in the rival ministries. India yesterday announced the release of eight Pakistani prisoners as it expressed optimism over the talks. Indian foreign ministry spokesman Navtej Sarna said the eight to be freed today were all Pakistanis who strayed into Indian territory. Meanwhile, the European Union (EU) and the United States have welcomed the resumption of peace talks between India and Pakistan. "The start of the 'composite dialogue' in Islamabad is an important and concrete step in the process of normalisation of relations between India and Pakistan," the EU foreign affairs chief Javier Solana said. In Tampa, White House spokeswoman Claire Buchan said "We're pleased that India and Pakistan continue to work together to reduce tensions." **PHOTO CAPTION*** Pakistan's Director-General for South Asia Jalil Abbas Jilani (R) escorts India's Joint Secretary of External Affairs Arun Singh at the Foreign Ministry in Islamabad, February 16, 2004. (REUTERS/Mian Khursheed)