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WASHINGTON, Nov 13 (AFP) - The United States called on India and Pakistan Tuesday to exploit the new security environment in South Asia emerging from the US-led war on terror to recast their antagonistic relations.

Assistant Secretary of State for South Asia Christina Rocca said that the aftermath of terror attacks September 11 on New York and the Pentagon presented the two arch-rivals with an opportunity.

"Although the dramatic events of September 11 have inspired greater cooperation among many nations, unfortunately this sentiment has not yet taken hold in Indo-Pakistani relations.

"Tensions between the two remain high and clearly both natiions are eyeing US cooperation with their neighbor with some doubts," she said in a speech to the Asia Society.

Rocca said Pakistan's decision to endorse the US war against the Taliban, protectors of Osama bin Laden, which it had previously supported, represented a new dimension for Indo-Pakistani relations.

India has accused the Taliban of tolerating terrorist camps used to train Islamic militants sent to join a separatism fight in Indian Kashmir.

"The changes wrought on the world by the terrorist attacks in New York, Washington and Pennsylvania have brought a fundamental change in Pakistan's policy with regard to the Taliban," Rocca said.

"This change of policy raises new possibilities for recasting Indo-Pakistani relations and reducing tensions. We hope that this historic opportunity to bring peace to the region is not missed."

President George W. Bush entered the often bruising fray of US relations with South Asia himself last weekend, meeting Indian Prime Minister Atal Behari Vajpayee in Washington Friday, and Pakistan President Pervez Musharraf at the United Nations Saturday.

The United States has declined to take the direct role in mediating the Kashmir dispute that Pakistan would like, and India has opposed.

India has long accused Pakistan of supporting "cross-border terrorism" by training and arming Muslim separatist militants who have been fighting since 1989 to end New Delhi's rule of the Himalayan territory.

Pakistan says it only provides moral and diplomatic support to an indigenous movement for self-determination in India's sole Muslim-majority state.

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