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LUCKNOW,Thursday (AFP) Indian Prime Minister Atal Behari Vajpayee said Wednesday he was hopeful that talks could start soon with Pakistan, saying the "path of war" between the arch-enemies should be closed.

"I had extended a hand of friendship with Pakistan, hoping that by solving problems through talks an environment would be created where there is no place for cross-border terrorism, and in Pakistan the terrorist infrastructure would be dismantled," Vajpayee told reporters.

"We are watching this situation and we hope that very soon there will be a situation in which peaceful talks can begin on all issues."

Vajpayee, 78, last month stunned observers by extending a "hand of friendship" to Pakistan, saying it would be his "third and final" attempt to make peace.

Asked why he said it was the final attempt, Vajpayee said: "The time has come for a definite decision. Everytime we extend a hand of friendship it is rejected. This is not right. "We should make up our mind and Pakistan should make up its mind. Like neighbours, we want to live in peace with them and even after many attempts and betrayals, we have tried to close the path of war and to solve problems through talks," he said.

Vajpayee also hailed a reported decision by Pakistan to ban Kashmir's leading rebel group Hizbul Mujahedin as a "correct" decision.

"I am confident it will be followed honestly and there will be no softness towards terrorist organisations," he added.

Hizbul Mujahedin, based in the Pakistani section of Kashmir, is the largest rebel group fighting Indian rule in the Muslim-majority Himalayan province.

Pakistan, however, has denied it has banned Hizbul Mujahedin, saying it does not have the right to do so because it is not a Pakistani outfit. The prime minister, speaking in his home constituency in the northern city of Lucknow, said it "appears that (Pakistan's) policy has changed.

"They are ready for talks but before that, cross-border terrorism must end permanently and the terrorist camps should be destroyed," he said.

Asked for his reaction to Pakistan's refusal to hand over to India 20 "terrorists and criminals" wanted for crimes committed in India, Vajpayee said, "Their attitude has not changed on this issue but it will change, I am confident." He also denied his initiative to extend friendship to Pakistan came under international pressure.

"This language that we took decision under pressure should not be used," he said. "India is a proud nation and we tackle decisons on our own."

Vajpayee said Pakistan "should not have raised" the Kashmir issue in the United Nations Security Council.

"We want to solve the issue through bilateral talks. The world also wants it this way. That is why when Pakistan raised Kashmir in the Security Council, no nation supported it. The world's view was clear. I am hopeful Pakistan will also take a lesson from this."

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