Musharraf to seek debt relief, mediation

Pakistan leader hopes to keep moderate course

? Pakistani President Pervez Musharraf said Tuesday that India and Pakistan need outside mediation to help them break their dangerous deadlock over the disputed region of Kashmir.

A day before he meets President Bush at the White House, Musharraf outlined an ambitious agenda to turn his country which has provided key help in the U.S.-led fight against terrorism into a modern, progressive Islamic state rejecting religious extremism.

Pakistani President Pervez Musharraf addresses the Director's Forum of the Woodrow Wilson International Center for Scholars at the Ronald Reagan Building in Washington. Musharraf on Tuesday outlined his plans to rid his country of religious extremism, a day before he is to meet with President Bush.

Debt relief is key, Musharraf said in a speech sponsored by two Washington think tanks, because Pakistan now spends 50 percent of its budget to service its outside debt. Bush is expected to go at least partway toward meeting Musharraf’s request for debt relief, administration officials have said.

Most Pakistanis are moderate, not religious extremists, Musharraf told the friendly audience, and they embrace the reforms he has begun to lower the influence of religious extremists and develop the economy.

At the same time, the disputed Himalayan province of Kashmir is an issue for “each one of them,” and must be resolved, the president said.

“Bilateralism has failed,” Musharraf said of Pakistan’s bitter standoff with rival India. Both nuclear-armed countries have their armies on high alert at their joint frontier. “There is a requirement for mediation.”

While he did not specifically call on the United States to act as mediator, Pakistan has long sought such a role for America. India has just as vociferously rejected outside mediation. The United States would act as mediator only if both countries requested it, a senior Bush administration official said Tuesday, on condition of anonymity.

Musharraf, today making his first White House visit, wants the $3 billion in debt relief and other economic aid.

Bush, in turn, is looking for continued Pakistani action against Islamic extremists.

In their meeting today, Bush and Musharraf will discuss the war on terrorism, possible economic assistance to Pakistan and the U.S. desire to see Pakistan return to a democratic government, White House spokesman Ari Fleischer said.

Musharraf, who seized power in a 1999 coup, has pledged local and national parliamentary elections in October.

Musharraf has won wide praise from the United States and Bush because of his strong support for the war on terrorism, after a decade of deteriorating relations with the United States and Pakistan support for the Taliban.

Musharraf allowed the U.S. military to use Pakistani air bases, share intelligence and put troops near the Afghanistan border to catch fleeing al-Qaida.

To bolster Musharraf’s standing and reward his support since Sept. 11, the United States already has dropped long-standing economic sanctions, committed as much as $600 million in various loans and aid and encouraged the International Monetary Fund to lend Pakistan $135 million.

Before talking with Musharraf, Bush will meet with U.N. Secretary-General Kofi Annan, the White House announced Tuesday. Annan requested the visit; the war in Afghanistan is expected to be discussed.