(Adds quotes, details) By Nigam Prusty NEW DELHI, June 11 (Reuters) - The United States wants India and Pakistan to resume peace talks, but would leave it to the two countries to decide the way forward, a U.S. official said on Thursday. "The scope and the character of that dialogue is something for Indian and Pakistani leaders to decide on how and when to approach that dialogue," Undersecretary of State William Burns told a news conference after talks with Indian leaders. India has "paused" a slow-moving peace process with Pakistan after 10 gunmen killed 166 people last November in Mumbai. New Delhi says the three-day attack was carried out by Pakistan-based militants who must also have had the backing of some official Pakistani agencies, which Islamabad denies. "United States has always welcomed a dialogue between India and Pakistan and welcomed better relations between those two countries," Burns said, shortly after meeting Indian Prime Minister Manmohan Singh. Singh earlier this week said he was ready to meet Pakistan "more than half-way" if Pakistan cracked down on militants. Islamabad has welcomed Singh's comments. Burns said the United States shared India's security concerns and wanted Pakistan to act strongly against militant groups operating from there. "That's in everyone's interest and everyone's interest is committed to stability in this region," Burns said. He said Pakistan faced a serious challenge and was making progress in the campaign against the Taliban in Swat valley. CLOSER TIES Burns, who is on a four-day trip to the capital and the financial hub of Mumbai, said he was hopeful that India and the U.S. would expand defence ties. India and the United States are discussing ways to resolve a row over a clause that allows U.S. inspectors to monitor arms it sells to New Delhi, a major obstacle for U.S. companies bidding for a $10.4-billion fighter jet contract, that is the world's biggest current arms deals. India has not yet agreed to the U.S. clause of "end-use monitoring" (EUM) under which the United States reserves a right to make sure U.S. arms sold abroad are used for their intended purpose and that the technology does not leak to third countries. "I think we are making good progress and I am very hopeful that we will be able to get past that issue and move ahead to expand defence cooperation between us," Burns said. "So, yes I think we are closer." India's new ruling coalition, freed of pressure from its former communist allies, is also expected to move forward on a military logistics deal with the United States that would help U.S. operations in the region. (Writing by Bappa Majumdar; Editing by Sanjeev Miglani)
A victim of a train bomb blast is helped off a vehicle after arriving at a hospital in Quetta June 11, 2009. Separatists in the southwest province of Baluchistan delivered a ...
