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Pakistan claims it will be difficult to resume negotiations with India because of the deadlock over Kashmir.
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The statement by Pakistani Foreign Minister Aseef Ali said Kashmir was the first hurdle to normalising relations between the two nuclear-capable neighbours.
The comments are an apparent reversal of last week's offer of talks.
'We seem to have lost sight of the realities before us and we should not be over-optimistic about talks,' Mr Ali said.
'Before we hold talks there should be a clarity of agenda,' he said, in a direct reference to Kashmir.
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Mr Ali was responding to Indian Prime Minister H. D. Deve Gowda's offer to resume 'unconditional' bilateral talks after they ended in acrimony in January 1994.
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