DATE=11/12/98 TYPE=CORRESPONDENT REPORT NUMBER=2-241558 TITLE=INDIA-TERRORISM (L-ONLY) BYLINE=DOUGLAS BAKSHIAN DATELINE=NEW DELHI CONTENT= VOICED AT: INTRO: PAKISTAN AND INDIA HELD TALKS IN NEW DELHI THURSDAY ON TERRORISM AND DRUG TRAFFICKING, AS PART OF A LARGER DIALOGUE TO EASE TENSIONS. VOA CORRESPONDENT DOUGLAS BAKSHIAN HAS MORE ON THE STORY FROM THE INDIAN CAPITAL. TEXT: TERRORISM IS AN IMPORTANT ISSUE FOR BOTH INDIA AND PAKISTAN, WITH BOTH NATIONS ACCUSING EACH OTHER OF CAUSING CROSS-BORDER UNREST AND VIOLENCE. BRAHMA CHELLANEY, OF NEW DELHI'S CENTER FOR POLICY RESEARCH, SAYS INDIA HAS VERY SPECIFIC CONCERNS. // CHELLANEY ACT // TERRORISM IS A MAJOR ISSUE FOR INDIA BECAUSE OF PAKISTAN'S OPEN SUPPORT FOR THE KASHMIRI EXTREMISTS WHO ARE WAGING AN INSURGENCY AGAINST INDIA IN THE KASHMIR VALLEY AND ALSO BECAUSE PAKISTAN, IN THE PAST, HAS AIDED AND ABETTED INDIAN MILITANTS IN THE PUNJAB AND ELSEWHERE IN INDIA. IN FACT, ACCORDING TO A RECENT REPORT BY THE INDIAN INTERIOR MINISTRY, ALMOST ONE THIRD OF THE DISTRICTS IN INDIA ARE AFFECTED BY INTERNAL DISORDER, UNREST, OR INSURGENCY. // END ACT // PAKISTAN SAYS IT GIVES ONLY DIPLOMATIC AND POLITICAL SUPPORT TO KASHMIRI MILITANTS, AND DENIES ARMING AND TRAINING THE FIGHTERS. KASHMIR IS A DISPUTED TERRITORY OVER WHICH PAKISTAN AND INDIA HAVE FOUGHT TWO WARS. ISLAMABAD, FOR ITS PART, ACCUSES INDIA OF STIRRING UP TROUBLE IN KARACHI, PAKISTAN'S LARGEST CITY AND ECONOMIC CAPITAL. KARACHI SUFFERS PERIODIC OUTBREAKS OF VIOLENCE BETWEEN RIVAL POLITICAL, ETHNIC, AND RELIGIOUS GROUPS. PAKISTAN ALSO FREQUENTLY BLAMES INDIA FOR BOMBINGS IN THE PAKISTANI SIDE OF PUNJAB PROVINCE. ON THE TOPIC OF DRUG TRAFFICKING, PAKISTAN HAS IN THE PAST ACCUSED INDIA OF BEING THE SOURCE OF CHEMICALS USED IN THE MANUFACTURE OF NARCOTICS. INDIA DENIES THIS. DRUG EXPERTS SAY PAKISTAN ITSELF HAS PROBLEMS WITH OPIUM TRAFFICKING FROM AFGHANISTAN AS WELL AS OPIUM TRADE IN PAKISTAN'S REMOTE TRIBAL AREAS. PAKISTAN AND INDIA CONCLUDE THIS ROUND OF TALKS FRIDAY WITH A DISCUSSION OF CULTURAL EXCHANGES BETWEEN THE COUNTRIES. THE TALKS BEGAN NOVEMBER FIFTH COVERING TOPICS INCLUDING WATER DISPUTES, TRADE, AND THE HEAVILY MILITARIZED SIACHEN GLACIER. PAKISTAN, HOWEVER, SAYS THERE CAN BE NO MOVEMENT ON THESE ISSUES UNTIL THERE IS PROGRESS ON KASHMIR, THE CORE DISPUTE BETWEEN THE NATIONS. (SIGNED) NEB/DAB/PLM 12-Nov-98 6:31 AM EST (1131 UTC) NNNN Source: Voice of America .