Italy's foreign minister resigns over euro

KATMANDU, Nepal -- India's prime minister grudgingly shook hands with Pakistan's president at a regional summit Saturday, but he rebuffed an offer of talks until Pakistan cracks down on Islamic militants.

The two nations' armies exchanged shellfire again Saturday across the line dividing the Himalayan territory of Kashmir. A truckload of explosives being unloaded by Indian soldiers at the border went off accidentally, killing 17 people.

The handshake took place when Pakistani President Gen. Pervez Musharraf addressed a summit of South Asian leaders -- including Indian Prime Minister Atal Bihari Vajpayee -- in a speech broadcast live throughout the region.

"I extend a hand of genuine and sincere friendship to Prime Minister Vajpayee," Musharraf said. "Let us together commence a journey of peace, harmony and progress in South Asia."

He then strode across the stage to a surprised Vajpayee and offered a handshake. The Indian leader rose from his seat and politely accepted with a faint smile. He later snubbed Musharraf, refusing to look at the waiting general or shake his hand when the meetings ended for the day.

In his own speech, Vajpayee said Musharraf's gesture should be followed by an end to support for terrorism.

'Must follow the gesture'

"I have shaken his hand in your presence," Vajpayee told the audience. "Now, President Musharraf must follow the gesture by not permitting any activity in Pakistan or any territory in its control today which enables terrorists to perpetuate mindless violence in India."

New Delhi accuses Islamabad of waging a "proxy war" against it by backing Pakistan-based Islamic militants battling India's rule over two-thirds of Kashmir. Pakistan says its support for the militants -- whom it calls "freedom fighters" -- is only political.

The two nuclear-armed nations have massed tens of thousands of troops along their 1,100-mile frontier since a Dec. 13 attack by gunmen on India's Parliament, which India blamed on Islamic militants.

The Indian army said that Pakistani soldiers fired rockets and mortar shells Saturday across the cease-fire line that divides Kashmir, the Himalayan region over which both nations have fought two of their three wars. Indian soldiers shelled the Pakistanis, destroying eight bunkers, while an Indian child and two men were injured in the exchange when a house was hit, said an army spokesman.

At the Indian border village of Mahwa, soldiers were unloading a truck full off land mines and other explosives when one of the mines went off, sparking a massive blast. Fourteen soldiers and three civilians passing by were killed and 20 people wounded, police said.

'Can't be a PR exercise'

The United States and other countries had hoped Vajpayee and Musharraf would meet one-on-one at the summit in the Nepalese capital to ease tensions. But India has repeatedly refused talks at any level, and officials dismissed Musharraf's handshake as a show.

"An offer of friendship has to be accompanied by acts of friendship," Indian Foreign Minister Jaswant Singh said. "Handling terrorism can't be a PR exercise," he said.

In Islamabad, Pakistan government spokesman Mohammed Aziz Khan said the president's handshake reflected a desire to resolve all matters between the two countries through talks.

The Pakistan government announced Friday it had detained more than 130 Islamic militants, including leaders of the two groups India blames for the Parliament attack.