INDIAN PRIME MINISTER MANMOHAN SINGH SAID ON FRIDAY THE PEACE PROCESS WITH PAKISTAN SHOULD ULTIMATELY LEAD TO A 'TREATY OF PEACE, SECURITY AND FRIENDSHIP' BETWEEN THE TWO COUNTRIES, ACCORDING TO REUTERS. 'I MAKE THIS OFFER TO THE PEOPLE OF PAKISTAN ON THIS HISTORIC OCCASION,' HE SAID IN THE NORTHERN INDIAN CITY OF AMRITSAR BEFORE LAUNCHING A NEW BUS SERVICE BETWEEN THE TWO COUNTRIES. 'I AM SURE THE LEADERSHIP OF PAKISTAN WILL RECIPROCATE.' HE SAID INDIA WAS COMMITTED TO THE PEACE PROCESS WHICH HE SAID COULD BRING ENORMOUS ECONOMIC BENEFITS. AND THERE WAS A GROWING RECOGNITION IN BOTH COUNTRIES THAT 'TERRORISM IS AN ENEMY OF CIVILISED SOCIETIES'. 'GENERAL MUSHARRAF HAS TAKEN CONCRETE STEPS TO CURB TERRORISM AND I COMPLIMENT HIM FOR THAT. BUT MORE NEEDS TO BE DONE IN THE INTEREST OF BOTH INDIA AND PAKISTAN,' SINGH SAID. SINGH SAID IT WAS A MISTAKE FOR PAKISTAN TO LINK NORMALISATION OF OTHER RELATIONS TO FINDING A SOLUTION TO THE KASHMIR DISPUTE. 'BUT WE ARE NOT AFRAID OF DISCUSSING JAMMU AND KASHMIR OR OF FINDING, PRAGMATIC, PRACTICAL SOLUTIONS TO RESOLVE THIS ISSUE AS WELL,' HE SAID. SINGH SAID BOTH SIDES SHOULD BEGIN A DIALOGUE WITH PEOPLE IN THE PARTS OF KASHMIR THEY CONTROL. 'I HAVE OFTEN SAID THAT BORDERS CANNOT BE REDRAWN BUT WE CAN WORK TOWARDS MAKING THEM IRRELEVANT - TOWARDS MAKING THEM JUST LINES ON A MAP,' HE SAID. HE ALSO SUGGESTED THE TWO PARTS OF KASHMIR COULD WORK OUT 'COOPERATIVE, CONSULTATIVE MECHANISMS SO AS TO MAXIMISE THE GAINS OF COOPERATION IN SOLVING PROBLEMS OF SOCIAL AND ECONOMIC DEVELOPMENT OF THE REGION'. --SP 10 04 LOCAL TIME 07 04 GMT