The US Defence Secretary Mr Donald Rumsfeld says there are signs India and Pakistan are trying to reduce the risk of war.
Mr Rumsfeld, speaking after meeting with the British Prime Minister Mr Tony Blair, said he was cautiously optimistic conflict can be avoided.
"There's no question that when you have two nations that have nuclear weapons and the situation is at it is between India and Pakistan today, that it's a dangerous situation," he said.
Mr Rumsfeld will attend a meeting of NATO defence chiefs in Brussels tomorrow before heading for South Asia.
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The NATO meeting is intended to kick-start a reform process aimed at improving the alliance's ability to counter terror attacks in the wake of September 11th.