Bush hopes for a solution but avoids K-word

8216;8216;We are moving well on the issue of confidence building measures. And also the dialogue process towards resolution of disputes,8217;8217; Musharraf, who flew in here yesterday after a tour of three Latin American states, told reporters.

8216;8216;We hope that we will move forward in all resolution of all disputes and the core dispute happens to be Kashmir, therefore moving forward on that. I8217;m Very optimistic of the future,8217;8217; he said.

Asked whether the sale of F-16s was discussed, Musharraf said it was, but he did not elaborate. 8216;8216;We discussed the the F-16 issue. That is all I would like to say,8217;8217; he said.

Also, discussion of West Asia was a key part of the talks with Pakistan President Pervez Musharraf, Bush told reporters. 8216;8216;I assured President Musharraf that there is an opportunity at hand to work toward the development of a Palestinian state and peace in the Middle East,8217;8217; Bush said. 8216;8216;I told him this will be a priority of my administration.8221;

Rumsfeld stays

WASHINGTON: US President George Bush has asked Defense Secretary Donald Rumsfeld to stay for a second term to keep running the Iraq war and adapting the military to face post-Cold War threats, an official said on Friday. 8212;Reuters