From the Document: "Perennially high tensions between India and Pakistan over Kashmir have hindered attempts so far to achieve a sustained peace process, despite occasional moments of optimism. U.S. concern for stability in South Asia increased considerably as a result of the racheting up of India-Pakistan nuclear and ballistic missile capabilities, especially since their May 1998 nuclear tests. Following a December 13, 2001 terrorist attack on the Indian parliament by militants alleged by India to have been supported by Pakistan, a chain of events ensued that placed the nuclear weapons states at military loggerheads. India and Pakistan have levied sanctions against each other, mobilized their armies and positioned missile batteries along their borders prompting the United States to embark on an intensive diplomatic effort to calm emotions and de-escalate the warlike rhetoric and maneuvering of these two South Asian adversaries. Given these dangers, United States policy in the region is geared towards reducing tensions between India and Pakistan, encouraging a constructive dialogue and confidence building measures between the two countries, and working to reduce terrorism in the region and worldwide."
CRS Report for Congress, RL31481