"We very much value the progress the two countries have made on the economic side, on the visa side, on the trade side. And we'll hate to see that jeopardized because it is in the interest of India and Pakistan and all of us who care about that region," State Department spokesperson Victoria Nuland said, while renewing Washington's emphasis on dialogue to address the situation arising from exchange of fire.

The spokesperson was asked at the daily briefing about the US role in addressing the South Asian tensions over cross-LoC exchange of fire and the Indian prime minister Manmohan Singh's statement that he is not ready for business as usual with Pakistan while Islamabad had proposed foreign ministerial dialogue.

"We think the best way to work through issues on the Line of Control (in Kashmir) is for India and Pakistan to work through directly. They are in direct talks now and that is something that we welcome," the spokesperson added.

Questioned about the peaceful resolution of the issue of the long march on Islamabad led by Dr. Tahir ul Qadri, the spokesperson said:

"I did not get a political update on Pakistan. I hope what you say is true that we had a good political-based resolution. We have been clear that we want to see these issues settled through dialogue and settled democratically".