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NEW DELHI, Nov 27 (Reuters) - A top aide to the Indian prime minister said there was no immediate danger of war between nuclear-armed India and Pakistan.

The South Asian rivals have begun withdrawing forces from their border after a 10-month standoff triggered by a guerrilla attack on the Indian parliament in December that India blamed on Pakistan-based Muslim militants fighting its rule in Kashmir.

In Islamabad, Pakistan's Foreign Minister Mian Khursheed Mehmood Kasuri told Reuters on Wednesday that the new government wanted to move forward on India-Pakistan relations and suggested talks between leaders of the two nations.

Brajesh Mishra, principal secretary to Indian Prime Minister Atal Behari Vajpayee, told the BBC's HardTalk programme a minor incident would not now trigger a war between the hostile neighbours.

"There is no danger today, of a little spark, creating a conflagration, but of course if something big were to happen obviously...," Mishra said.

India and Pakistan have fought three wars since their independence from Britain in 1947, two of them over the Himalayan region of Kashmir.

India accuses Islamic Pakistan of training and arming separatist Muslim rebels fighting New Delhi's rule in Kashmir.

Pakistan denies direct involvement in the 13-year-revolt but says it gives moral and diplomatic support to what it calls the legitimate struggle for self-determination by the mostly Muslim Kashmiri people.

EMOTIONS HIGH

Mishra said the two countries came very close to war after the parliament raid in December and again in May when an army camp was attacked in Indian Kashmir.

India blamed both attacks on Pakistan.

"Emotions were very high after the attack on parliament. And again, the attack on women and children at the army camp, you know these situations are pretty grim," Mishra said on the programme that will be aired on Thursday.

"We came pretty close in early January and then again after the massacre in the army camp in month of May," he said, according to a transcript of his comments made available to Reuters on Wednesday.

More than 40 people have been killed in a spurt of violence in Kashmir since Friday including attacks on two Hindu temples, which India blamed on Pakistan.

Analysts say the attacks are unlikely to lead to a fresh crisis.

Despite the easing of tension, the two sides have shown no sign of moving toward talks. New Delhi insists Islamabad end what it calls cross-border terrorism before dialogue can begin.

Mishra said Vajpayee's participation at a regional meeting slated to be held in Islamabad in January could be difficult "in the absence of any substance to the summit".

India has sought what it calls a climate of reconciliation before Vajpayee could travel to Pakistan for the summit of the seven-nation South Asian Association for Regional Cooperation (SAARC).

"If that happens, we could consider it. But in the absence of any substance to the summit, of course it is very difficult for the prime minister to go," Mishra said.

Pakistan has accused India of trying to sabotage the summit which can only take place if heads of government of all seven South Asian states attend. The other members are Bangladesh, Sri Lanka, Bhutan, Maldives and Nepal.

Kasuri, the Pakistan foreign minister, said the summit would be a good opportunity for bilateral talks aimed at easing tension.

"You asked me whether something could be done quickly. Well we have invited the prime minister of India to come to SAARC. The ball is in their court now," he said.

"Every sensible Pakistani and every sensible Indian wants to improve relations between the two countries and we have suffered as a result of our bad relations." 

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