"Regional stability is very important for everybody involved. I think it's clear that both sides prefer to deal with this bilaterally." Mutual suspicion drives heavy defence spending and large standing armies for both countries. But Gates said India and Pakistan have demonstrated admirable restraint since the three-day terror attack more than a year ago in Mumbai, India.
Still, Gates told reporters travelling with him, "Even within the framework of that attack and the suspicions that it created, the two sides have managed to keep the tensions between them at a manageable level." Gates said he will encourage the Indian officials to expand defence, information-sharing and logistical agreements with Washington.