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India, Pakistan leaders seek diplomatic thaw

THIMPHU, Bhutan (Reuters) - The prime ministers of India and Pakistan held their first meeting in nine months Thursday, aiming to end a diplomatic stalemate since the 2008 Mumbai attacks, although hopes of a breakthrough remain muted.

Indian Prime Minister Manmohan Singh and his Pakistani counterpart Yousuf Raza Gilani met on the sidelines of a summit of South Asian leaders in Bhutan's capital, officials said.

The meeting is seen as important for efforts to prevent any further slide in ties between the nuclear-armed rivals who have fought three wars since independence from Britain in 1947.

A positive outcome could help reduce tensions between the two countries, whose rivalry spills over into Afghanistan and complicates U.S.-backed efforts to stabilise the region.

"United States always welcomes dialogue ... So we really commend the two prime ministers for their initiatives and we hope that there will be a positive outcome," Robert Blake, U.S. Assistant Secretary of State, told reporters in Thimphu.

(Reporting by Krittivas Mukherjee)

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