Talking to media persons here yesterday, Assistant Secretary of State for Asian Affairs Karl F Inderfurth, who along with joint chiefs of staff chairman general Joe Ralston accompanies Talbott, said, ``We have to take into account that we work with them to address their security concerns in a way that moves them towards the global non-proliferation regime.''

Arguing that ``difficult issues need more discussion, '' he said ``we will continue with (slow) progress. We hope progress will be made (in future as well). We have no intention of throwing in the towel if breakthroughs are not immediately available. Our hope is that we would have progress far enough in 1999 than in 1998.''

Inderfurth also gave the impression USis unwilling to concede any demand without satisfying its non-proliferation concerns. For example, India is keen on the restoration of World Bank loans for its infrastructure projects, a prerequisite for sustaining its newly acquired higher growth path.

But, in reply to a question, he reiterated the old policy that lifting of sanctions was link progress in the non-proliferation dialogue which began shortly after India's nuclear tests in may last year. The relaxation in the sanctions ordered late last year was based on the progress made thus far, he added.

He defended the US approval of the IMF bail-out package for Pakistan because the country was on the verge of collapse, which was neither good for it or for its neighbours. India, whose economy is sound, should not take this gesture as discrimination, he added.

``Our real objective is to remove all sanctions'', against both countries. How fast that happens depends on the progress that can be demonstrated by all sides,'' he said.