Expectedly picking up the Kargil issue, Advani said that the genesis of the current conflict lay in 1948 when Pakistan-back armed guerrillas had intruded into Kashmir. ``Though we repulsed the attack (of 1948), we lost one-third of Kashmir to Pakistan due to a ceasefire,'' he said.

``They (Pakistan) have repeated 1948 in 1999, with the hope of gaining more territory,'' Advani said. Allaying fears expressed by Arvind Lalbhai that a lengthy conflict could cause setback to trade and industry, Advani said, ``Do not worry about a setback. I assure that theKargil operation will not last long. We have already contained the conflict.''

He also said that the Indian economy was more mature and resilient than that of Pakistan and could withstand the economic burden caused by battle.

``Pakistan has realised that if the conflict lasts longer, its economy will be unable to take a blow.'' He also spoke of Pakistan's precarious situation on the diplomatic front, saying that even its ``traditional allies'' were not siding with it on this issue.

He also made it clear that though India believed in improving ties, it was resolved to defend itself against any aggression. ``Prime Minister A B Vajpayee went to Lahore by bus, extended his hand for friendship. But at the same time he did not hesitate to order strikes to flush out intruders,'' he said. Pakistan has failed to understand our political system, he said.