``It (the de-escalation) has not started because firing is still going on at the LoC.'' Replying to a question, Aziz said threat of war breaking out with India had grown slimmer. ``If India were to accept the dialogue route and start at least discussions on the ground situation as to what was happening or who has violated or who is where, then probably the process of de-escalation would start...So I will say I am cautiously hopeful. I can't say that I am optimistic at the moment,'' he said. Meanwhile, Foreign Ministry spokesman Tariq Altaf indicated that a meeting of the two DGMOs Pak would happen if India agreed to it.

Diplomatic efforts, Aziz said, were being made todefuse the tension though he did not give details of any specific proposals exchanged between Islamabad and New Delhi or if and when any outcome was expected.

The US Ambassador to Pakistan, William B Milam, said in remarks published today that he hoped tension between India and Pakistan over Kashmir would be defused soon. ``...We would like to see not only the situation defused but would very much like to see the Lahore process revived because we believe this holds the key to an eventual resolution of problems in South Asia,'' Milam was quoted by The News.

Meanwhile, Aziz also confirmed that Pakistan will receive Mirage III combat jets and Agosta-class submarines from France as per schedule as there is no embargo on their delivery. He said that yesterday in Paris, he had met his French counterpart Hubert Vedrine and Jean David Levitte, diplomatic adviser to the French president, and discussed with them the tension on the LoC.Media reports said that France may delay the delivery of Mirage combat jets toPakistan as a result of the fighting along the LoC.

LONDON: Earlier, media reports in London said that Pakistani authorities have prepared a blueprint for withdrawal of its army regulars and mercenaries from the Indian side of the LoC and may use secret diplomatic links to convey the decision to New Delhi, media reports here said today.The `withdrawal speculation' was ripe in Islamabad last night after a lengthy meeting between Prime Minister Nawaz Sharif and his three defence chiefs and ``all Pakistan needs now is a way of saving face,'' The Times newspaper reported, quoting western diplomatic sources.

Pakistani authorities are now increasingly fearing western sanctions if they delay the decision on withdrawal. ``The politicians were ready to give in first, only the army was adamant. But now the army too looks like giving in,'' it said.

Quoting western sources, the newspaper said India and Pakistan, after failed official dialogue, were now using secret diplomatic contacts to resolve the Kargil issue,and added these links might be used to finalise the withdrawal details.