NEW DELHI/ISLAMABAD, 19 January — Fears of a war between nuclear capable neighbors India and Pakistan eased yesterday after New Delhi said it was committed to finding a diplomatic solution to their standoff.

US Secretary of State Colin Powell ended a peace mission to India and Pakistan saying he believed the two countries were ready to try to avert war. "I leave here very encouraged that we can find a solution to this troubling situation," Powell said in New Delhi where he was seeking a way out of a massive military standoff triggered by an attack on India’s Parliament on Dec. 13.

"I can’t totally dismiss the possibility of conflict," he later told a news conference in Katmandu. But his talks in Islamabad and New Delhi encouraged him to believe that "we have a possibility, a good possibility of resolving this crisis through diplomatic efforts", he said.

India said it was committed to finding a diplomatic solution, provided Pakistan delivered on a pledge to crack down on militants, including the Kashmiri separatists blamed for the attack on its Parliament.

A key test of Islamabad’s sincerity would be action against 20 men in Pakistan wanted by New Delhi for attacks on India, Indian Foreign Minister Jaswant Singh said.

The list includes Kashmiri and Sikh secessionists and men with alleged links to the Bombay underworld.

"Once confidence is restored between the two countries, everything else will fall in place and will then become so much easier to act upon," Singh told a news conference with Powell.

"And if there is action with regard to the list of 20 wanted terrorists and criminals, then I’m very hopeful that there would be a distinct move toward moving to a situation which would be a situation similar to what existed before the 13th of December."

In Islamabad, Pakistan President Pervez Musharraf said he believed there would not be war. "I am fully satisfied that, God willing...there will be no war," he told Islamic leaders.

He urged the religious leaders not to interfere in Pakistan’s dispute with India over Kashmir. "Let the government handle the foreign (policy) issues such as Kashmir," said Musharraf.

"Trust me. We will take action in line with the interests of Pakistan and the aspirations of the people of Pakistan," he said.

Powell said it could take time to restore confidence between the two countries.