Nainital, Sep 24 (IANS) Prime Minister Manmohan Singh Sunday denied that the government was going soft on terrorism but said both India and Pakistan had to sit together to resolve all outstanding issues between them, including that of cross-border terrorism.

At the same time, he dismissed Atal Bihari Vajpayee's criticism on the joint anti-terror mechanism that the two countries had decided to establish. He said the former prime minister had himself done u-turns in policy after the Kargil invasion and the assault on parliament.

He was addressing a press conference along with Congress president Sonia Gandhi at the conclusion of the two-day conclave of Congress chief ministers at this hill resort.

The prime minister said that the peace talks with Pakistan notwithstanding, "there would be no change in our approach to terrorism.

"If any such impression has been created that we are going to be soft on terrorism, it is absolutely false," Manmohan Singh asserted.

Pakistan has to guarantee and ensure that its territory is not used for terrorist activities, he added.

Manmohan Singh met Pakistan President Pervez Musharraf on the sidelines of the Non-Aligned Movement (NAM) summit in Havana this month. In a joint statement issued after their meeting, the two leaders decided to resume the peace dialogue between the two neighbours and also form a joint anti-terror mechanism.

"President Musharraf has been insisting that he will not accept the Line of Control (LoC) as the permanent international border while we are not in favour of any change in the borders.

"There are other issues as well... that is why we need to deliberate. After all we have to find a via media to resolve issues," Manmohan Singh said.

Replying to Vajpayee's criticism of the decision to set up a joint anti-terror mechanism with Pakistan, Manmohan Singh said: "Vajpayee had himself invited President Musharraf to Delhi in 2001 after the Kargil conflict, shook hands with the Pakistani leader after the terror attack on parliament in 2001 and then travelled to Islamabad in 2004.

"I sincerely believe that our two countries have to find ways and means to get over the problems, including terrorism," he pointed out.

Asked if there was a ceasefire in the offing in Jammu and Kashmir, he shot back saying: "There is no consideration for any such plan right now."

"There has been a trust deficit in our relations with Pakistan," the prime minister said.

Elaborating on the reasons for this "trust deficit", Manmohan Singh pointed to initiatives taken by Vajpayee and lamented that each of these failed to bring desired results.

He declined to comment on Musharraf's remarks last week that a solution to the Kashmir issue was round the corner.

"I do not know what the Pakistan president had said. All I can say is that I had a good meeting with General Musharraf in Havana and we will go ahead with the composite dialogue under which all issues, including Jammu and Kashmir, will be discussed."

Commenting on suggestions calling for greater autonomy in Jammu and Kashmir, the prime minister said: "We are willing to discuss all this with the people of Jammu and Kashmir and that would include their relations with the centre as well."