"We have to change the mindset and address the issues and sensitivities of each other. Security issues of both sides need to be addressed," Morshed said, a day after his wide-ranging talks with Indian Prime Minister Manmohan Singh, External Affairs Minister Natwar Singh, Congress President Sonia Gandhi and other senior leaders.

Terming his talks with the Indian leaders friendly, he said: "The ambience was great and friendly. The attitude was not of confrontation but of cooperation."

Asked about the presence of any Indian insurgent training camps in Bangladesh, Morshed said the terrorists were present on both sides of the border but that did not mean either Indian or Bangladesh government was harbouring them.

"What is important that governments in the two countries are taking action against them," the foreign minister added. "I see a great deal of pomposity of the media in both countries when it comes to negatives. We have to change that mindset."

On if a bilateral free trade agreement (FTA) was off the table because of difficulties it has run into, Morshed shot back saying: "If there is a perception that Bangladesh is not interested in FTA and that it has run into hitches, it is wrong. After all, we have signed framework of agreement for free trade with a number of Saarc (South Asian Association for Regional Cooperation) countries in the last two years."

He pointed out that a joint working group set up last year to discuss FTA has already held two rounds of negotiation and the process was on track. But he declined to spell out when FTA would be clinched, saying negotiation is a continuous process.

Morshed indicated that Bangladesh would be willing to allow a pipeline through its territory to carry natural gas from Myanmar to India if there is a "win-win situation" for his country.

"Bangladesh is a pragmatic country. If there is a win-win situation, we are willing to consider the pipeline even though India has not put forward any specific proposal on this," he said, referring to his meeting with Petroleum and Natural Gas Minister Mani Shankar Aiyar who had raised the issue.

Asked if at a later stage, natural gas from Bangladesh could also be pumped into the proposed Myanmar-India pipeline, Morshed said it was for experts to sit down and discuss a South Asian energy grid.

Manmohan Singh on Tuesday asserted that all outstanding issues with Bangladesh would be resolved through sustained cooperation and consultation.

Morshed who called on him as the special envoy of Bangladesh Prime Minister Khaleda Zia also met Sonia Gandhi for half an hour during which he handed over to her a letter from Khaleda.

Gandhi commended Bangladesh for its programmes on poverty alleviation, girls' education and microcredit.