With the US Secret Service having largely taken responsibility for his security, he is also "more inclined" to heed "gentle advice" from Washington, which has encouraged General Musharraf to resolve problems with India.

Also, the previous attempt to aid the global anti-terrorist war on its border with Afghanistan while encouraging terror groups in Jammu and Kashmir has not worked well, senior officials said.

The Prime Minister, Dr Manmohan Singh's assessment of the Pakistani President, increasingly shared even by the so-called 'hawks' in the establishment, came after a one-on-one meeting in New York, at which the two men talked of the need to "seize the moment" to "make history".

General Pervez Musharraf was "India's best bet" at the moment, a senior official said, adding that the J&K problem was "very solvable".

"It will take timel but it is doable," a senior official said, adding that General Musharraf "appeared serious now, and J&K was no longer the only core issue.'"

This was despite India's continued concerns on cross-border terrorism and the continued existence of terrorist training camps on the other side of the line of control.