Afghan President Hamid Karzai and his Pakistani counterpart Pervez Musharraf agreed to "deny sanctuary, training and financing to terrorists and to elements involved in subversive and anti-state activities in each other's countries," in a joint statement after talks mediated by Turkish leaders.

They pledged "to initiate immediate action on specific intelligence exchanges" as part of their commitment, it said.

Monday's talks, the first between Karzai and Musharraf since September 2006, were aimed at easing bilateral tensions over the fight against the Taliban militia, which Kabul accuses Islamabad of tacitly supporting.

The two leaders, who traded harsh accusations ahead of the meeting -- including Musharraf calling Karzai a "liar" -- did not shake hands as they appeared before the media.

Instead, they stood on either side of Turkish President Ahmet Necdet Sezer, who held their hands and raised them as they posed for photographers.

Sezer and Prime Minister Recep Tayyip Erdogan also attended the talks.

Karzai and Musharraf agreed to set up a three-way committee of high-level officials, including Turks, to monitor progress on bilateral issues and boost confidence-building measures between their countries, the declaration said.

They welcomed the idea of meeting again in Turkey in either late 2007 or early 2008, Sezer told reporters.

Karzai and Musharraf did not speak to the press and did not take questions.