The All Parties Hurriyat Conference on Friday welcomed Prime Minister Atal Bihari Vajpayee's initiative to carry forward the Indo-Pak dialogue, including the decision to appoint the high commissioner to Pakistan.

"I think there is a realisation in India and Pakistan that now is the time to address the problems, particularly Kashmir, to ensure permanent peace in the region," Abdul Gani Bhat, chairman of the 23-party separatist conglomerate, said in Srinagar.

Bhat said the statement in the Lok Sabha on Friday marked the beginning of an understanding between the leadership of two countries in the larger interest of people in the entire South Asian region.

"Neither India nor Pakistan can afford the luxury of sleeping over the problems that constitute potential threat to peace in the region," the Hurriyat chairman said.

Britain too warmly welcomed Vajpayee's statement and voiced 'deep appreciation' for his 'great statesmanship'.

British Foreign Secretary Jack Straw conveyed this to External Affairs Minister Yashwant Sinha during a 15-minute telephonic talk on bilateral ties.

Meanwhile, the radical pro-pakistan militant outfit Jamiat-ul-Mujahideen said the decision to appoint the high commissioner and restore aviation links cannot put the Kashmir issue on the back-burner.

In a statement issued in Srinagar, the outfit said it is imperative to concentrate on the real issue and initiate practical steps for a honourable and justified resolution of the issue.