Defence Minister George Fernandes on Wedneday said there was no ceasefire with regard to terrorists and the truce along the Indo-Pak borders in Jammu and Kashmir could lead to a point where solutions could be found to outstanding issues.

"Looking at the run-up to the announcement made by Pakistan Prime Minister (Zafarullah Khan Jamali), responded to by India, and certain other developments, there is reason to believe that this could take us to a point where we may be able to find solutions to problems that have been plaguing us for a long time," Fernandes said.

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The terrorists, he said, would be dealt with by the security forces as before.

Asked about Pakistan not being reliable in the past, Fernandes said, "In relations between nations there comes a time when one does find a need to come to terms and resolve whatever problems that exist.

"And therefore for the two neighbours like India Pakistan, when Prime Minister (Atal Bihari Vajapyee) made a third offer, despite whatever may have happened in the interregnum, the latest response by the Pakistan prime minister shows a lot of hope. Therefore, one should not take it lightly and dismiss it."