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Zardari: Pakistan, India must continue peace process to foil terrorists

Analysts have said the peace process would likely be halted for several months or longer due to tensions triggered by the attacks, but no one on either side had formally suggested abandoning the negotiations.

Many experts suspect elements within Pakistan's intelligence agencies keep some links with Lashkar and other militants, either to use them against India or in neighboring Afghanistan, but U.S. counterterrorism officials say there is no evidence linking Pakistan state agencies to the Mumbai attacks.

Indian officials say the sole Mumbai attacker captured alive has told them that Lakhvi recruited him for the mission and that Lakhvi and another militant, Yusuf Muzammil, planned the operation.

India has not commented on his reported arrest. State Department spokesman Sean McCormack did not confirm it, but said raid was a "positive step."

The United States says Lashkar is linked to al-Qaida. In May, the U.S. blocked the assets of Lakhvi and three other alleged members of the group, including its leader, Hafiz Mohammed Saeed.

Pakistan banned the group in 2002 following U.S. pressure, but there have been few if any convictions of its members. An Islamist charity called Jemaat-ud-Dawa sprang up after the ban, which U.S. officials say is a front for the group.

Jemaat-ud-Dawa - which denies any link to Lashkar - runs a chain of schools and clinics throughout the country and has helped survivors of two deadly earthquakes in recent years.

Moving against that network amid pressure from the U.S. and traditional rival India risks igniting Muslim anger that could destabilize the county's shaky, secular government.

Two of Pakistan's wars with India were fought over Kashmir. In 2001, an attack by suspected Lashkar-e-Taiba militants on the parliament building in New Delhi brought the countries close to a fourth conflict.

The Mumbai attacks came as India was preparing for national elections in spring. Opposition parties, including the hard-line Hindu nationalist Bharatiya Janata Party, hope to make gains amid anger at alleged security lapses before the attacks.

But the ruling Congress party won two state elections Monday, including in the capital New Delhi, and was leading in a third, election officials said, in an early sign that opposition charges were not sticking.

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