Washington,(Saba) - The Bush Administration has said that it was important for India and Pakistan to continue to have a ''close'' dialogue on the Kashmir issue to help reduce tension in the region. United News of India reported here Saturday.

Asked about Pakistan President Pervez Musharraf's reported offer to drop the long-standing demand for a plebiscite in Kashmir, White House Press Secretary Scott McClellan told newsmen yesterday that the US welcomed
any steps that helped reduce tension in the region.

We continue to stay in touch with the parties and welcome efforts that reduce tensions and help move the dialoge forward.''Gen Musharraf was ''closely'' and ''cooperatively'' working with the U S on its war on terror, Mr McClellan said.