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President Musharraf's statement and dispute of Kashmir

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President Musharraf the other day gave out a strong statement on the dispute of occupied Kashmir during an exclusive interview with Reuters. Mr. President said that Pakistan is ready to put aside its demand for a referendum guranteed by U.N. in the disputed territory of Kashmir.

Meanwhile, spokesman of Foreign Office, Masud Khan said, President Musharraf's interview on Kashmir was reported and quoted out of context as he did not state that the resolution of the issue should not be in accordance with the UN resolution passed, fifty years back. Mr. Khan said that the Kashmir issue could only be resolved, as the president said, by showing flexibility, from both sides, not unilaterally.

Should Pakistan put aside the U.N. Resolution while talking to India over the dispute of Kashmir ?

Is peace possible in the subcontinent without resolution of Kashmir ?

Has the statement on Kashmir of President Musharraf, quoted out of context by media?