In the first week of January, India and Pakistan finally seemed to be moving in a similar direction. At asummit meeting, the seven members of the South Asian Association for Economic Cooperation (SAARC) signed anagreement, previously sabotaged by Indo-Pak intransigence, to make the region a free-trade zone by January 1,2006. It was, in the words of Indian Prime Minister Atal Behari Vajpayee, a victory of rational economics overpolitical prejudice. Referencing Europe's success, the Prime Minister challenged the two adversaries toprogress towards open borders and a common currency. Simultaneously, Vajpayee and Pakistan's President PervezMusharraf signed a bilateral statement that affirmed each side's commitment to a "constructivedialogue" aimed at ending the Kashmir stalemate. Without such an agreement, the proposed free-trade zonewould never have taken off, since SAARC works only as well as India and Pakistan permit. In signing thestatement, Musharraf belied his reputation as a hawk. He praised Vajpayee's "vision, commitment andflexibility" and stepped out with him on the slow road to possible prosperity.