There aren’t many such steps left. The two sides talk peace, but both are shopping for arms, NEWSWEEK learned. Another war over Kashmir–the last was in 1965–could be catastrophic. India has exploded a nuclear device and Pakistan is developing a bomb; both could deliver such weapons. A group led by President Bush’s deputy national-security adviser returned “alarmed and discouraged,” last week from a regional tour, said a U.S. official. Bush and Soviet leader Mikhail Gorbachev will take up the deepening crisis at their summit this week, a senior Bush aide said, adding: “The kindling is dry.”