Source http://www.forisb.org/kashmir.html

This dispute dates back to the partition of the British Indian Empire, in August 1947, into two independent states, Pakistan and India. At that time there were also around 565 princely states, large and small, which were under British suzerainty but were not directly ruled by the British Government. Most of these states joined either India or Pakistan taking into account their contiguity to one or the other country and the wishes of their people. There were, however, some states over which problems arose, primarily because of India's insatiable desire to grab territory. For example, the Muslim ruler of Junagarh, a state with a Hindu majority population, announced his decision to join Pakistan. India 
responded by aiding and abetting the establishment of a so-called "Provisional Government" of Junagarh on Indian territory, which attacked Junagarh with Indian connivance and support. Subsequently Indian forces also invaded Junagarh, despite protests from Pakistan, in order to "restore law and order". A farcical plebiscite was organized under Indian auspices, and India annexed Junagarh. Similarly, in Hyderabad, a Hindu majority state, the Muslim ruler of the state wanted to retain an independent status. India responded by attacking Hyderabad and annexed the state by force. India sought to justify its aggression against Hyderabad and Junagarh on the plea that the rulers of Junagarh and Hyderabad were acting against the wishes of their people. 
In Jammu and Kashmir state, the situation was the reverse. The ruler of the State was a Hindu, while the population was overwhelmingly Muslim and wanted to join Pakistan. In this case, India consistently pressurized the Hindu Ruler to accede to India. Apprehending that the Hindu ruler was likely to succumb to Indian pressure, the people of Jammu and Kashmir rose against him, forcing him to flee from Srinagar, the capital of the State. They formed their own government on 24th October, 1947. On 27th of October, 1947, the Government of India alleged that the ruler had acceded to India on the basis of a fraudulent instrument of accession, sent its forces into the State and occupied a large part of Jammu and Kashmir. 
But Indian leaders, including Jawahar lal Nehru, the Prime Minister and Lord Mountbatten, the then Governor General of India, solemnly declared that the final status of Jammu and Kashmir would be decided by the people of the  State. This declaration was reiterated by India at the UN Security Council when the dispute was referred to that august body, under chapter 6 of the U.N Charter relating to peaceful settlement of disputes. The Security Council adopted a number of resolutions on the issue, providing for the holding of a fair and impartial plebiscite in Jammu and Kashmir under UN auspices to enable the Kashmiri people to exercise their right of self-determination and join either Pakistan or India. The UN also deployed the United Nations Military Observer Group (UNMOGIP) to monitor the cease-fire line between the Liberated or Azad Kashmir area and the Indian Held Kashmir (IHK). These resolutions were accepted by India and Pakistan and constitute an agreed legal basis  for settlement of the dispute. 
India, however, thwarted all attempts by the United Nations to organize a plebiscite in the State of Jammu and Kashmir. Eventually, India openly resiled from its commitments and declared that Jammu and Kashmir was an integral part of India. 
The Indian armed intervention in the State of Jammu and Kashmir was illegal and took place against the wishes of the Kashmiri people. Despite the decision of the UN Security Council for the holding of a plebiscite to allow the people of Jammu and Kashmir to determine their own future, India's own pledges to that effect, and reiteration of their commitment of resolving the Kashmir issue in the Simla Agreement of 1972 signed between Pakistan and India after the 1971 war, India continues to remain in illegal occupation of a large part of Jammu and Kashmir, refuses to allow the Kashmiris to decide their own future and continues its brutal suppression in the territory. 
Moreover, India went on to violate other aspects of the Simla agreement, specifically the undertaking that neither side shall change the ground situation, by occupying the Chorbat La, Siachen & Qamar sectors, an area over 2500 sq. kilometres between 1972 to 1988. 

After more than four decades of a peaceful struggle against Indian repression, manipulation and exploitation, the Kashmiri people, convinced that India would never honour its commitments, and inspired by similar movements for freedom in other parts of the world, rose against the Indian occupation towards the later part of 1989. Their struggle was, and remains, largely peaceful. India sought to suppress their movement with massive use of force, killing hundreds of innocent men, women and children. This led some of the Kashmiri youth to take up arms in self defence. Since 1989, more than 60,000 Kashmiri people have been killed in a reign of terror and repression unleashed by over 600,000 Indian troops. Many more languish in Indian jails where they are subjected to torture and custodial deaths. There have been numerous cases of gang rapes of Kashmiri women by the Indian forces and the deliberate burning down of entire localities and villages.
 These brutalities have been documented by International and even Indian Human Rights Organizations. Organizations such as Amnesty International and Human Rights Watch as well as Indian human rights NGOs have extensively documented the gross and systematic violation of human rights of the Kashmiri people by Indian military and para-military forces. Extra judicial killings, involuntary disappearances, arbitrary detentions, rapes and torture continue to be reported on a large scale. The Kashmiri leaders have been repeatedly harassed and physically intimidated. They have also been denied travel permission to prevent them from exposing Indian human rights abuses in Occupied Jammu and Kashmir. The massive suppression by India is clearly designed to silence the people of Jammu and Kashmir through sheer brutality bordering on genocide and ethnic cleansing. 
India refuses to acknowledge that the people of Indian Held Kashmir (IHK) have become totally alienated and there is complete rejection of Indian occupation. Several Kashmiri political parties have formed the all Pakistan Hurriyat (Freedom) Conference (APHC) to continue the political struggle for self-determination. The APHC, therefore, constitutes the true representative of the Kashmiri people. 
Instead of accepting the existing reality, India has sought to blame Pakistan for allegedly promoting the Kashmiri uprising. The fact is that this movement is completely indigenous and enjoys mass support. The Indian allegations against Pakistan are a ploy to mislead the International Community and to create a smokescreen behind which they can continue repression in IHK. Pakistan has offered to enable the UNMOGIP or any other neutral force to monitor the LoC, along which India has deployed several thousands of its troops and has mined the entire area. Indian refusal to accept these proposals, exposes their false allegations. 
A peaceful, negotiated settlement of the Kashmir dispute in accordance with UN resolutions remains on top of Pakistan’s foreign policy agenda. To demonstrate its sincerity in finding a peaceful solution to this core issue, Pakistan has always sought a meaningful and substantive dialogue with India. However, the Indians have refused to engage in meaningful talks on Kashmir, claiming the territory as an integral part of India. Only when compelled by extraneous factors or international pressure, such as in 1962-63, 1990-94 and again after May 1998, have the Indians agreed to talks on Kashmir. But this dialogue has been sterile because the Indian objective has never been to find a settlement but to deflect international pressure by creating the facade of talks. 
During 1962-63, the Indians agreed to talks on Kashmir under U.S. persuasion at a time when their relations with China had deteriorated and the Sino-Indian war took place and it was necessary for India to protect its western flank with Pakistan. Between 1990-94, India was hard pressed for a dialogue, again due to international pressure following the indigenous Kashmiri uprising which began in the end of 1989. Under pressure from the US, following the mission of the American President's Special envoy, Robert Gates to the region, India engaged in seven rounds of talks at the Foreign Secretary level. Due to continued Indian intransigence, however, this process broke down in January 1994. After a hiatus of three years, talks were resumed at the initiative of Pakistan’s former Prime Minister Nawaz Sharif, after he assumed office in March 1997. Following Foreign Secretary level talks in June 1997, an agreed agenda was adopted which includes the specific issue of Kashmir. More importantly, in the meeting between Prime Ministers of Pakistan and India in September 1998, the two leaders agreed that resolution of the Kashmir dispute is essential for peace and security in the region. During Indian Prime Minister Vajpayee’s visit to Lahore in February 1999, the Lahore Declaration was adopted committing both sides to intensify efforts to resolve the Kashmir issue. 
Indian willingness to hold specific talks on Kashmir has been compelled by growing international concern over the Kashmir issue following the nuclear tests by India and in response by Pakistan in May 1998. This nuclearization of South Asia has converted Kashmir into a nuclear flash point and the U.N. Security Council through resolution 1172 as well as the G-8 and P.5 countries, apart from a number of world leaders, have expressed the urgent need for a dialogue to resolve this root cause of tensions between Pakistan and  India. 
While the first round of talks on Kashmir was held in October 1998 between the Foreign Secretaries, as per the agreed agenda of June 1997, there was no change in the Indian position. India rejected  Pakistan’s frame work proposal for a structured and substantive dialogue on Kashmir, maintaining its intransigent position that the status of Kashmir was not open for discussion. 
Even though India agreed in the Lahore Declaration to intensify efforts to resolve the Kashmir issue, in February 1999, it resorted to delaying tactics for holding the next round of talks. In May 1999, India dealt a severe blow to the dialogue process by launching massive military operations, involving air and ground forces, on the Kashmiri Mujahideen in the Kargil Sector and across the Line of Control on Pakistani controlled areas. The Indians also rejected our efforts to defuse the situation, including the proposal for immediate cessation of hostilities, mutual respect for the LoC and resumption of the dialogue process in accordance with the Lahore Declaration. 
At the invitation of President Clinton, former Prime Minister Nawaz Sharif visited the US on 4-5 July 1999 and held indepth discussions with the US President on all aspects of the Kashmir situation. A Joint Statement issued as a result of these talks reflects identity of views on the need to resolve the current situation as well as the larger issue of Kashmir which is central to durable peace and stability in South Asia.   It recognizes and underscores the need for both India and Pakistan to respect the LOC in accordance with the 1972 Simla Agreement. It also speaks about concrete steps to be taken for restoration of the LOC. As Pakistan has no presence across the LOC the only concrete step on our part can be to appeal to the Mujahideen who have already achieved their objective of bringing the Kashmir issue back to the international focus of attention. 
The two leaders agreed that the Lahore process provides the best forum for resolving all outstanding issues between Pakistan and India including Kashmir. According to the Joint Statement the President of the United States stands committed to his personal involvement to expedite and intensify the process for resolving the Kashmir dispute. This is for the first time that the US has agreed to play a direct role in the search for a final settlement of the Kashmir dispute. India continues to rely on brute force to silence the Kashmiri people. Not only has the campaign of repression been intensified in Indian Occupied Jammu and Kashmir, but additional forces were inducted in November 1998 as part of the new “pro-active” policy and later in the Kargil operation, Indian forces have now been increased to over 730,000. This clearly points to the failure of the current Indian policy to hold the Kashmiri people against their wishes by force. 
Pakistani public opinion remains deeply incensed with the wide-spread atrocities committed against the innocent Kashmiri people by Indian military and para-military forces. 
The government's policy on the Jammu and Kashmir issue enjoys national consensus. Pakistan maintains its principled stand in accordance with the relevant 
UN Security Council resolutions that call for a plebiscite under UN auspices. It is in keeping with the solemn pledge made to the Kashmiri people by Pakistan, India and the international community. 
In order to find an early and just solution to the 50-year old Jammu and Kashmir dispute, Pakistan has welcomed offers of good offices and third-party mediation. It has encouraged the international community to play an active role and facilitate the peaceful settlement of disputes between Pakistan and India. 
While Pakistan is committed to a peaceful settlement of the Jammu and Kashmir dispute, adequate measures have been taken to safeguard the country's territorial integrity and national sovereignty. 
Pakistan will continue to extend full political, diplomatic and moral support to the legitimate Kashmiri struggle for their right to self-determination as enshrined in the relevant United Nations resolutions. In the context of the bilateral dialogue, it calls on India to translate its commitments into reality. At the same time, it will encourage the international community to support and supplement our efforts to establish lasting peace and stability in South Asia on the basis of equitable resolution of all disputes between the two countries, in particular the core issue of Jammu and Kashmir. 
We hope that India will join us in our efforts to bring durable peace to the region  for the common benefit of all our peoples. For half a century our region has remained mired in tensions and conflicts. It is our sincere desire to see South Asia enter the next millennium at peace with itself.