Terming Pakistan's admission that part of the Mumbai attack conspiracy was hatched on its soil as "a very important first step", US Ambassador to India David Mulford on Friday said the US will adopt a "watch and help" policy.
"We think this is the beginning of a process. We will watch and help and it's a very important first step," Mulford told reporters in New Delhi on the sidelines of a conference.
"Pakistan must face reality that this is a problem that originated from its territory," he added.
The ambassador also appreciated India's response, which welcomed Pakistan's admission as a "positive step".
Mulford added that India-US ties will remain a top priority for the new administration in Washington.
"It's quite clear that there will be continuity in relationship between US and India. US-India relationship will remain a priority for the new administration," he said.
Regarding India's decision to allocate land to Russian and French companies for setting up nuclear plants, he said: "We are waiting for indication of sites to be given to US companies as has been made available for other countries to set up their plants."
Talking about cooperation in fighting terrorism, Mulford said: "There is evidence of improving cooperation in counter-terrorism."
He termed the dossier on the Mumbai attacks as an example of what is being developed jointly between India and the US.
"US remains firmly committed against mindless and unjustified terror attacks which is cross border in Asia. It can't be tackled unless there is global cooperation," the ambassador said.
On the forthcoming India visit of Richard Holbrooke, US special envoy to Afghanistan and Pakistan, he said the official was coming to have dialogue with Indian leaders.