Foreign Secretary Robin Cook last night urged India and Pakistan to ''stop testing and start talking'' amid fears of an escalating nuclear arms race in South Asia.

In a Commons statement, Mr Cook said he was ''dismayed'' at Pakistan's decision to carry out six nuclear tests last week to match those initiated by India.

He warned that Pakistan now faced the kind of international measures taken against India - including a review of India's preferential trade treatment by the European Union.

A defiant Indian Government meanwhile announced in its Budget that it was increasing its military spending by 14%.

The Indian Government did however deny a claim by the Pakistani Foreign Minister Gohar Ayub Khan that it was preparing to carry out further nuclear tests next month.

The Foreign Ministers of the leading G8 industrialised nations will gather in London next week, under Mr Cook's chairmanship, to co-ordinate their response to the situation.

Ahead of that the five permanent members of the United Nations Security Council will meet in Geneva on Thursday to discuss the security implications of the test programmes.

Mr Cook told MPs the aim must be to persuade India and Pakistan to sign up to the worldwide regime against nuclear proliferation while encouraging them to tackle the roots of the tensions between them.

''There needs to be meaningful dialogue between India and Pakistan over the issues that at present threaten stability in the region,'' he said.

''Their security would be much better promoted by confidence-building measures than by nuclear testing programmes.''

The two countries have fought three wars since gaining independence from Britain 50 years ago and divisions remain over religion - Pakistan is officially Muslim and India mainly Hindu - and the disputed territory of Kashmir which both countries claim.

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