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By Andrew Quinn

KOLKATA, India, May 7 (Reuters) – U.S. Secretary of State

Hillary Clinton said on Monday that Pakistan had not taken

enough action against Hafiz Saeed, the Islamist blamed for

masterminding the 2008 attack by Pakistan-based gunmen on

Mumbai, India’s financial capital.

India has repeatedly called on Pakistan to bring Saeed to

justice, an issue that has stood in the way of rebuilding

relations between the nuclear-armed neighbours since the carnage

in Mumbai, where gunmen killed 166 people over three days.

India is furious that Pakistan has not detained Saeed since

it handed over evidence against him to Islamabad. On Clinton’s

authorisation, Washington has offered a reward of $10 million

for information leading to Saeed’s capture.

Saeed founded Lashkar-e-Taiba (LeT) in the 1990s, the

militant group whom India blames for the Mumbai attack. He

denies any wrongdoing and links to militants.

After the reward was announced, Saeed last month taunted the

United States by holding a news conference at a hotel just 40

minutes’ drive away from the U.S. embassy in Islamabad, calling

the bounty “laughable”.

“We’re well aware that there has not yet been the steps

taken by the Pakistani government to do what both India and the

United States have repeatedly requested them they do,” Clinton

told a town-hall meeting in the Indian city of Kolkata.

“And we’re going to keep pushing that point. So it’s a way

of raising the visibility and pointing out to those who are

associated with him that there is a cost for that,” she said.

Al QAEDA MASTERMIND IN PAKISTAN?

Although they are allies in the war on militancy, Islamabad

and Washington have fallen out over the past year due to a raft

of issues, notably American drone strikes on Pakistan from

Afghanistan and a unilateral U.S. raid that killed al Qaeda

leader Osama bin Laden in Pakistan.

The fact that bin Laden was hiding in a Pakistani garrison

town was seized upon by India as proof that Islamabad was

dragging its feet on cracking down on militants.

Clinton also said the United States believes al Qaeda leader

Ayman al-Zawahiri is somewhere in Pakistan. The Egyptian

Zawahiri was bin Laden’s lieutenant and the brains behind much

of al Qaeda’s strategy for many years.

She said Washington was “intent upon going after those who

are trying to keep al Qaeda operational and inspirational”, and

it was in Pakistan’s interest to pursue them too.

“It is in their interest, and it is in the interest of their

sovereignty, to go after terrorists who are operating on their

territory,” she said. “And you have to demonstrate that you’re

not going to cede authority or territory to terrorists.”

Ten Pakistani gunmen killed commuters, foreigners and some

of India’s wealthy business elite in the rampage in Mumbai,

which included attacks on two luxury hotels, a Jewish centre and

a train station.

“Our position on Hafiz Saeed is clear. We have an

independent and active judiciary. If anyone has proof against

him, they are welcome to take it to the courts,” Moazzam Ali

Khan, spokesman for Pakistan’s foreign ministry, told Reuters

when asked about Clinton’s comments.

Clinton is on a three-day visit to India where she will

press New Delhi to further cut its oil imports from

sanctions-hit Iran, and make the case for India to push a

stalled reform of opening its supermarket sector to foreign

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(Reporting by Andrew Quinn; Additional reporting by Qasim

Nauman in ISLAMABAD; Writing by Matthias Williams; Editing by

John Chalmers and Jeremy Laurence)