Pakistani efforts to negotiate peace deals with militants in the tribal border regions with Afghanistan have raised concerns both in Kabul and Washington, and created a sharp dilemma for the Bush administration.

Islamabad has been trying to broker deals with militants in the tribal areas in the hope of stemming a spate of suicide attacks threatening to create more instability in Pakistan. On Wednesday Pakistan released about 30 suspected militants as part of apparent hostage exchange with Baitullah Mehsud, the leader of an umbrella military movement loyal to al-Qaeda and the Taliban.