Main articles: Indo-Pakistani War of 1971 and Simla Agreement
The Indo-Pakistani War of 1971 led to a loss for Pakistan and a military surrender in East Pakistan. Bangladesh got created as a separate state with India's support and India emerged as a clear regional power in South Asia.[83] A bilateral summit was held at Simla as a follow-up to the war, where India pushed for peace in South Asia.[84][85] At stake were 5,139 square miles of Pakistan's territory captured by India during the conflict, and over 90,000 prisoners of war held in Bangladesh. India was ready to return them in exchange for a "durable solution" to the Kashmir issue. Diplomat J. N. Dixit states that the negotiations at Simla were painful and tortuous, and almost broke down. The deadlock was broken in a personal meeting between the Prime Ministers Zulfikar Ali Bhutto and Indira Gandhi, where Bhutto acknowledged that the Kashmir issue should be finally resolved and removed as a hurdle in India-Pakistan relations; that the cease-fire line, to be renamed the Line of Control, could be gradually converted into a de jure border between India and Pakistan; and that he would take steps to integrate the Pakistani-controlled portions of Jammu and Kashmir into the federal territories of Pakistan.[84] However, he requested that the formal declaration of the Agreement should not include a final settlement of the Kashmir dispute as it would endanger his fledgling civilian government and bring in military and other hardline elements into power in Pakistan. [84][86][87][85] Accordingly, the Simla Agreement was formulated and signed by the two countries, whereby the countries resolved to settle their differences by peaceful means through bilateral negotiations and to maintain the sanctity of the Line of Control. Multilateral negotiations were not ruled out, but they were conditional upon both sides agreeing to them. [88]:4950To India, this meant an end to the UN or other multilateral negotiations. However Pakistan reinterpreted the wording in the light of a reference to the "UN charter" in the agreement, and maintained that it could still approach the UN. The United States, United Kingdom and most Western governments agree with India's interpretation. [89][90][91][88][92][93] The Simla Agreement also stated that the two sides would meet again for establishing durable peace. Reportedly Bhutto asked for time to prepare the people of Pakistan and the National Assembly for a final settlement. Indian commentators state that he reneged on the promise. Bhutto told the National Assembly on 14 July that he forged an equal agreement from an unequal beginning and that he did not compromise on the right of self-determination for Jammu and Kashmir. The envisioned meeting never occurred.[