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Since the Sept. 11 attacks, few leaders have had more headaches than Pakistan's President Pervez Musharraf. He sided with the U.S. against the Taliban and almost went to war with India over Kashmir. Even now, many believe Osama bin Laden to be holed up in (or near) Pakistan's remote tribal areas. In New York City for the U.N. General Assembly, Musharraf answered questions from TIME's top editors.

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Do you think Osama bin Laden is alive?
He is alive.

What evidence do you have?
Electronic means. We know it because of messages going up and down. We are monitoring things. Through cooperation with [U.S.] intelligence, we know.

Is Osama bin Laden in Pakistan?
Your guess is as good or as bad as mine. I am reasonably sure he is constantly on the move. So, therefore, he could be moving on our side or, of course, on the other side [in Afghanistan].

Has al-Qaeda been significantly diminished?
I think they have been very significantly diminished. They are on the run. They are hiding. They are on the Pakistani side also. Let it not be said that I am trying to say that there is nothing happening in Pakistan.

How do you feel when people say you haven't done enough to root out al-Qaeda and the Taliban?
This is a very, very unfair comment. We have done the maximum in the fight against terrorism. Almost 500 people have been apprehended by Pakistan. It is in Pakistan's interest to act against all al-Qaeda. We want to do it. Our forces want to do it. Is it possible for us to launch a military operation [to] sweep the whole [tribal] area? I'm afraid that is not within the capability of Pakistan or even of the U.S. forces. Why has the U.S. not succeeded in doing that in Afghanistan? It is not doable. I think it is very convenient to put the failure on Pakistan.

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Are there also cultural issues that divide the U.S. and Pakistan?
The conflict started after the cold war. We fought this Afghan war [from 1979-89] together and once that war was over, what happened? Everyone left. Pakistan was left high and dry with 4 million refugees and no assistance.

What can the U.S. do to win back the support of Pakistanis?
To temper down, to moderate the Indian attitude toward Pakistan on the issue of the dispute of Kashmir. And also to bring balance. Pakistan had been the strategic partner; India was in the other camp in the cold war. Now all of a sudden India is the strategic partner, and there is a feeling that after the cold war Pakistan was ditched. This has to be rectified.

Are insurgents crossing the line of control from Pakistan into Kashmir?
700,000 Indian troops couldn't seal the border, so I cannot also guarantee [it]. But I can guarantee one thing: there is no government sponsoring of anything that is going across the Line of Control.

When is real democracy going to be restored in Pakistan?
We must tailor democracy to Pakistan's environment.

Do you feel you have the World's most difficult job?
I do have a difficult job. [But] I am not one of those who get flustered.