UPDATE 1-US, Pakistan appear to make little headway in spy meet

WASHINGTON, Aug 3 (Reuters) - U.S. and Pakistani spy chiefs

exchanged grievances in their first official meeting this week,

sources familiar with the discussions said on Friday, but it was

unclear if the two uneasy allies made any progress to end deep

divisions on militants living in Pakistani tribal areas or on

U.S. drone strikes.

Lieutenant-General Zaheer ul-Islam, who was named in March

to head the Inter-Services Intelligence (ISI), on his first

official visit to Washington met on Thursday with CIA Director

David Petraeus at CIA headquarters.

Ahead of his visit, Pakistani officials said the country's

spy chief would call for an end to U.S. military drone strikes

in volatile areas bordering Afghanistan and push for a sharing

of technology and intelligence.

The public preview of Pakistani demands on Petraeus appeared

to have displeased U.S. officials, who pushed back at the

notion they might cede to Pakistani requests.

The United States and Pakistan are seeking to repair

relations that have suffered over the past 20 months, in part

because of the unilateral U.S. raid that killed al Qaeda leader

Osama bin Laden in Pakistan in May, 2011, and a U.S. air attack

that killed 24 Pakistani soldiers in November.

The two countries reached a breakthrough last month with a

deal that reopened ground supply routes that NATO nations use to

supply troops in neighboring Afghanistan, which had been closed

since the November air attack along the Afghan border.

The Obama administration is deeply suspicious of Pakistan,

which it believes harbors militants, while Pakistan accuses

Washington of disregarding its own human toll from militancy and

says drone strikes violate its sovereignty.

While sources familiar with the discussions said the two spy

chiefs aired mutual grievances, they did not appear to have made

big strides on the main issues.

MIRROR-IMAGE REQUESTS

Other sources familiar with the talks this week said that

Pakistani officials asked the United States to go after militant

sanctuaries in Afghanistan that were used to launch attacks

across the border in Pakistan - a mirror image of long-standing

American requests - along with an end to drone strikes and help

hunting down remnants of al Qaeda.

Washington has prodded Islamabad to go after militants who

launch cross-border attacks from Pakistan's tribal areas on U.S.

troops in Afghanistan before returning to their safe havens.

Pakistan's parliament has demanded an end to the drone

strikes, but the sources in Washington indicated that U.S.

officials did not yield to those demands.

"The discussions today between General Zahir and Director

Petraeus were substantive, professional, and productive," a U.S.

official said on condition of anonymity.

"Both leaders reaffirmed their commitment to work together

to counter the terrorist presence in the region that threatens

both U.S. and Pakistani national security."

Ahead of Thursday's meeting, U.S. officials signaled there

would be little, if any, change in U.S. counter-terrorism

activity in Pakistan and the region.

The Obama administration is pressuring Pakistan to take

action in particular against the Haqqani network, a militant

group allied with the Taliban that is blamed for some of the

boldest attacks against Western and Afghan government targets in

Afghanistan.

Pakistan responds that it is doing all it can against

militants, but notes that extremists attack its own civilians

and soldiers.