Two men came down from the mountains and started firing guns at us,” recalled Shiv Patwa, a Hindu pilgrim who was eating at a sidewalk restaurant in Pahalgam town while making his way to a Himalayan holy site. “Bodies fell all around me.” At least 30 pilgrims died in that assault; in another, 19 brick-kiln workers were mowed down by automatic gunfire in a village south of Srinagar.

Despite the violence, there are faint signs of hope for a negotiated settlement to Kashmir’s 12-year-old secessionist struggle. Two weeks ago, after months of secret talks between politicians, businessmen and intelligence officials from Pakistan, India and the United States, Hizbul Mujahedin, the largest of about 30 militant Islamic groups active in the Kashmir valley, unilaterally declared a three-month ceasefire. Indian officials say that peace initiative almost certainly prompted the civilian slaughter. Despite facing flak in Parliament for the killings, Indian Prime Minister Atal Behari Vajpayee flew to Kashmir and vowed that India would carry on the peace efforts. He ordered the Indian Army to hold retaliatory fire against Hizbul militias. Meanwhile, four Hizbul leaders met with top Indian officials in a Srinagar guesthouse to work out the details of a ceasefire and lay the groundwork for a settlement.

It won’t be easy. The Hizbul leaders have been declared “traitors” by other Muslim militants, and might now become terrorist targets themselves. Intelligence officials expect more attacks as the peace talks move ahead.