Seven south Asian nations have patched over a disagreement that had threatened to divide the fledgling economic bloc into two groups led by arch-foes India and Pakistan, diplomats said on Sunday.

Foreign ministers of the seven-nation South Asian Association for Regional Cooperation (SAARC) resolved the dispute over regional sub-groupings ahead of a meeting in the Maldives of the bloc's heads of government set to start on Monday.

The dispute arose in April when India and three smaller neighbours

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First Published: May 12 1997 | 12:00 AM IST

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