The best way is the honest way. Any form of diplomacy works fine when we deal with human issues – economics, health, social. But when we deal with terrorists, the only honest approach is that of zero tolerance. And when terror is linked with religion, no power on earth can score diplomatic victory. Because God is always superior to best of humans for religious people.
If you try to delink terror from religion, they will take it as an affront on their religion and be more violent. So let us not feed crocodiles in the hope that it will cease to be a reptile and become a mammal.
This means, have a zero tolerance approach to terror. Admit that terror was there in valley for last 700 years. Aurangzeb murdered Guru Tegh Bahadur because he raised voice in support of Kashmiri Hindus. You cannot blame Indian army for terror in that era. Terror has existed, excuse for terror has changed. And slimy minds will come with new excuses in future.
Second, any slackness in dealing with terror in Kashmir sets wrong example for rest of the world. It organizes terrorists across the world and impacts whole world.
So here is what needs to be done:
– Rehabilitate Kashmiri Sikhs and Hindus in valley
– Scrap the silly article 370. If that be basis of peace, please explain why their was violence before that. In fact, 370 is cause of violence.
– Increase army control over area. It is foolish to even think of reducing security forces from a region that has been terrorism hub of highest order. You can’t play with human lives to experiment with your utopian notions of peace and army, sitting far away from valley of fear.
– Read my other answers on this issue for more details.