July 25 (Bloomberg) -- U.S. Secretary of State Condoleezza Rice said Pakistan must do more to control militants operating in the tribal areas along the border with Afghanistan.

``Militants cannot be allowed to organize there, plan there, and more needs to be done,'' Rice told reporters today in Perth, Western Australia. ``We need to look hard at how the Taliban is regrouping. There's an uptick in terrorism not just against forces but against the Afghan people.''

U.S. intelligence agencies and the North Atlantic Treaty Organization say al-Qaeda and pro-Taliban militants use bases in Pakistan's northwestern tribal region to train, re-arm and plan attacks against troops in neighboring Afghanistan. The alliance is critical of the Pakistani government's truce talks with insurgents which began three months ago and says terrorist incidents in eastern Afghanistan were 50 percent higher in April than the same month in 2007.

Foreign Minister Stephen Smith, who invited Rice to visit his hometown of Perth, said the Australian government was concerned about insecurity in the Afghan-Pakistan border area.

``We don't believe that can be regarded simply as a bilateral matter between Afghanistan and Pakistan,'' Smith said. ``We do need to engage Pakistan more in a dialogue.''

Australia has 1,060 soldiers in Afghanistan, the most of non-NATO countries, and won't increase its troops, Smith said.

Nuclear Accord

The almost 30-minute news conference touched on other foreign policy issues, including the Middle East peace process and the U.S.-India nuclear energy accord.

``This in an agreement that serves the interest of the U.S.-India strategic relationship,'' Rice said. ``It serves the interests of the non-proliferation regime. India has a good record in terms of proliferation.''

The 2005 accord signed between Indian Prime Minister Manmohan Singh and President George W. Bush will give India access to fuel and nuclear reactors without it having to join the Nuclear Non-Proliferation Treaty.

To complete the accord, India needs approval from the International Atomic Energy Agency and the 45-nation Nuclear Suppliers Group, a mandatory requirement before the U.S. Congress can ratify it.

Middle East

Rice said a peace agreement between Israel and the Palestinians could still be reached by the end of the year, as envisaged at U.S.-sponsored talks in Annapolis, Maryland, in November.

``Israelis and the Palestinians are having their first serious peace process in seven years,'' she said. ``There's still time for them in accordance with Annapolis to reach agreement by the end of the year and we'll keep working toward that goal.''

Rice defended the continued detention of terrorism suspects at Guantanamo Bay. She said the Bush administration wanted to close the detention center at the U.S. naval base in Cuba. ``The problem is of course there are dangerous people there who cannot be returned and put among innocent populations.''

Rice, who ruled out running for the U.S. presidency in the future, arrived in Perth late yesterday and attended an informal dinner with local business and political leaders and cultural and sporting personalities.

Today she visited the school of Smith's daughter and also the Australian Defence Force's Campbell Barracks.

After the press briefing, Rice left Perth for Auckland, New Zealand, and will travel from there to Samoa for a meeting with Pacific island leaders.

Auckland University's student association is offering NZ$5,000 ($3,700) to anyone who can make a citizen's arrest against Rice for her role in the Iraq war, the Australian Broadcasting Corp. reported on its Web site.

``Student protests are particularly a long-held tradition in a democratic society,'' Rice said, when asked about the report. ``The U.S, has done everything it can in the war on terror to live up to our international and our national laws and obligations.''

To contact the reporter on this story: Jason Scott in Perth at jscott14@bloomberg.net.

Last Updated: July 25, 2008 02:47 EDT