Prime suspect of the 26/11 attack, terror chief Hafiz Saeed is free.

But the US has made it clear that it will continue to provide military aid to Pakistan, ironically, to counter terrorists.

For the record, the American Special Envoy Richard Holbrooke said in Islamabad: "Saeed's release is disturbing."

"We are concerned about anything that would encourage terrorism," he added.

Nevertheless, the US will still send four combat choppers and possibly more military aid to Pakistan.

New Delhi is 'not pleased' with US military aid to Pakistan.

The Indian government's only hope is that US military aid will only be used against terrorists and not against India.

But it has resigned itself to America's twin approach of calling for action against Pakistani terror groups as well as providing aid.

In fact, US and India have different takes on the Swat fighting.

The US sees it as Pakistan fighting terrorists. India's view is that Pakistan is not fighting anti-India terrorists. India believes that Islamabad can only be seen to be fighting terrorists. If there's action against anti-India groups like Saeed's group.

On Wednesday, Foreign Secretary Shivshankar Menon formally conveyed to Pakistan's High Commissioner Shahid Malik Delhi's disappointment with Saeed's release.

Malik reportedly said Pakistan was considering legal action against Saeed.

New Delhi is watching closely. Specially, as it has made clear that it won't resume dialogue with Pakistan unless it begins to dismantle the terrorist infrastructure against India.