New Delhi (CNSNews.com) - Rejecting Washington's latest call for him to lift a state of emergency, Pakistan President Pervez Musharraf said over the weekend it is vital to retain the restrictions to prevent his country's nuclear weapons from falling into the wrong hands.

Visiting Deputy Secretary of State John Negroponte on Saturday advised Musharraf to call off the state of emergency and ensure a smooth transition to civilian rule through free and fair elections early next year.

But Musharraf said he had been forced to declare an emergency because the judiciary and political opponents were making governance and fighting terrorism impossible.

Despite an assurance by the chairman of U.S. Joint Chiefs of Staff, Adm. Mike Mullen, that Pakistan's nuclear arsenal is secure, there is considerable anxiety in regional diplomatic circles about the safety of the weapons, especially in the light of an escalation in Taliban violence in the North West Frontier Province (NWFP).

Negroponte expressed concern about the situation in NWFP, saying it may take a considerable amount of time to overcome.

Although termed a routine visit, observers believe the senior U.S. official was sent to convey Washington's strong reservations over the emergency imposed earlier this month and to assess the situation on the ground.

The emergency has thrown into disarray efforts, backed by the U.S., to bring about rapprochement between Musharraf and former prime minister Benazir Bhutto. The head of the Pakistan People's Party (PPP) returned from eight years of exile last month, after reportedly reaching some type of power-sharing deal with Musharraf.

Negroponte stressed the "importance of moderate forces working together," but Musharraf ruled out any further negotiations with Bhutto, blaming what he called her "confrontational approach."

Thousands of PPP supporters are among those who been detained under the emergency regulations, according to Pakistani media.

Bhutto herself was placed briefly under house arrest. Soon after her release last week, she said that her earlier dialogue with the government had been aimed at "end[ing] dictatorship and restor[ing] democracy." Ongoing dialogue was inappropriate once the emergency had been imposed, she said.

Bhutto has also accused Musharraf of responsibility for the escalation in Islamic fundamentalism in Pakistan.

Political observers attribute the fallout in part to Bhutto's view that Musharraf was trying to use her to divide the opposition.

"Musharraf wants to spread the impression that Bhutto is working in collusion with him and she is apparently miffed at his ploy," said Hamid Mir, editor of Pakistan's Geo Television network.

"Musharraf is trying to divide the opposition and Bhutto wants to refrain from anything that might be detrimental to her image," he said.

Musharraf on Friday swore in a caretaker government ahead of the January election, but opposition parties are threatening to boycott the elections, in protest against not being consulted over the appointment of an interim government.

Musharraf named Mohammed Mian Soomro, a close ally and former Senate chairman, as caretaker prime minister. He heads a 24-member cabinet that includes several members of the pro-Musharraf's ruling party.

Bhutto accused Musharraf of reneging on a promise to pick "non-political, non-partisan" people to ensure free, fair and transparent elections.

Given Pakistan's long history of rigged elections and military coups, analysts are skeptical that the election will be fair, especially as many political and social activists are in detention.

With widespread restrictions on political rallies as well as curbs on print, electronic and online media, electioneering may well be impossible.

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