U.S.-Pakistan relations now at their "worst"

ISLAMABAD, Pakistan - NATO airstrikes that killed 24 Pakistani soldiers came just as the difficult relationship between the U.S. and Pakistani militaries was showing signs of improvement.

Only hours earlier, U.S. Marine Gen. John Allen, the coalition's top commander in Afghanistan, and Pakistan's army Chief Gen. Ashfaq Pervez Kayani concluded a meeting that sought to find common ground, a senior U.S. official told The Associated Press.

The official said the two men discussed areas of cooperation and "basically what we could do for each other."

Now, Kayani is under renewed pressure from his rank and file, intelligence sharing has stopped and Pakistan has withdrawn its offer to nudge the Afghan Taliban to the negotiation table.

Pakistani Prime Minister Yousuf Raza Gilani told CNN on Monday that Pakistan's relationship with the U.S. can no longer be "business as usual."

"If I can't protect the sovereignty of my country, how can we say that this is mutual respect and mutual interest?" Gilani asked in the interview.

Pakistan: NATO strikes lasted almost 2 hours
Pakistan retaliation puts NATO in lurch
Pakistan orders U.S. to shut major down air base
Anti-NATO tension builds in Pakistan

The Obama administration says Pakistan is considering pulling out of an international conference on Afghanistan next week as a result of the airstrikes.

State Department spokesman Mark Toner says Pakistani officials have informed the U.S. they are reviewing their participation. He acknowledged that the weekend incident was a setback for U.S.-Pakistani relations.

The conference next week in Bonn, Germany, seeks a strategy to stabilize Afghanistan a decade after al-Qaida used the country as a base to launch the Sept. 11 attacks and U.S.-backed forces overthrew the Taliban.

Toner urged Pakistan to attend.

He also said Monday that investigations were under way into the NATO strikes. He said Washington and Islamabad will have to work through the difficulties in their "vitally important" relationship.

On its website, the U.S. embassy warned of possible retaliation against Americans and said some U.S. government personnel outside Islamabad were being recalled to the capital as a precaution.

U.S. officials believe a case of mistaken identity may have led to the deadliest case of friendly fire with Pakistan since the Afghanistan war began.

Officials who spoke to the Associated Press on the condition of anonymity said the raid began when a joint U.S.-Afghan special operations team was attacked by militants in Afghanistan.

The U.S. officials said that the special operations team returned fire and when the suspected insurgents fled, called for air strikes. The air strikes apparently then hit what a U.S. commander believed was a military encampment, but was in fact a Pakistani base.

There were conflicting reports, however, about who fired first.

Unnamed Afghan officials have said that Afghan commandos and U.S. special forces were conducting a mission on the Afghan side of the border and took incoming fire from the direction of the Pakistani posts.

An Afghan intelligence official, speaking on condition of anonymity to CBS News' Sami Yousafzai, backed up that claim Monday, saying a joint U.S.-Afghan patrol came under "heavy artillery fire" from the Pakistani side of the border early Saturday morning. The air strikes were called in to hit the location from which the shells were fired, the official said, as the U.S. military decided, "regardless of whether the shellers were Pakistani Army or Taliban, they had to eliminate the position."

Pakistan retaliation puts NATO in lurch
Pakistan orders U.S. to shut major down air base
Anti-NATO tension builds in Pakistan

But Pakistani Army spokesman Maj. Gen. Athar Abbas said the Pakistani troops at two border posts were the victims of unprovoked aggression. He said the attack lasted almost two hours and that commanders had contacted NATO counterparts while it was going on, asking that "they get this fire to cease, but somehow it continued."

The accounts given to CBS News by the Afghan and Pakistani officials directly contradict each other.

NATO has described the incident as "tragic and unintended" and has promised a full investigation.

The White House said Monday that President Barack Obama considers the incident a tragedy and that the administration is determined to look into the circumstances of the airstrikes.

White House spokesman Jay Carney said the president extends sympathy to the families of the dead soldiers and to the people of Pakistan. Carney said: "We take it very seriously."

A complete breakdown in the U.S.-Pakistani relationship seems unlikely, and both sides know that more is at stake than ever before.

Nevertheless, the senior U.S. official said the weekend pre-dawn raids have left the relationship "the worst it has been" — dashing hopes of restoring ties damaged by Pakistani anger over the unilateral U.S. raid on Osama bin Laden's hide-out, and U.S. outrage that the al Qaeda leader was living not far from Pakistan's version of West Point.

Saturday's airstrikes lasted almost two hours and persisted even after Pakistani commanders pleaded with coalition forces to stop, the Pakistani army claimed Monday.

NATO described the incident as "tragic and unintended" and promised a full investigation.

Afghan officials, speaking on condition of anonymity because of the ongoing investigation, said Afghan commandos and U.S. special forces were conducting a mission on the Afghan side of the border and received incoming fire from the direction of the Pakistani posts. They responded with airstrikes.

Pakistan denies it fired first at NATO.

The poorly defined, mountainous border has been a constant source of tension between Pakistan and the United States.

NATO officials have complained that insurgents fire across the frontier into Afghanistan, often from positions close to Pakistani soldiers who have been accused of tolerating or supporting the militants. NATO and Afghan forces are not allowed to cross into Pakistan in pursuit of militants.

For its part, the Pakistani military has complained about anti-Pakistan insurgents finding safe havens in Afghanistan's Kunar and Nuristan provinces. In the area in which Saturday's attack took place, Pakistan has suffered dozens of casualties at the hands of insurgents who return across the border to Afghanistan, according to U.S. and Pakistani officials.

Allen, who was visiting at Kayani's invitation, was in Pakistan when he received word of the raid, according to the senior U.S. official. "Nine hours after that meeting started, all hell broke lose," the official said.

Before Saturday's raid, the official said, "the military-to-military relationship had stabilized and was slowly, incrementally improving. The intelligence-to-intelligence relationship had also stabilized and incrementally was improving. Now it has all stopped."

Pakistan moved quickly to retaliate. It evicted the United States from Shamsi air base in southwest Baluchistan, where some CIA drones are repaired, and shut the border to NATO supplies for Afghanistan. Islamabad also withdrew an offer to encourage Afghanistan's Taliban to the negotiation table, said a senior Pakistani security official, who spoke on condition of anonymity.

For Kayani the raid was a personal blow. Under mounting pressure from his increasingly anti-American middle-ranking officers, Kayani has tried to assuage their resentment to Pakistan's partnership with the United States and as well as the 4,000 military casualties in the fight against domestic insurgents — more than double the deaths among U.S. and NATO troops in 10 years of war in Afghanistan.

At a National Defense University session this year, Kayani was grilled for four hours by midlevel officers who wanted to know why they were fighting this war, according to a participant who spoke on condition of anonymity because of the sensitivity of the issue.

"This is very serious for Kayani. The troops are so angry. They are supposed to be allies with the Americans, and the allies are killing them. He has to be sensitive to their feelings. He has to be careful about his own image and his own safety," said retired Lt. Gen. Talat Masood. "The trouble is Kayani cannot face his troops unless the Americans give a very strong statement that this was a genuine mistake, apologize and compensate in a very big way."

Saturday's strikes added to popular anger in Pakistan against the U.S.-led coalition presence in Afghanistan. Many in the army, parliament, general population and media already believed that the U.S. and NATO are hostile to Pakistan and that the Afghan Taliban are not the enemy.

"Whoever is a friend of America is a traitor to the land," some 400 members of Jamaat-e-Dawa, an alleged front group for the militant Lashkar-e-Taiba organization, chanted in a demonstration in Karachi, the country's biggest city.

Washington views Islamabad as key to bringing about a reconciliation to end the decade-long Afghan war and allow the United States and its NATO partners to complete a military withdrawal by 2014.

If Pakistan bows out of the peace process, it "would hugely complicate the reconciliation process," said the senior U.S. official.

He said, however, that "it wouldn't be fatal. We would have to become all the more covert to deal with Afghans on this side of the border and it is also a fact that Pakistan does not have 100 percent control over Mullah Omar and his men nor does Pakistan have the Haqqanis on that tight a leash."

He was referring to the Taliban leader, who is believed to be hiding in Pakistan, and the Haqqani network, an insurgent group that operates from the country's lawless tribal areas.

For Pakistan a break in ties risks an end to billions of dollars in U.S. military and development aid.

But an aid cutoff may affect the military less than Pakistan's civilian government, say senior Pakistani security officials. They say military aid under the Coalition Support Fund has been erratic and that Washington routinely holds up payments.

11/29/11 Editor's note: The cell phone video included in this report on the aftermath of the US-airstrike that occurred on the Pakistan/Afghanistan border Nov. 26 has been removed. While the report is accurate, the accompanying cell phone footage was related to another incident in the region.