The George W Bush administration too came in for strong criticism, for considering then Pakistan president Pervez Musharraf an 'ally in fighting terrorism' and giving billions of dollars to it, without ensuring that the money was spent on terrorism.
The panelists recalled that Musharraf was responsible for aiding the Lashkar-e-Tayiba, in encouraging insurgency in Kashmir, during his years in the Pakistan army.
According to Rushdie, Musharraf put up a Western face for the West, but was a mullah to the extremists.
Rushdie and the other participants strongly attacked author Arundhati Roy for linking the Mumbai terrorist attacks to Kashmir, Gujarat riots and the demolition of the Babri Masjid.
The terrorists, the participants said, are driven by a different philosophy and ideology and want to take the world back into the medieval ages.
But they agreed that the terrorists had failed in their apparent bid to divide Hindus and Muslims and ignite communal riots, as both communities had condemned the attacks and vowed to fight terror.
Image: Salman Rushdie makes a point at the discussion
Also see: 'I saw a policeman slumped to the ground'