WRAPUP 12-India demands Pakistani hand over fugitives

* India wants Pakistan to hand over fugitives

* India says not considering military action

* U.S., Arab envoys travel to India

* Pakistan offers joint investigation

By Matthias Williams and C. Bryson Hull

NEW DELHI, Dec 2 (Reuters) - India demanded Pakistan hand over 20 of its most-wanted fugitives as a sign of good faith, while both sides on Tuesday tried to cool tensions over the Mumbai attacks before a visit by Washington's top diplomat.

India's foreign minister said military action was not being considered but later warned a peace process between the two, begun in 2004, was at risk if Pakistan did not act decisively.

His Pakistani counterpart offered a joint probe to find the militants responsible for a three-day rampage that killed 183 in India's financial capital last week.

Indian accusations that Pakistan had again let militants stage attacks from its soil have stirred longstanding tensions and threatened to reverse improving ties between the nuclear-armed rivals.