the other party already do much to stop the cycle of "blood pay blood" as mentioned. this is done thru negotiation, regional issue such as israel and palestine also have thousand of times dialogues. but is this prevent indonesia being bombed (bali 1,2,marriot etc.), spain mrt station being bombed, london, and latest in mumbai.
really i think the ball to stop the "vicious cycle" is on the terrorist side.
what is singapore strategy to fight terrorist? simple, do a campaign to encourage each family to educated their beloved one to value life. do not teach them to hate each other, especially on base of race or religion.