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New Dehli, Beijing agree on `strategic partnership'

Indian and Chinese leaders yesterday agreed to create a "strategic partnership for peace and prosperity" between the two Asian giants, sealing their agreement with a set of accords aimed at ending a long-standing border dispute and boosting bilateral trade and economic cooperation.

The statement announcing the partnership, signed by Chinese Premier Wen Jiabao (溫家寶) and his Indian counterpart, Manmohan Singh, said the agreement would promote diplomatic relations, economic ties and contribute to the two nations "jointly addressing global challenges and threats."

While the statement gave few details, it signaled a significant shift in relations between the neighbors, who together have one-third of the world's population, moving away from decades of mutual distrust and suspicion.

After a round of extended talks between Wen and Singh, the two sides announced their commitment to develop bilateral ties, saying relations have "acquired a global and strategic character."

"The leaders of the two countries have therefore agreed to establish an India-China strategic and cooperative partnership for peace and prosperity," the statement said.

The two countries also signed a raft of agreements for cooperation in such diverse areas as civil aviation, finance, education, science and technology, tourism and cultural exchanges.

"This is an important visit. We are working to promote friendly ties of cooperation between our two countries," Wen told reporters earlier yesterday after a ceremonial welcome by Singh at New Delhi's pink sandstone presidential palace.

"India and China can together reshape the world order," Singh said.

The two countries agreed on a framework to resolve their long-standing boundary dispute and outlined a set of broad parameters to demarcate the boundary through a "fair, reasonable and mutually acceptable solution, through equal and friendly consultations," the joint statement said.

"We want to put in place a bridge of friendship between our two countries," Wen said.

An 11-point roadmap to settle the decades-old border dispute between the two countries was finalized on Sunday at a meeting between National Security Adviser M.K. Narayanan and China's Vice Foreign Minister Dai Bingguo (戴秉國), the leader of the Chinese delegation to the talks.

India and China share a mountainous, 4,000km border, parts of which are not demarcated. The two sides went to war over the border disagreement in 1962.

The roadmap states that the countries would take into consideration historical factors, geographical features, people living in the area, security and whether the area was currently under Indian or Chinese control when marking the border.

Yesterday, the two leaders agreed to boost bilateral trade to US$20 billion by 2008. Last year, trade totaled US$13.6 billion, with India recording a trade surplus of US$1.75 billion, according data available with India's trade ministry.

During their talks, Wen and Singh agreed to set up a panel of experts to study the feasibility and benefits of a free-trade area.
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