labels: economy - general, agriculture, trade
India and China elevate relationship to ''strategic'' levelnews
Our Economy Bureau
12 April 2005

New Delhi: China has expressed its support for India's bid for a permanent seat in the United Nations' Security Council, even as the two countries have upgraded their ties to the status of a "strategic and cooperative partnership." The two countries have also agreed on a set of eleven political parameters and Guiding Principles to resolve the boundary dispute.

A total of eleven agreements were signed and a report of the Joint Study Group on trade and economic cooperation was also made public. As promised, China has recognised "Sikkim state" as part of the "Republic of India" and handed over a new, official map to India clearly showing Sikkim as part of Indian territory.

The two countries have also arrived at an agreement on the "modalities" to implement the confidence-building measures along the Line of Actual Control (LAC) by enhancing contacts between the two militaries, along with other practical measures designed to prevent escalation and face-offs.

A joint statement has said that India and China agreed that their relations had now 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 two prime ministers have also agreed to appoint a joint task force to study the feasibility of and the benefits that may flow from an India-China regional trading arrangement while setting up a "financial dialogue mechanism" to facilitate diversifying economic cooperation.

The "guiding principles" states that the two countries were seeking a "political settlement" of the boundary question in the context of their overall and long-term interests. "Neither side shall use or threaten to use force against the other by any means," the agreement said.

"Both sides should, in the spirit of mutual respect and mutual understanding, make meaningful and mutually acceptable adjustments to their respective positions on the boundary question, so as to arrive at a package settlement to the boundary question. The boundary settlement must be final, covering all sectors of the India-China boundary," it said.

"In reaching a boundary settlement, the two sides shall safeguard due interests of their settled populations in the border areas," the accord said. The two special representatives would now work to set up a framework for a settlement.

India and China have also signed agreements on mutual assistance in customs matters, and expansion of civil aviation links, amongst a host of others.


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India and China elevate relationship to ''strategic'' level