In media interviews, Li, chairman of the Standing Committee of the National People's Congress (NPC), said he is confident a final settlement will enable the two countries to play a larger role in international affairs.

Progress has already been made in resolving these issues, he said.

In 1988, when the then Indian Prime Minister Rajiv Gandhi visited China, the two countries came to a broad agreement on how to resolve the border disputes. In 1993 and 1996 they reached two further agreements on maintaining peace along the two countries' borders. In addition, a joint working group was set up to work on the issue.

The leaders of the two countries indicated that their differences should not stand in the way of development of the bilateral relations and cooperation in international affairs.

Regarding the subcontinent of South Asia, Li said China wishes to develop friendly relations and cooperate with all its neighbouring countries, including India and Pakistan.

The tense relationship between India and Pakistan, two important nations in the region, have a bearing on peace and stability in South Asia.

The Kashmir conflict has been an outstanding issue for more than half a century. Its long history suggests force will not bring a settlement and only peaceful talks and consultation will lead to a final solution.

Li maintained that the problem should be carefully and skillfully handled through dialogue and based on the Five Principles of Peaceful Co-existence.

India and Pakistan have recently taken positive initiatives over Kashmir, he said.

(China Daily 01/15/2001)