JN Dixit, the National Security Adviser and Dai Bingguo, Chinaâ??s Vice Foreign Minister met for the third round of talks at the level of Special Representatives at Delhi in end July. The Indian foreign office spokesman blandly stated later that the discussions were held in a "friendly, constructive and cooperative atmosphere." What was this round of dialogue all about and where is it headed?

 

During Prime Minster Vajpayeeâ??s successful visit to China in June 2003, it was decided to raise the border dialogue to the level of high political interlocutors. It was the latest incarnation of the official talks that began in 1981 between the two countries. This was followed by the Joint Working Group from 1989 and the Experts Group from 1993. It was expected that the â??political levelâ?? would now provide the backdrop where issues could be discussed objectively and where the principle of â??mutual adjustmentsâ?? will be allowed to bear fruit.

 

The first set of interlocutors consisted of Dai Bingguo, the Deputy Foreign Minster of China, and Brajesh Misra, the National Security Adviser of India and an old China hand at the foreign ministry. Dixit replaces Misra after the fall of the NDA Government. Is there continuity under the new administration? This seems clearly to be the case. For, the talks are indeed part of a process that began under Vajpayee when he visited China as the foreign minister in 1979. His 2003 visit further deepened this engagement and proved substantive. In between were the path-breaking visit of Rajiv Gandhi in 1988 and the very substantial agreements finalised during Narasimha Raoâ??s visit in 1993. The Cabinet met and provided Dixit directions for the dialogue.

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What provides a basis for optimism?

 

First is the realisation in both capitals that there are no fundamental conflict of interests between India and China. The border issue is left over from history but it does not have to be left to the next generation to resolve as Deng Xiaoping had suggested some two decades ago.

 

Second, Chinaâ??s increasing clout in the world, economically today and politically tomorrow, makes it necessary to interact closely with the Middle Kingdom.

 

Third is that the dynamic economic growth in China will continue to have an enormous impact particularly on its neighbours. For many parts of our territory close to China, prosperity will depend on developing positive commercial linkages with it. For the rest of the country as well trade with China will provide an enormous economic opportunity. The large and growing market of China can lift up the economy of the entire region as it is doing for the rest of Asia.

 

Some particularities in the case of border trade are necessary to flag. The Kolkata-Gangtok-Nathula-Yatung-Lhasa route still remains the best and shortest to Tibet. Even when the Gormo-Lhasa rail line is completed by 2006, improving Tibetâ??s access to the north, this southern route will still remain the best to Lhasa and to the thriving tourist region of Tibet. Further to the east, Indiaâ??s northeast can be linked to Yunan, a province of China with immense potential. With BIMSTEC fructifying and communications likely to develop across the region, distances will shorten immensely. The possibilities for these linkages to facilitate commerce with the deprived areas of Indiaâ??s northeast are limitless. The southern Silk Route then can be revived.

 

Indiaâ??s trade with China has already undergone a major transformation. It reached US$750 billion in 2003 and will touch US$10 billion this year. The upward growth path is sharp and is likely to continue. The trade imbalance for India is small and manageable. Chinaâ??s growing economy has enormous appetite for all types of goods and services and India can provide many of these at competitive prices. Indian manufacturers of all types of goods are now trying to base their production in China to benefit from its competitiveness and for better access to the Chinese market. It is these that have the potential to transform China-India relations.

 

While future possibilities are immense and need for cooperation great, current realities must not be overlooked. It is in this context that the 4,057 km long border with China rightly occupies prominence. There are fundamental issues involved of territory and sovereignty, which no country can take lightly.

 

Border talks will have to factor in two major conditions as the dialogue goes forward. One is that there can be no significant exchange of population whatever the arrangement. Two, there can be no major redrawing of boundaries. Based on this, there are enormous possibilities for creative solutions based on the three principles of "mutual understanding, mutual interests and mutual adjustments." In a climate of good political understanding, sound mutual relations, increasing trade and commerce, very substantive measures can be undertaken without causing undue repercussions.