New Delhi: In a major new move, China and India have agreed to step up military-to-military interaction by sending officers to each others armed forces training institutions, as the Chinese leadership has expressed optimism that a solution could be found to the vexed boundary dispute.

Back from a weeklong visit to China, Defence Minister George Fernandes on May 2 said that Chinese leadership was keen on continuing on the road of friendship and conveyed that a solution could be found to the boundary issue between the two countries.

China, a close ally of Pakistan, has agreed to a closer interaction with India on fighting the menace of terrorism, as Fernandes quoted the former Chinese President and chairman of the all powerful Central Military Commission Jiang Zemin telling him, "We must fight terrorism together."

Indicating a major thaw in Sino-Indian relations, Fernandes, in his first interaction with reporters on the visit, said that China wanted to take the road of friendship with India and participate in the economic growth of mutual benefit to both the countries.

While sounding very warm on his visit and discussions in China, the Defence Minister sounded a note of caution in reply to a question whether his tour meant that India had only one border enemy, replying that it would be reading too much into a single visit.

Elaborating on the military-to-military co-operation, Fernandes said the two countries had agreed to send officers to each other's training institutions for forming better understanding on each other's security concerns.

"Indian officers would be going to their institutions and officers of the People Liberation Army to our institutions," the Defence Minister said, adding the two sides had also discussed at length the issue of sea piracy in the high seas and agreed on the need to co-operate to overcome this.

On the vexed question of boundary dispute, Fernandes said Chinese leaders had indicated that "all problems had a solution and that resolution of the LAC issue could be found".

On whether he had taken up the issue of cross border terrorism in Jammu and Kashmir and supply of Chinese weapons to Pakistan, Fernandes said only bilateral issues had come up during his discussions.

However, he indicated that substantive issues like wider co-operation on fight against terrorism, global realignment and other major international issues would be taken up during the upcoming visit of Prime Minister Atal Behari Vajpayee to China.

"The entire new Chinese leadership is looking forward to Vajpayee's visit," Fernandes said.

Fernandes said during is talks with the new Chinese Prime Minister Wen Jiabao, the Chinese leader had mentioned that Sino-indian relationship went back as much as 2,200 years and 99.9 per cent of this period the two countries had enjoyed warm ties and exchanges.

He said the Chinese Premier had told him that it was 0.1 per cent of the time the two countries had problems and indicated Beijing's desire to build on long lasting ties rather than make some problems come in their way.

"There are no problems we cannot settle," Fernandes said quoting the Chinese Prime Minister.

He said Jiabao had also indicated that China was keen that on economic level co-operation should include setting up of joint ventures and also in building up sports and cultural ties.

The Defence Minister said he shared the Chinese leadership desire of relationship between the two countries not continuing to harp on the past but instead look to future.

To a question about his image as "China baiter" and his visit, Fernandes shot back, blaming that it was only the media, which had labelled him a China baiter.

"If the media calls me China baiter, it does not mean I am a China baiter. It is all lies that I had said that China is India's enemy number one," the Defence Minister said.

PTI