Qingdao (China): Asserting that the UPA (United Progressive Alliance) Government would continue to strengthen and expand Sino-Indian relations, External Affairs Minister K Natwar Singh has hoped that all outstanding issues, including the boundary dispute, would be settled in a "fair, reasonable and mutually acceptable manner".

"Relations between our two countries are in the process of diversification and development. The UPA Government will continue the process of normalising, strengthening and expanding relations with China," Singh told reporters in an interview.

About the third round of special representatives (SR) level talks on boundary issue, he said their third meeting is expected to take place next month.

"A good beginning has been made during the first two meetings of SRs and we expect that momentum will be maintained during the third round," Singh, who was here to attend a regional conference, said.

During his stay, he also held talks with Chinese Premier Wen Jiabao and Foreign Minister Li Zhaoxing on bilateral, regional and international issues of mutual interest, including situation in Iraq and Korean Peninsula.

"While we will continue to promote our bilateral relations in different areas and levels, it will be our endeavour to address outstanding issues in a fair reasonable and mutually acceptable manner," he said.