Beijing: Expressing optimism about forging a sound relationship with its "important" neighbour India, China today (Sep 7, 2004) said it hoped to work with New Delhi for an early settlement of the vexed boundary issue on a "fair, reasonable and mutually acceptable" basis.

"I would like to say that India is China's important neighbour and it is the sincere wish and stated policy of the Chinese Government to continuously deepen the long-term constructive and cooperative partnership between China and India," Chinese Foreign Ministry spokesman Kong Quan told reporters in Beijing.

"The Chinese Government would like to be guided by Five Principles of Peaceful Co-existence and to push forward the momentum of sound development of our bilateral ties," he said.

Warmly reciprocating Prime Minister Manmohan Singh's recent comments on India-China relations at his September 4 press conference in New Delhi, Kong said the Chinese Government attached importance to the Indian leader's remarks.

Acknowledging that it is a fact that the boundary dispute was an outstanding issue in Sino-India relations, Kong said an early settlement of such issues left over from history serves the mutual interests of China and India.

"We hope both sides can proceed from the larger interests and conduct equal-footed consultations and display the spirit of mutual understanding and mutual accommodation, both sides will ultimately be able to find a solution which is fair, reasonable and acceptable to both sides," he said.