Sunday, September 4 2005 20:35 Hrs (IST) - World Time -

Mumbai: India today (Sept 4, 2005) said it valued its friendship with China, but there were certain issues on which both sides still had differences like Arunachal Pradesh.

"China has solved border disputes with ten neighbours except India and Bhutan," Defence Minister Pranab Mukherjee said while delivering his speech on the 'Role of Private Sector in Defence Preparedness' organised by the Indian Merchants Chamber (IMC) here.

He pointed out that defence production underwent major changes after Chinese invasion in 1962.

"On Sikkim and Arunachal Pradesh we have differences, however, the difference on Sikkim was resolved during the last visit of Chinese Premier Wen Jiabao's to India in April last," he said.

Chinese Consul General Song De Heng who was present at the function objected to Mukherjee's statement calling China an 'invader' in Arunachal Pradesh and said that situation, circumstances and position was such that his country could not be called so.

"On the issue of border dispute I fail to understand what you mean by saying that China resolved border dispute with its neighbours barring India and Bhutan. Both the nations have been discussing. Is China difficult to negotiate or India," Heng asked.

Mukherjee said India greatly valued its friendship with China but added that 1962 was a factual position and that he was not drawing any meaning to it. He reiterated that India has been taking Confidence Building Measures with China.