Tibet: India-China Relations in 21st Century 55

Special Essays

Tibet: India-China Relations in 21st Century

U. D. Bhatkoti ﹝Advisor,Confederation of Indian Industry﹞

Introduction India and china, two of the oldest civilizations of the world, historically lived in harmony and never confronted each other till the occupation of Tibet by China in 1950. Tibet had acted as a buffer state between China and India, though British-India recognized Chinese suzerainty over Tibet. The ‘peaceful liberation’ of Tibet by China and recognition of the Chinese sovereignty over Tibet by majority of foreign countries, including India, in variance of historical position, however, still leaves Tibet as an ‘issue’ even after fifty four years. The supreme spiritual leader of Tibetans, the 14th Dalai Lama who fled from Tibet in 1959 to India along with about eighty thousand of his followers and the refugees who left Tibet in subsequent years, due to internal disturbances caused by China’s handling of Tibet after occupation in 1950, are still waiting to return to their homeland. For India, the direct result of the occupation of Tibet by China was the transformation of the Indo-Tibet border into Sino-Indian border and the border issue which was nearly non-existent in 1950 suddenly became a serious problem that led to border conflict in 1962 between India and China. This not only affected the normal growth of relationship between the two most populous and major developing countries of Asia for several years, but also altered the geopolitical situation in the entire south Asian region drastically. The upheavals and turns in the international situation during the Cold War period and the domestic situation in China immensely impacted on China’s Tibet policy, which wavered between hard and soft approaches during the last five decades. The issue of return of refugees and the border issue between India and China are the two issues that need to be resolved for durable peace and development in South Asia and Asian region.

India and China presently face identical challenges like feeding the large population, poverty alleviation and economic development. The leadership of the two countries conscious of their historical responsibilities have realized that the differences between the two countries can not be allowed to keep hostage economic development and mutual interests in the 21st century. The economic reforms in the two countries in the last two decades and the resultant resurgence in growth, globalization of economy and emerging new international situation have brought them much closure to each other to cooperate for mutual benefit and peace and development in the region. The readjustment in policies to respect mutual interests and concerns is marked by shift in focus on commonalities and complementarities and tackling the differences, including border dispute, through peaceful dialogue. India’s recognition of Tibet as a part of China The Republic of India and the People’s Republic of China (PRC) were founded around the same time after the World War II under different circumstances, India won its freedom from the British colonial rule in 1947 and the Communists Party of China (CPC) founded the PRC after civil war in 1949. The Indian Prime Minister, Jawaharlal Nehru had visualized, dreamt and worked for building friendly cooperative and good neighborly relationship with China for the peace and prosperity in Asian region. Nehru in his speech in 1946 said that “if the two great powers of the present were America and the Soviet Russia, the two powers of the future were bound to be China and India. India and China represent two distinct and deep rooted civilizations whose ‘pure goals keep them going’ despite the degradation and debris they had suffered in the history”1. He further said ‘China, that mighty country with mighty past, our neighbor, has been our friend through the ages and that friendship will endure and grow. We earnestly hope that her present troubles will end soon and a united and democratic China will emerge, playing a great part in furtherance of world peace and progress.’2 He believed

1 Selected Works of Jawaharlal Nehru (SWJN), Vol 10, page 117 2 First speech of Jawaharlal Nehru as member of Interim Government on September 07, 1946,

Tibet: India-China Relations in 21st Century 57

3that if China and India could hold together, future of Asia was assured and put forward the idea of “Eastern confederation”, much before any contemporary leader spoke of Asian regional cooperative forum. Historically Tibet had been very close to India. It was easier and convenient to go to Beijing from Lhasa via India and sea route than by land route. The Anglo-Tibetan agreement of 1904 had granted India military, communication, postal, trading and other rights in Tibet and at the same time recognized the Chinese suzerainty over Tibet. However, the changes in the geopolitical situation due to Chinese occupation of Tibet in 1950 necessitated redefining India’s relationship with the People’s Republic of China. India protested the use of force by the PLA in dealing with Tibet and hoped that Tibet would be granted genuine autonomy. India recognized ‘Tibet as a region of China’ and signed the first agreement in 1954 with the government of the PRC after protracted negotiations. This agreement aimed at developing good neighborly relationship between the two countries and conduct border trade between India and Tibet. India trusted China’s friendly gestures and sought security in building peace. India also voluntarily surrendered the special rights it had inherited from the British government according to the 1904 agreement. The agreement of 1954, in addition to recognizing Tibet as a region of China can be considered as the first confidence building measure between the two countries as it had for the first time laid five principles of peaceful coexistence (mutual respect for each other’s territorial integrity and sovereignty, mutual non-aggression, mutual non-interference in each other’s internal affairs, equality and mutual benefit and peaceful coexistence) that could still be considered a model for conducting relationship between any two sovereign countries. This agreement was in fact most generous and humane in dealing with the interests and social relations of the people of the bordering region.

Nehru’s Foreign Policy, edited by Surjit Mansingh, Mosaic Books, New Delhi, Page 22 3 SWJN Vol 14 page 420

Besides establishing trade agencies in Tibet and India, specifying markets for trade, designation of traditional passes and routes, the 1954 agreement also recognized traditions and customs for pilgrimages by religious believers from India and Tibet to each other’s places. This agreement, however, due to strained relationship between India and China caused by the subsequent events in 1950s like Khampa rebellion, riots in Tibet and the Dalai Lama’s flight to India along with his followers and border clashes, could not be extended beyond eight years of its initially stipulated validity period. Perhaps non-renewal of this agreement has been one of the most unfortunate things that otherwise could have ensured peace and development in this region of the world. China’s Tibet policy China’s Tibet policy has not been consistent as it was influenced either by hardliners or moderates at different times during over last fifty years. The domestic policies of China and external environment equally impacted on its Tibet policy. In the early 50s, China did not face much international hostility in the matter of occupation of Tibet when the PLA marched into Tibet as the USA was deeply involved in Korean War and the Taiwan Strait crisis and the world was re-grouping in the frame of Cold War at that time. There are five discernible phases of different approaches in China’s Tibet policy: 1. Phase-I (1951-1959): The 1951 agreement, if we look back, grants full

autonomy to Tibet in the matters of governance, religion, language and culture and preserving the traditional religious and administrative institutions like the institutions of the Dalai Lama and Panchen Lama with in the geographical boundaries of (greater) Tibet and vesting the foreign and defense matters with the Chinese central government. However, as a young communist nation, they were in great hurry to introduce communist reforms in Tibet. It was a sudden and painful experience for Tibetans who had been leading an almost isolated different system for several centuries, away from external interference. Tibet was a neutral during the World War II. This alienated the Tibetan people and their leadership. As a result riots

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and rebellion broke out in Tibet many times between 1952 and 1957, with certain external support. Mao in Feb 1957 had said that conditions in Tibet were not ripe for reforms and that the implementation of reforms be postponed till 1962. He also offered to reduce the Han cadres in Tibet. The Dalai Lama had dismissed two Prime Ministers who insulted the Chinese in early 1950s. Mao’s policy of moderation and gradualism also had the support of the Dalai Lama and the Tibetan elite but it was not implemented in practice4. The exodus of the Dalai Lama and his supporters to India in 1959 marks the end this phase.

2. Phase-II (1959-1976): This is the critical period of Chinese handling of

Tibet issue. It was dominated by the hard line policies and internal power struggle in China. The ‘Great Leap Forward’ and ‘Great Proletarian Cultural Revolution’ brought unparallel turmoil with in China. The excesses by the CPC members in Tibet like attack on religious institutions, culture and language and increasingly strained relationship with India only further alienated the Tibetans. China reorganized Tibet by making U-tsang as Tibet Autonomous Region and merging Kham and Amdo regions with Yunnan, Sichuan, Gansu and Qinghai provinces.

3. Phase-III (1978-1986): This is the period when Deng Xiaoping adopted soft

policy to handle Tibet issue and for the first time proposed talks with the Dalai Lama. This policy also ended in failure but a communication line was set up for the first time between the Dalai Lama and the Chinese leadership.

4. Phase-IV (1987-2001): The failure of Deng’s soft policy emboldened the

hands of the hawks in the CPC and China adopted a different approach to solve Tibet issue through economic development instead of focusing on political solution alone. This model has met with partial success as the Dalai Lama diluted his demand from independence to autonomy, yet the

4 George N Patterson, Peking Vs Delhi, Faber and Faber, London 1963, Page 157, 159; Governing China’s Multiethnic Frontiers, Ed. Morris Rossabi, University of Washington Press 2004, Page 196

Chinese leadership did not show much interest in carrying any negotiations with the Tibetan leadership.

5. Phase-V (2002- ---): This period is marked by realistic handling of Tibetan issue, which combines winning the people of Tibet through economic development and conducting dialogue with the Tibetan leadership in exile.

Post Mao initiatives The exiled leadership of Tibetans has been a big obstacle in the way of fully integrating Tibet into China. In order to break the ice Deng Xiaoping, for the first time met Gyalo Thondup, the elder brother of the Dalai Lama in Beijing in 1979 and offered discussions with the Dalai Lama on all aspects other than independence to resolve the Tibet issue. China was certain that Tibet had progressed considerably since 1951 and it would convince the Tibetan refugees to return to Tibet. He invited Tibetans living in exile to visit Tibet and witness the progress made in the past over twenty years. As a goodwill gesture China also released many prisoners during this period and allowed Tibetans to visit relatives abroad. The Dalai Lama sent three fact-finding delegations to Tibet in 1979 and 1980. The delegations came back unsatisfied with the progress in Tibet and in return the Dalai Lama offered to send a group of fifty Tibetan teachers from exile community to help the cause of education in Tibet. He also suggested opening a liaison office in Beijing to build trust between Tibetans in exile and the Chinese authorities. China, however, did not accept this offer. To continue the efforts China, in 1981 asked the Dalai Lama and his followers to return to Tibet. The Dalai Lama was offered a position in Beijing away from Tibet. Two more Tibetan delegations visited China in 1982 and 1984 but they still felt extremely unsatisfied with the situation in Tibet. During their visits they found that Tibet had not achieved the economic progress as was being projected and that the Dalai Lama was still very popular in Tibet and enjoyed the faith of Tibetan people. For the first time Hu Yaobang also acknowledged that the CPC had made serious mistakes in dealing with the Tibet issue. He introduced some changes in Tibet policy and pushed for greater economic progress and cultural and ethnic freedom to make Tibet more autonomous and also contemplated

Tibet: India-China Relations in 21st Century 61

withdrawal of Han cadres from Tibet and replacement of them by the Tibetan cadres. In fact it was an attempt to partially restore the pre-1959 policy. This policy could not succeed due to opposition from the hardliners in the party, administration and military. In the meantime the Dalai Lama started making visits to different parts of the world to let the world know about the Tibet issue and seek external support. The western democratic countries provided him a platform and heard him for the first time as a voice of Tibetans living in exile and in Tibet. He was seen as a symbol of struggle against the oppressive rule of Chinese communist for decades and a voice for democratic rights. For the first time in September 1987 while addressing the US Congressional Human Rights Caucus, the Dalai Lama announced his Five Point Peace Plan to resolve the Tibet issue and asked for a dialogue with the Chinese authorities on future status of Tibet. He called for making Tibet a zone of peace, protection of human rights, democracy, stoppage of transfer of Han population to Tibet and protection of environment in Tibet. He repeated and elaborated this proposal further in his Strasbourg address to European parliament in June 1988. He asked for the restoration of greater Tibet comprising U-Tsang, Kham and Amdo with a democratic and autonomous set up under China’s sovereignty. It was a major climb down from earlier position of independence on the part of the Dalai Lama. Present position of China on Tibet issue China has been maintaining that since Tibet has already been liberated and integrated into the big Chinese family, the Dalai Lama and other Tibetans who had left Tibet should come back and take part in the development of Tibet. Since 1979 this position has undergone some change and also favors negotiations with the Dalai Lama. The position5 of China in negotiations with the Dalai Lama is not very clear. However, the points emerged frequently are:

5 China Daily, March 16, 2005, June14, 2005; NCNA June 01, 2005; People’s Daily May 03, 2005

The Dalai Lama should stop political activities, under any name and in any country, aimed at splitting the mother land.

The Dalai Lama should stop visiting the countries with which China has diplomatic relations.

Kashag should stop political activities. The Dalai Lama should publicly declare that Tibet and Taiwan are

inalienable parts of China. Beijing has recently recognized change in the Dalai Lama’s position, but felt that the change was not ‘substantive’6. In the first two rounds of the recent four rounds of talks between the Chinese officials and the representatives of the Dalai Lama since 2002, nothing substantive was discussed. The fourth round of talk held in Switzerland with in the premises of the embassy of the PRC in June/July 2005 was an exercise to build confidence and trust between the two parties. The Dalai Lama has asked his representatives to look into the issues raised by the Chinese side and clear their doubts as needed. Next round of talks is expected to be held by the end of this year. Dalai Lama’s position on Tibet issue The Dalai Lama is now convinced that in view of the rise in China’s economic, political and military strength and diplomatic influence it would be more appropriate to seek resolution of Tibet issue under the Chinese sovereignty rather than to struggle for independence. A new emerging powerful China would be a source of material progress for Tibetans and Tibet. The Dalai Lama has acknowledged in his statement of March 10, 2005 that a great deal of economic progress indeed had been achieved in Tibet in past two decades and infrastructure facilities like Qinghai-Tibet railway line built in Tibet. He, however, is critical about the absence of human rights, religious freedom and self rule in Tibet and growing restrictions on the activities of

6 Indian Express June 16, 2005

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Tibetans. Advocating the cause of a strong China, he said that it was important China should become a powerful and respectable nation and adopt a reasonable policy towards the minorities. He has also appealed to other countries not to confront China directly on Tibet but rather befriend it and then work to promote human rights and religious freedom. He hinted that resolution of Tibet issue on the basis of 1951 agreement was acceptable to him7. It is a realistic approach and brings the two parties closure to the negotiating table. The Dalai Lama’s representatives have argued that if China could offer the formula of ‘one country two systems’ to Hong Kong and Macao and was prepared to resolve the Taiwan issue under the same formula, Tibetans should also receive the same option, if not more than this, since unlike Macao, Hong Kong and Taiwan, Tibetans were culturally, linguistically and racially different from the Chinese. The Dalai Lama wants to negotiate the future status of Tibet with China on the basis of his ‘Middle Way’ approach (neither independence nor Chinese style of governance), the main components8 of which are as follows:

Autonomy for Tibet under Chinese sovereignty Democratic and fundamental rights of Tibetans Restoration of geographical limits of Tibet as existed in 1951

(Greater Tibet comprising all the three provinces – U-tsang, Kham and Amdo)

Transformation of whole of Tibet into a zone of peace Stoppage of the policy of transfer of Han population to Tibet Protection of environment in Tibet China to be responsible for defense and foreign affairs

India’s policy on Tibet India’s policy towards Tibet has always been consistent and principled. The first formulation regarding Tibet was made in the 1954 “Agreement between

7 NDTV.com November 28, 2003 8 Dalai Lama statement March 10, 2004; March 10, 2005

the government of the Republic of India and the government of the People’s Republic of China on trade and inter-course between Tibet region of China and India”. Here, Tibet is referred to as the region of China, which means Government of India recognizes Tibet region as a part of the People’s Republic of China. In 1988, the India-China Joint Press Communiqué stated “Tibet is an autonomous region of China and that anti-China political activities by Tibetan elements are not permitted on Indian soil”. India’s position was further stated in the Declaration on Principles for Relations and Comprehensive Cooperation between India and China signed in 2003 during the visit of the Prime Minister of India to Beijing. It says ‘the Indian side recognizes that the Tibet Autonomous Region is part of the territory of the People’s Republic of China and reiterates that it does not allow Tibetans to engage in anti-China political activities in India.’ The latest joint statement issued during the visit of the Chinese Premier, Wen Jiabao to India in April 2005, states ‘the Indian side reiterated that it recognized the Tibet autonomous Region as part of the territory of the People’s Republic of China and that it did not allow Tibetans to engage in anti-Chinese political activities in India.’ India welcomes and encourages the talks between the Dalai Lama and the Chinese government. The Dalai Lama has appreciated India’s position on Tibet9. US policy towards Tibet issue The United States supports one China policy and it never recognized Tibet as an independent country but its involvement in any form in the last fifty years has always influenced the course of events relating to Tibetan issue. After the founding of the PRC, its involvement in Tibet had been aimed more against communism rather than China. In 1950s and 60s it supported and funded the Dalai Lama but it was too inadequate to carry any effective struggle to defeat the Chinese rule in Tibet or compel the Chinese government to enter into

9 ndtv.com November 28, 2003; Hindustan Times June 21, 2005

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some kind of dialogue with the Dalai Lama to resolve the Tibetan issue. This role of the US as an external force attempting to drive a wedge between Tibetans and Beijing continued until President Nixon entered into negotiations with the PRC government in early 1970s to establish diplomatic relations. Till 1979 The Dalai Lama was not even granted visa to visit the USA. The US approach from 1971 till mid 80s at best has been neutral. Since mid 80s the US again changed its policy towards Tibet issue and now looks upon Tibetan issue from the angle of human rights and democracy in China as a part of its over all policy of encouraging democratization of governments in the developing countries. The US congress pushed the Tibet issue into Sino-US relations and passed many policy resolutions since 1988. The May 1991 resolution of the US Congress stated ‘it is a sense of the Congress that Tibet, including those areas incorporated into the Chinese provinces of Sichuan, Yunnan, Gansu and Qinghai, is an occupied country under the established principles of international law whose true representatives are the Dalai Lama and the Tibetan Government-in-exile as recognized by the Tibetan people’10. In May 1993, the US Congress passed another resolution and urged the President to raise, at the highest levels of the government of the PRC, the issue of Chinese population transfer into Tibet in an effort to bring about an immediate end to the government’s policy on the issue. In 1994, President Clinton in his meeting in Seattle with President Jiang Zemin urged to improve cultural and religious freedom in Tibet and to open dialogue with the Dalai Lama. It was first time that the USA after 1971, officially took up the issue of Tibet with China. The denial of most favored nation status to China in 1993 was also partially linked to Tibet issue. The US Congress also pushed for broadcasting special bulletins in Tibetan language by Voice of America and set up Radio Free Asia. Many ‘Tibet support groups’ came up in the United States to promote the cause of Tibet

10 Governing China’s Multiethnic Frontiers, Ed. Morris Rossabi, University of Washington Press 2004, Page 194

and restoration of human rights in Tibet. Other initiatives from the US include appointment of ‘Tibet Coordinator’ and meetings of the Dalai Lama with the US Presidents. The Dalai Lama was given an opportunity to address the US Congressional Human Right Caucus in 1987. The new US Tibet policy has helped internationalize the Tibet issue and at the same time advocated the cause of democracy and human rights in China. The support of the US Congress and the government for human rights and democracy in China, particularly in Tibet, has been a source of embarrassment for China. Neighboring countries’ policy towards Tibet issue Refugees from Tibet mainly escape from Tibet border with Nepal, Bhutan and India. None of these countries encourages exodus of refugees. Nepal in January 2005, ordered closure of Tibetan office in Nepal and banned all political activities of Tibetans in Nepal. In 1970 all Tibetan refugees living in Bhutan since 1959 on Indian assistance were pushed into India following a threat from the Bhutanese government that refugees would be sent back to Tibet. Internationalization of Tibet issue Till 1978, when Deng Xiaoping met Gyalo Thondup, elder brother of the Dalai Lama in Beijing and proposed discussions, Tibet issue did not attract much international attention. Deng Xiaoping with his long experience in dealing with nationalities’ affairs in China expected to settle the issue of Tibet in the manner he had introduced reforms and opening up in Chinese economy. This was the first ever acknowledgement form the Chinese authority that the ‘Tibet issue still exists and it needs to be resolved’. The Tibet issue presented a good case to the US and the western democratic countries to promote their political philosophy of ‘democracy’ and ‘human rights’, particularly aiming at rising communist China. They started giving the Dalai Lama prominence and opportunities to address various forums and projected him as a struggler for human rights. The 1987 address of the Dalai Lama to US Congressional Human Right Caucus and the 1988 address to the

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European Parliament in Strasbourg gave wide international publicity to the Tibet issue. The impact of these events was also felt in Tibet when riots broke out in support of the Dalai Lama and against the Chinese rule in Tibet. The riots were strongly and quickly crushed with the imposition of martial law for a brief period. Nonetheless the riots in Tibet proved that the Dalai Lama was still revered in Tibet and the west could continue to press China for honoring human rights in Tibet. Tibetan government in exile has been permitted to set up foreign offices in New Delhi, New York, London, Paris, Geneva, Budapest, Moscow, Canberra, Tokyo, Pretoria, Taipei and Brussels to promote the Tibetan cause. It could be noticed that the Dalai Lama started extensively visiting various world capitals, particularly western democratic countries only after 1979, to mobilize the support for the Tibet cause. Various parliaments, specially the US congress, European parliament and parliaments of many European countries and certain NGOS started passing resolutions in support for respecting human rights in Tibet and urging the PRC government to resolve the Tibet issue through dialogue with the Dalai Lama. The high point of the internationalization of the Tibet issue was awarding of Noble Peace Prize to the Dalai Lama in 1989 in recognition of his struggle for the liberation of Tibet through non-violence means and for his advocacy for peaceful solutions based upon tolerance and mutual respect in order to preserve the historical and cultural heritage of his people. Dalai Lama, an international personality When the Dalai Lama was given the charge of Tibetan affairs in 1949 by the Tibet government he was only 14 years, when he met the towering leaders of China like Mao Zedong and Zhou Enlai in 1954 he was 19 years and when he fled to India he was 24 years, barely noticeable. But in 2005 the Dalai Lama is an international personality, Noble Peace laureate, well respected and most widely traveled international personality, spiritual leader of millions of

Buddhists through out the world, a peacenik, proponent of democracy, promoter of inter-religious harmony, and the leader of the Tibetans. Tibet: The way ahead Tibet had a unique system where political, religious traditions and the institutions of the Dalai Lama, Panchen Lama and Karmapa revolved around the institution of the Dalai Lama. The Tibetans deeply believe in reincarnation of these Lamas, which has also been recognized by the Chinese government in 1951 agreement. In the matter of selection of the next generation ‘Lama’, Dalai Lama’s consent is considered as the final approval. The controversy over the selection of the 11th Panchen Lama has not yet been removed. The whereabouts of the 11th Panchen Lama selected by the Dalai Lama are not known and the Chinese authorities have installed another Panchen Lama. The 17th Karmapa whose selection was vetted by both the Dalai Lama and the Chinese authorities also fled to India in 2000. The traditional institution of ‘Lamas’ is currently under severe pressure and thus the faith and belief of the Tibetans. It is also very difficult for China to accept full autonomy to Tibet as demanded by the Dalai Lama as it may lead to similar demands in Xinjiang and Inner Mangolia autonomous regions. It would also weaken the hold of the central government on the local governments as well as jeopardize China’s position on Taiwan issue. Thus there is a huge gap in the positions of the two parties, which makes it difficult to arrive at a solution on the terms near to the proposed by the Dalai Lama.. It has been reported in the media that the Chinese authorities would prefer to wait for the death of the 14th Dalai Lama than reaching any settlement with him. The Chinese authorities have been speculating about the health of the Dalai Lama as he was admitted in hospital on three occasions in as many years recently. In the eventuality of the death of the Dalai Lama, it is argued that Beijing may select the 15th Dalai Lama as in the case of the 11th Panchen

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11Lama and thus putting an end to the entire Tibet issue . China as a responsible power would still prefer to negotiate the resolution of the Tibet issue with the present Dalai Lama, which would enhance its position further among the international community and simultaneously help China control the situation in Xinjiang and present a trouble free ‘big family’ while negotiating unification of Taiwan with the mainland. It has succeeded in convincing the Dalai Lama and some leaders in Taiwan that a strong China and the Chinese identity would provide them a safe and prosperous future. Impact of India-China border issue on South Asia The issue of boundary demarcation between India and China together with the developments in Tibet not only affected the bilateral relationship but also completely changed the geopolitical situation of the entire South Asian region. The strained relations between China and the Soviet Union starting from 1957 on the one hand and the perceived Indo-Soviet closed relationship on the other compelled China to foster a strategic friendship with Pakistan based on common animosity towards India. There were no cultural, historical, political and ideological commonalities or mutual economic interests between the two to come closure. The urgency to set up strategic relationship was evident from the fact that the two governments concluded the boundary negotiations just in seventy five days. This agreement suddenly pushed the Sino-Pakistan relationship to a higher level. The defense cooperation and nuclear and missile technology support that followed in next four decades between two countries speak volume about the closeness of the relationship. The Chinese assistance to Pakistan in 1965 and 1971 Indo-Pakistan wars and support to Pakistan in past on Kashmir dispute are linked to China-India border dispute and Tibet issue. Further China’s defense cooperation with India’s neighbors like Bangla Desh and Myanmar and its support to insurgents in India’s north eastern region till 1970s, were cause of concern for India.

11 http://news.webindia123.com/news/showdetailsasp?id=9897&cat=asia

New approach to border settlement India and China have held fifteen rounds of talks at official level to resolve the border issue since mid 1980s with little progress. Clarification of the line of actual control has not been yet been completed. Only the maps in respect of the middle sector, which is least disputed, could be exchanged so far in about twenty years since the talks started. The change in international situation, globalization of economy and national aspirations of the people of the two countries compelled the two states to reassess the over all bilateral relationship in the new situation. After recognizing the security and economic imperatives of each others the two states decided to develop a cooperative relationship for mutual benefit in a realistic way. Under this new approach the two countries, in 2003, separated the issue of border demarcation from the question of overall development of bilateral relations and assigned it priority by appointing Special Representatives to explore the settlement from the political perspective of the overall bilateral relationship. The special representatives after holding several rounds of dialogues concluded an agreement on the ‘Parameters and Guiding Principles for the Settlement of the India-China Boundary Question’ in April 2005. This agreement provides that the two sides would abide by and implement the agreement on the maintenance of peace and tranquility along the Line of Actual Control in the India-China border areas, signed in 1993 and 1996 and seek a fair, reasonable and mutually acceptable solution of the boundary issue through peaceful and friendly consultations taking into account, inter alia, historical evidence, national sentiments, practical difficulties and reasonable concerns and sensitivities of both sides, and the actual state of border areas. Important aspect of the agreement is that in reaching a boundary settlement, the two sides shall safeguard due interests of their settled populations in the border areas, which implies that no population transfer would take place. At the same time India and China have affirmed that the two countries are not threat to each other and neither side shall use or threaten to use force against the other in an endeavor to create a better friendly environment.

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Promotion of bilateral relations Diplomatic relations between India and China remained suspended for fifteen years from 1961 till 1976 and hiatus was removed with the appointment of K. R. Narayanan as India’s ambassador to China. Following the visit of Foreign Minister Vajpayee to China in 1979, bilateral visits between the countries started taking place. But the real break through was made in 1988 with the visit of Indian Prime Minister, Rajiv Gandhi to China, first high level exchange since Zhou Enlai came to India in 1960 and first by an Indian Prime Minister since 1954. The leadership of India and China agreed to broaden bilateral ties in various areas, and work for achieving a mutually acceptable solution to the border dispute. Rajiv Gandhi signed bilateral agreements on science and technology cooperation, on civil aviation to establish direct air links, and on cultural exchanges. The two sides also agreed to set up a joint ministerial committee on economic and scientific cooperation and a joint working group on the boundary issue. The regular exchange of visits at higher level during next over fifteen years has strengthened mutual trust between the two countries and broadened bilateral relations. The priority of India and China has remarkably shifted towards building political relationship and strengthening economic cooperation for mutual benefit and create an environment of peace in the region as well as in the rest of the world. In the recent years focus has moved to exploring the potential and complementarities for cooperation. The ‘Declaration on Principles for Relations and Comprehensive Cooperation between India and China’ signed in 2003 was the first ever such document signed by the leaders of the two countries to promote bilateral cooperation. It institutionalized the meetings between the leaders of the two countries at regular intervals starting with the meetings of the foreign ministers on annual basis to give boost to the relationship and review the progress. In last two years alone, China and India have signed about two dozen agreements to cooperate in various fields like trade, CBMs, security, border issue, science and technology, financial services, air services, energy security

etc. India and China have agreed to cooperate at multilateral international forums like UNO, World Bank, WTO etc. China has also acknowledged and supported India’s aspiration to play an active role in the UN and international affairs. At regional level India and China are members of ASEAN group, SCO and India-China-Russia foreign Ministers’ forum. China, India and Russia have been regularly holding consultations at foreign ministers level for the last four years and exchanging views on key global developments in the 21st century and favor the democratization of international relations aimed at building a just world order based on the observance of international law, equity, mutual respect, cooperation and progress towards multipolarity. They agreed to support reforms of UN, including of UNSC, so that the UN becomes more reflective of contemporary global realities and more effective in discharging its functions and to cooperate in trilateral format in combating new threats and challenges. The three countries are now working on the prospects for economic cooperation in the trilateral format12. Last few years have witnessed cooperation in conventional and non-conventional security fields between the two countries. They have held dialogues on cooperation in security and fight against terrorism. The naval forces of the two countries held joint rescue and salvage exercise in 2004. The armies of the two countries have started inviting each other to observe military exercises.. Economic cooperation and bilateral trade The improvement in political relations between India and China coincides with the adoption of economic reforms and opening up policies by the two countries. The new friendly and cooperative environment has helped expand the bilateral trade and economic cooperation. The bilateral trade, which was only a few hundred million dollar in early 1990s developed very rapidly and

12 http://www.meaindia.nic.in/speech/2005/06/02js01.htm

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reached US$ 13.6 billion in 2004 with a consistent growth of over 20% since 1992, except in 1998 and 1999 when it was less then 5% (table-1 and 2) and in 2004, India became the 12th largest trading partner of China. Table-1

India-China Bilateral Trade Volume

0.34 0.68 0.89 1.16 1.41 1.83 1.92 1.992.91

3.6

4.95

7.6

13.6

0

2

4

6

8

10

12

14

16

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

US

$ B

illio

n

Source: China Customs Statistics

Table-2 Pattern and rate of Bilateral Trade growth( 1992-2004)

Year Indian Imports Indian Exports Trade balance Trade Volume1992 158.44 180.1 +21.66 338.54 Growth 9.6% 49.6% 27.8% 1993 259.16 416.57 +157.41 675.73 Growth 63.5% 131.3% 99.6% 1994 573.00 322.00 -251.00 894.00 Growth 121% -22.75% 32% 1995 765.00 398.00 -367.00 1,162.00 Growth 34% 24% 29.9% 1996 689.54 719.16 +29.62 1,406.00 Growth -10.1% 80.9% 20.9% 1997 933.06 897.26 -35.8 1,830.32 Growth 36% 24.7% 30.2% 1998 1,016.59 905.70 -110.89 1,922.30 Growth 8.9% 0.9% 5% 1999 1161.890 825.792 -336.098 1,987.68 Growth 14.3% -8.8% 3.4% 2000 1569.465 1350.414 -219.051 2,914.223 Growth 34.3 % 63.9 % 46.6 % 2001 1896.268 1,699.966 -196.302 3,596.234 Growth 21.5 % 25.6 % 23.4 % 2002 2671.728 2274.180 -397.548 4945.908 Growth 40.8% 33.7% 37.5% 2003 3344.993 4252.802 +908 (appx) 7597.79 Growth 25.1% 86.9% 53.6% 2004 5927 7677 +1750 13604.1 Growth 77.3% 80.6% 79.1%

Data source: China Customs Statistics

Tibet: India-China Relations in 21st Century 75

In the first quarter of 2005, the China-India bilateral trade has already crossed US$ 4.4 billion and if the trend continues it would reach US$ 18 billion by the end of this year. During the recent visit of Chinese Premier, Wen Jiabao in April 2005 to India, the two countries had fixed target of bilateral trade of US$ 20 billion by 2008 and US$ 30 billion by 2010. It seems both the targets would be achieved well before the time, if the present trend continues. The cooperation has also expanded to many sectors like information technology, investment, finance, services etc. As the two fastest developing economies, India and China offer many complementarities for mutual benefit, but the true potential of bilateral cooperation is yet to be explored and realized. The increased bilateral trade would raise the stakes that would help containing the differences and building trust.. Border trade The regular border trade between the two countries joined by a common landmass, particularly countries of the continental sizes like India and China, indicates respect for the sensitivities of each other. The border trade between India and China had completely stopped after the border conflict in 1962. It was resumed on a very limited scale after the agreements of 1991 and 1992 through Lepulekh (Uttranchal) and Shipkila (Himachal Pradesh) passes. These two passes are located in remote mountain areas and remain open only for few months. In the absence of infrastructure facilities like motorable roads, the volume of the trade is insignificant, less than four million US dollar per annum. The Chinese government is extremely interested to start new trade routes to open up Tibet to south Asia and give impetus to the development of its land locked southwest region. Tibet region of China needs not only economic development but also an outlet to India and Indian Ocean like eastern provinces. Therefore, the agreement signed in 2003 to conduct border trade through Nathula pass is very significant. First it was a traditional trading route which can be converted into a container route and is nearest to Lhasa and also to the Indian port city of Kolkata. Second, this route falls in Sikkim state of India which China had not recognized as a part of India since 1975 when it was merged into Indian union. China has recognized Sikkim as a state

of India in 2005 when Chinese premier Wen Jiabao presented a revised map with Sikkim as part of India to the Indian Prime Minister. The trade through this route is likely to start from mid 2006. The opening of this trade route would impact tremendously on the political and economic situation in this region. China, as regional economic power, would like to maximize the benefit of the border trade with all its neighbors, which will ensure peace, stability and development. This initiative can be a major confidence building measure in future. The 1726 km long Stilwell road, which was constructed in 1945 during the World War II for supplies from Ledo (India) to Kunming via Myanmar, remained in use only briefly till Japan surrendered. Two four-inch oil pipe lines were also laid along this road from Assam. 61 km long stretch of this road lies in India, 1,033 km in Myanmar and 632 km in China. At present, trade between Yunnan and India has to follow a convoluted route from Kunming to Zhanjiang port in Guangdong Province, then to be loaded onto ships bound for the Malacca Straits and India - a total of 6,000 km. The opening of this road has the potential to generate tremendous business opportunities13. Negotiations on opening of this trade route are still in the initial stages at non governmental level. Conclusion The Tibet issue has not yet been fully resolved even after 55 years of Chinese rule, though all the countries of the world have recognized China’s sovereignty over Tibet. China aware of its rising power and responsibilities has adopted a more pragmatic approach to resolve the Tibet issue through dialogue with the Dalai Lama and simultaneously pushing economic development in Tibet. The new realities of the rising political, economic and military strength and international influence of China and the economic progress in Tibet in recent years have also convinced the Dalai Lama that the future of Tibet and Tibetans is best guaranteed under the People’s Republic of

13 People’s Daily June 15, 2005; www.chinaembasy.org.cn april 13, 2005

Tibet: India-China Relations in 21st Century 77

China and struggle for independence would not succeed. The environment has never been so favorable and conducive to negotiate a settlement of Tibet issue between China and the Dalai Lama as it is today as the former is demonstrating to the world and Chinese people its responsible power status and the latter keen to reach an honorable and mutually acceptable solution during his life time. Any resolution of the Tibet issue would deeply impact on Chinese domestic situation and cross-strait relations and regional peace, security and development. The recent endeavors of the governments of India and China to delink the border issue from the over all requirement of development of bilateral relationship recognizing sensitivities and national security imperatives of each other, have helped both countries to concentrate on economic development in an environment of peace in the region. Regular interactions between the leaders at the highest level and conclusion of a series of agreements for cooperation in various areas have immensely benefited both countries. The multilateral cooperation between the two countries in recent years would go a long way in strengthening bilateral relations. In the age of globalization India and China as fastest developing economies can not ignore vast market of each other, but at the same time intense demand for raw materials, search for market and changing geopolitical situation in the region could lead to competition and rivalry in many areas, which can not be avoided. The readjustment in regional policies by the two countries, particularly in last about one decade, has already given way to new expectations in the region that India and China would be the engine of growth and promote peace and prosperity in Asia and the world for the next several decades in 21st century.