BEIJING: Even as India and China are in the process of massive military modernisation, Defence Minister Pranab Mukherjee and his Chinese counterpart, General Cao Gangchuan, on Monday signed the first-ever memorandum of understanding (MoU) between the Defence Ministries of the two countries.

The MoU calls for institutionalising the frequent exchanges between the officials of the Ministries and the armed forces, in addition to developing an annual calendar for joint exercises and training programmes.

In recent years, the two countries had conducted joint naval manoeuvres but the interaction between the ground forces has been limited to border meetings and mountaineering expeditions. There has been no contact between the Air Forces.

To strengthen contacts

The MoU said: "The two sides reiterate that strengthening effective contacts in the field of defence is of vital importance to enhancing mutual trust and understanding between the armed forces and ensuring a peaceful environment in which they can pursue their respective national development objectives."

Commenting on the significance of the MoU, Mr. Mukherjee said it was an important beginning that would provide the basis for further expansion of cooperation.

A big event

Mr. Mukerjee's talks with General Cao lasted several hours and touched upon the full range of defence-related issues.

"Your visit is a big event in the exchanges and cooperation between the militaries and also an important event in the China-India Friendship Year," General Cao said in his initial comments.

Earlier in the day, Mr. Mukherjee met Li Zhaoxing, China's Foreign Minister. Mr. Mukherjee told Mr. Li that the "complex" problems in the bilateral ties could be resolved through dialogues and mutual understanding.

Asked if India had sought China's support as a member of the Nuclear Suppliers Group for the Indo-U.S. civilian nuclear pact, Mr. Mukherjee said: "Let us see, things are developing slowly." He said no direct mention had been made of India's concerns regarding China's continued military and nuclear support to Pakistan.

Mr. Mukherjee visited the Beijing Aerospace Command and Control Centre, which has been in the limelight for the launch of the Shenzhou 5-6 manned space aircraft. He said he was "impressed" and that "China has made much progress" in the field.

To meet Wen Jiabao

Mr. Mukherjee will call on Chinese Premier Wen Jiabao on Wednesday before visiting the Lanzhou Military Command area in the northwestern Gansu province.

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