During the visit of China's Premier in April last year it was decided to take bilateral ties to a new high by marking 2006 as Friendship Year.

"There is likelihood of definite progress on the boundary dispute before Jintao arrives. Indian National Security Advisor M K Narayanan would meet his counterpart later this month, "said an Indian foreign office spokesman.

He said they would work out a package deal that would take care of the sensitivities of both countries. He said they would also not get bogged down by details of how much to give and take.

"The guiding principles for resolving the problem were outlined during Wen's visit, when a joint statement outlined the establishment of an India-China Strategic and Cooperative Partnership and Prosperity, "said the official.

The Indian President A P J Abdul Kalam and the Prime Minister Manmohan Singh exchanged new year greetings with their Chinese counterparts Sunday to mark the launch of friendship year that would see political progress as well as huge out pouring of cultural, tourism and business possibilities.

"We are confident...We will be able to continue to impart further depth and substance to rapidly growing ties, "said a Chinese diplomat.

He said India-China friendship not only serves the fundamental interests of the two countries and people but also contributes to peace, stability and development in the Asia and the world.

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