China proposes highway to India NEW DELHI, June 5 (Reuters) - China has proposed building a highway to India to build trade and tourism, India's Minister of Heavy Industries and Public Enterprises said on Monday. "The Chinese want the signing of an agreement for constructing a highway running through China, Myanmar and India," Manohar Joshi told a news conference. "Tourism and trade cannot develop without such a link, the Chinese feel."
Joshi was speaking after returning from a six-day visit to China as part of President K.R. Narayanan's delegation to India's northern neighbour.
Trade between India and China currently totals $2 billion a year, but officials feel that these levels do not do justice to the enormous economic potential of the two Asian giants.
Joshi said Chinese officials also suggested starting direct flights between China and India to build tourism.
"A memorandum of understanding for commercial air services between China and India signed in 1997 already exists. This, however, never began owing to uncertain commercial viability," the minister said.
President Narayanan, in his speech, proposed the setting up of a joint committee to study this and other proposals, which Chinese President Jiang Zemin accepted, Joshi said.
The committee could also study the route for the proposed highway, the minister said.
China had expressed interest in Indian machinery, automobile components, software, gems and jewellery, marine products, chemicals and herbs, Joshi said.
India, in turn, could import coal, pre-fabricated housing and technology, electronic components, silk processing technology, ceramics and underground mining equipment, he said.
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