An Indian Army personnel guarding the Indian post at Indo-China border area in Bumla, Arunachal Pradesh, a 15,500-ft high mountain pass on the Mcmahon Line (marked with white stones), a distance of about 47 km from Tawang

NEW DELHI: India will study a suggestion put forward by China for a draft framework to resolve their protracted boundary dispute — the most contentious issue in bilateral ties between the two countries.

The two Asian giants also agreed to formulate a new set of code of conduct to maintain peace along the Line of Actual Control (LAC) at special representative talks on the boundary issue held here on Saturday, persons familiar with the issue told ET.

The two sides have also agreed to set up a hotline between the Indian Army and China's People’s Liberation Army to avert occasional flash-points along the de facto borders termed as LAC.

China has put forward “a practical framework for solving the boundary question” and India has “attached importance” to it, a press release issued by Chinese foreign ministry said, quoting its foreign minister Wang Yi who met with Vice President Venkaiah Naidu here on Saturday.

Beijing claimed that the framework it presented to New Delhi was in accordance with the ‘Political Parameters and Guiding Principles for Settlement of Boundary Question’ the two sides had agreed on in 2005.

Both sides should also advance consultations that can yield early results, promote mutual trust and enhance cooperation in the border areas so as to jointly safeguard peace and tranquillity in the border areas, Wang said at the bilateral talks, according to the release.

Wang also suggested that the two countries should further strengthen communication and coordination, and jointly safeguard multilateralism, fairness and justice.

The two sides have reached consensus on confidence building measures and cooperation in border areas, the press release said quoting Wang.

It said the two sides “exchanged views on the early harvest of the boundary negotiations” at Saturday’s meet. China has for long been pushing for a ‘piecemeal’ approach to settle the border dispute, beginning by clinching an “early harvest” deal on the less disputed stretches of the boundary in the middle sector, before moving to settle the more contentious eastern and western sectors.

India has been resisting the proposal for a piecemeal approach. India would prefer “a complete package deal” covering the entire length of its boundary, person familiar with developments told ET.

China had accused India of unilaterally changing the status quo along the disputed boundary with its August 5 move to strip Jammu and Kashmir of its special status and reorganise the state into two Union Territories.

However, the Narendra Modi government clarified that the change of Ladakh’s status into UT has no impact on status of LAC.

Beijing had even sought to internationalise the issue by seeking to raise it at closed door UN Security Council (UNSC) session. The attempt was thwarted by other key members of UNSC.