The agreement was signed during a visit by Indian Foreign Minister S.M. Krishna, who has met with both his Chinese counterpart Yang Jiechi and Premier Wen Jiabao. He was also due to hold talks with President Hu Jintao.

"This was the only agreement that we signed ... it's part of our mutual confidence-building measures," the Indian foreign ministry official, who asked not to be named, told AFP.

"There are many issues between us on which it is good to stay in contact. The two sides agree on that."

Krishna's visit coincides with the 60th anniversary of the establishment of diplomatic relations between the two nations.

The two sides were expected to review negotiations over a long-simmering border row as well as trade issues, including India's 15.8-billion-dollar trade deficit with China, Indian officials said in New Delhi ahead of the visit.

Bilateral trade stood at 43 billion dollars in 2009 and is expected to reach 60 billion dollars in 2010.

India and China have held several rounds of talks to resolve the border issue, which triggered a brief but bloody war in 1962.

"We are willing to increase mutual trust with the Indian side to properly handle the border issue and strengthen cooperation and consultations both bilaterally and in the global arena," Chinese state radio quoted Wen as saying.

Krishna was also expected to reiterate India's objections to Beijing's practice of issuing special Chinese visas for residents of Indian-administered Kashmir, which is viewed by China as disputed territory.

For the past several months, Kashmiris applying to the Chinese embassy in New Delhi have received visas issued on loose sheets of paper and stapled -- rather than stamped -- into their passports.

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