Harbin, Oct 26 : India and China have decided to set up a working group to prepare the framework arrangement to resolve the longstanding border dispute, External Affairs Minister Pranab Mukherjee said today.

He said that the 11th round of talks between the Special Representatives of India and China decided to set up the working group.

"We have discussed it at the 11th round of special representatives meeting that took place. It was successful and they have decided to set up a working group to prepare one framework arrangement. Let us wait for the recommendation of the working group," said Mukherjee after a 50-minute meeting with his Chinese counterpart Yang Jiechi.

The two sides have held several rounds of talks over their border dispute, but have been unable to report progress, even though bilateral ties have improved on the back of strong business links.

New Delhi and Beijing have differences over three main stretches of the Himalayan frontier in the east, central and western parts, with the latter not recognising the entire state of Arunachal Pradesh on the eastern stretch as Indian territory.

The 11th round of the Special Representative-level talks on India-China boundary question was held in Beijing from 24th-26th September.

The Special Representatives of the two countries, National Security Adviser M.K. Narayanan and Vice Foreign Minister Dai Bingguo, held the discussions on the framework for the settlement of the India-China boundary issues.

Mukherjee further said that India would hold joint military exercises to counter terrorism. He also suggested conducting joint naval exercises with China.

Sonia Gandhi and Prime Minister Manmohan Singh’s forthcoming visits to China also figured in the bilateral meeting.

Both sides expressed satisfaction on the growing trade between them. The total trade between India and China has reached 30 billion dollars.

After the European Union and the US, China has become the third largest trading partner of India.   

Pranab and Yang Jiechi also discussed the issue on Myanmar's violent crackdown last month.

"We have shared our views and we have a commonality of the approach and let the process which began in Myanmar for political reforms and national reconciliation, let it be taken to its logical conclusion," said Mukherjee.

India shares a 1,645-km border on its east with Myanmar. (ANI)