India hopeful of resolving border row with China

India's National Security Adviser M.K. Narayanan and Dai Bingguo, China's executive vice foreign minister, met in the southern state of Kerala on the dispute, which led to a brief war in 1962.

"Both sides are optimistic about reaching a decision," Narayanan was quoted as saying by the Press Trust of India, adding that discussions in New Delhi on the first day were "very good".

Dai also reported progress. "We are working together and making progress continuously," he told reporters.

The two governments in June 2003 appointed special representatives to address the border issue. The last round of talks was held in China in September.