Former Chinese leader and former president Jiang Zemin on Friday underlined the need for enhancing Sino-Indian bilateral ties, including military ones, which was in the 'fundamental interest' of the two nations.

During an hour-long meeting with visiting Defence Minister George Fernandes in Beijing, Jiang, who heads the Chinese People's Liberation Army, said the people of China and India enjoy long-term friendship and exchanges and cooperation between the two countries in all fields have showed good momentum in recent years.

Jiang recalled his friendly visit to India in 1996, during which the leaders of the two countries decided to develop a 21st century-oriented constructive and cooperative relationship, thus guiding the growth of bilateral ties in the new century.

Later, Fernandes addressing reporters said he was deeply satisfied with his first-ever visit to China, and the frank exchange of views he had with Jiang on matters of mutual concern and interest which would help in drawing a road map for future bilateral ties.

Fernandes also said that Jiang had extended his invitation to Prime Minister Atal Bihari Vajpayee to visit China later this year.

Jiang said south Asia was an important part of Asia and without its stability and development, there will be no peace and prosperity for the region.

"China is willing to maintain and develop good neighbourly and friendly relations with all South Asian countries," Jiang was quoted as saying by official Xinhua news agency.

Fernandes, who met a string of top Chinese political and military leaders during his visit, said the two sides had positive dialogues on all issues of mutual interest.

The Jiang-Fernandes meeting held at the state guesthouse lasted much longer than scheduled, giving a positive impetus to Sino-Indian relations, especially the military ties, a senior Chinese military official said.

Fernandes is scheduled to visit military facilities of the army and navy in Beijing on Saturday before winding up the trip.

The visit of Fernandes is considered 'significant' as he had antagonised the Chinese leadership as well as the PLA generals prior to and after the Indian nuclear tests in May, 1998.

During his stay in the Chinese capital, Fernandes called on Chinese Premier Wen Jiabao and had separate meetings with the Vice Chairman of the Central Military Commission General Guo Boxiong, Defence Minister General Cao Gangchuan and Foreign Minister Li Zhaoxing.

He also became the first Indian Defence Minister to address Chinese military strategists and top experts at the PLA's national Defence University in Beijing, where he explained the reasons for India nuclear programme.

Earlier report