The barbed wire that separated China and India was dismantled as the two most populous nations opened a Himalayan border pass to trade yesterday 44 years after a brief border war shut what used to be part of the ancient Silk Road.

As local music from both sides of the border played through the chilly mist, Indians and Tibetans in traditional costumes joined the festive atmosphere, crossing over to talk and share bread, sweets and tea.

Scores of businessmen queued to complete formalities before crossing the border post at the 4,545-metre-high Nathu La pass to visit newly built markets on either side after the formal opening ceremony. The pass is wedged between Yadong County of Tibet's Xigaze Prefecture and India's Sikkim state. Two border trade markets were set up, one in Yadong and the other in Sikkim.

China views the pass as more than just a symbol, said Sun Yuxi, Chinese ambassador to New Delhi. "It is not just symbolic, we mean business," Sun said before crossing over the border into China.

Pawan Chamling, chief minister of Sikkim state, said: "Today is a historic day. A contact that started centuries back between our two civilizations is being re-established. The formal reopening of this trade route is a win-win situation."

Chamling and Chairman of Tibet Autonomous Region Champa Phuntsok cut a red ribbon to open the pass to the cheers of the gathered dignitaries, soldiers and traders from both sides. "The opening of the border pass marks the beginning of a new era in Sino-Indian relations," Phuntsok said.

Losang, a 53-year-old Tibetan businessman who sells incense and snacks, said: "Now at last, the border trade market is open again."

Experts say the reopening of Nathu La Pass and last Saturday's launch of the Qinghai-Tibet Railway will help pave a new Silk Road and build regional harmony and prosperity.

China and India recorded US$18.73 billion of trade in 2005, up 37.5 per cent year-on-year, according to the Ministry of Commerce. The figure is expected to reach US$20 billion this year.

Currently 90 per cent of the goods are shipped by sea. With Nathu La Pass opened, it is only 1,200 kilometres by land from Lhasa, the capital of Tibet, to Kolkata, the biggest city in eastern India.

"This will help shape a major land trade route linking China and South Asia," said Liu Jiangyong, an international studies specialist at Beijing-based Tsinghua University.

Trade through Nathu La Pass used to account for 80 per cent of the total border trade volume between China and India in the first half of the 1900s.

While trade through Nathu La will be duty-free, Indian exports are limited for now to an approved 29 commodities, mostly food items.

Chinese traders are restricted to bringing in 15 types of goods, including goat skins, wool and herbs.

Source: China Daily