New Delhi: India and China on Friday agreed to enhance defence exchanges and communications for better understanding and mutual trust during the fourth round of Annual Defence Dialogue (ADD) held here after a tumultuous two years for military ties.

Both sides agreed to strictly adhere to the provisions of 2005 Protocol for implementation of Confidence Building Measures (CBMs) on the Line of Actual Control (LAC) to maintain peace and tranquility in the border areas.

"India made some suggestions to China in this regard which the Chinese side agreed to consider," Ministry officials said.

Agreeing to enhance the range and scope of exchanges at various levels, China would be sending a military delegation to New Delhi by the end of this month, which will be reciprocated by India in January 2012, a Defence Ministry spokesperson said here.

During the three-hour-long talks, the six-member Chinese delegation led by their Deputy Chief of General Staff General Ma Xiaotian and Defence Secretary Shashikant Sharma discussed a wide range of issues concerning both the nations.

After the talks, the Chinese delegation met Defence Minister AK Antony who expressed satisfaction over the positive and constructive discussions between both the sides, and said, "Both sides should work towards increasing mutual trust and confidence as this was for benefit of both the countries," he said.

Extending an invitation to Chinese Defence Minister to visit India at a mutually convenient time, Antony hoped that the high level exchanges between the defence establishments of both sides would further nurture the process of dialogue.

The talks were held in a free and frank atmosphere with both the sides admitting difficulties on their part. They agreed that enhancement of defence exchanges between their armed forces would contribute to better understanding, mutual trust and confidence building, the spokesperson said.

"Both sides discussed the programme of defence exchanges during 2012 and agreed that the range and scope of exchanges at various levels would be gradually enhanced," the spokesperson said.

On holding the fourth round of joint military exercise between the two armies, he said the decision would be taken during the future meetings by the two sides.

During the talks, the two sides noted the strengthening of institutional mechanism for border discussions, which is expected to be operationalised soon.

Observing that the existing confidence building measures on the LAC were successful in maintaining peace and tranquility on the borders, they decided to continue implementing such measures.

The Chinese side also called on the Chairman, Chiefs of Staff Committee and Navy Chief Admiral Nirmal Verma.

The ADD was established under the provisions of the MOU for 'Exchanges and Cooperation in the field of Defence', signed between both the countries in May 2006.

The first annual dialogue was held in Beijing in November 2007, followed by the second and third one in India in December 2008 and in Beijing in January 2010, respectively.

New Delhi had suspended military exchanges with China in August 2010 after it had refused to grant permission to a senior Indian Army Commander to proceed on an official trip to Beijing.

As immediate fallout of the event, India refused to hold the third round of military exercise and had put all other military exchanges on hold. The first edition of the exercise had taken place in Kunming in China in 2007 and the second was held in Belgaum in 2008.

Signalling a thaw in ties, India had sent its first military delegation to Beijing in June this year. China also reciprocated by sending its military delegation under a Lieutenant General earlier in November.