(ADDS meeting with McKinnon, protest in Beijing, background)

WELLINGTON, Sept 11 (AFP) - New Zealand Prime Minister Jim Bolger on Wednesday met exiled Tibetan leader the Dalai Lama, ignoring warnings from China that it could damage relations.

"Welcome back to New Zealand. It's nice to have you in my country again," Bolger told the Dalai Lama outside his office.

The New Zealand government has insisted the Dalai Lama is an international religious leader, and that Bolger is meeting him in that capacity.

The meeting in Bolger's office lasted 30 minutes and neither side made any comment afterwards. A spokeswoman for Bolger would only say the discussions were "wide ranging."

The spokeswoman said the Dalai Lama was not a guest of the government and his visit was private. Bolger met the Dalai Lama in 1992, when the Tibetan leader was last in New Zealand.

But a Chinese foreign ministry spokesman in Beijing issued another warning over the visit, which began Tuesday.

"We hope the New Zealand government will strictly abide by the obligations of the principle of 'one China' and take measures to correct its wrongdoing so as not to bring unneccessary interference to Sino-New Zealand relations," he said.

The New Zealand Ambassador in Beijing Chris Elder said he had also been called in by the Chinese foreign ministry at the end of last month to hear a protest over the Dalai Lama's visit.

"They expressed their usual concerns that while the prime minister was receiving the Dalai Lama as a spiritual leader, the meeting would carry political overtones," Elder said.

The Dalai Lama also met Foreign Minister Don McKinnon, who was asked whether he was concerned about the Chinese government's reaction.

"We can only see what the Chinese reaction is but it's not my worry," McKinnon said.

McKinnon told reporters he would continue to raise Tibetan concerns with the Chinese government, as he had on previous occasions.

The Dalai Lama later held a press conference, where he said the majority of the Tibetan people had lost faith and trust in the Chinese Government.

"I offer China the middle course of self rule," he said, explaining that China could retain control of foreign affairs and defence but leave the Tibetan people to elect a democratic government to run their country.

Tibet was occupied by Chinese troops in 1951. The Dalai Lama fled Tibet to India in 1959 following an abortive uprising.

The Chinese embassy in Wellington already issued a statement Tuesday saying Tibet was "an inalienable part of Chinese territory and the Tibet issue is solely China's internal affair."

It described the Dalai Lama as "a political exile who engages in political activities aimed at disrupting national unity."

The Dalai Lama is due to visit Christchurch and Dunedin before leaving New Zealand for Australia on Saturday.

China last week also issued a strongly-worded warning to Canberra against meeting the spiritual leader.

"Political and economic relations between China and Australia have made great progress. In such circumstances, Australia should not interfere in China's internal affairs," foreign ministry spokesman Shen Guofang said.