NEW DELHI, India (AP) -- In a sign of warming relations between India and China, the two nations have agreed to reduce the number of troops along their disputed border, the site of a 1962 war.

The countries also agreed not to launch military attacks against each other and not to cross into the other's territory. It is hoped that the confidence-building measures will help avoid another war between Asia's two largest armies.

The agreement, signed Friday during President Jiang Zemin's three-day visit to India, was designed to transform the border into a "band of friendship," said Chinese Foreign Ministry spokesman Shen Guofang.

"I don't think there is a need for many troops in the area," Shen said through an interpreter. The size and timetable of the cuts were not specified.

India maintains 154,000 troops on the border, and China is believed to have as many or more.

The foreign ministers signed the military and cooperation agreements after 90 minutes of talks led by Jiang and Indian Prime Minister H.D. Deve Gowda. Jiang's visit was the first visit to India by a Chinese head of state.

During the talks, Gowda expressed concern at the flow of advanced weapons to Pakistan, India's enemy, although he did not specifically blame China for arming Pakistan.

"China did not and will not transfer nuclear weapon technology to any country," Shen said. He acknowledged that China was helping Pakistan develop peaceful uses for nuclear energy, however.

The Tibetan issue is also a sticking point. Although successive Indian governments have recognized Chinese sovereignty over Tibet, many Indians support the exiled Tibetan leader, the Dalai Lama, in his independence campaign.

On Friday, a small group of Tibetans shouted slogans at the Chinese leader as he was heading to the grave of Indian independence leader Mohandas K. Gandhi. The Dalai Lama on Thursday said he welcomed Jiang's visit to India and expressed hope to meet him.

In an interview published today, Jiang suggested that India and China should better coordinate their economies to avoid duplicating exports and to increase last year's $1.1 billion in trade between the two nations.

In a separate accord Friday, China agreed to let India keep a diplomatic mission in Hong Kong after China takes over the territory in 1997.