NAGARLAGUN, India, Dec 15 (AFP) - The Dalai Lama has said he was ready for peace talks with China if it could result in "genuine self-rule and autonomy" for Tibet.

The Tibetan spiritual leader said in this small north-eastern town 200 kilometers (125 miles) from the Tibetan border that he was not insisting on independence for his homeland now occupied by China.

"I am prepared to compromise on the demand for independence by joining China if greater autonomy and right to self rule is provided by Beijing for Tibetans," he told AFP late Saturday.

He said his government-in-exile, located in the Indian hill town of Dharamsala, was "ready for direct talks with the Chinese government without any preconditions.

"I am ready to discuss with the Chinese government any time, anywhere without any precondition," he said.

The Dalai Lama arrived in India's Arunachal Pradesh state, which shares a border with Tibet, on December 11 for a week-long trip to meet the scores of Tibetan refugees settled here.

The Dalai Lama entered India through Arunachal Pradesh in 1959 when he fled his homeland after a failed anti-Chinese uprising before he shifted to Dharamsala, in the country's north.

"Although historically we are a separate nation, I believe the six million Tibetans may get greater benefit if we join a big nation like China.

"What I am trying to regain is genuine autonomy for Tibet. Let the Chinese government retain defence and foreign affairs and leave the rest to us," he said.

He said he "shall enter into meaningful discussions as soon as I get a positive indication (from the Chinese government)."

The Dalai Lama urged India, which is also home to more than 100,000 Tibetan refugees, to improve its relations with China, with which it fought a brief but bitter war in 1962.

"Better Sino-Indian relationship is very important for world peace and for Tibet," he said. "In the long run, good Sino-Indian relations will be a very positive factor for solving the Tibetan issue."

The Dalai Lama urged New Delhi to act as mediator to help solve the Tibetan issue.

India considers Tibet an "autonomous region" of China and came down heavily on freedom-seeking Tibetans who took to the streets in New Delhi a fortnight ago during a visit by Chinese President Jiang Zemin.

The Dalai Lama said China's attitude towards Tibet had hardened in the past two or three years.

"The Chinese repressive attitude has worsened the living conditions in Tibet," he said. "But despite that I am prepared to talk and find a solution.

"In recent times, we have been getting sympathy not only from the international community but from Chinese intellectuals also. We are getting their sympathy and support."

The Dalai Lama addressed hundreds of Tibetan Buddhists at a monastery perched atop a hill in Itanagar, capital of Arunachal Pradesh, last week. He visited Tibetan settlements in the state.