BILBAO, Spain, April 15 (AFP) - The Dalai Lama is ready to negotiate Tibet's future as soon as China gives a "starting signal," the Tibetan spiritual leader said at a press conference here on Tuesday.

Negotiations could take place anywhere and with no preconditions, he said at the conference in Bilbao in northern Spain.

Following remarks by Chinese foreign ministry spokesman Shen Guofang, the Dalai Lama repeated that he was not demanding Tibetan independence, despite Chinese views to the contrary.

"The Chinese government is very distrustful and thinks everything is a separatist movement," he said.

Earlier Tuesday Shen commented: "We know that the Dalai Lama often says during his trips overseas that his objective is not Tibetan independence, but he has never made such a statement through the communications channel open with us."

The Tibetan leader refuted the claims. "I am not demanding Tibetan independence. I am asking for autonomy because it would be beneficial to be part of a large nation," he said.

He repeated his proposition to turn Tibet into an "area of peace" in collaboration with India and Nepal. China would organise defence and external politics while internal affairs would be run by Tibetans.

The Dalai Lama arrived in the Basque region on Monday after visiting Barcelona. He met with Archbishop of Bilbao Cardinal Ricardo Blazquez and regional authorities.

President of the Biscay provincial authority Josu Bergara called the Dalai Lama the "Ghandi of our time." His visit is a "ray of light in a society filled with violence and hate."

The 1989 Nobel Peace Prize winner will travel to France on Wednesday before going on to the United States.

China issued a warning to Spain, France and the United States that they should keep pledges to have no official contacts with the Tibetan spiritual leader.

"We hope that .. western countries will respect their commitments on the issue of Tibet," said Shen.