Gangtok, June 24: The Pawan Chamling government today welcomed the historic pact between India and China to reopen the old trade route from Tibet, saying it would bring prosperity to the Himalayan state.

In a statement, the chief minister said he was “satisfied” that one of his government’s long-pending demand was accepted.

Chamling said the pact would result in several “advantages” for Sikkim, which would be the focal point for trade and commerce from and to Tibet via Nathu-la.

“The decision will not only benefit both countries with regard to trade, but would help develop the relations between India and China,” the Sikkim Democratic Front leader said.

He said the minister said the reopening would boost tourism and increase the commercial and export-oriented activities in this region.

B.B.Gooroong, political adviser to the chief minister, said the pact would not only remove “a long-standing irritant” in Sino-India relations, but also “dramatically” raise the political comfort in New Delhi.”

“More important, the Chinese decision to trade through Sikkim will give a major boost to the Himalayan region with renewed trade activities,” Gooroong said. The Confederation of Indian Industry (CII) also welcomed the landmark pact.

“It’s sure to go down in history as a milestone in developing bilateral ties between the neighbouring countries,” CII president Anand Mahindra, part of an industry delegation in Beijing, said.

Responding to media reports that China had implicitly recognised Sikkim as part of India, the Chinese government today said the “Sikkim issue” couldn’t be resolved “overnight.”

Chinese foreign ministry spokesman Kong Quan, speaking to reporters in Beijing, today described Sikkim as “an enduring issue left over from history.”

Chamling lauded Prime Minister Atal Bihari Vajpayee for taking the initiative to reopen the route.

He said Sikkim would benefit enormously from the resultant economic growth once the routes were opened. “It would generate employment and provide local people with business opportunities,” he said.

“Sikkim should now be prepared to meet the challenges of increased commercial activities after the route is reopened,” he said.

Members of the family of traders, who once carried on trade through the silk route, preferred to “wait and watch”. One of them, requesting anonymity, said there were still not very clear about what the agreement entailed. “We can only tell you our reaction after a few days, he said.

The Sikkim Hotels and Restaurant Association (SHRA), however, was “overjoyed” at the agreement.

SHRA general secretary S. T. Wangdi said they now hoped that the pilgrimage route to Kailash and Mansarovar would also be opened, boosting tourism.

Though the agreement was signed essentially to open the trade, the association said it was the “closest and easiest” route to the holy places.