Co-operation against terrorism provides 'vast potential to rearrange' the relationship between China and India, Indian Defence Minister George Fernandes said yesterday. 'Terrorism and the support to it from certain regimes is the cancer that is to be contained at the regional and global level,' Mr Fernandes said. 'The Sino-Indian relationship is to be rearranged in this altered context.' He was alluding to the threat of Islamic terrorism from Pakistan while making a plea for recasting Sino-Indian relations in the wake of the September 11 attacks. In his address at the final session of a conference on Asian security and China, Mr Fernandes appealed to the Chinese leadership to be more responsive to New Delhi's regional concerns. He refrained from any direct mention of India's longstanding complaint that China helped Pakistan develop nuclear weapons and missiles targeted at India. 'As the bigger power, we expect that China will discharge its responsibility and accommodate our interests, and reciprocate the spirit in which we are conscious of Beijing's sensitivity on certain issues,' Mr Fernandes said. With several delegates from China participating for the first time in the government-sponsored security conference in the Indian capital, the issue of Pakistan's acquisition of nuclear and missile technology provoked an animated exchange between Indian and American participants on the one side and the Chinese on the other. Mr Fernandes, referring to the exchange, said: 'I gather some heat was generated. But where there is heat there will also be light.' Fang Jinying, of the China Institute of Contemporary International Relations, said: 'The conference provided us with an opportunity to know Indian concerns.' Mr Fernandes, who labelled China as 'enemy No 1' after India's nuclear tests in May 1998, said his statements in the past only reflected public perceptions in India. He added that any perceptions of him as a 'China-baiter' were erroneous.