The exiled Tibetan spiritual leader, the Dalai Lama, has said his relationship with China is improving and it may soon be possible to build some degree of mutual trust between them.

At a meeting of Nober Peace Prize winners in the United States, the Dalai Lama said he would accept chinese control of Tibet's foreign affairs and defence in exchange for domestic autonomy.

He is reported to be drafting a statement that could pave the way for talks with the chinese leadership.

The government wants him to acknowledge that Tibet and Taiwan are part of China.