The potential threat from China was greater than that from Pakistan and "any person who is concerned about India's security must agree with that fact," Fernandes said in an interview to Home TV.

The television channel in a press release quoted the defence minister as saying that India would exercise its nuclear option if the planned strategic review recommended it.

"If the review leads us to a point where it becomes obvious it is time now to exercise the nuclear option, then we will exercise it," he said.

Asked if he believed statements from across the border, including one from Pakistan prime minister Nawaz Sharif, that Pakistan had a bomb, Fernandes said, "at this point in time I am not convinced whether to say I believe him. I am still not convinced." On whether the security environment had deteriorated followingthe test firing of Ghauri ballistic missile by Pakistan last month, the defence minister said, "to a considerable extent it has deteriorated. If Ghauri should become operational, large parts of India will be within its striking range." On a question about Chinese military and naval activity around India, Fernandes said China has provided Pakistan with both missile as well as nuclear know-how. China, he said, has its nuclear weapons stockpiled in Tibet right along India's borders. "They are not directed only against India. I am sure they are directed elsewhere also."He said there had been a lot of "elongation" of military air fields in Tibet where the latest versions of Russian-made Sukhoi combat aircraft were going to be stationed. "And this happened in the last six months," he said. On the eastern frontier with Myanmar (Burma), he said the Chinese had trained and equipped the Burmese army.

"The Burmese army was 170,000 strong six years ago. Today it is 450,00 strong and by the turn of the century it willbe half-a-million strong. Burma's population is only 42 million," he said.

The defence minister maintained that China has established "massive electronic surveillance establishment" at Coco Islands, 40 kms from the northern tip of Andaman and Nicobar Islands.

"These are burmese territory. China has taken them on loan. Already there is massive electronic surveillance establishment which the Chinese have installed and which is monitoring everything in India. And there are moves to convert that into a major naval base which would be a direct threat to us," he said. Fernandes said that on the western coast of Myanmar, there was a lot of naval activity including construction of harbours where Chinese ships could be towed in. "And their senior officials have said that the Indian Ocean is not India's Ocean. There is no doubt in my mind that China's fast expanding navy, which will be the biggest navy in this part of the world, will be getting into the Indian Ocean fairly soon."

Asked if New Delhi had come tounderplay or even ignore the potential threat from China, he said, "I think there is a reluctance to face the reality that China's intentions need to be questioned."

"This is where our country has made mistakes in the past. We made those mistakes in the early 50s. We paid the price in the 60s. And I think things have not changed," he said.

To a question on the on-going diplomatic talks with Beijing, he said, "all discussions can be conducted even while you are prepared to face any eventuality and what I am pleading is that we should be prepared for any eventuality." On India's nuclear policy, Fernandes said it was a continuation of what it was in the last fifty years and maintained that the country's defence policy could not change.