On Sino-Indian ties, he said progress on substantive issues like line of actual control (LAC) demarcation with China had been `slow'.

Gen Malik, however, said peace and tranquillity agreement with China had certainly improved the "atmospherics".

Touching upon the insurgency situation in the North-East, he felt that it was an appropriate time for requisite "political initiative" to resolve the issue.

In his nearly hour-long speech, Defence Minister George Fernandes asked Army commanders to remain vigilant and address challenges keeping in view the country's overall threat perceptions.

Fernandes said with the setting up of thethree-member task force headed by former Defence minister K C Pant, steps had been initiated by his ministry towards constitution of the National Security Council followed by a strategic defence review. Complimenting the armed forces and commanders for making the country proud and giving the people confidence that they were safe and secure, Fernandes stressed the need for exposing decision makers and people at large to conditions in which the armed forces were operating specially in forward areas.

He described as extremely useful his visits to Sikkim, North-Eastern states and Rajasthan since he assumed charge as minister a month ago. Fernandes also suggested setting up a national war museum in the Capital to increase awareness about the role of the armed forces here today.

He said such museums existed around the world while addressing the Army Commanders' conference which started today. A museum would help to expose both decision makers and citizens to the trying conditions in which the military wasoperating especially in the border areas. The Defence Minister also highlighted the need to institute a memorial jointly by the Army and the Air Force at the site of the 1971 Longewala battle in Rajasthan along the Indo-Pakistan border.