It has devised the measures to be taken for greater normalization of mutual relations and has also defined the principles that should determine their future relations.    In 1971, after the Indo-Pakistani war, the leaders of the two countries met in Simla and signed a peace agreement. It was signed between Indira Gandhi and Zulfikar Ali Bhutto. Question 17. How did the Tibet Plateau become a problem of tension between India and China? (HOTS; Delhi 2008,-All India 2008) Answer: Under the Panchsheel Agreement, India granted China`s claim to Tibet. China has assured India that it will grant full autonomy. But these Tibetan problems have led to a war between China and India. Question 11. What does Panchsheel mean? (All India 2011) Answer: The Panchsheel Agreement was signed in 1954 by Zhou Enlai (Premier of China) and his Indian counterpart Pandit Nehru. .