At the end of 1986, India granted statehood to Arunachal Pradesh, which is an area claimed by China but administered by India. The Chinese government proceeded to protest. But the military movements in Tawang, taken in conjunction with this political action were seen as a provocation by the Chinese. In early 1987 Beijing's tone became similar to that of 1962, and with the Indian Army refusing to stand down, Western diplomats predicted war.
The Indian response to the Chinese buildup was Operation Falcon and involved movements across the Sino-Indian border. Mi-26 heavy lift helicopters were used to deploy Infantry fighting vehicles and tanks into North Sikkim in the east and Demchok in the west. These deployments were viewed as particularly threatening by the PLA because they seemed to indicate that India had moved from a strategy of defence in its own territory to that of a larger offensive involving all of Arunachal Pradesh.[citation needed]
The result was a thaw. Indian Foreign Minister N.D. Tiwari arrived in Beijing in May 1987 en route to Pyongyang, North Korea. He carried with him messages from Indian leaders that there was no intention on New Delhi's part to aggravate the situation. The first formal flag meeting to discuss " the freezing of the situation" since 1962, was held on the fifth of August 1987 at Bum La in the aftermath of the Wangdung affair. Both sides decided to take up talks with renewed urgency and the following year, Rajiv Gandhi visited Beijing, returning Zhou Enlai's '60s visit.[4]