Jammu and Kashmir Chief Minister Omar Abdullah today dismissed the US intelligence assessment of a possibility of a ''limited'' India-China conflict, saying the two countries have ''good relations''.

"India and China have good relations. We hope it will further improve," Omar told reporters here.

The Chief Minister made this remark when his response was sought to a US intelligence assessment that the Indian Army is strengthening itself for a "limited conflict" with China.

"Leave it (US's think tank's opInion of war) to India and China," Omar said and called for refraining from blowing up stray incidents between the two neighbouring countires.

"There is always some sort of tension among neighbours. Whatever stray incidents do take place, there is no need to present them by making a mountain out of a molehill," he said.

The endeavour of both the countries should be to further strengthen and improve the relations, Omar said.

The Chief Minister also said that a war between India and China will suit the US as it will boost its weapon sales.

"It (war) suits US because it will sell more weapons. But, it does not suit us and China," he added.

Director of US National Intelligence James Clapper had recently said, "The Indian Army believes a major Sino-Indian conflict is not imminent, but the Indian military is strengthening its forces in preparation to fight a limited conflict along the disputed border, and is working to balance Chinese power projection in the Indian Ocean."

To a question, the Chief Minister said no special Cabinet meeting was being convened to discuss taking over of hydel power projects in the state from NHPC.

"No special Cabinet meeting is being held. The Cabinet sub-committee report, which has been prepared, will be submitted to the Cabinet and it will be discussed next week."

On restoration of the Dogra heritage complex in Jammu, Omar said "we are satisfied with the work being undertaken in this direction."