Expressing regret that the US decision to honour him has caused tension between Washington and Beijing [Images], the Dalai Lama [Images] on Wednesday categorically said that he was not seeking Tibetan independence. But the Tibetan spiritual leader alleged that his homeland is facing social and environmental degradation due to the Chinese rule.

Speaking at a ceremony where he was awarded the Congressional Gold Medal, the highest civilian honour bestowed by the US Congress, the Dalai Lama also said that resolving the Tibetan issue has important implications for lasting peace between neighbours India and China. He also praised the two countries' economic success.

"I believe that today's economic success of both India and China...is most deserving. With their newfound status, both of these two countries are poised to play important leading roles on the world stage," the Dalai Lama said. He added that to fulfill this role, "China has to show more transparency, rule of law, and the freedom of information".

Speaking on the future of Tibet, the Dalai Lama stated that he was "not seeking independence."

"I am seeking a meaningful autonomy for the Tibetan people within the People's Republic of China," he said.

"I have no hidden agenda. My decision not to accept any political office in the future of Tibet is final," the spiritual leader said, and dismissed Chinese contention that he was "an instrument of Western anti-Chinese forces".

The Dalai Lama also used the high-profile event, attended by US President George W Bush [Images], among others, to highlight his concerns about the consequences of exploitation of Tibet's natural resources by China and the effect of Chinese influx into the Himalayan region.