KATHMANDU (AFP) - - Hundreds of Tibetans gathered in the Nepalese capital to mark the Dalai Lama's 74th birthday, a day after the government said it would not tolerate anti-China activities on its soil.

More than 1,000 Tibetan exiles took part in the celebration, held under a heavy police presence at a huge Buddhist stupa on the outskirts of Kathmandu, an AFP photographer said.

Nepal is home to about 20,000 exiled Tibetans who began arriving in large numbers in 1959 after their spiritual leader the Dalai Lama fled Tibet following a failed uprising against the Chinese.

On Sunday, Nepal's home ministry warned it would not allow any activities aimed at "undermining the friendship between the two countries."

"Nepal desires to maintain equal and friendly relations with both its neighbours," the ministry said in a statement released ahead of the Dalai Lama's birthday.

"It is also committed not to let its territory be used against any friendly country."

Sandwiched between India and China, Nepal has upheld Beijing's "one China" policy -- that Tibet is an integral part of China.

It has repeatedly said it will not tolerate anti-China demonstrations as it seeks to preserve friendly ties with its northern neighbour.

Last month, Nepalese police arrested 34 Tibetan exiles as they tried to stage a demonstration near the Chinese border.