Dalai Lama is a Buddhist spiritual leader,a nobel peace prize winner, and not a terrorist. As Man Mohan Singh told Jibao that Dalai Lama is India's guest.
It is not a tradition in India to restrict any guest to move anywhere in the country.
China has unfounded reservations against Dalai Lama.
If Govt of India restricts his movements to Tawang, then there will be a huge public criticism and such a price no democratic govt in India has guts to pay.
So forget chinese reservations and **tamashbeen persons of this thread. **
Every thing will move as normally as it was earlier.