Peking and Moscow Will Sign 5-Year Pact Quadrupling Trade

From Times Wire Services

China announced Wednesday that Vice Premier Yao Yilin will visit the Soviet Union next month to sign a major five-year economic pact aimed at almost quadrupling trade between the Communist giants by 1990.

A Foreign Ministry spokesman also said that the two sides have agreed to re-establish their consulates in Shanghai and Leningrad. The consulates were closed in the mid-1960s in the wake of the ideological rift between the giants of world communism.

Yao, 66, one of China’s senior economic policy-makers, is scheduled to fly to Moscow in the first half of July.

Trade Pact to Be Signed


Highlighting the visit will be the signing of a trade accord designed to boost the value of bilateral trade to $6 billion a year by the end of this decade. Sino-Soviet trade for 1985 is projected at $1.6 billion, compared with $1.2 billion last year.

The pact, agreed upon during a visit here last December by Soviet First Deputy Premier Ivan V. Arkhipov, will cover the period from 1986 to 1990.

Yao’s visit returns the trip to Peking by Arkhipov, the most senior Soviet leader to come here in 15 years. Soviet leader Mikhail S. Gorbachev has stressed that he wants to see negotiations at a generally higher level.

400,000 Outmoded Factories


Yao, accompanied by a high-level group of Chinese economic planners, trade officials and technology experts, also is expected to discuss Moscow’s assistance in renovating up to 400,000 badly outmoded Chinese factories, many of them built with Soviet blueprints and equipment during the 1950s.

Yao’s visit is another step in the steady progress that has characterized Sino-Soviet economic, scientific and cultural relations over the past year.

During Arkhipov’s visit, the two nations unveiled three important accords on economic, scientific and technological cooperation, calling for the creation of a joint economic commission and the exchange of Chinese and Soviet scientists.

Conflicts Continue


Nevertheless, political conflicts continue to block a significant rapprochement between the former Communist allies, which split over thorny ideological, territorial and historical disputes in 1960.

Peking has recently reiterated longstanding demands that Moscow curb its military buildup along China’s northern border, withdraw its troops from Afghanistan and desist from supporting Vietnam’s occupation of Cambodia--actions China deems essential to improved relations.