U.S., China End A-Pact Standoff

The United States and China have ended their 14-month stalemate over a nuclear cooperation agreement, and officials of both countries say the accord may be ready for signing when Chinese President Li Xiannian visits Washington later this month.

The accord would make possible billions of dollars in sales of U.S. nuclear reactors and other technology to the Peking government, which has plans to build from five to eight nuclear reactors in the next decade.

Robert M. Smalley, State Department press officer, today confirmed published reports that Richard Kennedy, a U.S. ambassador-at-large, was in Peking last month for negotiations.

‘Progress Made’

“Substantial progress was made in clarifying the views of the two sides on nonproliferation affairs and the respective policies of the two sides,” Smalley said. “Whether the agreement will be signed soon is currently under examination.”

Another State Department official, who insisted on anonymity, said the negotiations with the Chinese are essentially complete. The goal is to have the agreement ready for signing during the three-day visit by Li beginning July 22, although the official cautioned there may not be enough time.

It is the second time around for the agreement, which was initialed, but not signed, during President Reagan’s visit to China last year. Although the White House treated it as the major achievement of the visit, it was shelved immediately after Reagan’s return.

Nuclear Weapon Fear

There have been intelligence reports that China has aided Pakistan in developing a nuclear weapons capability. Although both countries denied it, the Administration let it be known that it wanted ironclad assurances from China that it would respect American law prohibiting giving nuclear weapons assistance to third nations.

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