Soviet Union, China Sign $14-Billion Trade Package

The Soviet Union and China, communist superpowers bitterly divided over ideology for 25 years, signed a $14-billion deal today that will double trade and help modernize Chinese industry.

The new accords were signed by Chinese Vice Premier Yao Yilin and Soviet Deputy Prime Minister Ivan Arkhipov, who worked out the details during a visit to Peking last year.

Western diplomats warned, however, that the agreements did not necessarily mean a quick end to the Sino-Soviet rift since China has set limits on the thaw until fundamental political differences are sorted out.

China has three conditions for better relations: an end to Moscow’s support for Vietnam’s military occupation of Cambodia, withdrawal of Soviet forces from Afghanistan and a reduction in Soviet troop strengths along the Sino-Soviet border.

Realignment Needed

But diplomats said these effectively require a realignment of forces in Asia and are not likely to be acceptable to Moscow despite repeated calls by new Soviet leader Mikhail S. Gorbachev for better ties.

The official Soviet press agency Tass said the 1986-90 trade and payments deal calls for total exchanges of around $14 billion. Annual exchanges will rise to $3.5 billion in 1990, almost double the 1985 figure, it said.

At the same time, the Soviet Union will help build seven new plants in China and modernize another 17 in the fields of power generation, metals, machine-building, coal, chemicals and transport.

Diplomats said the Soviet Union will update factories built with Soviet help in the 1950s.