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China, Indonesia Agree to Resume Direct Trade

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Associated Press

China and Indonesia have resumed direct trade after an 18-year break, an Indonesian trade delegation announced Tuesday.

Although the two nations have no diplomatic relations, China has agreed to regard Indonesia as a friendly country, delegation spokesman Jos Silam said.

The delegation arrived Saturday for the first direct talks between the two countries since 1967, when Indonesia broke relations with China. Indonesia had accused China of complicity in a Communist coup attempt in Jakarta in 1965.

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The Indonesian government has said it will not restore diplomatic ties until Peking renounces support for Communist guerrillas in Southeast Asia.

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