AMC and China will resume their joint venture.

American Motors had earlier cut off the flow of crucial assembly kits from Canada to protest the Chinese government’s refusal to pay AMC in foreign currencies that could be traded overseas. AMC said details of the agreement still have to be worked out and refused to say whether China has agreed to increase the foreign currency reserves for the project. Production of Jeep Cherokees will still stop in mid-June because of the shortage of kits, but AMC said new kits will allow production to resume by mid-August.