U.S. sees business in N-pact

Press, 25 July 1985, Page 6

U.S. sees business in N-pact

NZPA-Reuter Washington President Reagan, in his first decision since a cancer operation 11 days ago, has approved a nuclear cooperation agreement with China. Mr Reagan told the Chinese President, Mr Li Xiannian, of his approval during White House talks, clearing the way for the accord to be signed a few hours later. The decision and the talks marked Mr Reagan’s active return to high-level politics just three days after leaving hospital. In a brief meeting with reporters before his talks with Mr Li, the first Chinese Head of State to visit the United States, Mr Reagan looked pale and drawn, his voice softer and more

strained than usual. Officials said he was lively and alert during his 30-minute meeting with Mr Li, a veteran of the Long March of the mid-1980s whose age is put variously between 76 and 80, and who needed a helping hand from Mr Reagan to step on to the welcome dais. United States officials, particularly at the State Department, had been pushing hard for the accord to be signed during Mr Li’s visit as a symbol of steadily improving relations between the two countries. It went through a final review in less than 24 hours after which Mr Reagan approved its signature, 14 months after it was initialled during his visit to

China. The delay was the result of Intelligence which suggested China was assisting Pakistan in its efforts to acquire a nuclear bomb, a senior United States official said. Pakistan denies any such intention. Although subsequent Chinese promises to stick by stringent United States rules on how any United States technology they bought could be used and on exporting such technology were not written, Washington was convinced they were reliable, the official said. He said under the accord, United States officials would be able to monitor any American-supplied equipment and that Washington had, “ample means

of Intelligence available” to ensure the export rules were met. The accord, which could take until the end of the year to clear Congress, opens the way for the United States nuclear industry to compete for business in China. China has plans to build about 10 nuclear power plants, costing SUS2O billion (?39.4 billion), by the end of the century and American firms are expected to bid for at least some of the business, up to now dominated by Western Europe. At the signing ceremony, Mr Li pledged that “SinoUnited States nuclear cooperation will be confined to peaceful purposes.” The American Vice-Presi-

dent, Mr George Bush, called the accord, “another step forward in the relationship between our two countries, reached after much hard work on both sides.” Earlier, Mr Li said that problems still remained between the two countries and described his talks with Mr Reagan as friendly and frank. “There is no need to deny that obstacles and problems exist in the way of SinoUnited States relations which still need to be resolved through joint efforts,” Mr Li said. He added: “We have reason to expect that each of the sides will fulfill the solemn commitments it has undertaken to sustain the development of relations.”