Accord will allow China to increase textile exports

The United States and China initialed a trade agreement that will permit a moderate growth in Peking's textile exports to the US, senior trade sources said.

China would also be permitted to export to the US additional categories of textiles, which were not covered in previous agreements, they added. The pact, replacing one which expired last December, brings to an end a dispute which has soured Sino-American trade relations for a year. American farmers say they believe the textile wrangle has caused Chinese purchases of their grain to drop off.