
DATE=12/26/96 TYPE=CORRESPONDENT REPORT NUMBER=2-207952 TITLE=RUSSIA / CHINA (S-ONLY) BYLINE=ELIZABETH ARROTT DATELINE=MOSCOW CONTENT= VOICED AT: INTRO: CHINESE PREMIER LI PENG HAS ARRIVED IN RUSSIA FOR A THREE-DAY VISIT. V-O-A'S ELIZABETH ARROTT IN MOSCOW REPORTS THE TRIP IS AIMED AT BOOSTING ECONOMIC TIES. TEXT: PREMIER LI SEEMS ASSURED OF A WARM POLITICAL RECEPTION. IF ALL GOES TO PLAN, ON FRIDAY HE WILL BECOME THE FIRST FOREIGN LEADER TO MEET RUSSIAN PRESIDENT BORIS YELTSIN SINCE THE PRESIDENT'S RETURN TO THE KREMLIN FOLLOWING HEART SURGERY. THE VISIT WILL LAY THE GROUNDWORK FOR A SUMMIT BETWEEN MR. YELTSIN AND CHINESE PRESIDENT JIANG ZEMIN NEXT YEAR. FORMER RIVALS, BOTH SIDES HAVE IN POST-SOVIET TIMES BENEFITED FROM A RELATIONSHIP THAT OFFSETS WESTERN POLITICAL PRESSURE. BUT BEIJING AND MOSCOW ARE ANXIOUS THAT POLITICAL LINKS ARE MATCHED BY ECONOMIC ONES. TRADE RELATIONS BETWEEN THE TWO HAVE FAILED TO MEET EXPECTATIONS. RUSSIA'S SLUGGISH ECONOMY WOULD STAND TO GAIN FROM A PROPOSED SPECIAL TRADE ZONE, WHILE CHINA HOPES THE PLAN WOULD PROVIDE ANOTHER OUTLET FOR ITS RELATIVELY HUGE PRODUCTION OUTPUT. DURING TALKS IN MOSCOW, THE TWO SIDES ALSO HOPE TO RESOLVE DIFFERENCES OVER PAYMENT FOR RUSSIAN NUCLEAR TECHNOLOGY AND FURTHER PLANS FOR INCREASING RUSSIAN SALES OF MILITARY HARDWARE. (SIGNED) NEB/EA/JWH 26-Dec-96 8:53 AM EST (1353 UTC) NNNN Source: Voice of America .