AFFAIRS OF STATE; CHINESE PREMIER STARTS OFFICIAL VISIT IN L.A.

Byline: Rick Orlov Daily News Staff Writer

In the midst of continuing tension with the United States, Chinese Premier Zhu Rongji brought gifts Tuesday - opening his country's borders to the sale of California citrus and wheat - and even some humor over controversies between the two nations.

At a Century City luncheon honoring him at the start of an eight-day tour, Zhu - making the first U.S. visit by a Chinese premier in 15 years - told the audience of more than 400 people he hoped to begin to improve relations between the two countries.

As part of that, he said the Chinese government had reached agreement with the wheat industry over a fungus known as TCK to allow the wheat to be imported to China.

Also, he said China had agreed to allow the sale of California citrus. Both are considered major steps in helping California agriculture.

``We have reached agreements . . . that I think should go a long way in helping us work together on future relations,'' Zhu said through a translator. ``I hope this will help in future dealings between China and California and the United States.''

Representatives of the citrus industry said they were encouraged by the announcement but wanted to see details.

China, in the past, has refused to allow California citrus because of fears of the spread of the Mediterranean fruit fly. Efforts have been under way to make sure any fruit shipped to China is clean of the bugs.

Bill Quarles, a vice president at Sunkist International in Sherman Oaks, said officials are hopeful of getting a final agreement, estimating it could be worth up to $100 million in business in its first year alone.

Bonnie Fernandez, president of the California Wheat Commission, said the announcement on wheat goes a long way to help the industry.

``For the past 20 to 25 years, China has had a restriction on wheat coming from the Pacific Northwest because of the fungus and there have been discussions going on for many, many years,'' Fernandez said. ``This is a very, very big step for us.''

Fernandez said she could not put a value on the agreement until more details are available.

Zhu said the announcement on citrus imports was particularly dear to him because of pressure he has received over the years from Sen. Dianne Feinstein.

``Every year she comes to China and every year she asks about citrus,'' Zhu said. ``Now I can have peace with her.''

Aides to Feinstein said she was not available to comment, but would be pleased with the announcement.

The luncheon, hosted by Mayor Richard Riordan, who also held a late evening reception for Zhu, was the kickoff of the premier's visit to the United States, ostensibly to deal with trade issues.

But, he also is expected to run into controversy during a scheduled meeting Thursday with President Clinton over whether Chinese military intelligence officers steered money to the president's re-election campaign as well as over nuclear espionage.

On that last point, Zhu offered a joke. Saying that the mayor's wife, Nancy Daly Riordan, had asked him about China's plans to celebrate its 50th year as the People Republic, Zhu said he told her there would be a display of military equipment.

Breaking into English, he said there would be signs ``made in China. We didn't do it with any American secrets. We built ourselves.''

Zhu arrived in Los Angeles early Tuesday and was greeted by Riordan and Gov. Gray Davis.

Later, during a closed-door reception before the luncheon, Davis asked him about the human rights situation in China and if that government was taking any steps to improve matters.

``I told him we only had 10 minutes and it would take hours to discuss,'' Zhu said. ``We would have to discuss Rousseau and your country's own Declaration of Independence.''

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PHOTO Premier Zhu Rongji of the People's Republic of China shares a toast Tuesday with Los Angeles Mayor Richard Riordan.

Victoria Arocho/Associated Press