China dismissed U.S. accusations that it helped North Korea's nuclear-weapons program as baseless rumors and urged all sides on Monday to resolve the issue through peaceful political dialogue. "What you said in your question is absolutely unfounded rumor," a Foreign Ministry spokeswoman said when asked for China's reaction to accusations by U.S. officials last week that Beijing helped Pyongyang's uranium-enrichment program.

"The Chinese side consistently supports the de-nuclearisation of the Korean peninsula to safeguard peace and stability there," she told Reuters. "We think the North Korean nuclear issue should be solved peacefully through dialogue and consultation."

U.S. Assistant Secretary of State James Kelly held "very useful and productive" talks in Beijing on the issue last week, a State Department spokesman has said.

Proliferation of Chinese weapons technology is expected to be high on the agenda when President Jiang Zemin meets President Bush at his Texas ranch on Friday.

PHOTO CAPTION

A visitor stands underneath a Chinese-made missile displayed at Beijing's Military Museum October 21, 2002. China dismissed U.S. accusations that it helped North Korea 's nuclear-weapons program as baseless rumors and urged all sides to resolve the issue through peaceful political dialogue. (Wilson Chu/Reuters)