WASHINGTON, JUNE 12: India and United States resumed high level contacts on Friday amid indications that Washington is emerging from its punitive mindset and is prepared to engage New Delhi in a bid to freeze the nuclearisation of the sub-continent.But India's political envoy, BJP leader Jaswant Singh, is having to deal with the hardline State Department, having been politely denied access to the White House. Totally wrapped up in preparations for the President's July 25 visit to China, the White House National Security Council is letting the State Department set the agenda much to the dismay of Indian officials who feel the mandarins at Foggy Bottom are in an irascible mood.Singh has a scheduled luncheon meeting at 12.30 p.m (10 p.m IST) with Acting Secretary of State Strobe Talbott, officiating in place of Madeleine Albright who is in London for the G8 summit. The Indian envoy is expected to place before Talbott New Delhi's rationale for the nuclear tests and its concerns about the securityenvironment in the sub-continent which led to the tests.Latest intelligence revelations in Washington show the Clinton administration brazenly ignored China's arming of Pakistan with nuclear capable M-11 missiles to further its trading interests with China.But with the President headed for China later in the month, the administration is keen not to allow India to make a big to-do about it. Effort to set up a meeting for Jaswant Singh with National Security Adviser Sandy Berger drew a nought. The White House has dropped the screen on us, an exasperated Indian official said. However, the State Department, notwithstanding the daily scolding it is dishing out, is indicating that it is willing to engage India - if only to give New Delhi a talking to.There is still no indication that State is open to a hearing about Indian security concerns, despite President Clinton saying yesterday that it is important for the world to recognise that both India and Pakistan have security concerns that are legitimate- with the usual caveat that developing nuclear weapons is a wrong way to address such concerns. Asked about the Singh-Talbott meeting, a State Department official said bluntly that it was more in the nature of a private meeting and the US would reiterate the unified stand of the P5 nations.The concurrent meeting of the G8 in London and the President's forthcoming trip to China would appear to preclude any substantial advance in the dialogue other than to re-establish top level communication.However, there were definite indications that the administration would seek to soften the blow from sanctions with Pakistan being the first and immediate beneficiary of Washington's changing mindset. Backed by the administration and propelled by lawmakers from wheat growing areas, the two US legislative wings agreed on Thursday to exempt wheat sales to Pakistan from the impending sanctions. Pakistan is the third biggest buyer of US wheat, importing some 2 million tons annually. An administration spokesman said thefine print of sanctions are expected to be ready next week and will be notified in due course.Meanwhile, it transpires that Pakistan is also having second thoughts about a proposed visit of Prime Minister Nawaz Sharif to the United States. There were tentative plans for Sharif to visit New York on July 16 to rally the Pakistani community for the planned economic regeneration. Efforts were also on to get him to visit Washington if a meeting could be set up with President Clinton. But indications are that the White House does not want to deal with this issue on the eve of the President's China visit, sources said, adding that now even the New York visit was on hold.Because of Sharif's peregrinations - he has been jetting around the Gulf exhorting Pakistani expatriates to rescue the country from economic collapse - two top US Senators who were to visit the sub-continent have put their trip on hold. Senators Sam Brownback and Charles Robb intend to visit South Asia once a clearer picture emerges.