WASHINGTON, Nov. 7—The United States has decided to cancel licenses for, the export of more than $3‐million worth,. of military equipment to Pakistan.. Official announcement of the cancellation is expected tomorrow.

The action will, in effect,, shut the controversial arms pipeline that supplied,Pakistan: with spare parts arid other military goods even though the Administration imposed an arms freeze in early April.

[In Peking, China called on India and Pakistan to find a peaceful solution to their frontier dispute. But China warned she would support. Pakistan in the event of. War and accused India of having “crudely interfered” in. Pakistan's internal affairs.]

Pakistan Is Notified

In disclosing the cut‐off of licenses, State Department officials emphasized that the action was being taken with the consent of the. Pakistani Government, Which is aware of the Strong Congressional opposition to the Continued shipment of goods to Pakistan for possible use in ending the rebellion by East Pakistanis seeking autonomy.

The officials said that the. ban would exempt $16,000 worth of spare parts already cleared by United States Customs and awaiting shipment in New York when the dock strike ends.

The officials said that Prime Minister Indira Gandhi of India was informed of the license revocation, decision shortly before she arrived in Washington Wednesday for talks with President Nixon. Diplomats here said that the action removed a major irritant in Indian‐American relations.

Flow Annoyed Indians

Even: though the amount of military equipment being sold to Pakistan in recent months has been described, by the Administration as “insignificant” and of little military importance, many Indians viewed the flow as indicative that the Nixon Administration had a pro‐Pakistani prejudice.

Many United States Senators complained that the supply of spare parts and other equipment was helping the Pakistani Government crush the East Pakistani independence movement and contributing to the flow of refugees to India, who now total nearly 10 million, according to New Delhi.

Following the decision by Pakistan on March 25 to act against the autonomy movement, the United States halted the granting of new licenses for military purchases in this country. Actually, the American decision did not go into effect until April 6, and some licenses were approved in the interim, officials said.

Moreover, license valid as of March 25 that expired later were not renewed. A “hold” was put on certain heavy arms previously approved for shipment, but still in American military depots.

Officials said that at the time the decision to shut the “pipeline” took effect, Pakistan held about $2.3‐million worth of valid licenses. The revocation affects those licenses as well as about $1‐million in equipment in the, American military depots that) had previously been held up.

The Administration hopes that by removing this irritant in Indian‐American relations, it may be able to persuade Indian officials to take steps toward removing the threat to war that exists along the Indian‐Pakistan border.

Mrs. Gandhi, In her talks with Mr. Nixon, Secretary of State William P. Rogers, and other United States officials, affirmed India's desire to avoid a war. She rejected American suggestions of a troop pullback from the borders and for talks with Pakistan.

Her position was that the situation in East Pakistan—which she calls East Bengal—was a result of Pakistan's intransigence and should be settled among the Pakistanis.

Interviewed on the National Broadcasting Company's television program “Meet the Press,” Mrs. Gandhi said the crisis was not one between India and. Pakistan but “between the military regime of West Pakistan and the people and elected representatives of East Bengal [East Pakistan].”

“India comes In because of the influx of the refugees, the acts of sabotage which are taking place on our side by people who have come in either disguised as refugees or in some other way,” she said.

The “Meet the Press” program was taped in New York yesterday. This evening, Mrs. Gandhi arrived in Paris on her way back to India.