Saudi Arabia, which hasn't recognized a communist bloc country since the 1930s, will establish full diplomatic relations with China this week, NEWSWEEK has learned. The arrangement was worked out earlier this month in Beijing by the Saudis' ambassador to Washington, Prince Bandar bin Sultan. Two years ago, Prince Bandar negotiated a deal for the sale of Chinese DF-3 intermediate-range missiles to the Saudis. The Saudis' decision to recognize China is an "adjustment to the post-cold-war world," said a source close to the Saudi throne. The Saudis see China as a lucrative market for petrochemicals. They also want to protect the interests of China's sizable Muslim populations.