Significance
The agreement was moderately economically advantageous to Pakistan, which received grazing lands in the deal, but of far more significance politically, as it both diminished potential for conflict between China and Pakistan and, Syed indicates, "placed China formally and firmly on record as maintaining that Kashmir did not, as yet, belong to India. India does not recognize the agreement, under which China holds 5,180 square kilometres (2,000 sq mi) of northern Kashmir, as legal. Time, reporting on the matter in 1963, expressed the opinion that by signing the agreement Pakistan had further "dimmed hopes of settlement" of the Kashmir conflict between Pakistan and India.
According to Jane's International Defence Review, the agreement was also of significance in the Cold War, as Pakistan had ties with the United States and membership in the Central Treaty Organization and the Southeast Asian Treaty Organization. The agreement was part of an overall tightening of association with China for Pakistan, which resulted in Pakistan's distancing from the United States. After defining borders, the two countries also entered into agreements with respect to trade and air-travel, the latter of which was the first such international agreement China had entered with a country that was not Communist.
Read more about this topic: Sino-Pakistan Frontier Agreement
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—Calvin Coolidge (1872–1933)