Oct. 20, 1962 - State Department officials kept a close watch today on reports of heavy fighting between India and Communist China. But they said both sides probably had limited objectives that should keep the conflict from exploding into a major Asian war. The Kennedy Administration is evidently prepared to sell military equipment to India, but officials said the Indians have not made any such requests. Official thinking in Washington is that the scope of the conflict should be known rather quickly. With the onset of winter in the high mountains of the India-China border regions, heavy snows and freezing winds within the next two weeks would normally put a halt to all military operations.