  We presented the result of a high resolution (FWHM~0.5'') 12 ks Chandra HRC-I
observation of the starburst galaxy IC342 taken on 2 April 2006. We identified
23 X-ray sources within the central 30' x 30' region of IC342. Our HRC-I
observation resolved the historical Ultraluminous X-ray sources (ULX), X3, near
the nucleus into 2 sources, namely C12 and C13, for the first time. The
brighter source C12, with L(0.08-10keV)=(6.66\pm0.45)\times10^{38}ergs^-1, was
spatially extended (~82 pc x 127 pc). From the astrometric registration of the
X-ray image, C12 was at R.A.=03h:46m:48.43s, decl.=+68d05m47.45s, and was
closer to the nucleus than C13. Thus we concluded that source was not an ULX
and must instead be associated with the nucleus. The fainter source C13, with
L(0.08-10keV)=(5.1\pm1.4) x 10^{37}ergs^-1 was consistent with a point source
and located $6.51'' at P.A. 240 degree of C12.
  We also analyzed astrometrically corrected optical Hubble Space Telescope and
radio Very Large Array images, a comparison with the X-ray image showed
similarities in their morphologies. Regions of star formation within the
central region of IC342 were clearly visible in HST H alpha image and this was
the region where 3 optical star clusters and correspondingly our detected X-ray
source C12 were observed. We found that a predicted X-ray emission from
starburst was very close to the observed X-ray luminosity of C12, suggesting
that nuclear X-ray emission in IC342 was dominated by starburst. Furthermore,
we discussed the possibility of AGN in the nucleus of IC342. Although our data
was not enough to give a firm existence of an AGN, it could not be discarded.
