ACCESSION NUMBER:217836
1ILE ID:TX-106
DATE:03/02/92
TITLE:BUSH REJECTS CHINA MFN BILL (03/02/92)
TEXT:*92030206.TXT
BUSH REJECTS CHINA MFN BILL
(Text: Bush statement) (540)
Washington -- President Bush says he won't sign legislation that attaches
conditions to renewal of China's most-favored-nation (MFN) trade status.
"H.R. 2212 would severely handicap U.S. business in China, penalizing
American workers and eliminating jobs in this country," Bush said in a
statement released March 2. "Conditional MFN status would severely damage
the Western-oriented, modernizing elements in China, weaken Hong Kong, and
strengthen opposition to democracy and economic reform."
The legislation conditioned MFN renewal on improvements in that country's
human rights, trade and weapons transfer practices.
Following is the text of Bush's statement:
(begin text)
I am returning herewith without my approval H.R. 2212, the "United
States-China Act of 1991," which places additional conditions on renewal of
China's most-favored-nation (MFN) trade status.
The sponsors of H.R. 2212 believe they can promote broad economic and
foreign policy objectives in China by placing conditions on the renewal of
China's MFN status. They expect that the Chinese will improve respect for
human rights, cooperate in arms control, and drop barriers to trade, given
a choice between losing MFN and addressing these concerns.
Let me state at the outset that my administration shares the goals and
objectives of H.R. 2212. Upholding the sanctity of human rights,
controlling the spread of weapons of mass destruction, and free and fair
trade are issues of vital concern. My objection lies strictly with the
methods proposed to achieve these aims.
There is no doubt in my mind that if we present China's leaders with an
ultimatum on MFN, the result will be weakened ties to the West and further
repression. The end result will not be progress on human rights, arms
control, or trade. Anyone familiar with recent Chinese history can attest
that the most brutal and protracted periods of repression took place
precisely when China turned inward, against the world.
Recent agreements by the Chinese to protest U.S. intellectual property
rights, to abide by the Missile Technology Control Regime Guidelines, to
accede to the Nuclear Non-Proliferation Treaty by April, and to discuss our
human rights concerns -- after years of stonewalling -- are the clear
achievements of my administration's policy of comprehensive engagement.
We have the policy tools at hand to deal with our concerns effectively and
with realistic chances for success. The administration's comprehensive
policy of engagement on several separate fronts invites China's leadership
to act responsibly without leaving any doubts about the consequences of
Chinese misdeeds. Our approach is one of targeting specific areas of
concern with the appropriate policy instruments to produce the required
results. H.R. 2212 would severely handicap U.S. business in China,
penalizing American workers and eliminating jobs in this country.
Conditional MFN status would severely damage the Western-oriented,
modernizing elements in China, weaken Hong Kong, and strengthen opposition
to democracy and economic reform.
We are making a difference in China by remaining engaged. Because the
Congress has attached conditions to China's MFN renewal that will
jeopardize this policy, I am returning H.R. 2212 to the House of
Representatives without my approval. Such action is needed to protect the
1conomic and foreign policy interests of the United States.
(end text)
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