
22 May 1997
MFN FOR CHINA: 'ECONOMIC PRAGMATISM?'
President Clinton's announcement on Monday that he would recommend to the U.S. Congress that MFN status for China be renewed prompted a majority of oveseas editors to conclude that economic "pragmatism" had held sway over human rights concerns, with most deeming that the decision was a "trend" that the U.S. could not necessarily "go against." A number of editors were dismissive of what they viewed as an "annual ritual" in Washington whose outcome held few surprises for foreign analysts. Bangkok's Business Day, for example, maintained: "There is some perfunctory public debate over the issue (of human rights), but on the whole, it is 'business as usual.'" Some editors, mainly in Europe, expressed dismay at what they saw as the West's increasing reluctance to challenge China on human rights. Munich's centrist Sueddeutsche Zeitung pointed out that, secure in the knowledge that "markets rule," the Beijing leadership "can bestow its favor on the one who is the most submissive and...punish...the most recalcitrant." As if echoing those conclusions, China's official Communist Party papers hailed the announcement as a "wise" decision on President Clinton's part. The English-language China Daily, whose comments are directed toward a Western readership, ran official statements cautioning the U.S. to "change its unreasonable and untimely practice of annually reviewing China's MFN status as soon as possible." The paper declared as well that linking MFN to conditions in Hong Kong after its reversion to China would be "totally unacceptable." Most Hong Kong papers, regardless of their orientation, also welcomed the president's announcement, arguing that denial of MFN to China would deal a severe "economic blow" to the colony, which reverts to Chinese sovereignty in just over a month. "Mr. Clinton clearly recognizes that engagement with China is the only viable option for the U.S.," said the Hong Kong Standard, "Now he must persuade Congress that it is time for these two giants to deal with each other positively, constructively and as equals." The recent visit of French President Jacques Chirac to China also prompted foreign observers to comment on the strategic and economic balance of power in Asia. Calling attention to the fact that the French and Chinese presidents signed a declaration in favor of a multi-polar world just a month after Presidents Yeltsin and Jiang signed a similar document, the centrist Times of India asserted: "One more piece of the post-Cold War strategic jigsaw puzzle appears to have fallen neatly into place.... China fears that the U.S. is trying to encircle it and is seeking to give itself strategic depth by building bridges with Russia, France and even India." Another Indian pundit suggested that China was "exploiting" France to "poke a finger in the U.S.' eye," stating that the lucrative Airbus deal signed by President Chirac in Beijing "was a subtle message to U.S. businesses that they are not trying hard enough with their government on human rights." French papers, however, dubbed their president's China foray as "sketchy" and "a passing whim." Left-of-center Le Monde cautioned that China is "both too different (ideologically) and too distant (economically) for France to consider it a political partner.... In the Asian context," the paper warned, "China's regional ambitions should be contained rather than encouraged." This survey is based on 52 reports from 18 countries, May 10 - 22. EDITOR: Kathleen J. Brahney EAST ASIA AND PACIFIC CHINA: "China Welcomes President Clinton's MFN Decision" Statements by spokesmen at the Foreign Ministry and Ministry of Trade were carried in Communist Party papers (5/21): the People's Daily (Renmin Ribao), the People's Daily overseas editions (Renmin Ribao Hai Wai Ban); the official English-language China daily, the intellectually- oriented Guangming Daily (Guangming Ribao), the official Shanghai Liberation Daily (Jiefang Ribao), municipal government Beijing Daily (Beijing Ribao), the official State Council Economic Daily (Jingji Ribao)and Communist Youth League China Youth Daily (Zhongguo Qingnian Bad). These excerpts are from the People's Daily: "Foreign Ministry spokesman Shen Guofang said that China welcomed the decision to extend China's MFN status, and described Clinton's decision to do so as wise. MFN status is a normal and reciprocal trade relationship granted by China and the United States on the basis of equality and is the cornerstone of Sino-U.S. trade relations. Maintaining MFN status is consistent with the fundamental interests of the peoples of both countries.... Shen expressed the hope that the United States will adopt measures to resolve China's MFN status permanently and will create an atmosphere for the smooth development of Sino-U.S. economic and trade ties." "Don't Link MFN With Hong Kong" The China Daily ran this: "China yesterday welcomed U.S. President Bill Clinton's decision to renew China's Most Favored Nation (MFN) trading status for the coming year, while urging the Americans to grant permanent MFN status in order to promote bilateral economic and trade ties.... A spokesman for China's Ministry of Foreign Trade and Economic Cooperation (MOFTEC) also welcomed Clinton's decision.... In a press release, the spokesman said: 'We hope the United States will change its unreasonable and untimely practice (sic) of annually reviewing China's MFN status as soon as possible.'... The foreign ministry spokesman said China would not accept any conditions attached to the renewal of MFN status.... (The spokesman) dismissed as 'totally unacceptable' the recent suggestions by some U.S. lawmakers to link the MFN issue with Hong Kong's return to China." "Do Americans Know Anything About Hong Kong?" UN correspondent He Hongze filed this for the Official Communist Party People's Daily (Renmin Ribao, 5/20): "There is an unbelievable gap in awareness about the Hong Kong reversion issue between Americans and Hong Kong residents who were surveyed. For instance, when asked whether the people of Hong Kong would choose independence or reversion after 1997 if left to decide for themselves, 60 percent of Americans responded that the people of Hong Kong would choose independence, while only 4 percent thought that the people of Hong Kong would choose reversion to China. However, when the same question was posed in Hong Kong, 62 percent of the respondents selected reversion to China. When asked about the future of Hong Kong after 1997, 72 percent of the people of Hong Kong expressed confidence about post-1997 Hong Kong, while only 5 percent expressed concern. However, 31 percent of the American respondents expressed great concern about the future of Hong Kong.... "There are very few reports on Hong Kong in the U.S. media, and the majority of what reports there are tend to be negative in tone. No wonder so many Americans have unwarranted anxiety about the future of Hong Kong. The latest Asian and American editions of Newsweek magazine recently ran completely different covers to accompany their lead stories on Hong Kong. The Asian edition carried no cover photo, just a bold headline: 'Hong Kong, the city of survival.' By contrast, in the American edition, a lady's eyes were covered by a national flag of China, and the headline was changed to read: 'Can Hong Kong Survive?' The different covers were probably selected by Newsweek in order to target different audiences. "But this difference illustrates why Americans' knowledge of Hong Kong differs markedly from that of the people of Hong Kong." "Warming Trend Marks Military Cooperation" The Chinese press quoted Chinese officials who met with General Shalikashvili in Beijing on the issues of Taiwan and the Sino-U.S. joint communiques. The official, English-language China Daily stated (5/14) under the headline above, "As another sign of warming Sino-U.S. official relations, Chairman of the U.S. Joint Chiefs of Staff John Shalikashvili was warmly received in Beijing yesterday. Vice Chairman of the Central Military Commission and Defense Minister Chi Haotian and Chief of Staff General Fu Quanyou met separately for lengthy talks with Shalikashvili. They also hosted two banquets in his honor. "Both military leaders expressed willingness to strengthen exchanges and dialogue between the two armies. Shalikashvili is the highest military official to visit China since 1985. The two sides also discussed further bilateral contacts and dialogues on berthing of U.S. fleets in Hong Kong after July 1 and preventing ocean accidents." HONG KONG: "Clinton's MFN Moves The Right Way--Forward" The English-language Hong Kong Standard editorialized (5/21): "Mr. Clinton's announcement had been anticipated for months. But it is nonetheless welcome for that. Governor Chris Patten has rightly described it as 'excellent news for Hong Kong.'... But Mr. Clinton is right to stick with China. This newspaper has pointed out in the past that the challenge facing the world today is to ensure that China's emergence as an international player is achieved in a way where everyone benefits and no one feels threatened.... Washington must do more to ease China's entry into the World Trade Organization. Mr. Clinton clearly recognizes that engagement with China is the only viable option for United States. Now he must persuade Congress that it is time for these two giants to deal with each other positively, constructively and as equals." "Clinton Shows Great Foresight" The center-right Sing Tao Daily News commented (5/21): "Clinton said that the extension of MFN status was 'the best way to mix China into the international big family and to safeguard U.S. interests.' This saying shows great foresight. In this era, the United States should not use MFN status to threaten China. It should adopt a fair and cooperative attitude.... China hopes the United States will grant it permanent MFN status, but it seems impossible within the next one or two years. Hong Kong in its transition period will be involved in this dispute. For its own benefit, Hong Kong should continue its lobbying." "MFN Protects U.S. Business Interests" The independent Hong Kong Economic Journal opined (5/21): "If the United States did not renew China's MFN status, not only would the human rights situation in China deteriorate, but Hong Kong would also become a victim by taking a blow to its economy. The Hong Kong Special Administrative Region would be caught in a dilemma. U.S. business interests would also be hampered.... If China and the United States fall foul of each other due to the MFN issue, more contracts will be won by (the United States') business opponents." "Permanent MFN For China Reasonable Request" The independent Sing Pao Daily News said (5/21): "The renewal of China's MFN status every year is still one of the major contradictions between China and the United States. China's request for permanent MFN status is absolutely reasonable.... If the United States stops granting China MFN status, Hong Kong will suffer a bigger blow than China. We urge the U.S. congressmen not to do anything bad to Hong Kong despite their good intentions. "Hong Kong's high degree of autonomy relies on its own effort and not on foreign governments' attention." "The Right Direction" An editorial in the independent, English-language South China Morning Post said (5/16): "The modifications announced yesterday in the changes to civil liberty laws are to be welcomed.... This is a source of relief: Even if limited, the modifications are good news. More importantly, they are a positive sign that Mr. Tung and the future rulers of the Special Administrative Region are not immune to public opinion and will take notice of well- founded arguments with wide support. It may also be a signal of growing confidence in Beijing that Hong Kong's democratic traditions are not a threat." "Do Not Look For Order At The Expense Of Freedom" The independent Ming Pao Daily News held (5/16): "The chief executive's office has made eleven modifications to the public order and societies ordinances after consultation. The office has deleted some of the suggestions that many people questioned as violating civic rights. It shows that consultation does give play to the ordinances. However...some areas still need to be improved... When safeguarding the interests of 'one country', please do not sacrifice the freedom and life style of people under the 'two systems.'" "More Leniency In Applications For Demonstrations Needed" Center-right Sing Tao Daily News said this (5/16): "The chief executive's office just announced the public order and societies ordinances after modifications.... However, there are still some areas that can be improved.... If the future government is more lenient in dealing with applications for demonstrations, the amendments will be widely accepted." "Public Opinion" The pro-PRC Hong Kong Commercial Daily contended (5/16): "The chief executive's office has accepted the constructive opinions of society. The Hong Kong government carried out various consultations before, but none of them have fully accepted public opinion in their consultations like this one." INDONESIA: "China's Successful Strategy In The West" Pro-government, Islamic-leaning Berita Buana conveyed this logic (5/17): "If China is `sweet' toward the United States and Europe, Beijing should behave even nicer to ASEAN countries with their population of 420 million and crucial markets. China is currently in the international spotlight. Some observers want to see what will happen to Hong Kong...and are intrigued by the 'one China-two systems' paradigm. While such a system would not work in Europe, anything is possible in China. Communism is used to achieve unity in the bureaucracy and as a tool of the leadership, whereas capitalism is used for the people's welfare." PHILIPPINES: "Spratlys--A Worry For ASEAN, U.S., Japan" The independent, second leading national Philippine Daily Inquirer told its readers (5/19): "While the United States refuses to bring the Spratlys within the coverage of the mutual defense treaty on the grounds that they are not part of the Philippine mainland, the United States, Japan and ASEAN cannot be indifferent to any escalation of the dispute between the Philippines and China.... Any hostilities between these two countries will immediately create a specter of insecurity over the ASEAN members...and over the pivotal role of the United States inmaintaining the balance of power in the Asia-Pacfic." "Philippine Firmness Needed" In its second editorial, the Philippine Daily Inquirer stated (5/19): "The strategic position of the Philippines in the South China Sea and Pacific--both in political, economic and security terms--should be considered in the calculations of ASEAN, the United States, Japan and China as they interact over the Chinese tactic of testing how far they can go in substantiating their historic sovereignty claims over the South China Sea. As for the defense treaty with the United States, we should not think of its revision as the only way to defend our territory. The dynamic of events that may be created by armed conflict over disputed territories creates its own logic for U.S. intervention. The upsetting of the balance of power can prompt U.S. military intervention, regardless of whether or not there is a treaty calling for immediate retaliation. America has a big economic and security stake in maintaining the balance of power in the region. Japan and ASEAN have big stakes in a credible and significant U.S. military presence in the region. China's need to develop friendly relations with the United States and Japan to have access to capital and investment are factors that can restrain it from pushing its historic claims to the point of armed conflict. But the bottom line for the Philippines is to make it clear at all times to China that it is not going to be bullied by (China's) probing thrusts." "Appeasement: Mice Playing With The Cat?" An editorial in the liberal Today said this about developments in the contested Spratly Islands (5/14): "We've seen what Chinese promises are worth and what illusory fruits diplomacy by minus-one bears. And for all our nervousness over the Spratlys, it is well to remember that the rest of Asia is also fretting over the military posturings of the People's Republic of China.... "There is a variation on Santayana's famous saying that those who learn the lessons of history are condemned to commit the same blunders with effects twice as bad. No one--at least no one in the modern age who holds an important government position--can claim he doesn't know what happened the last time powers major and minor tried to mollify an aggressive nation with expansionist tendencies: The result was the outbreak of the Second World War and Hitlerism run amok in Europe.... A mouse can try to challenge a cat, but all it will accomplish is to amuse the cat at the mouse's expense. But pit a hundred mice against the cat and...well, the cat just might get nipped enough to flee.... All our diplomacy as far as China is concerned has proven that we're...helpless and easy prey." "Use Diplomacy, Not Force, To Deal With China" In his column in the independent Manila Standard (5/10), Jerry Barican commented on the Philippines' territorial dispute with China over the Spratly Islands: "There is no way we can militarily defeat a determined China even if we spend our entire government budget, which is a paltry $20 billion, on national defense.... Under...economic and military difficulties, risks and costs, the true deterrence of China lies more with diplomacy than military adventurism.... In that context, we are not helpless. We belong to ASEAN, to which China assigns importance. We can and have appealed to the United States, less by way of military protection than by means of the whole diplomatic arsenal available to it, not excluding trade, to restrain China." SOUTH KOREA: "Clinton Embraces China" In the view of conservative Segye Ilbo (5/21): "President Clinton is confident that Congress will pass an extension of Most Favored Nation status for China. Even if Congress objects to an MFN extension, the president knows he will get it through with his veto prerogative. His real concern is to put an early end to the issue before a prolonged, heated debate about China hurts him politically. Also, the president made his decision early in order not to give conservative organizations time to form a strong coalition against an extension of MFN. The return of Hong Kong to China is a further complication for the president. Extending MFN, however, may well be a trend that the United States cannot go against." "China And France: Strong New Partnership To Balance U.S." Anti-establishment Hankyoreh Shinmun held (5/17): "China and France have strengthened their new partnership for the 21st century. Aimed at balancing the United States, it will be a 'comprehensive partnership' weighty enough to demand a new kind of international order.... By seeking close relations with Russia and France, China is preparing a card that will put it on higher ground in dealing with the United States. Although France was the first country to sanction China after the Tiananmen incident, it has lately adopted a practical line which puts the economy first. It gave tacit approval to China's handling of human rights by saying that particular circumstances should be taken into account." THAILAND: "A Carrot And A Stick For A 'Most Favored Nation'" The lead editorial of the small circulation, English- language Business Day commented (5/22): "Renewing China's Most Favored Nation status has become an annual ritual in Washington. There is some perfunctory public debate over the issue, but on the whole it is 'business as usual,' mainly because China provides the United States with the best source of low-priced consumer goods. This alone gives enough justification for the tariff breaks. There was, as always, the usual rhetoric about the need to 'engage' China in order to encourage political and social changes, particularly on the issues of democracy and human rights. Aside from business issues, however, the relationship between China and the United States is also based on military considerations, for the United States can plainly see that China will in due course begin to flex its military muscle in the Asia-Pacific region." "Jiang's Appearance On CNN: Major Shift In China Policy?" Cafe Dam commented in elite, business-oriented Krungthep Turakit (5/14): "The CNN interview with Chinese President Jiang Zemin is unprecedented and indicates a major shift in China's policy.... Today's China can no longer disregard the outside world as it becomes increasingly dependent on international trade.... The main objective for Jiang's granting an interview was evidently to placate the world's concern about the future of Hong Kong.... On the other hand, China realized that it has to rely on Hong Kong in many important ways. Also, China meant to prove that Hong Kong under its rule will be no less prosperous than when the colony was under Britain's control." EUROPE FRANCE: "France's Sketchy Presence In Asia" Francis Deron, Jean-Claude Pomonti and Philippe Pons wrote in left-of-center Le Monde (5/15): "This is the third time in a year that President Chirac has traveled to Asia.... (In the past,) the Franco-Chinese 'political dialogue' has helped the two nations to gain some recognition when the world scene was monopolized by Washington and Moscow.... The Chinese, Japanese and Southeast Asian leaders do not have the same hostile and ambivalent feelings towards France that they have toward the United States, which is a source of either admiration or mistrust.... In many ways, Asian nations see France's renewed interest in their region as a passing whim. Focusing on the idea of a 'multipolar' world--in other words, in reaction to the United States--France is flattering Asia.... This is in no way the expression of a French Asian policy, which is still very much missing." "Asian Mirages" Jacques Amalric remarked in left-of-center Liberation (5/15): "No one can confirm that post-Deng China will be, in the year 2015 or 2020, the peaceful and responsible superpower that many want to imagine. "The multipolarity preached in Beijing today could be a step towards a new bipolar world in which China will play a major role." "Selling China On Human Rights" Catholic La Croix's Bruno Frappat had this to say (5/15): "Time will tell whether Chirac's wager has been won and whether he will have managed to sell China on human rights, a commodity it refuses to import." "Why Chirac Is Going: Chinese Buying Power" Charles Lambroschini wrote in right-of-center Le Figaro (5/14): "With the globalization of the world economy, President Chirac's message to the voters is clear: They must look to distant horizons.... Anglo-Saxon experts predict that, in the next 20 years, the Chinese market's buying power will equal that of the United States.... This explains President Chirac's interest in Asia." "A Problematic Trip To China" According to Jean-Luc Domenach in left-of-center Le Monde (5/14): "There is a basic error in thinking that a political approach to China is the answer.... In a worldwide perspective, it is difficult to see over what fundamental principles democratic France and Communist China could agree. In the Asian context, China's regional ambitions should be contained rather than encouraged. Finally, in a bilateral context, it has been repeatedly proven that a political approach to China has never improved either our exports or our cultural and linguistic influence in that country.... China is both too different (ideologically) and too distant (economically) for France to be able to consider it a political partner." BRITAIN: "Clinton Gives Boost To China Policy" The centrist Independent reported from Washington (5/20): "President Clinton yesterday launched a pre-emptive strike in defense of his controversial China policy by announcing that he would renew China's MFN trading status for another year.... Yesterday's early announcement guarantees a furious debate in Congress, where China's MFN status was already expected to be given a rougher ride than in recent years." GERMANY: "Same Debate, Same Result" Kurt Kister wrote in centrist Sueddeutsche Zeitung of Munich (5/21): "Every year, the China debate in Washington heats up. The pattern is as follows: After intense frowning, the president--irrespective of whether he is called Reagan, Bush, or Clinton--grants MFN status to China. Then human rights activists and members of the...political opposition provoke a storm of protests. They argue that the Chinese government violates human rights and is rewarded with the MFN status. Congress then has a vote, and the separation between human rights and economic interests again find a majority. The same will be true this year, despite some differences.... Trade between China and the United States has grown year after year. The United States, France, Germany and other countries are competing for orders. The Beijing leadership can bestow its favor on the one who is the most submissive and, at the same time, punish those who are the most recalcitrant. China knows that the markets rule. In this context, noble resolutions in favor of Tibet or political prisoners are a ritual that can be neglected." "Global Pragmatism" Herbert Kremp observed in right-of-center Die Welt of Berlin (5/21): "President Clinton has now extended MFN status for China. We can now talk of the globalization of pragmatism." ITALY: "Clinton Wants To Renew MFN To China" A report by New York correspondent Marco Valsania in leading business Il Sole-24 Ore (5/21) said: "Bill Clinton has asked Congress for a renewal of MFN status to China.... But the White House, which is playing one of its key games in foreign policy, is facing a stronger opposition this time, including both conservative and left-wing sectors of the Democratic Party. Christian coalition groups and AFL- CIO labor unions are against the decision.... The tension has already forced the Clinton administration to a partial retreat, i.e., giving up its initial goal of obtaining permanent renewal of the Most Favored Nation status for China." "Clinton's And Chirac's Business With China" An editorial in provocative, classical liberal Il Foglio (5/21) noted: "It is not clear yet whether France, in the framework of its new collaboration with China, will also break the embargo on weapons, one of the few sanctions against Beijing which still remain in effect since Tiananmen. President Chirac limited himself to saying that he will not sell weapons to Taiwan. Clinton...said he (would) establish a strategic dialogue with the Chinese on a wide range of issues.... Defeated in Central Africa by U.S. diplomacy...France is taking its revenge in the Far East. Trade expansion will benefit from that. Less so human rights." RUSSIA: "Clinton Does Much To Improve Ties With China" Iya Motskobili said in reformist, business-oriented Kommersant Daily (5/21): "In the last couple of years Clinton has done a lot to improve relations with China. But constant violations of human rights in that country, along with its arms supplies to unstable political regimes and conflict areas, remain a stumbling block in the bilateral relationship." "Different Opinions On Human Rights" Reformist Segodnya (5/19) cited Russian Deputy Foreign Minister Grigory Karasin as saying: "The discussion (of Hong Kong's future) with our partners in China, the United States and other countries revealed different opinions, including on human rights. And he added that Russian diplomats thought it important to follow Beijing's very serious approach to everything concerning Hong Kong's new status." "U.S. Is Last Hope" Alexander Chudodeyev said in reformist Segodnya (5/14): "Hope dies last, so local (Hong Kong) democrats are not hiding the fact that they count on Washington. Beijing naturally views the transfer of Hong Kong as an 'internal matter' and wants the rest of the world out. So it looks as if the United States and China have discovered another big outstanding problem." BELGIUM: "Clinton Listens To Advice From U.S. Business" Asian affairs writer Freddy De Pauw held in independent Catholic De Standaard (5/21): "U.S. President Bill Clinton has extended China's MFN status by one year.... The chance that the Congress will cast a two-thirds majority veto is very limited. But, opponents are counting on more votes than last year in order to, thus, obtain a small moral victory over Beijing.... As president, Clinton did not give a clear direction to Washington's China policy. As a presidential candidate, he pleaded for a harsher approach but, as president, he gradually had more of an ear for the advice from business people with interests in China. The decision to extend China's MFN status was certainly stimulated when, during the visit of Vice President Al Gore to Beijing, a few interesting contracts between American and Chinese enterprises were concluded." CANADA: "Hypocrisy" According to the conservative Ottawa Sun (5/21) "The hypocrisy of U.S. President Bill Clinton's administration reared its ugly two heads Monday with renewed plans to extend MFN trade status to Red China. We use the adjective 'Red' purposely here because China is what it is- -a repressive communist regime with an absolutely appalling human rights record.... While we do not deny the United States' right to trade with any country it wishes, it still yanks our chain when Americans throw up barriers to impede Canada's right to trade with whatever country it desires.... This does bring us around to the Helms-Burton law.... In defense of his decision...Clinton said the United States had an interest in China's political and economic reform and would have little sway over the country if it were to curtail its trade status. This is the same argument, of course, which Canada presented in it dealings with Cuba.... Unfortunately, the Clinton administration listens to no one but itself when it comes to foreign relations. All of which only punctuates its hypocrisy." MIDDLE EAST-NORTH AFRICA EGYPT: "American Producers And Consumers" Pro-government daily Al Ahram held (5/22): "It was unprecedented that the U.S. administration renewed China's Most Favored Nation status without a problem.... The American administration used to pressure China on human rights...or for violations of American IPR.... The weapon the administration used was threatening not to renew the MFN status.... The renewal this time came because of the harm that American producers and consumers could have suffered if China were sanctioned." SOUTH ASIA INDIA: "Chirac In China" The centrist Times Of India opined (5/22), "With the recent visit to Beijing by French President Jacques Chirac, one more piece of the post-Cold War strategic jigsaw puzzle appears to have fallen neatly into place. With the exception of Britain, all other permanent members of the Security Council have now formally and jointly expressed their reservations about the preponderance of U.S. power. Last month, the presidents of China and Russia signed a declaration on the desirability of a multipolar world. And last week, the French joined the Chinese in saying pretty much the same thing. For some time now, France has been telling anyone willing to listen that a unipolar world will inevitably be a dangerous place.... "As far as China is concerned, President Chirac has gone a long way toward ending the rancor which existed on the bilateral front after France's 1994 weapons sale to Taiwan.... For their part, the Chinese have rewarded France with a $1.5 billion contract for Airbus Industries.... China fears that the United States is trying to encircle it and is seeking to give itself strategic depth by building bridges with Russia, France and even India. Washington denies it is trying to contain China.... By declaring themselves in favor of a multipolar world, China and France are saying that they want a United States that is similarly benign. Unfortunately, whether in trade or security matters, the Clinton administration insists that the United States is an indispensable nation." "Clinton Renews MFN Status For China" The centrist Hindu's Washington correspondent, Sridhar Krishnaswami, wrote (5/21): "President Bill Clinton, has announced his decision to renew the Most Favored Nation Status to China for another year.... One of the more compelling reasons for the extension...is the whole concept of economics and everything that goes in this category.... One of the crucial things that cannot be ignored is the mega market opportunities of China and in what the American businesses would have to lose if Beijing retaliated against the revocation of the MFN by the United States. Though the administration here formally delinked trade and human rights, China in its own way has been making that linkage.... (President Clinton's) decision undoubtedly sets in motion another major foreign policy debate in this country and one in which the president will have his way in the end.... Clinton will also be finding that more Republicans and Democrats may be voting against the MFN extension than in the past." "China Exploits France To Get At U.S." Tokyo correspondent F.J. Khergamvala presented this view in the centrist Hindu (5/20): "Who in Europe is better to be exploited to poke a finger in the United States' eye than the French? The Chinese have done exactly that and, in a foreign policy success, for the first time got a Western nation to agree on paper to recognize Beijing's own definition of human rights.... In an obviously well-timed and well-planned trade-off, this concession by Chirac was one of two that apparently lubricated the $1.8 billion in contracts granted to French companies.... The size of the Airbus order is a subtle message to the Clinton administration and an even more open message to U.S. business that they are not trying hard enough with their government on human rights.... "Not too worrisome to the Americans would be the language used in the joint declaration on the United States' overbearing attitude.... It is clear where the finger is being pointed, although the term used is milder than the Sino-Russian document of last month, which used 'hegemons.'... So far as the reality is concerned, a Sino-French partnership does not do much by itself by way of a counterweight to the U.S. position on the world stage.... The United States is unlikely to lose much sleep over it, not only because there is nothing much in a Sino- French partnership to worry it, but also because France is following the China policy initiated by the United States." "Clinton May Favor MFN For China" The centrist Hindu's Washington correspondent Sridhar Krishnaswami expressed this view (5/17): "There is no doubt that Clinton will be giving his positive recommendation on the subject (of MFN to China).... But the White House is also faced with another dilemma...with the slow erosion in the numbers of the Republicans who have backed the granting of MFN to China. The second disadvantage for the White House is its timing: On July 1 Hong Kong reverts back to China after 150 years.... "The Clinton administration's China policy is not about to undergo any major changes in the sense that Washington is not going to look beyond the mega-market opportunities framework.... Even if the second Clinton administration could have made a 'breakthrough' in its China policy by injecting a strategic dimension, that opportunity seems to have been lost because of the domestic realities. The White House has been saddled with the additional burden of the campaign finance scandal, in which allegations have been made of China trying to influence the American electoral process. The impact of the campaign finance irregularities of the Democratic Party has dealt a debilitating blow to the conduct of foreign policy per se." PAKISTAN: "Sino-Russian Opposition To U.S. Hegemony" The Peshawar-based, independent Frontier Post ran this op- ed piece by Muhammed Ali Talpur (5/18): "The Russia of today still has the capability of destroying the United States and the world many times over. All the elements of the Cold War era minus the ideological factor...(are still) in place. The recent agreement signed by Russia and China has once again shown that remnants of communism are still breathing and may pose a threat to the hegemony of the United States.... "The United States is ready to give India a 'stabilizing' role in the region at large.... By focusing on the issues on which Indian and U.S. interests might converge, India has sought to depict itself as a state whose friendship would advance larger U.S. strategic interests along the wider Southern Asian rim. Given this set of new circumstances, the objective here is to remind India and Pakistan that their permanent security interests consist not of regional hegemony but simply of ensuring survival and autonomy." NEPAL: "An ASEAN-10 Could Stand Up To China" The government-owned Sunday Despatch observed (5/19): "When ASEAN expands its membership to ten, it will create a group of 500 million people with a fast-growing internal market. The new countries are the source of cheap labor as well as abundant raw materials like timber, coal and hydropower. Politically, a united ASEAN has great advantage over an assertive China in the region. The region is worried because of China's territorial disputes with five other countries over the Spratly Islands... ASEAN's commitment to include three new members...is a great achievement of the association working for the peace, prosperity and mutual understanding among the countries of the region." AFRICA NIGERIA: "What Benefits In New Friendship With China?" The Lagos-based independent Post Express ran this editorial (5/21): "China is open to Western investment. We are behaving as if we do not need that investment. Whatever benefits we stand to reap from our relations with China can only be the result of their own openness to Western investment, technology and ideas. Thus, we are about to receive second-hand goods and services. Moreover, there is very little in the cultural outlook of the Chinese that can appeal to our people. Nor do we have the discipline that they got from communism to benefit from their experience. Even if they were so disposed, our present leadership (and the past ones) does not have the ideological tutelage that placed China in a position to convert Western investment to prosperity. Most importantly, it may be excusable to buy Chinese locomotives and sell them oil in return. But one thing we must not learn from them is the culture of political repression and cruelty to its citizens." ## For more information, please contact: U.S. Information Agency Office of Public Liaison Telephone: (202) 619-4355 5/22/97 # # #
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