DATE=6/2/98
TYPE=BACKGROUND REPORT
NUMBER=5-40574
TITLE=U-S / CHINA / M-F-N (CQ)
BYLINE=STEPHANIE MANN
DATELINE=WASHINGTON
CONTENT=
VOICED AT:
INTRO: PRESIDENT CLINTON IS EXPECTED TO ASK (HAS ASKED) CONGRESS
TO APPROVE THE RENEWAL OF FAVORABLE TRADE TREATMENT FOR CHINA.
CORRESPONDENT STEPHANIE MANN REPORTS THE ANNUAL CONGRESSIONAL
DEBATE OVER MOST FAVORED NATION TRADE STATUS FOR CHINA IS
EXPECTED TO BE ESPECIALLY HEATED THIS YEAR.
TEXT: EVERY YEAR BY JUNE 3RD, THE PRESIDENT MUST DECIDE AND
MAKE A RECOMMENDATION TO CONGRESS ON WHETHER THE UNITED STATES
SHOULD CONTINUE MOST FAVORED NATION TRADE STATUS, ALSO CALLED
M-F-N, FOR CHINA.
// OPT // MOST U-S TRADING PARTNERS ENJOY M-F-N STATUS, MEANING
THEIR PRODUCTS CAN ENTER THE U-S MARKET AT THE LOWEST AVAILABLE
TARIFFS. REMOVING M-F-N STATUS FROM CHINA WOULD MEAN
DRAMATICALLY HIGHER TARIFFS ON CHINESE GOODS IMPORTED INTO THE
UNITED STATES. // END OPT //
IN 1974, IN RESPONSE TO HARSH LIMITS ON EMIGRATION FROM THE
FORMER SOVIET UNION, THE U-S CONGRESS APPROVED LEGISLATION, KNOWN
AS THE JACKSON-VANIK AMENDMENT, WHICH BLOCKED GRANTING OF M-F-N
TO ANY COMMUNIST COUNTRY THAT RESTRICTED EMIGRATION.
AFTER THE BLOODY 1989 CHINESE ARMY CRACKDOWN ON THE TIANANMEN
SQUARE PROTEST MOVEMENT, MANY MEMBERS OF CONGRESS WANTED TO
BROADEN THE SCOPE OF JACKSON-VANIK TO SUSPEND M-F-N PRIVILEGES
FOR CHINA. LEGISLATION WAS PASSED THAT REQUIRED THE PRESIDENT TO
CERTIFY EACH YEAR THAT CHINA HAD MADE "OVERALL SIGNIFICANT
PROGRESS" IN HUMAN RIGHTS, TRADE PRACTICES AND WEAPONS
NON-PROLIFERATION IN ORDER TO KEEP M-F-N STATUS FOR CHINA. BUT
THE MEASURE WAS VETOED BY THEN-PRESIDENT BUSH.
IN 1993, PRESIDENT CLINTON, WHO HAD BEEN CRITICAL OF MR. BUSH'S
POLICY, ISSUED AN EXECUTIVE ORDER, MAKING M-F-N STATUS
CONDITIONAL ON A PRESIDENTIAL DETERMINATION THAT CHINA HAD MADE
"OVERALL SIGNIFICANT PROGRESS" IN HUMAN RIGHTS.
IN RECENT YEARS, AS CHINA'S ECONOMY HAS BOOMED AND CONSTRAINTS ON
ECONOMIC AND SOCIAL ACTIVITIES HAVE BEEN EASED, THE CLINTON
ADMINISTRATION FACED PRESSURE TO LIFT THE CONDITIONS ON CHINA'S
TRADE STATUS, EVEN GRANT CHINA PERMANENT M-F-N. PRESIDENT
CLINTON REMOVED THE LINK BETWEEN HUMAN RIGHTS PROGRESS AND M-F-N
RENEWAL, BUT AN ANNUAL DECISION IS STILL REQUIRED.
THIS YEAR, A SERIES OF CONTROVERSIES HAVE CALLED INTO QUESTION
U-S DEALINGS WITH CHINA, AND THE DEBATE OVER M-F-N FOR CHINA IS
LIKELY TO BE MORE HEATED. THE CLINTON ADMINISTRATION IS LOOKING
INTO ALLEGATIONS THAT U-S AEROSPACE COMPANIES MAY HAVE PASSED
SENSITIVE INFORMATION TO CHINA ABOUT SATELLITE LAUNCHING AND
MISSILE GUIDANCE SYSTEMS. AND THERE ARE INVESTIGATIONS INTO
POLITICAL CAMPAIGN CONTRIBUTIONS ORIGINATING FROM CHINA,
PROMPTING SUSPICIONS THAT BEIJING MAY HAVE HAD A PLAN TO TRY TO
INFLUENCE U-S POLICY.
THOMAS ROBINSON IS PRESIDENT OF AMERICAN-ASIAN RESEARCH
ENTERPRISES, A RESEARCH AND CONSULTING FIRM IN SUBURBAN
WASHINGTON. MR. ROBINSON SAYS THESE CONTROVERSIES ARE LIKELY TO
PROMPT MANY MEMBERS OF CONGRESS TO RAISE MORE QUESTIONS THIS YEAR
ABOUT M-F-N RENEWAL.
// ROBINSON ACT //
I THINK THE PROBLEM OF THE SATELLITE LAUNCH, THE LORAL
CAMPAIGN CONTRIBUTIONS, CHINA PLAN, ALL THOSE KINDS OF
THINGS ARE GOING TO CALL THAT INTO QUESTION MORE THIS
YEAR THAN IN PREVIOUS YEARS, THE LAST TWO YEARS. I
DON'T THINK IN THE END IT'S GOING TO LEAD TO THE
CONGRESS VOTING, IN BOTH HOUSE AND SENATE, AGAINST MOST
FAVORED NATION RENEWAL, BUT IT MIGHT COME A LOT CLOSER
THAN IT HAS BEEN IN THE LAST TWO YEARS.
// END ACT //
AND THAT COULD BE WORRISOME, MR. ROBINSON SAYS.
A FORMER MEMBER OF CONGRESS, MICHAEL KOPETSKI, AGREES THIS YEAR'S
CONGRESSIONAL DEBATE WILL BE A SENSITIVE ONE. BUT MR. KOPETSKI,
A DEMOCRAT WHO SERVED IN THE HOUSE OF REPRESENTATIVES IN THE
EARLY 1990'S, SAYS THE CURRENT CONTROVERSIES ARE NOT AS
DESTABLIZING AS THE SITUATION WAS A FEW YEARS AGO.
// KOPETSKI ACT ONE //
YES, THESE KINDS OF ALLEGATIONS ON THE CAMPAIGN FINANCE,
THE TECHNOLOGY TRANSFER, THOSE CLEARLY WILL BE HOTLY
DEBATED ISSUES AS PART OF THE GENERAL DEBATE. BUT,
RECALL THAT JUST TWO YEARS AGO, THE CHINESE WERE SETTING
OFF LIVE MISSILES IN THE TAIWAN STRAITS ABOUT THIS TIME,
THAT WE HAD TO SEND IN TWO OF OUR AIRCRAFT CARRIERS,
THAT PROBABLY WHEN THE HISTORY IS WRITTEN WE CAME VERY
CLOSE TO A (VIOLENT) EXCHANGE WITH THE CHINESE. AND SO
IT WAS A VERY CONTENTIOUS TIME AS WELL.
// END ACT //
MR. KOPETSKI SAYS EVEN WITH THAT TENSE SCENARIO BETWEEN CHINA AND
THE UNITED STATES, U-S POLICYMAKERS AND MEMBERS OF CONGRESS STILL
DECIDED TO CONTINUE MOST FAVORED NATION STATUS FOR CHINA. HE
SAYS THEY AGREED THE BEST WAY TO ENCOURAGE CHINA TO KEEP OPENING
TO THE OUTSIDE, TO IMPROVE THE TRANSPARENCY OF ITS SYSTEM, AND TO
ENHANCE HUMAN RIGHTS FOR ITS CITIZENS WAS TO STAY ENGAGED WITH
CHINA.
(OPT) MR. KOPETSKI, NOW AN INTERNATIONAL TRADE CONSULTANT, SAYS
THE U-S / CHINA RELATIONSHIP IS BOUND TO ENCOUNTER PERIODIC
DIFFICULT BUMPS.
// KOPETSKI ACT TWO //
IT'S A BIG BUMP IN THE ROAD. NO DOUBT ABOUT IT, BUT I
THINK THAT WE HAVE TO LOOK AT POLICY BETWEEN GOVERNMENT
TO GOVERNMENT, U-S TO CHINA, WHAT'S IN THE BEST INTEREST
OF THE UNITED STATES AND ITS CITIZENS, AND I BELIEVE,
THAT EVEN WITH THESE ALLEGATIONS, THAT AT THE END OF THE
DAY THAT ENGAGEMENT WITH CHINA CONTINUES TO BE THE BEST
POLICY FOR OUR COUNTRY.
// END ACT //
(END OPT)
IN THE COMING WEEKS, THE HOUSE OF REPRESENTATIVES AND THE SENATE
ARE EXPECTED TO SPEND TIME DISCUSSING THE QUESTIONS OVER U-S
SATELLITE COMPANIES' ACTIVITIES IN CHINA -- WHETHER SENSITIVE
INFORMATION OR TECHNOLOGY WAS GIVEN TO THE CHINESE WITHOUT
AUTHORIZATION. SO, IT IS POSSIBLE CONGRESSIONAL VOTES ON THE
RENEWAL OF M-F-N FOR CHINA MAY BE DELAYED UNTIL AFTER PRESIDENT
CLINTON'S SUMMIT IN BEIJING LATER THIS MONTH. (SIGNED)
NEB/SMN/KL
02-Jun-98 3:57 PM EDT (1957 UTC)
NNNN
Source: Voice of America
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