DATE=6/3/99
TYPE=BACKGROUND REPORT
NUMBER=5-43568
TITLE=CHINA: TRADE & ESPIONAGE
BYLINE=DAVID SWAN
DATELINE=CAPITOL HILL
CONTENT=
VOICED AT:
INTRO: PRESIDENT CLINTON HAS RENEWED NORMAL TRADE RELATIONS WITH
CHINA FOR ANOTHER YEAR, A MOVE THAT ALWAYS GENERATES A CERTAIN
AMOUNT OF CONTROVERSY IN WASHINGTON. THIS TIME, THE FIGHT IS
LIKELY TO BE MORE INTENSE THAN USUAL BECAUSE OF SEVERAL GRAVE
PROBLEMS IN SINO-U-S RELATIONS -- INCLUDING A MUCH-PUBLICIZED
REPORT THAT BEIJING STOLE SECRETS OF AMERICA'S NUCLEAR WEAPONS.
V-O-A'S DAVID SWAN HAS DETAILS.
TEXT: THE ESPIONAGE CASE HAS SPARKED UNUSUAL TENSION --
REMINISCENT OF THE COLD WAR -- IN WHAT BOTH GOVERNMENTS WOULD
LIKE TO BE AN EVOLVING, BUSINESSLIKE RELATIONSHIP. AS DETAILS OF
THE ALLEGED NUCLEAR SPYING EMERGED ON CAPITOL HILL (LAST WEEK),
LAWMAKERS OFFERED VARYING ASSESSMENTS OF HOW MUCH THE MATTER
MIGHT SPILL INTO ISSUES LIKE TRADE. ALL SIDES AGREE THE IMPACT
IS NOT GOOD. THIS IS REPUBLICAN SENATOR CHUCK HAGEL.
// HAGEL ACT //
WELL, THERE'S NO QUESTION THAT THIS REPORT IS GOING TO
HAVE A VERY CHILLING EFFECT ON FUTURE TRADE
RELATIONSHIPS WITH CHINA.
// END ACT //
MR. HAGEL PREDICTS THE CHILL WILL EXTEND TO CHINA'S ATTEMPT TO
JOIN THE WORLD TRADE ORGANIZATION, WHICH HAS ALREADY STALLED.
THE IMMEDIATE EFFECT WILL COME AS LAWMAKERS PONDER WHETHER TO
CONTINUE NORMAL TRADE RELATIONS AS THE PRESIDENT PLANS.
SENATORS AND HOUSE MEMBERS HAVE 90 DAYS TO ACT IF THEY WANT TO
REJECT HIS DECISION. REPUBLICAN RICHARD LUGAR THINKS THE SPY
CASE WILL SET A NEW TONE FOR THE ANNUAL DEBATE, ON WHAT USED TO
BE CALLED MOST-FAVORED-NATION (M-F-N) STATUS.
// LUGAR ACT //
THE M-F-N DEBATE WILL PROBABLY TAKE ON A DIFFERENT
CHARACTER BECAUSE IT WILL BE A FORUM FOR DISCUSSION OF
THE OVERALL (U-S / CHINESE) RELATIONSHIP.
// END ACT //
THE DISCUSSION WAS ALREADY BOUND TO BE HEATED BECAUSE THIS WEEK
MARKS THE TENTH ANNIVERSARY OF THE KILLINGS IN AND AROUND
TIANANMEN SQUARE. THE ANTI-DEMOCRACY CRACKDOWN IS ALWAYS A
RALLYING CRY FOR THOSE WHO WISH TO USE TRADE AS LEVERAGE WITH
BEIJING TO PUSH FOR IMPROVED HUMAN RIGHTS IN CHINA.
BUT DESPITE THE EMOTION SURROUNDING THE ANNIVERSARY AND THE
SPYING AFFAIR, MR. CLINTON HAS HISTORY ON HIS SIDE. SINCE 1980
EVERY PRESIDENT HAS EXTENDED CHINA'S TRADE BENEFITS AND NONE HAS
EVER BEEN OVERRULED BY CONGRESS.
RENEWAL OF CHINA'S TRADE STATUS IS OFTEN OPPOSED BY AN UNUSUAL
COALITION -- COMPRISING SOME OF THE MOST CONSERVATIVE REPUBLICANS
AND LIBERAL DEMOCRATS. THOSE LEANING TOWARD THE MIDDLE OF THE
SPECTRUM TEND TO SUPPORT NORMAL TRADE FOR BOTH ECONOMIC AND
STRATEGIC REASONS. DEMOCRATIC SENATOR JOHN KERRY SAYS NO ONE
SHOULD BE SURPRISED BY THE ESPIONAGE. AND WHILE SERIOUS THE CASE
MUST NOT BE ALLOWED TO TURN BACK THE CLOCK ON THE U-S POLICY OF
CONSTRUCTIVE ENGAGEMENT.
// KERRY ACT //
IT IS NOT IN OUR INTERESTS TO CREATE AN ENMITY. NOW AS
I SAY THAT, I DON'T WANT TO PRETEND FOR CHINESE
CONSUMPTION THAT MEANS THAT WE SWALLOW EVERY INDIGNITY,
OR EVERY VIOLATION OF HUMAN STANDARDS, OR OTHER THINGS.
BUT THERE ARE PLENTY OF WAYS TO ENGAGE.
// END ACT //
CHINA OF COURSE DENIES SPYING. IT HAS BEEN FURTHER ANGERED BY
WASHINGTON BECAUSE OF THE ACCIDENTAL U-S BOMBING OF THE CHINESE
EMBASSY IN BELGRADE.
STILL, THE CLINTON ADMINISTRATION IS DETERMINED TO PURSUE ITS
ENGAGEMENT POLICY AND ITS OPPONENTS IN CONGRESS ARE ONCE AGAIN
FACING AN UPHILL FIGHT. A TWO-THIRDS MAJORITY VOTE IN BOTH
HOUSES WOULD LIKELY BE NEEDED TO CUT OFF NORMAL TRADE. (SIGNED)
NEB/DS/ENE/JO
03-Jun-99 4:05 PM EDT (2005 UTC)
NNNN
Source: Voice of America
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