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China MFN [3]
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These records pertain to China's Most Favored Nation status.
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Originally Processed With FOIA(s):
FOIA Number:
2012-1098-F
2012-1098-F
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administrative marker by the George Bush Presidential
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Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Legislative Affairs, White House Office of
Series:
Dyer, James W., Files
Subseries:
OA/ID Number:
08451
Folder ID Number:
08451-007
Folder Title:
China MFN [3]
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20
11
6
1
Withdrawal/Redaction Sheet
(George Bush Library)
Doc. No. / Type
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Classification
01. Paper
[Supplement to the Committee's Questionnaire Concerning the
n.d.
(b)(1)
Nominee's Knowledge of the Iran-Contra Affair - pages 12-13
only] (2 pp.)
02. Paper
Supplement to the Committee's Questionnaire Concerning the
n.d.
(b)(1)
Nominee's Knowledge of the Iran-Contra Affair (56 pp.)
Page 1 of 1
Collection:
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Dyer, James W., Files
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China MFN [3]
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JUN 4 '91 17:09 FROM NSC
PAGE. 001
UNCLASSIFIED
FAX TRANSMITTAL SHEET
FROM:
Douglas Paal
TELEPHONE: 395-5746
FAX NUMBER: 395-3380
TO
PHONE
FAX NUMBER
1. Mary Sophos
566-5736
535-3639
Jon Huntsman
377-5251
377-4453
2.
3. Desaix Anderson
647-6910
647-7350
4. Chuck Morris
647-9037
647-5095
5. Joe Massey
Ext. 3900
395-3911
6.
Warren Maruyama
" 2929
395-7739
7. Bobbie Kilberg
"
7900
456-1647
8. Sichan Siv
# 7120
456-1647
9. David Demarest
" 7620
456-2983
10.Jim Dyer
" 7054
456-6221
11.Dorrance Smith
H 1660
456-2878
UNCLASSITIED
United States Department of State
Washington, D.C. 20520
Dear Senator Mitchell:
As debate on most-favored-nation status for China proceeds,
I want to underscore for you and your colleagues in Congress
those existing sanctions and measures that President Bush has
authorized to register American disapproval of that nation's
unacceptable human rights, trade and weapons proliferation
practices. The President has used legal authorities in place
to target abuses in each area of concern by employing
appropriate countermeasures, as we do against other countries
that violate international norms of behavior. Proposals to
deny or condition MFN for China not only seek to punish all
Chinese, including those we most wish to encourage, but take
away from us the most effective instrument we now have to
penetrate and promote change in China, that is open trade and
the exchange of people and ideas.
Following the crackdown at Tiananmen, the President
immediately authorized a number of measures to express American
abhorrence of this needless violence against the pro-democracy
movement. There were:
--
Suspension of senior-level contacts, except those
essential to pursue strategic, nonproliferation or
human rights interests.
--
Termination of the military relationship, including
weapons programs and military exchanges.
--
Denial of all export licenses for equipment used by
the Chinese military and police.
--
Termination of support for multilateral development
loans to China, except for basic human needs projects.
--
Suspension of grants from our Trade and Development
Program (TDP) and the Overseas Private Insurance
Corporation (OPIC).
--
Opposition to talks within COCOM on liberalizing
controls on high-technology exports to China.
As new issues have emerged in the nonproliferation and
trade areas, the President has taken further strong steps,
using existing legal authorities:
:
In April, the President denied licenses for export of
components critical for the launch of a Chinese
domestic satellite.
--
The President will not seek any further satellite
waivers for China until missile proliferation concerns
are satisfied.
--
Similarly, he instructed the Commerce Department not
to license exports of high-speed computers to China
until these concerns are satisfied.
-- The President announced on May 27 his intention to
deny licenses to any Chinese company found to exceed
international standards in the transfer of missile
equipment. Two Chinese companies, the Chinese
Precision Machinery Import-Export Corporation and the
Great Industries Corporation, have been found to have
violated these standards. These companies will be
sanctioned under the authorities in the National
Defense Authorization Act.
The Administration is also taking steps to address the
protection of intellectual property rights in China and the
bilateral trade imbalance:
-- In April, the President authorized the designation of
China under the Special 301 provision for violation of
U.S. intellectual property rights. A formal
investigation of Chinese practices is underway and
action will follow if adequate progress does not occur.
-- Assistant U.S. Trade Representative Joseph Massey is
in Beijing this week to press concerns about market
access with senior Chinese officials.
This Administration has actively applied sanctions against
China since the tragedy at Tiananmen Square. The United States
now stands alone as the only country that still has its
original sanctions in place and is actively persuing additional
measures.
I continue to believe that selective application of
existing legal mechanisms to specific issues of concern will
yield the most gains with China. To deny MFN to China will
destroy our dialogue with the Chinese on these issues and
dismantle our leverage. To employ such a blunt instrument at
this time will succeed only in hurting the millions of people
in China who seek economic and political reform and who look to
the U.S. for compassion and support.
Sincerely
James Baker
Attachments:
1) Fact Sheet on U.S. Sanctions against China
2) Achievements of the President's Strategy of Engagement
.nent.
NEW YORK
FIFTH AVENUE AND 57TH STREET
800-526-0649
©T & CO. 1991
Baker Warns China Against Selling New Missiles
By KEITH BRADSHER
have bilateral consequences." Mr.
At a meeting this morning with Mr.
Special to The New York Times
Baker did not elaborate further.
Baker and Brent Scowcroft, the na-
Bush Library Photocopy
WASHINGTON, June 12 - Secretary
A group of Republican and Demo-
tional security adviser, Senator Bob
of State James A. Baker 3d warned
cratic senators is seeking concessions
Dole, Republican of Kansas, presented
China today that there would be "pro-
from the Administration in exchange
a proposed letter to Mr. Bush that was
found consequences" for Chinese-
for legislative support for President
drafted by Senator Max S. Baucus and
American relations if Beijing sold
Bush's decision to renew trade privi-
co-signed by three other Democratic
father knows best.
newly developed ballistic missiles to
leges for China for another year.
senators.
Syria and Pakistan.
Bitter Rift With Lawmakers
The letter calls for five concessions
about domestic duties. Treat him to some imports.
China's arms exports have become a
from the Administration, a participant
From France, Charvet's collection of handmade pure silk bow ties, $75.
matter of controversy as Congress con-
The White House and Congress are
in the negotiations between the White
bitterly divided over how to handle
Men's Furnishings, Street Floor and on Six in New York.
siders President Bush's proposal to
House and Congress said. The biggest
renew Beijing's preferential trade
relations with China. Many Republican
concession would be for the United
and Democratic lawmakers are con-
status. Mr. Baker said the United
States to end its opposition to Taiwan's
cerned that Mr. Bush has reacted too
States had no "evidence or any indica-
immediate entry into the General
tion" that China had actually shipped
mildly to Beijing's crackdown on the
Agreement on Tariffs and Trade.
surface-to-surface missiles to Syria,
democracy movement two years ago.
Mr. Bush prevailed last year in ex-
Proposal to Block Loans
despite a recent press report suggest-
ing that a deal was near completion.
tending trade privileges to China, but
Such a move would infuriate China,
He said the Bush Administration had
he faces stronger opposition this year
Deputy Secretary of State Lawrence S.
in both the House and the Senate. The
Eagleburger told a House panel today.
also cautioned Beijing against sending
renewal of China's trade status has be-
The letter also suggests that the Ad-
sophisticated new missiles to Pakistan,
come one of the most contentious for-
ministration take legal steps to fight
asserting that this "would constitute
grave threats to the region and could
eign policy and trade issues facing Con-
China's import barriers, insure that
gress this summer.
Chinese products made with prison
Jose R. Lopez/The New York Times
labor are kept out of the United States
Deputy Secretary of State Law-
market, block loans to China by multi-
rence S. Eagleburger told a
Corrections
lateral agencies until the country's
House panel yesterday that trade
human rights record improves, and en-
concessions to Taiwan would in-
ter negotiations to curb the spread of
An article by The Associated Press
Because of an editing error, an arti-
ballistic missiles in the third world.
furiate China.
in some copies on Monday about
cle in Business Day on May 27 about
"My understanding is they are will-
Lieut. Jeffrey N. Zaun, a Navy pilot
Colembia's coffee exports misstated
ing to make virtually all the conces-
who was a prisoner of war in Iraq,
the type of coffee grown in Kenya. It
sions I've asked for in my letter," Sena-
dozen Democratic senators led by
characterized his remarks in a
is arabica, not robusta.
tor Baucus, the chairman of the Sen-
Senator Baucus who strongly support
Nevada newspaper interview incor-
ate's International Trade Subcommit-
free trade but are troubled by China's
rectly. Although he said he would not
The Entertainment Events listing
tee, said in an interview today.
human rights record.
want to kill again, he did not say he
on Monday and a music listing in the
Several Administration officials,
Arts and Leisure Guide on Sunday
The participant in congressional ne-
had second thoughts about war.
speaking on the condition of anonymi-
On Tuesday, because of an editing
misstated the date of a performance
gotiations with the Administration said
ty, said that no final deal had been
by the rock group Chicago at Radio
that Senator Dole was asking other Re-
error, a more extensive article about
struck. They said White House officials
City Music Hall. It is July 10; the
publican senators to co-sign Senator
Lieutenant Zaun represented his
were divided on whether to risk
group did not appear on Monday
Baucus's letter, which is to be released
views incompletely. It should have
China's anger by supporting Taiwan's
night.
on Thursday. The participant, who in-
noted that Lieutenant Zaun said he
application to GATT.
sisted on anonymity, said the proposed
could not rule out having to kill again
The Chess column on April 23 char-
Senator Baucus said he had not de-
concession on Taiwan's application to
in combat.
acterized the Mechanics Institute of
cided whether he would support the re-
GATT would be cited in seeking the
San Francisco incorrectly. A letter
newal of China's so-called "most-fa-
backing of conservative Republicans
A picture caption yesterday about
dated April 24, delayed in reaching
vored-nation" status if the Administra-
for renewal of China's trade status.
Republicans who met on the Bush Ad-
the columnist, points out that the in-
tion refused to grant the concessions.
ministration's legislative agenda
Senator Baucus said that 8 to 12
stitute, which sponsored the Pan-
A Congressional resolution canceling
misidentified a House member. He
Democratic senators and 25 to 30 Re-
Pacific Grandmaster Tournament, is
the renewal of China's trade privileges
was' Representative Jerry Lewis.
publican senators were likely to sup-
a nonprofit organization open to all
is considered likely. To sustain a Presi-
(Jeffrey R. Lewis, a Senate staff
port the renewal of China's preferen-
pplicants for a $10 application fee
dential veto of such a resolution, Mr.
tial trade status if the Administration
Charv
member, was not present.)
4 $45 a year in dues.
Bush would need the votes of nearly a
granted the concessions.
BERT
PULITZER
The
Herîtage Backgrounder Foundation
214 Massachusetts Avenue N.E.
Washington, D.C. 20002
(202)546-4400
5/9/91
Number
160
THE CASE FOR RENEWING CHINA'S TRADE STATUS
(Updating Asian Studies Center Backgrounder No. 104, "Washington's Agonizing Decision: To
Extend or Revoke China's Most-Favored-Nation Status," May 8, 1990.)
The Washington-Beijing relationship is beset by problems. The People's Republic of China's
1990 trade surplus with the United States was $10.4 billion, up $4.2 billion from 1989, and could
leap to $15 billion by the end of this year. This would make the U.S. deficit with China greater than
with any country except Japan. The trouble with the mushrooming trade deficit with China is that
there is a growing feeling that it is caused in part by Beijing's refusal to open China's markets fully
to American goods. To make matters worse, the Chinese refuse to protect U.S. patents and
copyrights, and apparently use prison labor to lower the price of their exports. Then there is sig-
nificant evidence that the Chinese are peddling missiles and nuclear technology to Algeria, Pakis-
tan and other Third World customers in defiance of multilateral efforts to ban such sales. And Beij-
ing has yet to make a full accounting of what has happened to the pro-democracy demonstrators ar-
rested after the 1989 Tiananmen Square massacre.
It is in this environment that George Bush will be challenged to decide by June 3 whether to
renew China's most-favored-nation (MFN) trading status. Such status, granted to China in 1980 and
approved annually since then, gives Chinese goods exported to the U.S. the same tariff treatment as
that received by the some 180 other nations to which Washington accords MFN status, including
Iraq and Syria and a host of other unpleasant regimes.
Equal Treatment. Although the expression "most-favored-nation" suggests that a country is ac-
corded special trading privileges, the term actually means something quite different. Specifically, a
country that receives MFN status merely is entitled to those trade benefits and concessions granted
to any other MFN country. MFN thus confers no special trading status; it simply treats all MFN
recipients equally.
Generally, MFN is a permanent status. The only exceptions are communist countries which,
under the Trade Act of 1974, either annually or semi-annually must seek renewal. Specifically, Title
4 of the Act, known as the Jackson-Vanik Amendment, named after the late Senator Henry M.
Jackson of Washington and former Representative Charles A. Vanik of Ohio, both Democrats,
states that MFN status can be given to "non-market economies" if their countries permit substan-
tially free emigration of their citizens. The law works like this: If the President wants to extend
MFN status he must either certify to Congress that the country under consideration is not in viola-
tion of the Amendment's human rights criteria or waive the criteria for the country involved on an
annual basis because such a move would "substantially promote the objectives" of Jackson-Vanik.
Once George Bush certifies that China over the past year has allowed free emigration, Congress ef-
fectively has ninety days to approve or disapprove China's MFN status. Their vote is then subject to
presidential veto.
Note: Nothing written here is to be construed as necessarily reflecting the views of The Heritage Foundation or as an
attempt to aid or hinder the passage of any bill before Congress.
America's problems with China thus fall into two categories - the economic and the political.
Washington should deal with them accordingly: economic problems should be addressed with
economic mechanisms; political problems with political ones.
Trade Retaliation. If Beijing refuses to assure copyright, patent and trademark protection to
American business, for instance, then China should be identified under the 1988 Omnibus Trade
and Competitiveness Act as a so-called "priority" country that has established "systematic" barriers
to U.S. exports. This law sets procedures for dealing with unfair "priority" foreign trade practices
through trade retaliation. The Bush Administration, in fact, on April 26 cited China as a "priority"
nation for pirating U.S. copyrights and patents.
Conversely, the current political problems in the Sino-American relationship should be ad-
dressed through political mechanisms. China's continuing human rights abuses in Tibet, its likely
use of some prison labor to manufacture goods for export and its sales of advanced weapons to
dangerous nations should elicit vigorous condemnation from the highest levels of the U.S. govern-
ment. Under Secretary Robert Kimmitt, the State Department's third-ranking official, traveled to
China this week to convey U.S. dismay over Beijing's trade practices and human rights violations.
Even tougher American political and diplomatic actions against China may be warranted by
Beijing's transgressions.
What is not warranted is mixing the economic and political issues. China no more should be
punished economically for its unacceptable political actions than Japan should be exempted for
political reasons from economic punishment for its unacceptable economic actions against
American products.
If Beijing violates the Jackson-Vanik amendment's "freedom-of-emigration" provision, then
China's MFN status should be revoked. Otherwise, the issue should be subject to the same con-
siderations by which Washington has deemed it proper to extend MFN to 180 other nations.
Other factors also argue against ending China's MFN status. To do so would:
Dramatically raise duties on Chinese exports to America and thus hike the prices that work-
ing class and other Americans pay for these goods. Products from China now account for one-
third of the American toy market, 10 percent of the American footwear market and 15 per-
cent of the imported American apparel market.
Cost the export industries of South China up to two million jobs. It is this area in which the
free market and pro-democratic forces are strongest. Ending MFN thus would penalize those
Chinese whom American policy ostensibly seeks to help.
Reduce China's access to hard currency, further squeezing Beijing's ability to service its $45.8
billion international debt.
Close Chinese markets to American exporters. Last year, U.S. exports to China totaled $4.8
billion. Among the biggest American losers would be wheat growers, whose 1990 sales ap-
proached $1 billion; commercial aircraft manufacturers, for whom China has become a de-
pendable $500 million a year market; and phosphate fertilizer manufacturers, who consistent-
ly sell one-sixth of their entire annual output to China.
Create enormous new problems for Hong Kong at a time when the colony can least afford
anything that undermines confidence in its future. Some 70 percent of American imports
from China are shipped through Hong Kong. As Hong Kong's largest foreign market and one
of its principal investors, U.S. interests lie in a politically assured and economically healthy
2
Hong Kong. Uncertain about their future, 60,000 Hong Kong citizens leave the territory each
year. Denying China MFN status may well speed the exodus.
Increase Beijing's dependence on arms sales for cash. Cutting off American markets to
Chinese goods could force Beijing to rely even more on the international weapons market for
hard currency.
Threaten to abandon the China market to the Japanese, the Europeans and others who auto-
matically give China MFN status.
Almost two years after the violence in Beijing, Washington policy makers confront a recalcitrant,
unapologetic and defiant China. A long and potent list of U.S. grievances daily increases. In such
light, it is emotionally easy to make a case for punishing Beijing. If so, then appropriate punishment
should be sought, and inflicted. Yet ending China's MFN status is not appropriate. If it is, then
Washington must review the domestic political behavior of scores of other countries and prepare to
revoke their U.S. MFN status. To end MFN for mainland China, moreover, barely will pinch
Beijing's aging leaders who are the authors of the repression. Instead, it will hurt reformers in
China, consumers in America and deal a heavy blow to Hong Kong.
Washington should recognize this. It should separate the economic and political issues at stake.
And then it should conclude that there are no grounds for revoking U.S. MFN trade status for
China.
Andrew B. Brick
Policy Analyst
3
their July 1.
"course, will
but
Lawrence S. Eagleburger
1.1th-hour (
matic econo
but to save
ay'
How to Get China to Change
But the (
if it frustral
men and T
Mr. Bagieburger is deputy secre-
tively to apply sanctions targeted to
ous harm on those within China
ing for a he
tes assume re-
tary of state. These are excerpts
our specific differences. MFN itself is
who continue to struggle for reform
around the
f failed institu-
from testimony he gave yesterday
simply not the vehicle we should use
and for a China open to the outside
should not t
ay not be real-
before the Senate Finance Commit-
to exert pressure on the Chinese with
world. It would hurt those segments
on July 17.
'S which affect
tea:
regard to particular issues. To place
of the Chinese economy that are
The optil
There should be no misunder-
conditions on MFN would hold our
most dynamic, most Western-ori-
later to G
ant and include
standing about U.S. policy toward
single most powerful instrument for
ented and most committed to the
calm discus
SS in the econo-
promoting reform hostage to the re-
marketplace.
overbuilt real
China. The promotion of fundamental
with their
Due to these
human rights is and will persist as a
actions of the hard-liners in Beijing.
The way to deal with our problems
ters-wouk
cornerstone of that policy. Top ad-
China was in 1980 a truly totali-
with China is not to dismantle the
help, desig
: estimates for
ministration officials have stated this
tarian state. Despite that. the Carter
structure that has opened up that
investment
today could be
forcefully and repeatedly to senior
administration and the U.S. Congress
country to us and contributed to a
cash or cre
:ed and expec-
representatives of the Chinese gov-
approved MFN for China, not as a
decade of growth and higher living
in stages an
ales could dra-
emment. The president was the first
reward for its human rights perfor-
standards. Once undone, the rebuild-
The real
C's needs some-
major world leader to condemn the
mance but in order to demonstrate
ing of our commercial relationship
are three:
crackdown at Tiananmen and
the benefits of trade and commerce,
with China would be a long and
First, the
that his office
promptly indicated that, in such cir-
to expose the Chinese to Americans
difficult process, especially as other
90 preoccup
mplete its audit
cumstances, there could be no "busi-
and American institutions and to en-
countries would be quick to fill in
they will be
1990, financial
ness as usual" with the Chinese.
courage the process of economic re-
behind us.
the hard 1:
nose statements
The United States today remains
form that China's post-Mao leader-
All of this is not to minimise the
economies,
efore mid-May
alone among Western democracies in
ure of the
er pointed out,
maintaining its Tiananmen sanctions
negotiations
:TC to produce
against China and in refusing to re-
economic gt
ore timely man-
store normal relations until China
Second, 1
:0 the problems
makes substantial progress in ad-
accompanie
lity and with es-
dressing our human rights concerns.
Union's pro
ry values.
We do not accept, therefore, the
fact that E
premise that what is at stake in the
nptroller General
already put
debate over most favored nation trad-
reforms tha
6 also caused by
ing status for China is the administra-
ol and organiza-
crying for he
tion's concern for human rights in
Bowsher went on
Third, the
that country or its desire to promote
of the G-7
initiated a series
democratic reform. All Americans-
with the ec
ope will produce
in the administration, Congress and
next year."
own region
the public at large-are in agree-
global proble
S incorrectly in-
ment on these matters, as we are on
contributing
statement that
the need to seek a stronger commit-
to provide Con-
ment from the Chinese on nonprolif-
Trade p
lit opinion by the
eration and on fair trade. The real
TIANANMEN SQUARE JUNE 1989
casualty in
Houston e
orting date. What
issue, of course, is how we achieve
BY ORLSSON
Chancellor
as follows: "[W]e
these objectives. We firmly believe
President F
to the Congress
that renewing China's MFN waiv-
ship seemed intent on pursuing. The
substantial problems that we have
with the ot!
wn in the financial
er-without conditions-provides
decision to grant MFN and to pursue
with certain Chinese policies and
our best instrument for promoting
ment in a pe
in and subject to
a policy of engagement at a time
practices. Both you and we are frus-
the amount of
positive change and U.S. interests in
when Chinese human rights practices
Uruguay Ro
trated by the reluctance of China's
China.
sion by a De
hably estimated."
were worse than they are today has
leaders to take all the steps neces-
I would urge that the Congress
helped to stimulate changes within
Both went
unable to produce
sary to heal the wounds inflicted by
resist the temptation to seek a mid-
China that few would have thought
worried abou
the brutal crackdown at Tiananmen
on June 30 not
dle-ground solution by extending
possible over a decade ago.
own political
sloppy accounting
two years ago.
MFN with conditions. Throwing
Indeed, trade has represented
ause of the uncer-
Since the tragic events of June
protectionist
down the gauntlet with a public ulti-
much more than just a series of
deal to cut 1
1989, we have sought, by exercising
viously. The RTC
matum on MFN-indeed, one specif-
financial transactions between our
the "fast-tra
a mix of incentives and constraints, to
wsher that these
ic to China-would only make it
two countries. It has led to a phe-
establish a process of interaction with
in effect ga
elieve RTC of the
easier, not harder, for conservative
nomenal improvement in living stan-
the Chinese in which each side could
reprieve uni
unuing to produce
Chinese leaders to claim that national
dards for hundreds of millions of
tional trade
address the other's concerns, so as to
expected asset
honor and sovereignty precluded any
Chinese citizens. It has also been a
arrest the steep decline in our rela-
points out.
Congress to use
concessions. Our credibility would
primary channel for contact between
London sum
tions. The results of our policy, to be
then require us six months or one
Americans and Chinese, and for the
quite candid, have been less than we
the Uruguay
neral's testimony
year from now to terminate MFN if
sharing of the ideas and values that
would have liked. But there has been
bility of the
mmendations for
China failed to meet each and every
have contributed to progressive de-
shattered be
tangible movement in a positive di-
on of the RTC.
condition imposed. Let us confront
velopments within China. We have
rection. The fact of the matter is that
The bum
wsher identified
today the real issue which the debate
seen-and contributed to-the
we have the necessary policy instru-
seems to b
in the organiza-
on conditionality would only delay for
emergence of a new generation of
ments to address aggressively and in
sense, espe-
agement systems
a short period of time-namely,
Chinese entrepreneurs, managers,
a targeted fashion each of the issues
enormous a
whether to extend MFN on its own
technicians and consumers, all with
Soviet Unio
ivate sector con-
of concern to us-and we are doing
ces, Mr. Bowsher
merits and without conditions, or to
expectations that ultimately cannot
just that.
Czechoslova
terminate it.
be contained within China's authori-
That does not mean that we can
pate in the
n the process of
The administration supports the
tarian political institutions. Aware-
improvements.
guarantee a fixed amount of progress
nity have her
extension of MFN because it believes
ness of Western ideas and concepts
I the suggestions
on human rights or other issues with-
While G
that an open China is key to our
has spread from small groups of the
in a fixed time frame. But we are
bied to be
sher's testimony
eventual hopes for a more democratic
intellectual elite to the bureaucracy,
confident that. over time, the forces
ers of the th
useful and hope
China. MFN has become over the
the urban work force and even the
ions of his com-
of an open economy and a free mar-
were not
past 11 years an underlying structur-
rural population. It is these very
ket will prove to be irresistible. Our
Robert Hor:
er public recogni-
al component of our relationship,
forces of reform that generated the
goal is to remain engaged over the
Invite presid
ress.
which has facilitated our ability to
pressures that exploded in Tianan-
long term with China in order to
kia and Will
engage the Chinese on a broad range
men Square two vears ago.
an of both the
foster its return to the path of free-
Minister An
of issues, and has allowed us selec-
Denial of MFN would inflict sen-
dom.
President B
P. and the
prior to the I
rance Corp.
Western F
Washington Bost June 20, 1991
cupation IS
and insecurit
year ago. ha
pected cost
entering a
ugh and Ready
more inward
And as
consumed
evolution. On July 4. 1850. his re-
"Old Rough and Ready.
leader in a former Illinois congress-
put in the monument's foundation.)
tionately called him. was the hero the
had opposed the war that had made
pophobial
'pical high-summer day in 19th cen-
of Buena Vista in 1847. He was a southerner
a hero and hence president.
gton-sunny. hot. humid and dan-
who owned 140 slaves. but he was
IS rich weave of many threads.
most act.
indity :s natural to this river town.
out.
could
cause
radi-
MFN MEETINGS
Participants -- June 4, 1991
Senator Bob Dole
Senator Alan Simpson
Senator Max Baucus
Senator Lloyd Bentsen
Senator Hank Brown
Senator Dan Coats
Senator Charles Grassley
Senator John Kerry
Senator Joseph Lieberman
Senator Richard Lugar
Senator John McCain
Senator Frank Murkowski
Senator John Seymour
Friday (includes Leadership)
Lott
Nickles
Smith
Mack
Wallop Thurmand Murkawski
Craig
Gramm
Kasten
Simpson
Cochran
Symms
Wallop
Group 2
Bond
Domenici
Burns
Durenberger
\
*Cohen
Garn
Chafee
Hatch
\
Danforth
Muskowski wallop
Group 3
Hatfield
Pressler
Jeffords
Roth
1
Kassebaum
Rudman
McConnell
Specter
Warner
Stevens
Not Included
Gorton
D'Amato
Helms
Packwood
SENT Braine B TICKET VENTER
,
0-19-91 , 9.40AM LEGISLATIVE AFFAIRS
2024000221 <
saraa
= 202 395 7350
NEC LEBISLATIVE
P.02
6-19-71
DRAFT
POINTS TO BE MADE FOR MEETING WITH
BIPARTISAN CONGRESSIONAL MEETING
:
In my message to the Congress arguing the case for MFN for
China, I told you I want to work with you.
--
Today, I would like to begin with a few points and then get
your views.
:
First, I remain as deeply concerned as anyone with the
continuing human rights abuses in China. I have told
China's leaders in no uncertain terms. We all seek progress
there -- I firmly believe MFN is the strongest tool we have
to bring about long-term positive change in China. Ten
years of trade and openness set in motion the forces we saw
in those protests at Tiananmen.
:
We should not put this tremendous advantage at risk. We
should not give the hardliners in China an opportunity -- by
placing conditions on MFN -- to use conditionality as a
nationalist pretext to turn away from the West.
--
Our China policy is a package approach. When there are
opportunities to cooperate with China -- in the UN, Korea,
Cambodia -- we will do 80
--
Since I announced this year's decision on MFN at Yale, and
because of that decision, the Chinese have responded
positively. They will join the talks in Paria on my Middle
East Arms Control initiative. This will help us tackle the
issue of missile proliferation.
--
Nonetheless, where there are problems in China I will not
kowtow, I will take action. I have already done 90 on human
rights, trade, and missile proliferation.
SENT BY:ine TICKET CENTER
,
0-19-91 , 3.40AM , LEGISLATIVE AFFAIRST
20240002211M V
06/18/91 13114
2 202 395 7358
NSC LEBISLATIVE
P.03
2
--
You know we still have sanctions on OPIC, TDP, international
lending that is not for Basic Human Needs, all military
sales and high-level exchanges.
--
We have designated China a priority country under Special
301 for copyright pirating; we have lifted Chinese textile
visas in retaliation for illegal third-country transfers; we
will soon begin market access talks.
--
The Chinese have responded with a mission that contracted
for over a billion dollars in U.S. exports, and they say
more will follow.
--
We have acted to press China to conform to international
standards on missile transfers. There will be no new
satellite licenses or high-speed computer transfers to China
until it meets those standards. There will be no transfers
of missile technology or equipment to Chinese companies
engaged in proliferation.
--
I am not sitting on my hands. I am prepared to do more when
circumstances require.
--
We also need to step back from the emotions of the moment
and calculate our long-term national interests.
--
We are the only trading nation in the world that would
contemplate removing or conditioning MFN. If we pull back,
we isolate ourselves, not China. We hurt our businesses and
help our competitors.
--
We may not like it, but China is a necessary part of the
solution to some important problems. It has a veto in the
UN Security Council.
SENT BY:ine TICKET CENTER
;
0-19-91 ; 9.47AM , LEGISLATIVE AFFAIRS
20240002211# 4
06/18/91 13:14
& 202 395 7358
NSC LEBISLATIVE
P.04
3
:
The system that rules China today will not change
dramatically overnight. But that system cannot insulate
itself from inavitable change.
--
I believe the best course is to use economic involvement --
and all the human interchanges that go with it -- to
encourage long-term evolution in China. I think the
announcement on Middle East arms control helps prove the
point.
-- Now I would like to hear your views.
SENATOR BROCK ADAMS
4
SENATOR PAUL WELLSTONE
4
4
SENATOR DANIEL AKAKA
4 4
SENATOR TIMOTHY WIRTH
4
4
*SENATOR MAX BAUCUS
1
SENATOR HARRIS WOFFORD
4
/
SENATOR LLOYD BENTSEN
2 2
SENATOR JOSEPH BIDEN
4 4
-SENATOR JEFF BINGAMAN
1
SENATOR DAVID BOREN
2 =
SENATOR BILL BRADLEY
4
4
SENATOR JOHN BREAUX
2
SENATOR. RICHARD BRYAN
4
+
SENATOR DALE BUMPERS
-SENATOR QUENTIN BURDICK
I
SENATOR ROBERT BYRD
SENATOR KENT CONRAD
1
SENATOR ALAN CRANSTON
4
4
SENATOR THOMAS DASCHLE
2 2
SENATOR DENNIS DECONCINI
4
4
SENATOR ALAN DIXON
4
4
SENATOR CHRISTOPHER DODD
4
4
SENATOR JAMES EXON
/
$
2
SENATOR WENDELL FORD
4
4
SENATOR WYCHE FOWLER
SENATOR JOHN GLENN
4
cl
SENATOR AL GORE
SENATOR ROBERT GRAHAM
I
X
SENATOR TOM HARKIN
SENATOR HOWELL HEFLIN
SENATOR FRITZ HOLLINGS
J
f
SENATOR DANIEL INOUYE
I
3
SENATOR BENNETT JOHNSTON
26
1
SENATOR TED KENNEDY
4
4
SENATOR JOHN KERRY
4
SENATOR BOB KERREY
4
SENATOR HERB KOHL
SENATOR FRANK LAUTENBERG
SENATOR PATRICK LEAHY
4
4
SENATOR CARL LEVIN
4
I
SENATOR JOSEPH LIEBERMAN
3
2
SENATOR HOWARD METZENBAUM
4
x
SENATOR BARBARA MIKULSKI
4
&
SENATOR GEORGE MITCHELL
I
of
SENATOR DANIEL MOYNIHAN
C
4
SENATOR SAM NUNN
SENATOR CLAIBORNE PELL
4
J
SENATOR DAVID PRYOR
2
J
SENATOR HARRY REID
TOTALS
SENATOR DONALD RIEGLE
3
w
SENATOR CHARLES ROBB
2
2 cover
1.
No Conditions
6
SENATOR JOHN ROCKEFELLER
2.
Undecided on Conditions
o
66
8
SENATOR TERRY SANFORD
2
2
3.
Mild Condition
J
1
2
SENATOR PAUL SARBANES
4
4
4.
Supports Mitchell
28
SENATOR JIM SASSER
1
4
5.
Opposes MFN
-SENATOR RICHARD SHELBY
I
SENATOR PAUL SIMON
- Baucu, letter
SENATOR CHRISTOPHER BOND
1
/
SENATOR HANK BROWN
2
2
SENATOR CONRAD BURNS
11
/
SENATOR JOHN CHAFEE
1
/
SENATOR DAN COATS
2
2
SENATOR THAD COCHRAN
1
1
SENATOR WILLIAM COHEN
3
3
SENATOR LARRY CRAIG
2
1
SENATOR ALFONSE D'AMATO
4
4
SENATOR JOHN DANFORTH
1
/
SENATOR ROBERT DOLE
1
I
SENATOR PETE DOMENICI
1
1
SENATOR DAVE DURENBERGER
1
/
SENATOR JAKE GARN
1
/
SENATOR SLADE GORTON
4
5
SENATOR PHIL GRAMM
1
/
SENATOR CHARLES GRASSLEY
2
2
SENATOR ORRIN HATCH
1
1
SENATOR MARK HATFIELD
2
2
SENATOR JESSE HELMS
1/1
I
SENATOR JAMES JEFFORDS
3
3
-
SENATOR NANCY KASSEBAUM
1
1
SENATOR ROBERT KASTEN
2
2 cover studs
SENATOR TRENT LOTT
2
2 cover - as most
SENATOR RICHARD LUGAR
1
1
\
SENATOR CONNIE MACK
2
2
SENATOR JOHN MCCAIN
3
1
SENATOR MITCH MCCONNELL
2
2
almost there
SENATOR FRANK MURKOWSKI
1
1
SENATOR DON NICKLES
1
/-
SENATOR BOB PACKWOOD
3
00
1
SENATOR LARRY PRESSLER +
3
$
-
SENATOR WILLIAM ROTH
2
1
SENATOR WARREN RUDMAN
1
t
SENATOR JOHN SEYMOUR
2
2
SENATOR ALAN SIMPSON
1
1
SENATOR ROBERT SMITH
3
3
SENATOR ARLEN SPECTER
2
2
SENATOR TED STEVENS
1
1
SENATOR STEVEN SYMMS
2
2
SENATOR STROM THURMOND
1
,
SENATOR MALCOLM WALLOP
4
4
SENATOR JOHN WARNER
1
/
TOTALS
1.
No Conditions
20
23
2.
Undecided on Conditions
13
11
3.
Mild Condition
6
h
4.
Supports Mitchell
2
5.
Opposes MFN
2
2
THE WHITE HOUSE
WASHINGTON
MEETING WITH SELECT BIPARTISAN SENATORS
DATE:
June 26, 1991
LOCATION:
Cabinet Room
TIME:
10:15 a.m. (60 minutes)
FROM:
Frederick D. McClure for
I.
PURPOSE
To meet with key Senators to discuss the resolution to
grant China Most Favored Nation status.
II.
BACKGROUND
This meeting is another in the series of consultations
with Members of Congress on the subject of extending
Most Favored Nation trade status to China. Today's
group consists largely of Senators from both parties
who have not made up their mind on Most Favored Nation
sanctions.
The process is going forward in Congress with
resolutions of disapproval scheduled to be marked up in
both Houses this week. This meeting gives you the
opportunity to make the case for a simple Most Favored
Nation extension and to assure Senators that we are
working on a bipartisan basis to answer the concerns
Senators have about our China policy.
III.
PARTICIPANTS
See Attachment A.
IV.
PRESS PLAN
White House Press Pool.
V.
SEQUENCE OF EVENTS
Members will be met in the West Lobby and escorted to
the Cabinet Room for the meeting with you.
Attachment A: Participants List
Attachment B: Talking Points (to be provided by NSC)
Attachment A
Participants List
The President
James Baker, Secretary of State
Richard Darman, Director, Office of Management and Budget
Carla Hills, United States Trade Representative
Congressional Participation
Senator Robert Dole (R-KS), Republican Leader
Senator Max Baucus (D-MT)
Senator Jeff Bingaman (D-NM)
Senator Conrad Burns (R-MT)
Senator William Cohen (R-ME)
Senator Mark Hatfield (R-OR)
Senator Howell Heflin (D-AL)
Senator James Jeffords (R-VT)
Senator Bob-Packwood (R-OR)
Senator Richard Shelby (D-AL)
Senator Arlen Specter (R-PA)
Senator Steve Symms (R-ID)
Herbert Tcohl (p.ms)
Kent Connd (D-M)
White House Participation
John Sununu, Chief of Staff
Brent Affairs Scowcroft, Assistant to the President for National Security
Andy Staff Card, Assistant to the President and Deputy Chief of
Phil Brady, Assistant to the President and Staff Secretary
Dave Demarest, Assistant to the President for Communications
Marlin Fitzwater, Assistant to the President and Press Secretary
C. Boyden Gray, Counsel to the President
Ede Cabinet Holiday, Assistant to the President and Secretary of the
Fred McClure, Assistant to the President for Legislative Affairs
Roger Porter, Assistant to the President for Economic and
Domestic Policy
Dorrance Smith, Assistant to the President for Media Affairs
James W. Dyer, Deputy Assistant to the President for Legislative
Affairs (Senate)
Steve Hart, Deputy Assistant to the President and Director of
Legislative Affairs
Virginia Lampley, Special Assistant to the President and Senior
Director of Legislative Affairs, National Security Council
Douglas Paal, Director, Asian Affairs, National Security Council
- 2 -
Others
Bill Affairs Gribbin, Assistant to the Vice President for Legislative
Janet Affairs Mullins, Assistant Secretary of State for Legislative
Mary Tinsley, Assistant United States Trade Representative for
Legislative Affairs
06/24/91
13:45
202 647 5095
DOS LEGIS AFFAIR --- WHLEG
VI
002/003
LEGI-SLATE Report
Page 31
June 24, 199
SEN. BENTSEN: Thank you very much, Senator Bauous.
Gentlemen, we're appreciative of your testimony. Thank you
very much. A tough issue. Thank you.
We're very pleased to have Senator Biden, who is with U.S. this
morning. And we look forward to his statement.
SEN. BIDEN: Mr. Chairman, rather than taking seat -- the scat
down there, I have 3 very brief statement I'd like to make and thank
you for accommodating my testifying and from this end.
Mr. Chairman, obvicusly much emotion on the question of
renewing MEN status for Chana is involved here. And in light of the
horrors of Tiananmen Square -- and those passions #re quite
understandable - but I'd like to urge this Committee to craft R
resoluton on MFN that is above all realistic. And by that, I mean a
resolution setting forth realistic conditions for MFN renewal this
year and next. And I'd urge this Committee to resist those who
would propose legislative language that amounts to & formula for
denying MFN status to China, and instead, Mr. Chairman, I'd
respectfully suggest that the Committee and the Congress adopt a
two-part approach:
First, setting out realistic steps on human nights and
international behaviour, that the Chinese must take ever the next
year in order for MFN to be renewed in the sumper of 1972. And
second, specific stipulations that if China proceeds to prolifence
dangerous new weapons systems that MFN will be terminated
immediately.
These stipulations must be clearly defined actions that are SO
inimical to the international order, and SC dangerous in their
consequences that we are prepared to terminate China's YFN status
immediately.
And in that category. I would place the transfer of modern
ballistic missiles, like the M-9 and M-11, to unstable regions = to
terrorist states. And I have in mind missile transfers to Syria.
Iran and Pakistan.
In the case of Syria, I know that T:Q one in this bod, can be
sanguine about the prospects of Mr. Asad, = man, 10 my view, just as
dangerous as Mr. Hussein, possessing M-9 missiles with IR range and
accuracy that would enable them to threaten the entire state of
Israel and the bulk of the Middle East.
And in the case of Pakistan, I hope no one would deny the
dangers of introducing a missile like the M-11 into South Asia,
where several wars have already been fought, and where both Pakistan
and India apparently have nuclear weapons, and where Mostility,
irrationality and irstability still prevail to this day.
And the case of Iran, I believe, needs no elaponation.
06/24/91
13:46
202 647 5095
DOS LEGIS AFFAIR --- WHLEG
003/003
LEGI-BLATE Report
Page 32
June 24, 199
In conclusion, Mr. Chairman, let me say that the approach I've
outlined, I believe, is realistic, and it is not asking too such of
Beijing to face a hard-headed calculation Which is none importent
to China; the tens of billions of dollars referred to by you and
others here today that they earn from trade with the United States
or the millions of dollars they earn from sales of dangerous weapons
to dangerous dictators? Politically. an approach such as this will
demonstrate our realism and practicality. MFN can te renewed this
year 50 long as the missile sales don't -- do not occur, and MFN can
be renewed next year 50 long as China takes simple and reasonable
steps on the path to human rights, trade, and other matters.
And I thank the chair for giving me the opportunity to take
those few minutes to make by point.
SEN. BENTSEN Genator, you have long been concerned with this
issue, and we value your judgment, and your counsel, and that will
be noted for the record. I ask any questions of Genator Bauous?
Thank you very much.
SEN. BIDEN: Thank you very much, Mr. Chairman.
END
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June 13, 1991
Honorable Brock Adams
United States Senate
Washington, DC 20510
Dear Senator Adams:
The United States has been an active exporter of farm products to the
People's Republic of China since relations were normalized in the 1970's.
Barring any disruption to current trade flows and buying patterns, we firmly
believe that China will remain one of our top customers through the end of the
century. Continuation of China's most-favored nation trading status is of
paramount importance to American agriculture.
In FY1990, the value of U.S. farm exports to China was over $900 million.
Cessation of U.S. trade relations with China, which revocation of China's MFN
would amount to, will have an enormous negative impact on U.S. farmers.
The 1990 Farm Bill, like its predecessor, strongly advocates a market-
oriented U.S. agricultural policy. Our farmers are vitally dependent on free
trade and reliable access to markets. At this time, China represents one of our
best markets. It is one we cannot afford to lose.
No, the undersigned organizations, believe that solid commercial trading
relations between the U.S. and China can foster both economic and political
development. We urge your support for the renewal of MFN trade treatment for the
People's Republic of China.
Sincerely,
American Farm Bureau Federation
American Seed Trade Association
American Soybean Association
Export Processing Industry Coalition
Millers' National Federation
National Association of Wheat Growers
National Barley Growers Association
National Corn Growers Association
National Council of Farmer Cooperatives
National Grain and Feed Association
National Grain Sorghum Producers Association
National Grain Trade Council
National Oilseeds Processors Association
National Turkey Federation
North American Export Grain Association
The Corn Coalition
The Fertilizer Institute
United Egg Producers
HANK BROWN
COMMITTEES:
COLORADO
BUDGET
FOREIGN RELATIONS
JUDICIARY
Hnited States Senate
WASHINGTON, DC 20510-0604
June 19, 1991
The Honorable George H. W. Bush
President of the United States
The White House
Washington, D.C. 20500
Dear Mr. President:
A recently released Asia Watch report details the use of
forced labor by the People's Republic of China to produce
goods exported to the United States, Germany and Japan. A
separate Business Week investigation conducted over six
months and described in the April 22nd edition details many
of the same findings: the Chinese government systematically
uses forced labor to make inexpensive goods for export.
Business Week related that:
"While American prisoners make license
plates and other goods for sale by state
governments, China is crossing the line by
using its prisoners for commercial gain
overseas. Moreover, many forced laborers
are political detainees. Most are not
tried or convicted."
It is chilling to think that Americans are unknowingly
purchasing goods manufactured by students imprisoned for
their brave stand for democracy in Tiananmen Square.
Americans have not forgotten these freedom-loving men and
women in the two short years since the tanks rolled into
Beijing.
Section 307 of the Smoot-Hawley Tariff Act of 1930 has
prohibited the importation of prison-made goods for 60
years, yet only in one instance has its application been
successful. Although in the past a clear link to the
Chinese government's intent to use forced labor was not
easily apparent, the documents included in the attached Asia
Watch report, if correct, clarify the current situation:
the Chinese government is carrying-out a systematic effort
to use forced labor to produce a wide range of exports.
With the evidence mounting, we ask that the Administration
investigate these reports, especially concerning the use of
political detainees "not tried or convicted" to produce
goods for export.
PRINTED ON RECYCLED PAPER
The Honorable George H. W. Bush
June 19, 1991
page 2
Should the reports be accurate, the Chinese government must
be made to understand by swift, unambiguous actions that the
American people will not sit silently while the human rights
of freedom-loving men and women are violated. Only an
immediate end to the importation of any goods made by forced
labor in China will suffice.
Don Moll
Sincerely,
Killown
Don Nickles
Hank Brown
Malcolm Nalcoln Wallop Wallop
Jesse Jesse Helms Helms
Chuck Rold
Charles S. Robb
Alan Dixon
Zom Hark
Alfonse M. (Amato D'amate
Tom Harkin
Dan Cook
be Dore
Dan Coats
Albert Gore, Jr.
LLOYD BENTSEN, TEXAS. CHAIRMAN
DANIEL PATRICK MOYNIHAN, NEW YORK
BOB PACKWOOD. OREGON
248768
MAY. BAUCUS, MONTANA
BOB DOLE. KANSAS
DAVID LEGRER. OKLAHOMA
WILLIAM V. ROTH, JR., DELAWARE
BIRC BRADLEY. NEW JERSEY
JOHN C. DANFORTH, MISSOURI
GEORGE J. MITCHELL MAINE
JOHN H. CHAFEE. RHODE ISLAND
DAVID PRYOR. ARKANSAS
JOHN HEINZ. PENNSYLVANIA
DONALD W. RIEGLE, JR. MICHIGAN
DAVID DURENBERGER. MINNESOTA
JOHN D. ROCKEFELLER IV, WEST VIRGINIA
WILLIAM L. ARMSTRONG. COLORADO
United States Senate
TOM DASCHLE SOUTH DAKOTA
STEVE SYMMS, IDAHO
JOHN BREAUX. LOUISIANA
COMMITTEE ON FINANCE
WASHINGTON, DC 10-6200
VANDA 8. MCMURTRY, STAFF DIRECTOR AND CHIEF COUNSEL
EDMUND 2 MIHALSKI, MINORITY CHIEF OF STAFF
June 19, 1991
Dear Mr. President:
Congress will decide in the next few weeks whether to accept your
recommendation and extend most favored nation trade status to China.
We are writing to share our concerns.
In the debate over the appropriate U.S. policy towards China, one
thing is clear: China's behavior must change. The United States has
serious human rights and foreign policy concerns with China. Every
American remembers the vivid images of the Tiananmen massacre. In the
two years since Tiananmen Square, evidence of democratic reform has
been scant at best. We also have learned of Chinese sales of advanced
missiles to Syria and Pakistan, and of nuclear technology sales to
Algeria. There are credible reports that China has forced political
prisoners to produce goods for export to the U.S.
The United States also has serious economic concerns with China.
The U.S. Trade Representative's annual report on foreign trade
barriers lists ten pages of Chinese barriers. China maintains
restrictions including a preclusive licensing system, discriminatory
testing and certification standards, and outright import bans. China
also fails to protect U.S. intellectual property, resulting in
enormous losses to U.S. producers of films, books, chemicals and
pharmaceuticals. Moreover, the Administration has allowed China to
dictate U.S. policy towards Taiwan, declining to support Taiwan's GATT
application despite clear economic benefits to the U.S.
The United States cannot continue to tolerate Chinese
intransigence. We must tailor active responses to our wide ranging
concerns. But MFN is the wrong tool for the job. Revoking MFN would
not promote human rights in China. Instead, it would punish China's
most progressive regions and Hong Kong.
Revoking MFN also would hurt Americans. China is an important
market for U.S. goods ranging from wheat to airplanes. If MFN were
revoked, China almost certainly would retaliate against U.S. exports.
The Australians, Canadians, Europeans and Japanese are ready to fill
the void. No other country is contemplating cutting off China's MFN
status.
We believe the Administration must be more active in addressing
American concerns with China. You have taken meaningful steps in some
areas. You have moved to protect U.S. intellectual property under
provisions of the 1988 Trade Act. You also have taken steps to
restrict certain technology transfers to China in response to its
missile and nuclear sales. These steps are examples of the types of
actions the U.S. should take.
Page 2
June 19, 1991
We urge you to take appropriate actions in other areas. Human
rights is a foremost concern. Revoking MFN would be
counterproductive. But other steps can be taken. For example, the
U.S. could reinvigorate its opposition to multilateral loans for
China. The U.S. also could take strong action under U.S. law to
address China's unfair trade barriers and imports produced by prison
labor. In the area of nuclear and missile proliferation, the U.S.
could immediately negotiate for strict, multilateral technology
restrictions conditioned upon Chinese adherence to accepted
international standards. As for Taiwan, the U.S. could immediately
give strong support to Taiwan's GATT application.
These measures do not represent an exhaustive list. But it is
essential that the Administration take concrete steps. If Congress is
to extend China's MFN, we must see tangible evidence that the
Administration is taking action. We look forward to hearing your
response to our concerns.
Sincerely,
Max Baucus
Buie Ril
RUTH
BAUCCS Nich Lugar LUGAR
Air Brink BURDICE
Lr Z CRAIG has
Richard Shelly CONRAD
Bae July SHELBY
DOLE
SIMPSON
KASSEBAUM Jack H. MURICIANS K1
Orin
BINGAMON
HATCH
Sh McCain
MCCAIN
COMMITTEES:
WILLIAMV. ROTH, JR.
GOVERNMENTAL AFFAIRS
DELAWARE
FINANCE
104 HART SENATE OFFICE BUILDING
BANKING, HOUSING AND URBAN AFFAIRS
TELEPHONE: 202-224-2441
Hnited States Senate
JOINT ECONOMIC COMMITTEE
WASHINGTON, DC 20510-0801
June 21, 1991
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
As cosponsors of S. Res. 116, we are writing to
urge you to support the application of Taiwan to become a
Contracting Party to the General Agreement on Tariffs and
Trade (GATT).
We are troubled by the fact that the GATT has
taken no action on Taiwan's accession request since it was
initiated in January 1990, despite the overwhelming merits
of Taiwan's GATT application and standard GATT Council
practice of promptly placing accession requests on its
agenda. Although the application may be politically
sensitive, it should be based on economic and trade
considerations, not political ones. In that regard, it is
noteworthy that national sovereignty is not a prerequisite
to joining the GATT, which Taiwan has recognized by
applying as a separate customs territory. Allowing a non-
GATT member, namely the People's Republic of China, to
determine the terms and timing of another territory's
entry into the GATT is unacceptable.
Taiwan has made remarkable economic strides, and
is now our sixth largest trading partner and the 13th
largest trading entity worldwide. Taiwan is also the
largest market-based economy still outside of the GATT.
Clearly, such a key U.S. trading partner and major
participant in the world economy should not remain
isolated from the world trade community by being kept
outside of the world's premier trade regime. The
anticipated successful conclusion to the Uruguay Round
makes the case for Taiwan's GATT membership all the more
compelling for it would further liberalize Taiwan's
economy in areas of critical importance to the United
States.
The President
June 21, 1991
Page 2
We believe that without the leadership of the
United States, Taiwan's GATT application will remain
dormant. We strongly urge you to move in this direction
by demonstrating support for the accession of Taiwan to
the GATT.
Sincerely,
Bue Ril
Thomas A. Deschle
William V. Roth, Jr.
Day Rahyelle
Jh McCain
John D. Rockefeller, IV
John McCain
Sain Daniel KL Inouye
Steve Symms
Steven D. Symms
J.Kile
Bab Dale
Joseph I. Lieberman
Robert Dole
Just A. Muchamadi
Frank H. Murkowski
Paul Simon
Howell Howell Heflin High
Ml The
Slade Gorton
The President
June 21, 1991
Page 3
Inch
John C. Danforth
David L. Boren
Thad Colus Thad Cochran
Walcolm Malcolm Wallop Wallop
Larry Larry Pressler Presler
Dalaat
Dan Coats
Declar Nyche Fowler, Jr.
Bob-Paidword Bob
Bob Packwood
Bob Smith
Bob Smith
James Exon
Chin Doll
Camis mach
Christopher J. Dodd
Connie Mack
J. Bennett Johnston Dave Durenberger
Nich Lugar Chuck Grassley
Richard G. Lugar
Charles E. Grassley
The President
June 21, 1991
Page 4
alan J Diton fill William S. Cohen
Trent Lott
June 6, 1991
Hon. President Bush
c/o Hon. Sichan Siv
The White House
washington, D.C. 20500
Dear President Bush:
we, the undersigned Chinese students and scholars currently
studying in the U.S., learned that the U.S. Congress recently
raised the issue of the continuation of the sino-U.S. mutual MFN
treatment. we are greatly concerned and feel a sense of urgency
regarding the significance of this friendly relationship between
the P.R.C. and the U.S.. A stable and prosperous China, which
is carrying out. the open-door policy, will play an important role
in the establishment of a New Order of a peaceful, progressive and
developmental world.
The consolidation and development of the Sino-U.S. relations are
beneficial to the peace and stability of these two countries and
the world as well. To deny China the most-favoured-nation status
by terminating or withdrawing the provisions which regard the
nondiscriminatory principle in the sino-U.S. Irade Agreement will
have a severely adverse effect on the bilateral economic and trade
ties, and might cause a serious regression in Sino-U.S. relations.
we believe that the sagacious leaders and individual citizens of
both countries will cherish the hard-earned friendly relationship
and that all concerned will regret any undesirable retreats.
America, for another year is the msot correct decision. It is treament
Mr. President, your grand decision to extend the MFN
good for Hong Kong, good for China and Good good for Taiwan. for
We strong support your decision and want all members in the
Congress January know it.
Cal Poly, Fomona, co2
Sincerely yours,
Jay FC
Dromas 6 mm/ si Intal Poly, Gemona, OA
Hon. President Bush
C/O Hon. Sichan Siv
The White House
Washington, D.C. 20500
Dear President Bush:
We, the undersigned Chinese students and scholars currently
studying in the U.S., learned that U.S. Congress recently
raised the issue of the continuation of the Sino-U.S. mutual
MFN treatment. We are greatly concerned and feel a sense of
urgency regarding the significance of this friendly
relationship between the P.R.C. and the U.S.. A stable and
prosperous China, which is carrying out the open-door
policy, will play an important role in the establishment of
a New Order of a peaceful, progressive and developmental
world.
The consolidation and development of the Sino-U.S. relations
are beneficial to the peace and stability of these two
countries and the world as well. To deny China the most-
favoured-nation status by terminating or withdrawing the
provisions which regard the nondiscriminatory principle in
the Sino-U.S. Trade Agreement will have a severely adverse
Tianz
effect on the bilateral economic and trade ties, and might
cause a serious regression in Sino-U.S. relations. We belive
that the sagacious leaders and individual citizens of both
countries will cherish the hard-eared friendly relationship
and that all concerned will regret any undesirable retreats.
Mr. President, your grand decision to extend the MFN
treatment for another year is the most correct decision. It
is good for America, good for China as well as Hong Kong
region and Taiwan Province.
We strongly support your decision and want all members in
the Congress know it.
Sincerely yours,
Ir Li (usc) Jingurgle C Vander DannPon bilt univ;
c.t'ony (UCLA)
Chen Wenji (UCLA)
Haw Zeng (USC)
theysan thing USC.
Zhang De Oing SanFranciseo State Universing
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