DATE=2/24/2000
TYPE=BACKGROUND REPORT
TITLE=CLINTON-CHINA TRADE
NUMBER=5-45515
BYLINE=DAVID GOLLUST
DATELINE=WHITE HOUSE
CONTENT=

VOICED AT:

INTRO:  President Clinton is vowing to fight on for a 
deal giving China permanent U-S trade benefits despite 
warnings from Congressional leaders that the agreement 
is in jeopardy because of new Chinese threats to use 
force to settle the Taiwan issue. Mr. Clinton contends 
the accord  -- opening the way to Chinese membership 
in the World Trade Organization - can only increase 
the U-S ability to influence Chinese policy. VOA's 
David Gollust reports from the White House


TEXT:  The bilateral trade deal, hammered out with 
China late last year, is popular with Republicans and 
it appeared until this week to be poised for approval 
by comfortable margins in the Senate and House.

But the equation has changed after China's issuance of 
policy paper Monday threatening to use force against 
Taiwan if unification talks with the island drag on. 
And now, Mr. Clinton faces an uphill struggle for a 
trade bill he insists would give the United States 
lopsided economic benefits.

Addressing corporate executives of the prestigious 
Business Council in Washington Thursday, the President 
called the deal a "once in a generation" opportunity 
to open Chinese markets to U-S goods and services, and 
redress the huge surplus favoring China in two-way 
trade.

He said WTO entry will inevitably mean a more open 
Chinese society. And challenging critics of the 
accord, he said the United States relinquishes no 
leverage in influencing Chinese policy on Taiwan, 
human rights and other areas:

            /// CLINTON ACTUALITY ///

      To set this up as a choice between eonomic 
      rights and human rights, or economic security 
      and national security is a false choice. I 
      believe that this agreement is vital to our 
      national security and that every single concern 
      we have will grow greater, and the problems will 
      be worse, if we do not bring China into the WTO.

            /// END ACT ///

The President spoke a day after Congressional leaders 
of both parties warned that the trade deal is in peril 
because of China's threat to attack Taiwan.  

After a strategy meeting here with Mr. Clinton,  
Senate Democratic leader Tom Daschle said he disagreed 
with some legislators who say the accord - still to be 
been formally submitted to Congress - is doomed. But 
the Senator, a key ally of the President, said its 
future is in doubt and may depend on Chinese rhetoric 
in the coming days:


            /// DASCHLE ACTUALITY ///

      It's always been in jeopardy to a certain 
      extent. I would say today that if the vote were 
      taken, it would be a very, very close call. 
      Comments like that (by China) are unhelpful, are 
      very disruptive, and I would think that 
      additional comments like that could jeopardize 
      and maybe even stop the progress on the 
      legislation.

            /// END ACTUALITY ///

Congressional Republicans have seized on the Chinese 
"white paper" as an ill-timed gesture of bad faith 
from Beijing that not only undermines the trade deal, 
but increases chances that Congress will approve 
legislation opposed by the White House to strengthen 
U-S military links with Taiwan.

But some U-S China experts say the policy declaration 
is little more than posturing in advance of Taiwan's 
March 18th presidential election, and that China acted 
much more belligerently before Taiwan's last election 
in 1996, when it fired missiles close to Taiwan's main 
ports. 

Analyst Stephen Yates of Washington's conservative 
Heritage Foundation says the Taiwan dispute has 
featured tough rhetoric - but no lethal violence - for 
the last 40 years:
 
            /// YATES ACTUALITY ///

      I think that this is in large measure a major 
      dose of Beijing opera. It's very loud. It can be 
      shocking at times. And some people don't really 
      enjoy it. But at the end of the day, it's really 
      for psychological consumption more than it is 
      about military readiness and actual invasions.

            /// END ACT ///

Both White House and Congressional aides say the trade 
deal will have to put moved quickly, by June at the 
latest, to avoid being stalled permanently by 
Presidential campaign politics. 

Republicans already are accusing Vice President Al 
Gore of undercutting Democratic support for the accord 
by saying last week that if it failed, he would seek 
stronger labor and environmental safeguards in a 
subsequent agreement. (Signed)



NEB/DAG/TVM/PT



24-Feb-2000 19:20 PM EDT (25-Feb-2000 0020 UTC)
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Source: Voice of America
.