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DATE=4/3/2000 TYPE=CORRESPONDENT REPORT TITLE=CLINTON-CHINA (L-ONLY) NUMBER=2-260905 BYLINE=DAVID GOLLUST DATELINE=WHITE HOUSE CONTENT= VOICED AT INTRO: President Clinton was in California's high- tech "Silicon Valley" Monday campaigning for congressional approval of legislation extending permanent normal trade status to China. Republican congressional leaders - who support the President on the issue - have agreed to bring the measure to a vote by the end of next month. V-O-A's David Gollust reports from the White House. TEXT: Mr. Clinton is at odds with the Republican leadership on most issues in this election year. But they have found a common cause on the China trade measure, which both say is key to extending the U-S economic boom. China agreed to wide-ranging market-opening measures in the bilateral trade deal, which was concluded late last year as a condition for Chinese entry into the World Trade Organization. The legislation appears assured of Senate approval. But its fate is unclear in the House, where members of the president's Democratic party fear it will lead to an exodus of U-S manufacturing jobs to low-wage factories in China. Analysts in both parties believe chances for House approval will diminish with the approach of the November elections. And Mr. Clinton got a boost Monday with a commitment by House Majority Leader Dick Armey to bring the measure to a vote by the end of next month: /// ARMEY ACTUALITY /// When we have this most important vote of the summer, sometime before the end of May, we want each and every member of Congress to vote for jobs for American workers, markets for American products, a greater more vast world economy within which we can export our products. This is so critically important to us in terms of maintaining this large productive economy that we have. /// END ACT /// As Mr. Armey spoke, the President was making a similar appeal to business leaders in San Jose, California, the heart of high-tech "Silicon Valley." Mr. Clinton lamented that trade legislation has become a "lightning rod" for dissatisfaction and fear about globalization, and suggested that many opponents of the China bill are unaware how favorable its terms are to the United States. He reiterated his stand that opening China to the Internet and other aspects of free trade will liberalize Chinese society and ease the grip of the Communist Party. And he warned that voting down the trade measure will cost the United States both in terms of trade and in its ability to influence Chinese policy. /// CLINTON ACTUALITY /// The main consequence of this will be to hurt America economically and to dramatically strain our relations with China at a time when we need to maintain a positive ability to impact their conduct: to reduce strains along the Taiwan strait and to get the leaders in that country to imagine the greatness of their country in future terms, not yesterday's terms. /// END ACT /// Mr. Clinton released letters from 40 state governors and some 200 high-tech industry leaders supporting the trade bill, which would end year-by-year Congressional reviews of China's trade status. Opponents say giving up the annual trade debate will cost the United States leverage over Chinese human rights practices, though Mr. Clinton told the San Jose audience it will not affect U-S persistence on the issue. (Signed) NEB/DAG/TVM/gm 03-Apr-2000 17:19 PM EDT (03-Apr-2000 2119 UTC) NNNN Source: Voice of America .