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DATE=4/10/2000 TYPE=CORRESPONDENT REPORT TITLE=E-U / CHINA / W-T-O (L ONLY) NUMBER=2-261127 BYLINE=RON PEMSTEIN DATELINE=LUXEMBOURG CONTENT= VOICED AT: INTRO: The European Union trade negotiator says the group's foreign ministers have given him flexibility in new talks with China about entering the World Trade Organization. Correspondent Ron Pemstein reports from Luxembourg, where the foreign ministers are meeting. TEXT: Trade talks between China and the European Union broke down last month because of E-U insistence that European firms gain a greater share of China's telecommunications and insurance market. The European Commissioner for Trade, Pascal Lamy, discussed the situation (Monday) with E -U foreign ministers and says he has won greater flexibility in resuming talks with China. Mr. Lamy says he cannot go into details, but says he believes China is also ready to be more flexible. The European Union is the largest trade group that has not yet agreed on the terms for China to enter the World Trade Organization. Mr. Lamy tells reporters that E-U foreign ministers left it up to him to decide when to return to China. /// LAMY ACT ONE /// Clearly, the sooner the better. But of course it is a negotiation and, here again, substance before timing. I have at the end of the day to balance and then to check with the council and the (European) Parliament whether I have got the right balance. But I have clearly these two things in mind. /// END ACT /// The United States has agreed with China on the terms for membership in the World Trade Organization. Mr. Lamy says he is interested in the Congressional debate about the conditions, but they will not influence the European negotiating position. /// LAMY ACT TWO /// We are following this very clearly, but I mean I will not adopt a position which would be depending on whether yes or not the (U-S) Congress will agree to the deal. The European Union has its own agenda, it has its own position, and we cannot be dependent on them. /// END ACT /// Officials expect the E-U trade negotiator to return to China by the end of this month, but he would not confirm the timing of the resumption of talks. China needs the agreement of the European Union to join the World Trade Organization. (SIGNED) NEB/RDP/JWH/RAE 10-Apr-2000 11:06 AM EDT (10-Apr-2000 1506 UTC) NNNN Source: Voice of America .