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DATE=5/24/2000 TYPE=BACKGROUND REPORT TITLE=CLINTON-CHINA TRADE NUMBER=5-46370 BYLINE=DAVID GOLLUST DATELINE=WHITE HOUSE CONTENT= VOICED AT: INTRO: President Clinton - with considerable help from the Republican majority in Congress - has secured a major legislative victory with House approval of permanent, normal, U-S trade status for China or P-N- T-R. The debate over the trade bill, which will bring China into the World Trade Organization, was bitter to the end, and the divisiveness could affect the upcoming Presidential election. VOA's David Gollust reports from the White House. TEXT: Mr. Clinton had invested hundreds of hours in the campaign for the China trade bill, which he had made his main legislative priority in his final year in office. When the decisive vote came - with a more comfortable margin than expected - he was quick to welcome the outcome as a historic step toward continued prosperity in the United States, reform in China, and peace in the world: ///Clinton actuality/// Bringing China into the W-T-O and normalizing trade will strengthen those who fight for the environment, for labor standards, for the rule of law. For China, this agreement will clearly increase the benefits of cooperation and the costs of confrontation. America of course will continue to defend our interests, but at this stage in China's development, we will have more positive influence with an outstretched hand than with a clenched fist. The House today has affirmed that belief. ///end act/// The bill - which is certain to get final approval in the Senate in a few weeks - permanently puts China on the same basis as other major U-S trade partners and does away with what has been an annual debate in Congress on China's trade status and human rights record. It also clears the way to W-T-O membership for China under the bilateral deal reached late last year that greatly lowers Chinese trade barriers to U-S goods and services. The Clinton administration and the Republican leadership argued that the bill would help reverse the huge imbalance in bilateral trade favoring China, while opening Chinese society to the liberalizing influences of freer trade and the Internet. But opponents warned the measure would trigger an exodus U-S manufacturing jobs to China, where wages are low and environmental and labor protections weak. They also said the United States would lose its ability to influence China's human rights practices by giving up the annual trade discussion. In Wednesday's closing debate, New York Democrat Eliot Engel said supporters of P-N-T-R were putting profits above all other considerations: ///Engel actuality/// There is no doubt that business will make a lot of money if this bill passes. But are we only for the almighty dollar, or are we for morality and doing what's right? The almighty dollar, or human rights? The almighty dollar or American jobs? The almighty dollar or environmental concerns? Why can't we continue our annual review of China instead of giving them a permanent blank check? It's the only leverage we have. Is it only the almighty dollar that counts. Shame on us if it's true. Vote no. ///end act/// To ease human rights concerns, Republican leaders agreed to set up a Congressional commission that would monitor human rights in China and recommend sanctions if necessary. The action helped attract enough wavering Democrats to get the necessary House majority. Democrat Marty Meehan of Massachusetts told colleagues he had no illusions about China's record on labor and workers' rights but that engagement with Beijing is, on balance, the best way to bring about change: ///Meehan actuality/// Isolating China will do not a thing to bring about a more just economic or political order there. The answer is not turning our back on China. The answer is pushing our democratic values upon China, through commerce and communication with its citizens. This engagement will spur forces of individual inspiration and aspiration and initiative in China that in the long-run no authoritarian government can ever contain. There is a claim here that we have to choose between American prosperity and Chinese human rights. I say choose both. Vote yes. ///end act/// Democrats like Mr. Meehan who joined in support of the bill did so despite opposition from organized labor, which is closely allied with, and provides critical financial backing, to the Democratic party. Vice President Al Gore, who faces Republican George W. Bush in the race for the White House, was hestitant to embrace the China trade bill. But he later gave it his full support - prompting the powerful United Autoworkers Union to warn this week it might withhold its endorsement of Mr. Gore in favor of minor party candidate Ralph Nader. Political analysts say both the President and Mr. Gore will now have to work hard to close the rift within their party, while Mr. Bush tries to capitalize on the situation and expand his already-sizeable lead in the polls. (Signed) NEB/DAG/PT 24-May-2000 18:46 PM EDT (24-May-2000 2246 UTC) NNNN Source: Voice of America .