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DATE=9/7/2000 TYPE=CORRESPONDENT REPORT TITLE=CHINA-WTO-TAIWAN (L-ONLY) NUMBER=2-266217 BYLINE=LETA HONG FINCHER DATELINE=BEIJING CONTENT= VOICED AT: INTRO: China is refusing to back off from its proposal that the World Trade Organization grant membership to Taiwan only if it is recognized as a part of China. As Beijing Correspondent Leta Hong Fincher reports, China's position may complicate final negotiations for the entry of both China and Taiwan to the global trade body. TEXT: Chinese Foreign Ministry Spokesman Sun Yuxi insists that Taiwan should only be admitted to the World Trade Organization, or W-T-O, if it is classified as a separate customs territory of China. ///SUN ACT IN CHINESE, THEN FADE/// At a regular press briefing Thursday, Mr. Sun said China is opposed to Taiwan using the W-T-O to promote the idea of two Chinas. China considers Taiwan a renegade province and objects to Taiwanese membership in international organizations. However sovereignty is not a condition for W-T-O membership and therefore Taiwan's politic status is not a crucial issue - except to China. Wednesday, President Clinton rejected Beijing's demand to label Taiwan a customs territory of China, calling it inappropriate. This issue comes at crucial time as the U-S Senate is currently debating a bill to grant China permanent normal trade relations - paving the way for China's entry to the W-T-O. Some U-S senators say China is using the W-T-O to assert its sovereignty over Taiwan, and accuse China of blocking Taiwan's entry to the global trade body. ///SUN ACT IN CHINESE, THEN FADE/// But Foreign Ministry Spokesman Sun says Beijing supports Taiwan's W-T-O membership. But he says unless Taiwan's status is properly defined, it suggests that there are two Chinas. He says China hopes the United States will continue to uphold the principle that there is only one China and Taiwan is a part of it. The dispute over the terms for Taiwan's entry to the W-T-O dates back years, when the accession process for China and Taiwan began. In order to avoid political disagreements, all parties agreed that China, Taiwan and Hong Kong enter as customs territories. But now that Beijing is demanding Taiwan be defined as a customs territory of China, it is not clear how the final negotiations for China's W-T-O admission will be affected, or whether Taiwan's entry will be delayed until a compromise is reached. Under the current world trade body deal, China would enter the W-T-O just before Taiwan. (signed) NEB/HK/LHF/JO 07-Sep-2000 06:47 AM LOC (07-Sep-2000 1047 UTC) NNNN Source: Voice of America .