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DATE=9/8/2000 TYPE=CORRESPONDENT REPORT TITLE=CHINA TRADE-WEAPONS (L-ONLY) NUMBER=2-266286 BYLINE=DAVID SWAN DATELINE=CAPITOL HILL CONTENT= VOICED AT: /// EDS: Should hold through weekend but watch CN-wire for updates or new developments; Senate reconvenes noon Monday /// INTRO: The U-S Senate appears headed for a showdown on normalizing trade with China, and whether that country should also face sanctions for peddling weapons of mass destruction. V-O-A's David Swan explains. TEXT: Monday the Senate resumes debate on the bill granting permanent normal trade relations [P-N-T-R] to China. But the body is also scheduled to take up an amendment that the trade bill's supporters fear could kill the landmark proposal. The legislation, sponsored by Republican Fred Thompson, is designed to penalize Beijing for selling missiles and other weapons to countries like Pakistan. The majority leader, (Republican) Senator Trent Lott, is among those voicing support for the proposal. /// Lott Act /// Chinese nuclear weapon proliferation is something that we have to be concerned about and I'm convinced it continues `til this day. We need a way to monitor it and there should be a way to impose sanctions if that continues. So that issue will come up on this bill. /// End Act /// This is the scenario that backers of normal trade had hoped to avoid. If the Thompson amendment passes, the larger bill goes back to the House of Representatives, which may not have the time or the will to deal with it again. Democratic leader Tom Daschle warns any change in the trade package would likely be fatal. /// Daschle Act /// If this (bill) changes, then I think the prospect of P-N-T-R is over for this year. So that to me is the essence of the strategy: do we change it or not? If we change it, it's probably over for the year; if we don't change it, it probably goes to the president (to be signed into law). /// End Act /// Though the Senate has so far turned back all other amendments, any vote on the Thompson measure is expected to be very close. Senate leaders have tried unsuccessfully to separate the weapons proliferation measure from the trade bill. A grant of permanent normal trade status would help China into the World Trade Organization and open the huge Chinese market to American corporations. (Signed) NEB/DS/JP 08-Sep-2000 17:01 PM LOC (08-Sep-2000 2101 UTC) NNNN Source: Voice of America .