Statement of Administration Policy: H.J. Res. 647 - Resolution of Disapproval of President's Decision to Extend MFN to China

(House)
(Solomon (R) New York and 17 others)

If H.J. Res. 647 were presented to the President, his senior advisers would recommend that he veto it. H.J. Res. 647 would deny China most-favored-nation (MFN) trade status. Passage of this bill would hurt U. S. business and consumers, damage Hong Kong's economy, reduce our influence with China on global issues, and adversely affect those Chinese who have a direct stake in the reform and opening of China to the outside world.

In May, the President determined that China met the requirements of the Jackson-Vanik amendment and that continuing MFN would serve broad U. S. economic and foreign policy interests. The Administration shares the sponsors' desire to promote human rights in China but believes this can be done best by keeping China's economy open to the outside world and maintaining the broadest possible range of people-to-people contacts. Trade and investment provide a vital link with those Chinese who want positive change.

Our continued economic involvement with China has encouraged important positive steps. The Chinese authorities have released almost 900 political prisoners this year and, following the President's decision to renew China's MFN status, have permitted Fang Lizhi and his family to depart the country. Beijing has supported all eight UN Security Council resolutions on the Persian Gulf crisis and acted decisively to enforce the UN- approved trade embargo. China's active intervention was crucial for achieving the latest breakthrough toward a peaceful settlement in Cambodia.

The United states cannot return to doing business as usual with China. The Administration will continue to press for the release of the estimated 300-400 political detainees resulting from the brutal suppression of the prodemocracy movement of June 1989. But a sound working relationship with China is still necessary so that issues of vital concern to us can be addressed.