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Statement of Administration Policy: H.R. 4939 - Additional Objectives Which China Must Meet to Receive MFN

October 16, 1990

STATEMENT OF ADMINISTRATION POLICY

(House)
(Pease (D) Ohio and 19 others)

The Administration strongly opposes enactment of H.R. 4939. While the bill would permit China's MFN status to continue, it introduces criteria for its extension next year that go substantially beyond those contained in the Jackson-Vanik amendment. Additional MFN criteria would inevitably place U. S. companies at a commercial disadvantage with competitors in Europe, Japan, and other industrial countries. None of our competitors plan to introduce conditionality in extending MFN. If H.R. 4939 is amended to further restrict the President's flexibility, his senior advisers would recommend that he veto the bill.

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.

George Bush, Statement of Administration Policy: H.R. 4939 - Additional Objectives Which China Must Meet to Receive MFN Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/328988

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