Trade With Romania, Hungary, and the People's Republic of China Message to the Congress.

To the Congress of the United States:

In accordance with subsection 402(d) (5) of the Trade Act of 1974, I transmit herewith my recommendation for a further 12-month extension of the authority to waive subsections (a) and (b) of section 402 of the Act.

I include as part of my recommendation my determination that further extension of the waiver authority, and continuation of the waivers applicable to the Socialist Republic of Romania, the Hungarian People's Republic and the People's Republic of China will substantially promote the objectives of section 402.

This recommendation also includes my reasons for recommending the extension of waiver authority and for my determination that continuation of the three waivers currently in effect will substantially promote the objectives of section 402.

JIMMY CARTER

The White House,

May 28, 1980.

RECOMMENDATION FOR EXTENSION OF WAIVER AUTHORITY

I recommend to the Congress that the waiver authority granted by subsection 402(c) of the Trade Act of 1974 (hereinafter referred to as "the Act") be further extended for twelve months. Pursuant to subsection 402 (d) (5) of the Act, I have today determined that further extension of the waiver authority granted by section 402 (c) of the Act, and continuation of the waivers currently applicable to the Socialist Republic of Romania, the Hungarian People's Republic and the People's Republic of China will substantially promote the objectives of section 402 of the Act. My determination is attached to this recommendation and is incorporated herein.

The general waiver authority conferred by section 402(c) of the Act has been of major importance in permitting and reenforcing the expansion of relations between the United States and certain countries of Eastern Europe and the People's Republic of China. In the past year this authority has permitted the negotiation and entry into force of the U.S.-China Agreement on Trade Relations. This is a major step in the evolution of U.S.-Chinese relations. Moreover, the waiver authority has permitted us to conclude and maintain in force bilateral trade agreements with Romania and Hungary. These have been cornerstones in the strengthening of our political and economic relations with those countries, including our important and productive exchanges on human rights and emigration matters. Continuation of this authority may provide a basis for future steps to expand and improve our bilateral relations with other countries now subject to subsections 402(a) and (b) of the Act, should circumstances permit. I believe that all of these considerations fully justify this recommendation for extension of the general waiver authority.

I also believe that continuing the current waivers applicable to Romania, Hungary and the People's Republic of China will substantially promote the objectives of section 402.

Romania—Emigration from Romania to the United States has grown substantially since the waiver has been in effect and is now nearly four times as large as it was in 1974. This progress continued in 1979 and throughout the first four months of 1980. During this period, we have maintained an active dialogue with the Romanian Government concerning emigration matters, including our interest in sustained performance with respect to emigration to the United States and Israel. This interest was expressed, most recently, during high-level bilateral consultations in Washington in April within the framework of the Final Act of the Conference on Security and Cooperation in Europe and in the context of meetings of the U.S.-Romanian Joint Economic Commission.

During these meetings there was also a detailed examination of overall emigration trends for Romania and the question of binational marriages. We believe that discussions such as these, which take place within the context of the waiver under section 402 of the Act, will ensure continued favorable resolution of emigration and humanitarian problems.

Hungary—At the time of the initial waiver in 1978, the Hungarian Government indicated that it would continue to deal with emigration matters in a responsive and humanitarian manner. Since then, Hungarian actions have been consistent with this policy. Most Hungarians who apply to emigrate receive permission to do so without undue difficulty. The number of problem cases outstanding at any one time remains small, usually considerably fewer than a dozen at any time among persons seeking to come to the United States. We have found that we can discuss problem cases productively with the Hungarian Government, and that most eventually are resolved favorably.

People's Republic of China—During the past year, China bas demonstrated its commitment to open emigration by simplifying its exit procedures and permitting over 1,500 students to study in the United States. The numerical limits imposed on entry to the U.S. by our immigration law are now a more significant impediment to immigration from China than are the Chinese Government's exit controls. China's commitment to open emigration is exemplified by the consular agreement concluded with the United States in January, 1979, in which China agreed to facilitate the reunion of families and to process all applications as quickly as possible. The Chinese Government is aware of the benefits of most favored nation status and of our interest in open emigration, and extension of the waiver will encourage the Chinese to maintain their current travel and emigration policy.

In light of all of these considerations, I have determined that continuation of the waivers applicable to Romania, Hungary and the People's Republic of China will substantially promote the objectives of section 402 of the Act.