United States-People's Republic of China Trade Relations Letter to the Speaker of the House and the President of the Senate.

Dear Mr. Speaker: (Dear Mr. President:)

In accordance with section 407 of the Trade Act of 1974, I am transmitting a copy of a proclamation extending nondiscriminatory treatment to the products of the People's Republic of China. I also enclose the text of the Agreement on Trade Relations between the United States of America and the People's Republic of China, which was signed on July 7, 1979, and which is included as an annex to the proclamation.

The Agreement on Trade Relations will provide a nondiscriminatory framework for our bilateral trade relations, and thus strengthen both economic and political relations between the United States and the People's Republic of China. Conclusion of this agreement is the most important step we can take to provide greater economic benefits to both countries from this relationship. It will also give further impetus to the progress we have made in our overall relationship since normalization of our diplomatic relations earlier this year.

I believe that the Agreement on Trade Relations is consistent with both the letter and the spirit of the Trade Act of 1974. It provides for mutual extension of most favored-nation tariff treatment, while seeking to ensure overall reciprocity of economic benefits. It includes safeguard arrangements to ensure that our trade with the People's Republic of China will grow without injury to domestic firms or loss of jobs for American workers.

The Agreement also confirms for American businessmen certain basic rights and facilities in establishing operations and conducting business in the P.R.C. Other provisions include those dealing with settlement of commercial disputes; financial transactions; government commercial offices; and protection for industrial property rights, industrial processes, and copyrights.

I am also enclosing a copy of my report to the Congress pursuant to section 402 (c) (2) of the Trade Act of 1974. I shall issue today an Executive order waiving the application of subsections (a) and (b) of section 402.

In the past year and a half, Chinese leaders on several occasions have called for facilitating family reunification and for simplifying the procedure for getting permission to enter or leave China. During this period we have noted a marked relaxation of Chinese emigration procedures. Processing time has been reduced for most cases and numbers of emigrants have jumped dramatically. We have recently had discussions with senior Chinese officials and firmly believe that Chinese statements and the marked increase in emigration reflect a policy of the Government of China favoring freer emigration.

I have reviewed the circumstances of emigration from the People's Republic of China in light of all these factors, and have determined that a waiver of the application of subsections (a) and (b) of section 402 of the Trade Act of 1974 will substantially promote the objectives of that section.

I urge that Congress act as soon as possible to approve the Agreement on Trade Relations.

Sincerely,

JIMMY CARTER