ACCESSION NUMBER:279619
FILE ID:EPF405
DATE:04/22/93
TITLE:MFN STATUS IS THE STRONGEST LEVER AGAINST CHINA, PELOSI SAYS (04/22/93)
TEXT:*EPF405  04/22/93 *

MFN STATUS IS THE STRONGEST LEVER AGAINST CHINA, PELOSI SAYS
(Text:  Rep. Nancy Pelosi press conference statement)  (660)
Washington -- "Since the Tiananmen Square Massacre in 1989, Congress has
confirmed that most-favored-nation (MFN) status is the strongest point of
leverage we have to encourage the Chinese to abide by international human
rights, trade and non-proliferation standards," Representative Nancy Pelosi
(Democrat of California) said April 22.

In a press conference called to introduce new legislation conditioning
China's most-favored-nation (MFN) trading status on improvements in
Beijing's human rights, trade and weapons proliferation practices, Pelosi
noted that the bill, which she authored with Senate Majority Leader George
Mitchell (Democrat of Maine), is cosponsored by several prominent
Congressional leaders including House Majority Leader Richard Gephardt
(Democrat of Missouri) and House Majority Whip David Bonior (Democrat of
Michigan).

The new legislation, she said, is substantially the same as last year's
bill, which passed Congress overwhelmingly.  "We have updated the language
and have placed more emphasis on the political situation in Tibet and the
Chinese threat to Tibetan culture," Pelosi said.

Following is the text of the statement Pelosi released at the press
conference:

(begin text)
Once again, I am pleased to join with the distinguished Majority Leader of
the Senate, Senator George Mitchell, in introducing the United States-China
Act of 1993.  I commend the gentleman from Maine for his outstanding
leadership on this issue of humanitarian, economic and strategic
importance.  I am also pleased that House Majority Leader Richard Gephardt
1nd House Majority Whip David Bonior have joined as original cosponsors of
the House bill.

Since the Tiananmen Square Massacre in 1989, Congress has confirmed that
most-favored-nation (MFN) status is the strongest point of leverage we have
to encourage the Chinese to abide by international human rights, trade and
non-proliferation standards.

Our legislation is substantially the same as last year's bill, which passed
Congress overwhelmingly.  We have updated the language and have placed more
emphasis on the political situation in Tibet and the Chinese threat to
Tibetan culture.

Three years of unconditional MFN have not led to any substantial improvement
in the human rights, trade and nuclear proliferation practices of the
Chinese government.

While a few prominent dissidents have been released just as their prison
terms were about to end, others still continue to be arrested for their
beliefs and are being held in inhumane conditions.  According to Amnesty
International, these prisoners are being subjected to torture.

In 1992, our trade deficit with China grew by 43% over 1991, from $12.7
billion to $18.3 billion.  If the deficit increases at the same rate, and
the first quarter indicates that it may, the deficit could be as high as
$26 billion for 1993.

In addition to the trade barriers, China has marred our trade relationship
with transshipments, use of prison labor for export and other unfair trade
practices.

The international community is increasingly concerned about China's
proliferation activities.  There is strong evidence that China has sold
M-11 missiles to Pakistan and other technology to unsafeguarded countries
in the Middle East.  We must use our leverage with China to stop the
delivery of missiles and to be in compliance with the Missile Technology
Control Regime (MTCR).

In addition, the Chinese military exported almost 2 million guns and
thousands of tons of ammunition to the U.S. over a three year period.
Beijing's army is the largest foreign supplier of small arms to the
American market.  Profits from these sales are going back to China to feed
its military modernization and to prep up the regime.

The conditions in our legislation have been carefully designed to be
reasonable and achievable.  The Chinese dictators will not easily walk away
from over $18 billion in U.S. hard currency.  Now is the time to use our
leverage to ensure that the U.S.-China relationship is based on
internationally recognized principles.

(end text)
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