DATE=12/8/1999
TYPE=CORRESPONDENT REPORT
TITLE=CLINTON-CHINA-TAIWAN (L-ONLY) CQ
NUMBER=2-256984
BYLINE=DAVID GOLLUST
DATELINE=WHITE HOUSE
CONTENT=

VOICED AT:

INTRO:  President Clinton has made a new appeal to 
China and Taiwan to avoid violent actions and resolve 
their differences through dialogue. The appeal comes 
in the face of what he says has been an "unnecessary 
and counterproductive" increase in tension across the 
Taiwan straits. V-O-A's David Gollust reports from the 
White House.


TEXT:  Mr. Clinton has reiterated his support for the 
one-China approach that has governed U-S policy since 
the normalization of ties with Beijing more than two 
decades ago.  But he is also urging the parties to 
avoid any resort to violence to resolve a problem he 
insists can be peacefully settled over time as their 
economies become intertwined.

The President made the appeal at a news conference 
here under questioning about a newspaper report that 
China is building a second short-range missile base 
near Taiwan that would significantly increase its 
ability to strike the island's major military bases.

Mr. Clinton declined specific comment on the 
Washington Times report, other than to say that China 
is modernizing its military in a number of ways  -- 
and to caution both sides against any "rash" moves:

            /// FIRST CLINTON ACT ///

      Our policy on China is crystal-clear. We believe 
      there is one China. We think it has to be 
      resolved through cross-strait dialogues. And we 
      oppose and would view with grave concern any 
      kind of violent action. And that hasn't changed. 
      And you know. There has been a lot of build up 
      of tension on both sides that I think is 
      unnecessary and counterproductive.

            /// END ACT ///

Mr. Clinton said those concerned are aware of what he 
has done in the past - an apparent reference to his 
dispatch of U-S aircraft carriers to the straits in 
1996 amid a crisis over Chinese missile tests near 
Taiwanese ports.

In his wide-ranging talk with reporters, Mr. Clinton 
also again dismissed Republican suggestions that a 
Hong Kong shipping company's operation of port 
facilities at each end of the Panama Canal will 
threaten U-S security.

The President re-ignited a controversy last week with 
remarks in which he appeared to accept the notion that 
China will control the waterway when the United States 
departs at the end of the month under the Panama canal 
treaties. He acknowledged to reporters here that he 
had mis-spoken:

            /// SECOND CLINTON ACTUALITY ///

      The canal itself will be operated and controlled 
      entirely by the government of Panama through the 
      Panama Canal Authority. This is, the locks, 
      ingress and egress, access, open-ness. - the 
      canal is completely and totally within the 
      control of  the Panamanians. Now, the Hong Kong 
      company which got the concession to operate the 
      ports will be responsible for loading and 
      unloading ships.

            /// END ACT ///

Mr. Clinton said the Hong Kong company - Hutchison-
Whampoa - also manages several ports in Britain. He 
said its managing director is British, most of its 
employees will be Panamanian, and said he feels 
"comfortable" that U-S commercial and security 
interests will be protected under the arrangement.

A number of Congressional Republicans have charged 
that the Hong Kong firm is under Chinese military 
influence, and that the port deals would put China in 
a position to prevent U-S navy ships from using the 
canal in a future emergency. (Signed)

NEB/DAG/TVM/gm



08-Dec-1999 19:46 PM EDT (09-Dec-1999 0046 UTC)
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Source: Voice of America
.