PRIME MINISTER'S VISIT TO THE UNITED Y
CHINA'S MFN STATUS
MM3 09014
миз
W
DISU
197
( Enclosure to PS Lette
to PS/NO 10 in reply to de wan's lette of 23 August.)
1. The President formally announced his decision unconditionally to renew China's MFN status on 28 May. On 26 and 27 June, the House Ways and Means Committee and the Senate Finance Committee both proposed draft legislation which would impose conditions on renewal in 1991. Both bills broadly sought a whole raft of improved human rights in China, an end to exports of products produced by forced labour, a curb on arms sales, and (the Senate bill) compliance with the Joint Declaration on Hong Kong.
On
10 July, the House voted by 313 to 112 to adopt a bill renewing MFN until 1992 but attaching the conditions
outlined above.
2.
On 19 July, the President replied to Senator Baucus in detail on US policy towards China. The letter describes:
On proliferation, how this had been on the agenda
of US-China exchanges for some time and the trade
sanctions taken against offending Chinese firms.
On trade, the Administration's efforts for
improved access to China's market-place, for improved copyright and intellectual property
safeguards, and for reforms that would facilitate
China's application for GATT membership. The
latter states that the Administration would
initiate Section 301 trade action if China did
not improve market access. It also outlined the Administration's intentions to negotiate a Memorandum of Understanding on investigation of
any instances of export of goods manufactured by
22.