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Agian Development Bank, the U.S. has and will continue to withhold support on all loans that do not meet BHN criteria.
On GATT Accession
Since China applied for GATT membership in July 1986, the United States has been a leading participant in the collective efforts of major GATT Contracting Parties to develop terms for China's GATT participation that will support the objectives of the GATT and will influence Chinese Government policies to become, over time, more compatible with the GATT framework for world trade.
U.S. and other major GATT contracting parties' concerns about China's ability and willingness to live up to GATT obligations, particularly since June 1989, have stalled progress in the Working Party established to consider China's application för membership in the GATT.
The Administration intends to continue to press Beijing to undertake trade and economic reforms so that its GATT application can advance and its trade practices be brought under GATT disciplines.
At the same time, the Administration will begin to work actively with other GATT members to resolve in a favorable manner the issues relating to Taiwan's GATT accession. U.S. support for Taiwan's accession as a customs territory would be consistent both with GATT legal criteria and the "one-China" policy which acknowledges the Chinese position and has been adhered to by successive U.S. administrations.
Taiwan's GATT accession would yield substantial trade and commercial benefits to the United States and to the international trading system,
Taiwan has indicated that it is prepared to accede to the GATT as a developed economy, to bind virtually all its tariffs, and to join the major non-tariff measure GATT codes.
The Importance of MEN
As highlighted above, the Administration is aggressively seeking to řesolve outstanding bilateral trade issues with the PRC. MEN underpins our ability to work constructively with the PRC. We believe that discontinuing MFN, or attaching conditions to its renewal, would cause serious harm to our trade interests, and would render futile pursuit of the initiatives outlined above.
It would reduce our leverage in market-access, intellectual property rights protection, and other trade-related negotiations China's desire to retain access to the U.S. market has enable
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