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tenth largest trading partner, could also make an important contribution to the global trading system, I will seek to have the Chinese Government take steps on trade reform so that China's GATT application can advance and its trade practices can be brought under GATT disciplines through the Working Party formed for China in 1987. U.S. support for Taiwan's accession to GATT

as a customs territory should in no way be interpreted as a departure from the long-standing policy of five administrations which acknowledges the Chinese position that there is only one China, and that Taiwan is part of China.

In sum, therefore, I am prepared to address the concerns you and

But your colleagues have identifiéd, and I am doing so. discontinuing MFN, or attaching conditions to its renewal, would cause serious harm to American interests and would render futile pursuit of the initiatives I have outlined, which are discussed

Working together, I in greater detail in the attachments.

believe we will best protect America's interests by remaining engaged with China and the Chinese people.

Sincerely,

Cy Burl

P.S. At the recently concluded G-7 Summit in London, the leaders of these Western Democracies all urged renewal of MFN.

Attachments:

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Part I Human Rights

Part II

Nonproliferation

Part III - Trade and Economic Issues

The Honorable Max S. Baucus

United States Senate

Washington, D.C. 20510

0194

anyo0 OF TEROWO

OFISI

16 28 T

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