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One bill, approved June 27 by the Senate Finance Committee 11-9 largely along party lines, specifies that China must make "significant progress" in curbing human rights violations, ending unfair trade practices and adopting a policy limiting the spread of nuclear, chemical and biological weapons. It further states that China must adhere fully to its joint declaration with the United Kingdom on the transfer of Hong Kong to the Chinese government by 1997.
Another, approved by the House of Representatives Ways and Means Committee on an unrecorded vote June 26, would require China to end human rights violations and limit exports of nuclear weapons, missiles and goods produced with forced labor.
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ECONOMIC HIGHLIGHTS, FRIDAY, JUNE 28
(Bank fund, leading indicators)
LEADING INDICATORS CLIMB ANOTHER 0.8 PERCENT IN MAY
Washington -- The composite index of leading indicators, designed to forecast U.S. economic activity, rose in May for the fourth straight month.
The monthly report released by the Commerce Department June 28, showing a 0.8-percent May increase in the index, seemed to support the view, expressed a day earlier by White House economic adviser Michael Boskin, that the latest recession is over and recovery is taking hold.
The May rise followed increases of 0.4 percent in April, 0.9 percent in March and 1.2 percent in February. Before that, the index had declined for six consecutive months.
A decline in initial claims for unemployment insurance was the largest positive contributor to the May index, with eight of the 11 indicators rising overall.
The index of coincident indicators, which reflects concurrent economic activity, rose 0.2 percent in May
the first monthly increase in 10 months.
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The following eight leading indicators contributed to the rise in the index from April to May:
-- Average weekly initial claims for state unemployment insurance fell from 472,00 to 433,000.
The index of building permits rose from 72.8 to 77.0.
-- New factory orders for consumer goods and materials (in 1982 dollars) rose from $87,320 million to $89,130 million.
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· Contracts and orders for plant and equipment (in 1982 dollars) rose from $41,020 million to $42,810 million.
-- The average work week for factory production workers increased from 40.3 hours to 40.4 hours.
- The decline in sensitive materials prices slowed to 0.61 percent in May from 0.66 percent in April.
- The proportion of vendors having slower deliveries (a signal of higher demand) rose from 45.1 percent to 46.0 percent.
The money supply (in 1982 dollars) rose from $2,412,900 million to $2,415,400 million.
Three indicators made negative contributions to the leading index from April to May:
The index of consumer expectations fell from 74.7 to 71.5.
The decrease in the backlog of unfilled factory orders for durable goods (in 1982 dollars) rose from $1,620 million to $1,730 million.
- The index of 500 common stock prices fell from 379.68 to 377.99.