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MDLIAN 1547
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FM WASHINGTON
TO PRIORITY FCO
TELNO 1996
OF 152323Z SEPTEMBER 92
TOP COPY
Q DIST?
INFO PRIORITY HONG KONG, JLG HONG KONG, PEKING, DTI, ACTOR
US/CHINA: MFN
SUMMARY
1.
SENATE APPROVES BILL SETTING CONDITIONS FOR RENEWAL OF MFN IN 1993. PRESIDENTIAL VETO LIKELY TO BE SUSTAINED.
DETAIL
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2.
ON 14 SEPTEMBER THE SENATE PASSED A BILL BY QUOTE UNANIMOUS CONSENT UNQUOTE - WHICH WOULD WITHDRAW MFN STATUS IN 1993 FOR PRODUCTS MANUFACTURED BY STATE-OWNED COMPANIES IN CHINA UNLESS CHINA MAKES SIGNIFICANT PROGRESS IN A NUMBER OF AREAS, INCLUDING HUMAN RIGHTS, TRADE AND NUCLEAR NON-PROLIFERATION. THE BILL HAS TO BE RECONCILED WITH THE HOUSE VERSION POSSIBLY AT A SENATE/HOUSE CONFERENCE LATER THIS WEEK.
3. PRESIDENT BUSH HAS SAID HE WILL VETO THE BILL. OUR CONGRESSIONAL AND ADMINISTRATION CONTACTS ARE FAIRLY CONFIDENT THAT HE WILL BE ABLE TO MUSTER SUFFICIENT SUPPORT IN THE SENATE THIRD) TO UPHOLD HIS VETO.
(ONE
4.
THE FACT THAT THE BILL WAS PASSED BY UNANIMOUS CONSENT MEANT THAT SENATORS DID NOT VOTE INDIVIDUALLY. THE REPUBLICAN OPPONENTS OF THE BILL SEEM TO HAVE AGREED ON THIS APPROACH TO AVOID BEING PUBLICLY ACCUSED OF BEING SOFT ON CHINA IN AN ELECTION YEAR. BUT THEY WILL, OF COURSE, HAVE A CHANCE TO STAND BY THEIR PRESIDENT IN THE VOTE ON HIS VETO.
RENWICK
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