-3-
Several rounds of consultations have since been held. The issue was also raised during US Secretary of State Mr Baker's visit to Beijing in mid-November.
11. On 26 November, the USTR announced its decision to extend the deadline of Special 301 investigation for up to three months. At the same time, the USTR announced its proposed affirmative determination on China together with its proposed retaliatory actions. These involve very considerable increases of duties over a wide range of Chinese exports to the USA.
12.
Two further rounds of negotiations were subsequently held in Beijing and Washington. After protracted negotiation and threat of retaliation and counter-retaliation, the two sides finally came to an agreement on 16 January 1992, the deadline set by the USTR for an agreement. In the final agreement, China has committed to provide protection to U.S. intellectual property including computer software, sound recordings, agrochemicals and pharmaceutical and trade secrets. China has also agreed to join and the Geneva Phonograms
the
Berne Convention.
Copyright Convention
Prison-made goods Background
13.
The fourth major issue straining US-China trade relations is the alleged trade in goods made in prisons or under forced labour conditions. There is increasing evidence that such products are exported to the US and that individual Hong Kong companies are involved in some of this trade.
14. US laws prohibit the import of goods made in prisons. China claims that it is official policy not to export such goods. There are however no Hong Kong laws or international obligations which prohibit Hong Kong traders from exporting or re-exporting prison-made goods.
Present Position
15. The subject of prison-made goods is one of the factors which has been raised from time to time in the US Congress when renewal of China's MFN status has been under consideration. A bill dealing specifically with prison-made goods was introduced in the Senate on 29 October.
The bill calls for the Administration to investigate the allegation, and to take appropriate action to terminate such trade.
A similar resolution, which does not carry the force of law, has also been introduced in the House. There is no indication yet when either the bill or the resolution will be voted on.
Hong Kong Government Office, London
3 February 1992