RESTRICTED
046752
MDTTAN 4282
RESPECT FOR HUMAN RIGHTS IN CHINA.
(II) TRADE
(A) CLINTON SHOULD INSTRUCT THE USTR AND THE
DEPARTMENT OF COMMERCE TO MONITOR COMPLIANCE WITH THE INTELLECTUAL PROPERTY AND MARKET ACCESS AGREEMENTS.
(B)
THE U.S.
SHOULD ESTABLISH A ROUTINE MECHANISM
TO REVIEW TRADE ISSUES AT A SENIOR LEVEL.
(C)
THE ADMINISTRATION SHOULD ENSURE THAT THE U.S.
CUSTOMS VIGOROUSLY INTERCEPTED MISLABELLED AND IMPROPERLY TRANSHIPPED CHINESE PRODUCTS.
(D) THE U.S. SHOULD CONTINUE TO EXAMINE CAREFULLY
CHINA'S GATT APPLICATION. BEFORE CHINA IS ALLOWED TO ENTER GATT, IT SHOULD DEMONSTRATE THAT ITS MARKET IS TRULY OPEN TO EXPORTS.
(III) ARMS CONTROL
(A) THE U.S. INTELLIGENCE AGENCIES SHOULD MONITOR
CHINA'S COMPLIANCE WITH THE NPT AND MTCR. IF THERE WAS EVIDENCE OF
VIOLATIONS THE ADMINISTRATION SHOULD CONSIDER TARGETED AND CREDIBLE
SANCTIONS ON HIGH TECH EXPORTS TO CHINA.
(B)
THE ADMINISTRATION SHOULD OPEN NEGOTIATIONS
WITH CHINA ON ADHERENCE TO THE THRESHOLD TEST BAND TREATY.
COMMENT
7.
AS YOU KNOW, BAUCUS HAS ALWAYS SUPPORTED THE RENEWAL OF MEN. FOR THE PAST FEW YEARS, HE HAS SECURED THE SUPPORT OF KEY DEMOCRATS
IN THE SENATE AND THEREBY HELPED SUSTAIN PRESIDENT BUSH'S VETO OF
CONDITIONS FOR MFN. FROM OUR POINT OF VIEW IT IS USEFUL THAT HE
HAS DECIDED TO SPEAK OUT EARLY AND CLEARLY ABOUT THE NEED TO RETAIN MFN.
8. BUT THE PROPONENTS OF CONDITIONALITY ARE ALSO BEGINNING TO GROUP. THE DAY AFTER BAUCUS'S SPEECH, CONGRESSWOMAN PELOSI ANNOUNCED THAT SHE INTENDED TO INTRODUCE A BILL PLACING CONDITIONS
ON MFN. SHE ALSO SUGGESTED THAT CLINTON USE WORLD BANK LOANS TO
COAX CHINA INTO REFORM AND THAT HE SHOULD INSIST THAT CHINA
IMPLEMENT ECONOMIC REFORM BEFORE JOINING GATT.