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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 formad 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 concerna you and your colleagues have identified, and I am doing so. But discontinuing MEN, or attaching conditions to its renewal, would cause serious harm to American interests and would randez futile pursuit of the initiatives I have outlined, which are discussed in greater detail in the attachments. Working together, I bellave we will best protect America's interests by remaining angaged 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:

Part I Human Rights

Part II

Nonproliferation

Part III Trade and Economic Issues

The Honorable Max 5. Baucus

United States Sanate

Washington, D.C.

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