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Renewal of MFN status

Washington endeavouring to keep human rights pressure on Beijing
WASHINGTON. May 25: With President Clinton virtually certain to renew broad trade privileges for China, administration officials were looking Tuesday for ways to keep human rights pressure on Beijing. One possibility was to target China's biggest commercial conglomerate: the People's Liberation Army, reports AP.
Secretary of State Warren Christopher spent most of the day on Capitol* Hill meeting members of Congress and telling them he has not yet made a recommendation to Clinton.
Sen. Max Baucus, a leading advocate of unconditional renewal of most-favoured-nation trade status for China, met Christopher and then wrote Clinton to oppose sanctions on "companies wholly or partially (owned by the Chinese armed 'forces."
Christopher also met group of representatives who support strong sanctions against China unless It takes dramatic steps to iihprove its human rights record.
The problem for the administration was how to steer a middle course between those conflicting views and settle on a policy that will not prompt
economic retaliation from Beijing.
The compromise mentioned most often was to remove trade privileges for some products made by businesses owned by the Chinese military. The MFN debate has highlighted the fact that the Chi* nest military has an interest in billions of dollars worth of business engaged fn, a wide range of activities from manufacturing to entertainment..
The likeliest product targeted for sanctions would be guns. Millions of dollars worth of Chinese handguns come into the United States every year.
Many of those businesses are In Joint ventures with US firms.
Clinton must make his decision on China trade by June 3. He is expected to act before he leaves for Europe June 1.
Dee Dee Myers, the White House press secretary, said the president had not yet received a formal report from Christopher and would not make a decision until he did.
State Department Mike McCurry said Christopher was "measuring the sentiment within the Hill that exists and telling the < Hill a little bit about the decision-making."
McCurry said he could not predict when Christopher would give his recommendation to Clinton. Administration sources said he outlined his thinking at a White -House session on Monday and that he made it clear he thought It would be a mistake to flatly revoke MFN or unconditionally renew ft.
Almost all countries that trade with the Unittd States have MFN status which permits their goods to enter the country at the low tariff rates. Maintaining MFN for China became an issue after the crushing of the pro-democracy demonstration in Beijing’s Tiananmen Square in June 1989.
Responding to pressure from the administration. China has made some gestures toward improving human rights. Some political prisoners have been released - though other have been arrested — and exit permits have been granted to some dissidents who have been waiting for yeprs
Christopher has repeatedly praised those steps while saying they were not enough to meet the conditions set In an executive order Issued by Clinton last spring.