HONG KONG, Nov 10: In an apparent change of stance, the Untied States is ready to allow China back into the world's largest trade body before It meets all the body s membership rules, the European trade commiMfoner said Thursday. reports AP ''sir Leon Brittan said US of-ficlals recognised the need to allow China breathing space after It rejoins the General Agreement on Tariffs and Trade to reform Its economy in line with GATT requirements.

Previously. US officials have rejected China s arguments that, as a developing nation, it cannot immediately meet all of GATT's requirements. This has created a major obstacle to China's bid to re-enter the trade body that It left in 1950.

. At a news conference. Brittan said. " We have helped to persuade the United’States that it is unrealistic and ynrea-sonable to expect China to do . everything right at the outset."

The concept of a transitional period is one which -1 think . to be fair, the United States hqs came to accept." he added.

Brittan did not specify .how long the transition period could last. But when it ends. "China will haVe reached a po-

sition intermediate between a developing country and a developed country.’’ he said.

But Brittan also cautioned that China needs to meet some basic obligations before it rejoins. Specifically. China must guarantee to liberalise Its economy and open its market wider to food, goods and services from abroad, he said. He added that the European Union also wants China to make its currency fully convertible.

"China should agree to what are the essentials from the outset and agree to a transitional period during which China will gradually accept the rest of. the obligations." he said.

China is anxious to re-enter GATT in time to qualify as a founding member of the more powerful World Trade Organisation. which is to replace GATT next year.

Brittan was in Hong Kong after visiting Shanghai and Beijing, where he conferred with Chinese Minister of Foreign Trade Wu Yi and considered new Chinese proposals for GATT membership.

Wu indicated that China was ready to be flexible. Brittan said without elaborating.

He said he told Wu where China needs to make progress

and warned that "the window of opportunity for Chinese founder membership of WTO will not remain open forever."

Brittan did not specify how long China has left. But he said China could qualify as a founding WTO member even after the body's scheduled launch date bn January 1.

In an earlier speech. Brittan sought to dispel anger in Asia that Europe Is keeping out cheap Asian goods with quo- • tas and other measures, including recent limits imposed on toy and other Imports from China.

Brittan said Aslan imports Into Europe were increasing and that the number of European . trade restrictions were decreasing.

"I find wholly nonsensical allegations sometimes heard in this pa'rt of the world that Europe fears Asia-Pacific growth and economic integration. We do-not." he said.

Brittan said Europe wanted stronger political ties with Asia. Including talks with the Asia Pacific Economic Cooperation forum’, to improve trade, between the two regions.

Top-level political discussions are long overdue between Europe and Asia." he said.