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House to go for vote in 2 weeks

Clinton calls for renewal of China's MFN status
WASHINGTON, June 12: Making his case to Congress, President Clinton said that denying China most-favourednation trading status would severely undermine Hong Kong at the very time it needs to assert its stability and autonomy, reports AP.
Clinton presented his arguments in letters to House Speaker Newt Gingrich and Minority Leader Dick Gephardt. The US House of Representatives is expected to vote on China’s trade privileges within the next two weeks, before Beijing's July 1 takeover of Hong Kong.
The White House also released a letter from six former US secretaries of state expressing support for renewing normal trade status with China. Revocation of China's trade status "would effectively cut off trade between our two countries and thereby deal a devastating blow to our overall relationship,” the secretaries said.
Fifty per cent of US-Chinese trade flows through Hong Kong, Clinton told Congress. Revoking China’s favoured trade status would halve Hong Kong's economic growth, double its unemployment with the loss of 85,000 Jobs and reduce its trade ' by 32 billion dollars, he said, citing Hong Kong's own estimates.
"Reversing our course on trade with China would rebound to the detriment of Hong Kong," Clinton said.
Many critics say the United States should deny China normal trade to force improvements in Beijing's record on human rights and religious freedom, Clinton said. "But I am convinced the path they have chosen to advance those goals in the wrong path.
"Further change in China is necessary and inevitable but it will not come overnight," the president cautioned.
Meanwhile. US Defence Secretary William Cohen told a meeting of the Asia Society that if Congress denied normal trading status for China it would discourage Beijing from becoming a responsible member of the international community.
But more importantly, he said, it would damage US strategic interests in Asia because "our allies would question our ability to carry out a coherent policy toward China and thus to the region as a whole."
US Rep. Lee Hamilton, of Indiana, ranking Democrat on the House International Relations Committee, said the United States should not view China, an emerging superpower, as a threat but as an opportunity.
"The correct policy is to engage China not to isolate it," he said. "Engagement is not endorsement. It is not alliance. It certainly is not appeasement. It does not mean ignoring our differences with China."