May 28 / Administration of William J. Clinton, 1993

Letter to Congressional Leaders Transmitting a Report on Most-Favored- Nation Trade Status for May 28, 1993

Dear Mr. Speaker: (Dear Mr. President:) of an Executive Order which enumerates the Pursuant to subsection 402(d)(1) of the Trade specific conditions which I have established with Act of 1974, as amended, 19 U.S.C. 2432(d)(1) respect to a further extension of the waiver next (‘‘the Act’’), I hereby submit the attached report year for the period beginning July 3, 1994. concerning the continuation of a waiver of appli- Sincerely, cation of subsections (a) and (b) of section 402 of the Act to the People’s Republic of China. WILLIAM J. CLINTON The report explains my reasons for having deter- mined that continuation of the waiver currently NOTE: Identical letters were sent to Thomas S. in effect for the People’s Republic of China Foley, Speaker of the House of Representatives, will substantially promote the objectives of sec- and Albert Gore, Jr., President of the Senate. The tion 402. In addition, I am also transmitting Executive order and related determination are herewith for your further information a copy listed in Appendix D at the end of this volume.

Report to Congress Concerning Extension of Waiver Authority for the People’s Republic of China May 28, 1993

Pursuant to section 402(d)(1) of the Trade Chinese Foreign Travel Policies Act of 1974 (hereinafter ‘‘the Act’’), having de- In FY 1992, 75,758 U.S. visas were issued termined that further extension of the waiver worldwide to tourists and business visitors from authority granted by section 402(c) of the Act China, a 35 percent increase over FY 1991 and for the twelve-month period beginning July 3, a 76 percent increase over FY 1988. Foreign 1993 will substantially promote the objectives travel by Chinese-government sponsored busi- of section 402, I have today determined that nessmen alone increased by 48 percent in FY continuation of the waiver currently applicable 1992, reflecting ’s policies of ac- to China will also substantially promote the ob- celerating China’s opening to the outside world. jectives of section 402 of the Act. My determina- tion is attached and is incorporated herein. In FY 1992, 18,908 student visas (including exchange students) were issued, a decline from FY 1991 of 14 percent but still 8 percent greater Freedom of Emigration Determination than FY 1988. The decline was probably the In FY 1992, 26,711 U.S. immigrant visas were result in part of a recent new directive requiring issued in China. The U.S. numerical limitation Chinese college graduates educated at state ex- for immigrants from China was fully met. The pense to work for five years before applying principal restraint on increased emigration con- for privately-funded overseas study. A drop in tinues to be the capacity and willingness of other funding from recession-strapped U.S. schools nations to absorb Chinese immigrants, not Chi- and relatives may also have played a role. nese policy. After considering all the relevant Chinese students continue to return from information, I have concluded that continuing overseas for visits without any apparent problem. the MFN waiver will preserve the gains already With the exception of student activist Shen achieved on freedom of emigration and encour- Tong, we are not aware of any case in which age further progress. There, thus, continues to Chinese living in the U.S. who returned to be progress in freedom of emigration from China for visits after June 1989 were prevented China; we will continue to urge more progress. from leaving again. Shen was detained in Sep-

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tember 1992 and then expelled from China two prisoners on a list presented them earlier in months later for trying to establish a June of that year. Since then, the Chinese have chapter of his Fund for Chinese Democracy. released additional political prisoners, including Xu Wenli, , Youcai, Luo Human Rights Issues Haixing, , Yang Wei, Wang Zhixin, As detailed in the Department’s annual Zhang Weiguo, , Wang Xizhe, Gao human rights report, China’s human rights prac- Shan, Bao Zunxin, and a number of Catholic tices remain repressive and fall far short of clergy and lesser known activists. We continue internationally-accepted norms. Freedoms of to press for a general amnesty and for permis- speech, assembly, association, and religion are sion for international humanitarian organizations sharply restricted. to have access to Chinese prisons. We have also China understands that the Clinton Adminis- pressed for improvement in the conditions of tration has made human rights a cornerstone those in Chinese prisons. of our foreign policy. We have already repeat- China has publicly acknowledged that domes- edly raised our concerns with the Chinese au- tic human rights policies are a legitimate topic thorities and we intend to press at every oppor- of international discussion. China has hosted tunity for observance of internationally accepted human rights delegations from France, Australia, standards of human rights practice. the U.K., and Germany. China sent several dele- We have made numerous requests for infor- gations to the U.S. and Europe, as well as mation on specific human rights cases. China Southeast Asia, to study foreign human rights has provided information on some of these cases practices and issued a ‘‘white paper’’ maintaining but further and more complete responses are that basic human rights are observed in China necessary. The Chinese recently released, prior and arguing that a country’s human rights record to completion of their sentences, several promi- should be viewed in light of its own history nent dissidents whom we had identified on lists and culture. We reject this limited definition provided to them. These included not only of human rights but believe it is a significant Tiananmen-era demonstrators but also Democ- step forward that China is willing to debate racy Wall (circa 1979) activists. We hope this human rights issues with its international critics. is the first step toward a broad and general The U.S. continually raises with the Chinese amnesty for all prisoners of conscience. government the need for protection of Tibet’s The Chinese promised then Secretary Baker distinctive religion and culture. We are con- in 1991 that all Chinese citizens, regardless of cerned about China’s heavy-handed suppression their political views, have the right to travel of political demonstrations in the Tibetan Auton- abroad. The only exceptions are citizens who omous Region. Demonstrations continue to re- are imprisoned, have criminal proceedings pend- sult in instances of brutal beatings and long de- ing against them, or have received court notices tentions. China has admitted some foreign ob- concerning civil cases. A number of prominent servers to Tibet and to the main Lhasa prison. dissidents, despite long delays, have been able Diplomatic reports state that the Chinese Gov- to leave China. Some others have not. Those ernment is providing funds for rebuilding mon- who have been able to obtain exit permits in asteries and that monks are now provided more the past year include labor leader Han leeway in their religious practices. In recent Dongfang, writers Wang Ruowang and Bai Hua, years, an increasing number of Han Chinese scientist Wen Yuankai, journalists Wang have moved to the Tibetan Autonomous Region Ruoshui, Zhang Weiguo, and Zhu Xingqing, and in search of economic opportunity. We will con- scholar Liu Qing. Others, like Hou Xiaotian, Yu tinue to monitor closely reports that the PRC Haocheng, and Li Honglin, continue to face dif- is encouraging involuntary emigration to areas ficulties in obtaining exit permission, although traditionally settled by Tibetans. So far, we have the Chinese have informed us Hou Xiaotian will found no evidence of a Chinese government soon receive an exit visa. We continue to press policy to this effect. This is, however, an area the Chinese on these and other cases. of considerable concern given the relatively Our goal is the release of all those held solely small Tibetan population. We join many others for the peaceful expression of their political and in urging the Chinese government to establish religious views. In November 1991, the Chinese conditions under which the unique Tibetan cul- confirmed to Secretary Baker the release of 133 ture and religion will be protected.

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Nonproliferation Issues major expansion of our economic and trade rela- China’s support for global nonproliferation ini- tions. In 1992, bilateral trade topped $33 billion, tiatives has increased substantially since the be- with Chinese exports of $25.8 billion and U.S. ginning of 1992. In March 1992, China acceded exports of $7.5 billion. China was our fastest to the Nuclear Non-Proliferation Treaty (NPT) growing export market in Asia in 1992 as U.S. and adhered to the Missile Technology Control exports to China rose by 19 percent. In turn, Regime (MTCR) guidelines and parameters. In the United States remains China’s largest export January 1993, Beijing became an original signa- market, absorbing about 30 percent of China’s tory to the Chemical Weapons Convention total exports. (CWC). China now is a party to all of the lead- China maintains multiple, overlapping barriers ing nonproliferation agreements. These commit- to imports in an effort to protect non-competi- ments have influenced Chinese behavior: Beijing tive, state-owned industries. China also has rec- has refrained from selling certain sensitive items ognized that its development goals cannot be because of proliferation concerns, and non- achieved without gradually reducing protection and opening its domestic market to the stimulus proliferation as an issue appears to receive more for change brought by import competition. senior consideration in Chinese policy-making Our market access agreement, signed October circles. 10, 1992, if implemented by the PRC, will in- At the same time, certain sensitive Chinese crease opportunities for U.S. exports by phasing- exports raise questions about PRC compliance out 70 to 80 percent of China’s non-tariff trade with these commitments. At present, the great- barriers over the next four years. The regular est concern involves reports that China in No- consultation process required by this agreement vember 1992 transferred MTCR-class M–11 allows us to monitor implementation and take missiles or related equipment to Pakistan. Such appropriate action should China violate its com- a transfer would violate China’s MTCR commit- mitments. Progress has been made in opening ment and trigger powerful sanctions under U.S. the market to U.S. products but we still need missile proliferation law. There also are reports to resolve several issues regarding implementa- that China is exercising inadequate control over tion. sensitive nuclear, chemical, and missile tech- Recently, the Chinese have indicated an inter- nology exports to countries of proliferation con- est in doing more business with U.S. companies. cern. Even if these sales do not violate PRC As U.S. corporate executives are arriving in obligations, they raise questions about China’s droves to explore new commercial opportunities appreciation of the importance of preventing the in Beijing, at least eight Chinese delegations proliferation of weapons of mass destruction and have been or will soon be dispatched to the their ballistic missile delivery systems. U.S. with orders to ‘‘buy American’’. These mis- We are also concerned that China has with- sions have the potential to generate billions of drawn from the Middle East arms control dollars of exports of aircraft, autos, satellites, (ACME) talks. The U.S. holds that, as a perma- oil drilling equipment, aviation electronics, nent member of the UN Security Council, wheat, fertilizer, and other U.S. products. China has a special responsibility to continue Still, the large and growing U.S.-China trade in these talks. deficit is unacceptable. The over $40 billion Seeking full Chinese compliance with multi- trade surplus China has accumulated with the lateral obligations and support for international United States since June 1989 has been very nonproliferation goals is a top Administration destructive to American industries, particularly priority. The U.S. is prepared to employ the the textile and footwear sectors, resulting in the resources under U.S. law and executive deter- loss of American jobs. It is therefore essential minations—including the imposition of sanc- that the PRC implement the market access tions—if the PRC engages in irresponsible trans- agreement we have negotiated, which would fers that violate its commitments. produce a much greater equilibrium and fairness in Sino-American trade. It is also important that Trade Issues, Including Prison Labor China liberalize its foreign exchange regime, in- Reciprocal granting of MFN tariff status was cluding a market-determined exchange rate. Re- a key element cementing the normalization of garding the 1992 Intellectual Property Rights Sino-U.S. relations by providing a framework for (IPR) agreement, the Chinese government has

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carried out the great bulk of its commitments, —Complying with China’s commitment to although there are some problems that have allow its citizens, regardless of their political arisen in implementation. views, freedom to emigrate and travel abroad (excepting those who are impris- Prison Labor oned, have criminal proceedings pending China officially banned the export of products against them, or have received court notices produced by prison labor in October 1991. In concerning civil cases). August 1992, we signed a Memorandum of Un- —Providing an acceptable accounting for and derstanding under which the Chinese agreed to release of Chinese citizens imprisoned or investigate cases we presented and to allow U.S. detained for the peaceful expression of their officials access to suspect facilities in China. political views, including Democracy Wall The U.S. has presented the Chinese govern- and Tiananmen activists. ment information on 16 cases of alleged use —Taking effective steps to ensure that forced of prison labor. The Chinese have reported back abortion and sterilization are not used to on all 16 cases, admitting that four of the facili- implement China’s family planning policies. ties involved have used prison labor for export —Ceasing religious persecution, particularly production in the past. The Chinese maintain by releasing leaders and members of reli- that the factories either have ceased exporting, gious groups detained or imprisoned for ex- or have removed prisoners from the production pression of their religious beliefs. line. U.S. officials have visited three prisons and —Taking effective actions to ensure that pris- have standing requests to visit five others, in- oners are not being mistreated and are re- cluding a revisit to one facility. ceiving necessary medical treatment, such In the past two years, U.S. Customs has ag- as by granting access to Chinese prisons gressively expanded its enforcement of U.S. laws by international humanitarian organizations. banning the import of prison labor products. —Seeking to resume dialogue with the Dalai Customs has issued over twenty orders banning Lama or his representatives, and taking suspected Chinese goods from entering the U.S., measures to protect Tibet’s distinctive reli- achieved one court conviction of a U.S. company gious and cultural heritage. for importing prison made machine tools and —Continuing cooperation concerning U.S. detained suspected equipment in another case. military personnel who are listed as pris- We are actively looking into recent allegations oners of war or missing in action. of violations of the prison labor MOU. Talks —Ceasing the jamming of Voice of America with China will continue on the full enforcement broadcasts. of the provisions of this agreement. The Administration will also use tools under existing legislation and executive determinations Conditions for Renewal in 1994 to encourage further progress in human rights. China has made progress in recent years in In addition, I wish to make clear my continu- the areas of human rights, nonproliferation, and ing and strong determination to pursue objec- trade. Nevertheless, I believe more progress is tives in the areas of nonproliferation and trade, necessary and possible in each of these three utilizing other instruments available, including areas. In considering the optimal method of en- appropriate legislation and executive determina- couraging further progress on these issues, I tions. For example, various provisions of U.S. have decided to issue the attached Executive law contain strong measures against irrespon- Order which outlines the areas in the field of sible proliferation of weapons of mass destruc- human rights with respect to which China, in tion and nuclear weapons technology. These in- order to receive positive consideration for a re- clude missile proliferation sanctions under the newal of MFN in 1994, will have to make over- National Defense Authorization Act. Using these all, significant progress in the next 12 months. tools as necessary, we will continue to press In considering extension of MFN, we will take China to implement its commitments to abide into account Chinese actions with respect to the by international standards and agreements in the following: nonproliferation area. —Respecting the fundamental human rights In the area of trade, the Clinton Administra- recognized in the Universal Declaration of tion will continue to press for full and faithful Human Rights. implementation of bilateral agreements with

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China on market access, intellectual property rights. The Administration will also continue to rights, and prison labor. Section 301 of the 1974 implement vigorously the provisions of the Tariff Trade Act is a powerful instrument to ensure Act of 1930 to prevent importation of goods our interests are protected and advanced in the made by forced labor. areas of market access and intellectual property

Remarks Announcing White House Staff Changes and an Exchange With Reporters May 29, 1993

The President. Good morning, ladies and gen- the campaign, on important matters of policy tlemen. The objective of this White House and and strategy and day-to-day decisionmaking, everyone who works in it is to improve the helping me to integrate all the complicated de- lives of the American people and to change their bates that confront my Office. One of the rea- lives for the better. We have been working on sons for this move is that I have missed very that from the beginning. It takes the right peo- badly and I have needed the kind of contact ple and the right organization to achieve those and support that I received from George in the objectives. For the last several weeks the Chief campaign, that I think was absolutely essential of Staff Mack McLarty has been working to to the victory that was secured. make appropriate changes in the White House I’d now like to introduce the Chief of Staff to strengthen our ability to do our job for the and thank Mack McLarty for all the hard work American people. that he has been doing, especially in the last I am pleased today to welcome to the White few weeks, to try to strengthen the White House House staff one of the Nation’s most respected and make it able to do the things that we journalists and commentators, David Gergen. I pledged to do for the American people. Mr. have known David for many years. He is a trust- McLarty. ed friend and a dedicated public servant. By [At this point, Thomas McLarty, David Gergen, agreeing to accept Mack McLarty’s invitation to and George Stephanopoulos made statements in join the White House team he is demonstrating support of the changes in the White House staff.] one of the qualities for which he is well known, a sense of patriotism that transcends partisan- White House Staff ship. Q. Mr. President, the decision to bring in David Gergen is a Republican, as well as a a Republican for this key position, does this longtime friend of mine. He is a moderate, mean you’re going back to your centrist or New prochange, patriotic American. We have shared Democrat roots that you articulated during the many ideas over the years and found much campaign? And what does it mean about some agreement in the work I have done as Governor of the more controversial decisions recently that and with the Democratic Leadership Council suggested you were moving towards the more and in many of the ideas I espoused in the liberal wing of the Democratic Party, specifically campaign of 1992. I want him to help me make your civil rights Assistant Attorney General those ideas a reality in the lives of the American nominee Lani Guinier? Do you still want her people. to become the Assistant Attorney General for The message here is that we are rising above civil rights? politics. We are going beyond the partisanship The President. Today I want to talk about that damaged this country so badly in the last David Gergen, George Stephanopoulos, and the several years to search for new ideas, a new White House staff. The announcement that I common ground, a new national unity. have made today with Mr. McLarty—it was real- I am also announcing that my longtime and ly his idea; I want to give him the credit for trusted aide George Stephanopoulos will be it; I wish it had been mine, but it wasn’t— working with me more closely, as he did in signals to the American people where I am,

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