[Congressional Record Volume 140, Number 109 (Tuesday, August 9, 1994)] [House] [Page H] From the Congressional Record Online through the Government Printing Office [www.gpo.gov] [Congressional Record: August 9, 1994] From the Congressional Record Online via GPO Access [wais.access.gpo.gov] UNITED STATES-CHINA ACT OF 1994 The SPEAKER pro tempore (Mr. Fields of Louisiana). Pursuant to House Resolution 509 and rule XXIII, the Chair declares the House in the Committee of the Whole House on the State of the Union for the consideration of the bill, H.R. 4590. {time} 1622 in the committee of the whole Accordingly, the House resolved itself into the Committee of the Whole House on the State of the Union for the consideration of the bill (H.R. 4590) to provide conditions for renewing nondiscriminatory--most- favored-nation--treatment for the People's Republic of China, with Mr. Sharp in the chair. The Clerk read the title of the bill. The CHAIRMAN. Pursuant to the rule, the bill is considered as having been read the first time. The gentleman from Florida [Mr. Gibbons] will be recognized for 30 minutes, and the gentleman from Texas [Mr. Archer] will be recognized for 30 minutes. The Chair recognizes the gentleman from Florida [Mr. Gibbons]. Mr. GIBBONS. Mr. Chairman, I yield 15 minutes to the gentlewoman from California [Ms. Pelosi], the sponsor of this bill, and ask unanimous consent that she be allowed to control that time. The CHAIRMAN. Is there objection to the request of the gentleman from Florida? There was no objection. Mr. GIBBONS. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, the bill of the gentlewoman from California [Ms. Pelosi] is well-intended, but it has some very serious defects in it. It would interrupt as much as one-half, or $17 billion worth of Chinese imports into the United States. This would be a very expensive proposition for both China and the United States and would be tantamount to revoking China's MFN status. Enactment of H.R. 4590 would set off a number of years of strained dialog between the Chinese and United States Governments. Our relations with China and with other countries in this region would suffer. In addition, the Pelosi bill would prove difficult, if not impossible, to administer. Members have received a letter from the Commissioner of Customs, Mr. George Weise, indicating that enactment of H.R. 4590 would require investigation, over a very short period of time, of about 100,000 Chinese industries, 25,000 of which are in the textile industry alone. Commissioner Weise notes that he does not have the personnel who could speak Chinese, nor does he know whether he would be granted the access be Chinese plants necessary to conduct such investigations. Commissioner Weise is doing an admirable job of administering a complex body of trade laws with already limited resources. Administering the Pelosi bill would draw Customs agents away from U.S. ports, thereby thinning an already overburdened Customs presence on the U.S. border. I do not believe any of us would want to put a law on the books that we could not enforce or have no chance to enforce, but this certainly would qualify as such. I urge a ``no'' vote on H.R. 4590. Mr. Chairman, I am going to yield the balance of my time to the gentleman from California [Mr. Matsui], the very fine chairman of the Subcommittee on Trade, and would ask unanimous consent that the gentleman control that time. The CHAIRMAN. Is there objection to the request of the gentleman from Florida? There was no objection. The CHAIRMAN. The Chair now recognizes the distinguished gentleman from Texas [Mr. Archer]. Mr. ARCHER. Mr. Chairman, I yield 15 minutes to the gentleman from Kentucky [Mr. Bunning] and I ask unanimous consent that he be allowed to control that time. The CHAIRMAN. Is there objection to the request of the gentleman from Texas? There was no objection. Mr. ARCHER. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, I strongly oppose H.R. 4590, a bill which would effectively deny most-favored-nation treatment to almost half of all goods imported into the United States from the People's Republic of China. H.R. 4590 directly undermines an extension of China MFN for another year. I recognize that serious political repression continues in China. But the method proposed in this bill would be a fatal blow to our objective of promoting human rights. This bill is completely unworkable, and dangerous to our long term strategic interests in the region. China is one of the fastest growing markets for U.S. exports. At the same time, Americans of modest income benefit from many low cost Chinese imports. The administration estimates that nearly half of all Chinese exports to the United States in 1993 fall within the ``unqualified goods'' category, targeted for sanctions by this bill. Mirror retaliation by the Chinese would be virtually certain upon enactment. The impact on the United States economy and job market would be too great-- particularly for those United States businesses just establishing themselves in the Far East--and on the more than 150,000 estimated United States workers whose jobs depend on trade with China. Second, with one fifth of the world's population, China is a major actor in important international efforts we undertake. China's cooperation on issues such as drug interdiction, refugees, environment, population control, and weapons proliferation is essential. It would be impossible to enlist China's support in promoting our worldwide goals, and simultaneously implement the bill on the floor today. We cannot slap China in the face, and then turn around and expect that country's help in achieving success in other foreign policy initiatives. Third, H.R. 4590 is an unworkable proposal. The difficulties in distinguishing between China's state-owned and private enterprises are immense. Of the 8 million manufacturing and agricultural concerns in China, most fall into a hybrid category where ownership arrangements are shared between the public and private sector. The direction in this bill to identify firms receiving any state subsidies as ``state-owned'' is not practical. The determination process would command an amount of Treasury Department resources that simply does not exist, rendering this legislation unenforceable. Other means are available to pursue the human rights agenda. Multilateral efforts underway offer encouraging prospects for improvement. One possible forum for addressing these issues is the 15- nation Asia Pacific Economic Cooperation group [APEC], chaired this year by the United States. Multilateral efforts to press for improvements in human rights have yielded more worthwhile results than demands announced unilaterally. The presence of the American business community in China also continues to advance the human rights cause. Trade is a two-way street, which takes our ideas along with our exports to China. I would challenge proponents of H.R. 4590 to show me a United States-owned firm in China that is not far out in front of its competitors in promoting health and safety standards, workers compensation, and nondiscrimination in the workplace. The bottom line is this. We can accomplish more by continuing to develop positive United States-China relations. While China has not achieved an acceptable level of success in the human rights area, there is forward movement in China. We must keep the momentum going in that direction. H.R. 4590 would be a step in the wrong direction--several steps backwards in fact. The United States must continue to exert influence in this area, while keeping in mind the wide range of United States economic and foreign policy interests in China. I urge my colleagues to vote ``no'' on H.R. 4590. {time} 1630 Mr. Chairman, I reserve the balance of my time. Ms. Pelosi. Mr. Chairman, I yield 1 minute to the gentleman from Florida [Mr. Hutto] and I am very pleased to have his support on this legislation. Mr. HUTTO. Mr. Chairman, I want the United States to trade with China, but not at any price. I do not believe it is right to have unrestricted trade with a nation that acts like communist China--a nation that treats its people the way it does. China has little regard for anything resembling human rights. The world outcry about Tiananmen Square apparently has fallen on deaf ears, and there has been little or no improvement. Their propaganda would lead one to believe there has been change but we all know that persecution still exists in China. In approving most-favored-nation with China, I believe we should maintain some leverage. That is why I am supporting the Pelosi substitute which imposes sanctions on products produced by the People's Liberation Army and defense industrial companies. I believe it was wrong for President Reagan to agree to ship nuclear technology to China in the mideighties. It was a mistake because China is on the side of the bad guys. Do you think it is right to give favored status to a nation that sells missiles to Iran and others who pose such a threat to the world? They are even supporters of North Korea. Yes, let us trade with China, but we must let this communist country know that they must shape up and that they cannot continue to trample the rights of the Chinese people. Vote for the Pelosi amendment that will impose sanctions on products produced by the People's Liberation Army and defense industrial companies. Vote Pelosi. Please, let us keep some leverage in trading with China. Mr. BUNNING. Mr. Chairman, I yield myself such time as I may consume. (Mr. BUNNING asked and was given permission to revise and extend his remarks.) Mr. BUNNING. Mr. Chairman, I rise in support of the United States- China Act of 1994. This bill offers us one last chance to do what is right--to show that our commitment to human rights and decency is more than a bag of empty words. I vividly remember watching the tanks roll over Lady Freedom at Tiananmen Square--and the situation has not changed much. Last year, our President drew a line in the sand and said that if the Chinese government did not clean up its act and start showing a little more respect for human rights, fair trade and fair dealing, we would cut off their preferred trading status with our country. Now, a year later, China is still one of the worst violators of human rights in the world. Religious persecution is still widespread. Beijing still persists in its methodical, sustained assault on the native culture of Tibet. And China still continues to maintain a vast array of trade barriers to prevent our goods from competing in their markets. And through it all, China keeps using the profits from its trade with us to finance a dangerous and de-stabilizing military buildup of its own. Last year, the challenge was issued. And since then, China has shown not one ounce of improved respect for human rights or demonstrated one iota of newfound respect for human decency. And the trade goes on. Folks, it is time to put up or shut up. The President of the United States has changed his mind and backed away from his own challenge, but the challenge has already been issued. We cannot take it back now. If we do nothing at this point; if we continue granting unconditional, preferential trade treatment to China, our credibility as a world leader and as a defender of human rights will be devastated. If we do nothing now, it will only prove that our national principles are for sale. It will prove that we stand firmly for fair trade and human rights only when it does not get in the way of business and profits. If we do nothing today, we will be saying it's OK to get tough with Cuba--it is a small country--or Afghanistan--or Laos or Montenegro. It does not cost us much to stand on principle with them. They are little and their potential trade is not significant. The nine countries that do not receive MFN status have a combined population of 145 million. And we have stood by our commitment to them. But if we do nothing today, we will be saying we do not stand on principle when it comes to the big boys--like China--because it costs too much. Yes, I understand that China is a huge potential market for United States goods and services. And I can understand why corporate America and the business community do not want to do anything to rock the boat. But there are some principles that are worth rocking the boat for, even if costs us trade opportunities and profits over the short term. Sometimes you just have to stand up for what is right. And it is not right for this Nation to continue rewarding behavior that is immoral and abhorrent to civilized people everywhere. This bill is the right thing to do. It goes to the heart of the problem. It does not punish the Chinese people or Chinese businesses for conduct or actions their government has committed. Our gripe is not with the Chinese people. This bill strikes down MFN status only for goods produced by the army or by state-operated businesses. It would affect only one-sixth of China's exports to this country-- that portion of their trade that is used to finance the growth of their army and strengthen the police state. You do not fight repression of feeding the dragon. This bill might not stop repression, but it would stop U.S. trade from helping buy the tanks to fuel that repression. And, more importantly, by passing this bill today, we could show China and the world that when we make a commitment to human rights, we stand by it even if it costs us a little trade and few profits. I would have preferred to cut off MFN status for China altogether as proposed by the gentleman from New York. However, since that effort failed, it is absolutely imperative that we approve this resolution. This bill is our last chance to prove that we do stand by our commitments to human rights and simple decency. It is the least we can do. It is something we have to do. I urge my colleagues to support the measure. {time} 1640 Mr. Chairman, I reserve the balance of my time. Mr. PAYNE of Virginia. Mr. Chairman, I yield 2\1/2\ minutes to our colleague, the gentleman from New York [Mr. Ackerman], the distinguished chairman of the Subcommittee on Asia and the Pacific of the Committee on Foreign Affairs. (Mr. ACKERMAN asked and was given permission to revise and extend his remarks.) Mr. ACKERMAN. Mr. Chairman, at first glance, the Pelosi measure seems like an appropriate way to balance our concern with human rights in the PRC without revoking MFN--a step which many of us, myself included, believe would do more harm than good. Ms. Pelosi's alternative seems appealing because it tries to punish the state sector while leaving private enterprise in China untouched. However, this approach is based on a drastic oversimplification of the complex Chinese economy, and it is absolutely unenforceable. The United States Customs Service simply does not have the ability to distinguished between state-owned, or military, or private enterprises in China. The three sectors are inextricably linked in a complex web of joint ventures, subsidiary relationships, and other connections. The Pelosi bill, therefore, amounts to little more than political symbolism. If there were no negative consequences to this measure, then such symbolism might be appropriate. But that is not the case, imposing sanctions on China would invite retaliation-in-kind against nearly $8.8 billion in exports and approximately 180,000 United States jobs. By threatening China overtly, we play into the hands of the hard- liners there, by bolstering their claims that the West wants to push China around, and increases the leadership's resolve to resist what they call United States imperialism. No Chinese leader could survive for a day if they were to be viewed as kowtowing to United States pressure. Second, by reducing trade and investment, this bill undermines the development of a free market economy in China. Those of us who watch China closely know that the greatest economic and political liberalization in China has been in the southeast. The Guangdong and Fujian provinces--the bedrock of capitalism in China--are precisely the regions which would be hit by these sanctions. President Clinton's MFN decision recognizes that human rights can only thrive if buttressed by a firm foundation of democratic ideas, ideals, and principles. The most effective way to encourage these ideals is the free market economy. We have seen time and again within a capitalist system, people are allowed to think, create, and to enter into agreements and contracts. And by being able to benefit, personally, from the work product of their hands and minds, the entrepreneurs and the workers in a capitalist system are afforded a stake in the system. Mr. Speaker, all over the world democracy is following designer jeans. Love of freedom quickly takes root in the fertile soil of open economic systems. Let us not poison that soil that is proven to nurture human rights. This bill is bad policy. Mr. Speaker, I urge all of our colleagues to vote for the Hamilton substitute and against the Pelosi measure. Mr. ARCHER. Mr. Chairman, I yield such time as she may consume to the gentlewoman from New Jersey [Mrs. Roukema]. (Mrs. ROUKEMA asked and was given permission to revise and extend her remarks.) Mrs. ROUKEMA. Mr. Chairman, I thank the gentleman for yielding time to me. Mr. Chairman, I rise in opposition to the Pelosi amendment and in favor of the Hamilton proposal. Mr. Chairman, I rise in opposition to the Solomon and Pelosi legislation that would significantly affect our trading relationship with China. I will support Chairman Hamilton's measure to renew China's most-favored-nation trade status. I continue to be deeply concerned about China's record on human rights. Clearly, there exists much room for improvement. However, denial of MFN status to China is not the best avenue to gain this human rights improvement. Over the last few years I have become convinced that direct engagement with China through a vigorous bilateral trade relationship is the most effective means to gain progress in this area. Strengthening the fledging free enterprise system in China will only promote greater respect for human rights, enhance United States-Chinese cooperation on other critical matters including national security issue. China represents a dynamic, expanding market for United States exports. Clearly, growth in U.S. exports has led our recent and current economic recovery and expansion, creating thousands of high-paying, high-value American jobs. Denial of MFN status to China will damage our economy and only serve the interests of our international trade competitors. We have here before us two attempts to reverse the President's decision or place conditions on extension of MFN. I will oppose such efforts and seek to promote improvement in China's human rights record through other avenues. Mr. Chairman, I urge a ``yea'' vote on Hamilton. Mr. ARCHER. Mr. Chairman, I yield 2 minutes to the gentleman from California [Mr. Dreier], a respected member of the Committee on Rules. Mr. DREIER. Mr. Chairman, I thank my dear friend, the ranking Republican member of the Committee on Ways and Means, for yielding me this time. Mr. Chairman, as I said when I stood here earlier, I sincerely believe that the most inhumane, immoral thing we could do for the people we are hoping to help the most would be to deny most-favored- nation trading status to the People's Republic of China. Make no mistake about it, that is exactly what the Pelosi measure does. Mr. Chairman, every shred of empirical evidence that we have demonstrates that over the last 15 years, as economic liberalization and exposure to the United States has increased in China, their human rights situation has improved. Things are not perfect, we all recognize that. Terrible repression exists. However, consider the progress that has been made. As I said earlier, for example, it has come to light that up to 80 million Chinese people, 80 million people, were killed during the Great Leap Forward and Cultural Revolution of the Mao era. Nobody can read the names of those 80 million people into the Record to illustrate what is wrong with a China cut off from the outside world. Nevertheless, we should remember them and heed their warning. Despite the Tiananmen Square massacre and the ensuing repression, there has been great progress in China. Punishing the Chinese people with economic sanctions that push them back toward the dark days of a closed China would be a grave moral injustice. Ms. PELOSI. Mr. Chairman, I am pleased to yield 2 minutes to the gentleman from Georgia [Mr. Lewis], the deputy majority whip. Mr. LEWIS of Georgia. Mr. Chairman, I thank the gentlewoman for yielding time to me. Mr. Chairman, I am very proud to be an original cosponsor of the Pelosi amendment. This is a good and important amendment. It does the right thing. Mr. Chairman, we should not give unconditional most-favored-nation status to a country like China. Nothing has changed since Tiananmen Square. We should not reward China for doing nothing, for not moving toward democracy as it has promised to do. Human rights is an important foreign policy objective. The abuses in China and Tibet continue. In fact, they are growing. Innocent students, monks, and nuns are forced to work in slave labor camps. People are detained for their religious, cultural, and political beliefs. People don't have the right to protest for what is right. There is no such thing as freedom of assembly. There is no freedom of speech, no freedom of the press, no freedom at all. Things have not changed. I believe we should use all nonviolent tools at our disposal to ensure and protect human rights. Trade is one of our most powerful and mighty tools. Do not misunderstand me. I believe in trade. But, I do not believe in trade at any cost. We should not, we must not, trade away our commitment to human rights and freedom. I, for one, am not willing to pay that price. We all live on this planet together. What happens or fails to happen in China happens to us all. The Hamilton amendment is a fig leaf. It covers nothing. It does nothing. We must do more. We can do more. I urge my colleagues to vote no on the Hamilton amendment. Send a message to China that things must change--support the Pelosi amendment. {time} 1650 Mr. BUNNING. Mr. Chairman, I yield 3\1/2\ minutes to the gentleman from New Jersey [Mr. Smith]. Mr. SMITH of New Jersey. Mr. Chairman, I thank the gentleman for yielding time to me. Mr. Chairman, in a Washington Post op-ed article on March 22, Secretary of State Warren Christopher wrote ``President Clinton forged the first concensus--a consensus of conscience--on American policy toward China. The core of our policy, the President said, would be ``a resolute insistance'' on overall significant progress on human rights if MFN for China was to be renewed.'' Many of us would have truly admired the President's consensus of conscience had he not gone and done the unconscionable. He betrayed all those who took his word--and words--seriously. It is a sad day when the President of the United States betrays those who have put their lives on the line for human rights. Rather than bag MFN pursuant to his own explicit human rights conditions which were not met, Bill Clinton bagged the conditions. He threw in the towel--and said, ``No mas.'' I remember the President's stirring words--on May 28, 1993, as he said, ``It is time that a unified American policy recognizes both the value of China and the value of America. Starting today the United States will speak with one voice on China policy. We no longer have an executive branch policy and a congressional policy. We have an American policy.'' What a difference a year makes. Faced with the fact that China's record on human rights has actually worsened during the past 12 months, Mr. Clinton has now abandoned the so-called ``American policy'' and values he so proudly boasted of. I have traveled to China on two separate human rights trips, Mr. Speaker, most recently in January. In addition to meetings with top Chinese officials, we met with numerous dissidents and church people. Mr. Chairman, Bishop Su who said Mass for our delegation was previously incarcerated for 15 years safely for his faith--was arrested and held for 9 days, for simply meeting with me. Had I met with Bishop Su to talk Nike shoe sales--both he and I would have gotten the red carpet. Official government religious intolerance is on the rise like a tidal wave--believers are being arrested, jailed, tortured, and raped. Not only is it illegal to teach anyone under the age of 18 about God, but two new decrees issued in January make it a crime to assemble, to pray, and worship God--even in your own home. The Government has begun a new crackdown on proselytizing by foreign missionaries and prohibits importing of religious goods and publications. In February of this year, an American missionary, Reverend Balcombe was arrested for preaching the word of God. The Chinese Government continues to arrest and hold in prison political and religious dissidents. As a matter of fact, repression agaisnt belivers in God has significantly worsened. Yes, a few well known dissidents have been released, including Wang Juntao. But according to Human Rights Watch/Asia the number of known releases of political or religious prisoners since the Executive order was issued totals twenty-five. The number of new arrests of peaceful political or religious activists since the executive order was issued is well over 100. Mr. Chairman, our 1993 trade deficit with China was approximately $23 billion. The projected deficit in 1994 in $30 billion. And as we have seen demonstrated by Harry Wu--part of that deficit is built on the backs of millions of men and women detained in prison labor camps. Access to these prisons by international human rights organizations is prohibited. The MOU, renegotiated earlier this year, allows for access to some prisons by U.S. monitors 60 days after a request is made. And yet, even then, not the entire prison may be inspected. Harry Wu's remarkable research, done at great risk to his own life, provides us with the only accurate look into China's prison labor gulag. And it is appalling. Finally, China continues its bizarre antiwoman, antichild policy of permitting only one child per couple--a policy that relies on forced abortion and forced sterilization to achieve its results. In China today, bearing a child without explicit government permission results in a coerced abortion. Those women lucky enough to escape this repressive policy have illegal children and are subject to heavy fines, job demotion, and harassment of many types. Imagine, living in a land where brothers and sisters are illegal. No government has the right to tell families they cannot nurture and protect their own children. On two occasions, Congress has condemned China's forced abortion policy calling these heinous acts, crimes against humanity. Now we just look the other way. The Clinton administration continues to break the Kemp-Kasten law against coercion and has or is in the process of providing over $100 million to the UN Population Fund, a group that was denied funding because of its support and comanagment of China's brutal policy by the Bush and Reagan administrations. And MFN, if Mr. Clinton gets his way will be absolutely delinked from human rights abuse--including these crimes against women and children. I urge support for the United States-China Act of 1994 as the very least we can do to protect against the widespread violations of human rights by the government of the PRC. H.R. 4590, would revoke MFN status for the products produced, manufactured, or exported by the People's Liberation Army, Chinese defense industrial trading companies and certain State-owned companies. This exceedingly modest action would affect about $5 billion of China's $30 billion in exports. Congress should not join President Clinton in his wholesale capitulation to the dictatorship in Beijing. Mr. MATSUI. Mr. Chairman, I yield 2 minutes to the gentleman from Oregon [Mr. Kopetski]. Mr. KOPETSKI. Mr. Chairman, I rise in strong opposition to the original text of H.R. 4590. I will support the Hamilton substitute and I support fully President Clinton's courageous decision to move United States-China relations away from the annual most-favored-nation [MFN] status confrontation. America is second to none in guaranteeing basic human rights to its own citizens and fostering human rights throughout the world. Americans will always cherish this virtue and never abandon this noble mission. Several weeks ago, I had the privilege of participating in the House's third Oxford-style debate addressing the linkage of United States human rights and trade policies. Today's debate provides the opportunity to revisit the debate and two fundamental questions for American policy makers. First, should America use its trade policy to reflect our anger with a given nation for human rights abuses against its citizens? My response is that we should not. For it is a policy which is doomed to failure, including in China. Second, should we use our trade policy as a means to foster human rights throughout the world? I say yes. For I believe that basic human rights are best improved by a policy of open trade. In trade, not only are goods exchanged, but so, too, are attitudes, ideas, the rule of law, and the importance of procedural rights. I visited Czechoslovakia in the fall of 1989. There, a border guard, in the dark of night, told me that exposure to the western world, to different standards of living and individual freedoms--much of which was learned through tourists, trade, and television--had as much to do with their quest for freedom as the innate resolve of all individuals to be free. I have many reasons for opposing H.R. 4590. Today, I want to focus my remarks on American jobs--for it is the American worker who stands to lose the most with passage of this legislation. Already some 180,000 American jobs are tied to China exports. These are high paying jobs, often union jobs, in aerospace, industrial machinery, computers, energy and electronics. Proponents of this legislation argue that China trade is a job loser for the United States. This assertion is inaccurate and misleading. Yes, the United States runs a trade deficit with China. However, look at the goods coming into the United States from China--predominantly toys, apparel, and other light manufactured goods. Regrettably, these jobs left American soil years ago. Passage of legislation to revoke or condition China's most-favored-nation status will not bring these jobs back to American soil. Rather, it will drive them to other third world developing nations with lower wages and in some cases, equally questionable human rights practices. America's economic future is high skill and high wage jobs--exactly the type of jobs created by United States exports to China. China is the largest growth market for United States exports. In 1993, $9 billion in United States exports went to China, a figure that has grown 17 percent since 1992. China intends to spend $100 billion per year on infrastructure needs well into the next century. This figure includes industries where U.S. technology is among the best in the world. These are the jobs of the future; high wage and high skill. These are the jobs Secretary of Labor Bob Reich talks about for America. These are the jobs Members of Congress pontificate about creating each and every day. In telecommunications, China intends to spend $20-$35 billion through the year 2000. China's telecommunications spending will account for 10- 20 percent of the global market. In transportation, China plans to spend $40-$50 billion through the year 2000. China will build airports, ports, subway systems, rail and highway networks with or without United States participation and competition for contracts. In other sectors like aviation, energy, environmental and public works, consulting services, agriculture and industrial machinery, China intends to spend billions of dollars in the international marketplace. The United States must compete and win in this market. The U.S. industrial base will lose global competitiveness and thousands of U.S. jobs will be threatened, or worse yet, not even created if the United States pursues the course prescribed in H.R. 4590. Let me share with the House two Oregon examples of companies heavily involved in Oregon's economy to demonstrate the impact of today's decision on American jobs. First, the Boeing Company, which employs nearly 2,000 workers just outside my congressional district. Boeing estimates the size of the Chinese aerospace market at between $25 and $35 billion between now and the year 2010. Annually in Oregon, the Boeing Company spends more than $100 million on subcontractors--small manufacturing firms, accountants, bankers, cleaning services, and environmental consultants to name a few. All of these subcontractors stand to be negatively impacted by legislation to condition or revoke MFN. The second example is the NIKE Corp. NIKE employs some 5,000 people in Oregon. Additionally, in 1993, NIKE subcontracted with Oregon firms for more than $120 million. Again, these firms--union construction contractors, landscapers, caterers, engineering, and law firms, advertising agencies and security services--all stand to lose economically were the United States to condition or revoke MFN to China. Today's debate, like the Oxford style debate, is not about whether human rights are important. They are. The question is: What is the best means to achieve human rights progress in China and other nations? The Washington Post chronicled recently the gruesome Mao Zedong era in China. We read that, from 1949-1976, as many as 80 million Chinese died by the repressive policies during the eras known as the Great Leap Forward and the Cultural Revolution. A China, or any nation, that is engaged in the world community could not hide 80 million deaths. Repression and mass slaughter are only possible when a nation isolates itself from the world. Sunshine is the best disinfectant for repressive governments. And that is what trade brings. It is a new world out there, the Iron Curtain is drawn open, and international companies are chipping away at the Iron Rice Bowl in China. We must engage these closed societies, drawing them out even more into the world community. But let's not kid ourselves, nations like Russia and China are still in transition. There is every possibility that they could return to the ways of the recent past, and the Chinese people, for one, live in fear of this. The Washington Post story quoted a farmer, who said: ``Who knows what could happen? If there is a change of policy at the top, who knows?'' Trade brings a better standard of living, so children do not go to bed hungry, so families have a roof over their heads. And trade also brings about the exchange of ideas. Whether principles of law, and a judicial system; or the exchange of students, and scientists; or music, books, and movies. As innocuous as it sounds, art is saturated with cultural messages, and floods over closed societies in a wash of Western values and individual freedoms. Vaclav Havel once said: ``Communism was not defeated by military force, but by life, by the human spirit, by conscience, by the resistance of being and man to manipulation.'' Havel is right. We all have a duty, even a moral obligation, to pursue the path of trade and diplomatic engagement to produce healthier, more just societies on Earth. Mr. ARCHER. Mr. Chairman, I yield 2 minutes to the gentleman from Iowa [Mr. Lightfoot]. (Mr. LIGHTFOOT asked and was given permission to revise and extend his remarks.) Mr. LIGHTFOOT. Mr. Chairman, I thank the gentleman for yielding time to me. Mr. Chairman, I rise in opposition to H.R. 4590 and in support of the Hamilton amendment. Writing as a columnist in Time magazine in 1992, now Deputy Secretary of State Strobe Talbott concluded an analysis of Congress' last debate on China by saying: Politicians are quick to embrace simple positions on complex issues that make them feel good and look good--but in fact make a bad situation worse. Unfortunately, 2 years later, we find Secretary Talbott's opinion of Congress still justified. While waiting to testify before the Rules Committee last Friday, I heard a Member in favor of H.R. 4590 say: ``This legislation sends China a very simple message.'' We cannot send China a simple message because we are dealing with a complex problem. I share the frustration of this House with China's abusive human rights practices. But you cannot act solely on the issue of human rights and not expect the other issues that divide our two countries to be unaffected. This legislation is the worst possible reflection on Congress because it is neither enforceable nor fiscally responsible. As the ranking Republican on the Treasury, Postal Appropriations Subcommittee, it is my job to make sure the Customs Service has enough funds to perform its mission. Customs Commissioner Weise has reviewed this legislation and concluded Customs could not enforce this measure. And I can tell you that our appropriations subcommittee does not have the funds to purchase the equipment and hire the thousands of people necessary to make it enforceable. We can do better and we have. The Hamilton amendment is a responsible, realistic approach to the many issues in Sino/American relations. It builds on President Clinton's May 26 decision to extend MFN and delink it from human rights. The Hamilton amendment is not a quick fix. But this House must move beyond what has become annual brinkmanship with China and set a new course. Ms. PELOSI. Mr. Chairman, I yield 3 minutes to the gentleman from Maryland [Mr. Hoyer], chairman of the Democratic Caucus, and a leader internationally in promoting human rights in his leadership role with the Helsinki Commission. {time} 1700 Mr. HOYER. I thank the gentlewoman for yielding the time, and I congratulate her for her leadership. Mr. Chairman, I rise today in support of the Pelosi substitute which denies most-favored-nation status for products produced, manufactured or exported by the People's Liberation Army of China and state-owned enterprises in China. The gentleman who preceded me is in fact the ranking member, and he is a good member of the Treasury-Postal Subcommittee which I chair. Very frankly, I think not only can they, but I think they will enforce this if this Congress passes and the President signs this bill. I want to thank the gentlewoman for granting me the opportunity to speak. Last year when the President extended MFN trade status to China for 1 year, I supported him. However, implicit in my support was the understanding that China's human rights practices would be subject to serious scrutiny and our trading relations would be reviewed. I did not believe it was pretend. I did not believe I had my fingers crossed. I did not believe we were not serious. State Department and human rights groups' reports and findings have shown that China has continued to openly violate the human rights of its citizens. No one on this floor denies that. As the country which is the leading proponent of human rights in the world, we are proud of that. It makes us distinct in the world community. This is not just a matter of the United States imposing its standards, but upholding its principles. The issue which is so crucial to understand is that these are basic notions of human rights and fundamental freedoms which the Chinese Government has itself signed onto in the universal declaration of human rights. This is not imposing our values. This is expecting the values articulated to be theirs by China itself. It is important to remember the events of 1989, because this is not ancient history. The people responsible for the Tiananmen Square massacre are still in power in 1994. Five years after the occurrence of this tragedy, China has no freedom of the press, no freedom of assembly, no freedom of speech, no right to emigrate, no freedom of religion, and no representative government. My friend, the gentleman from Oregon [Mr. Kopetski], spoke of Vaclav Havel who came to this floor and spoke to us of the values of Jefferson and the values of our Constitution, and he stated that it was the American public, the American Congress and the principles for which we stand that moved the East to freedom in Europe. And it was that same nation that was under a trade sanction called Jackson-Vanik, and Jackson-Vanik worked. It did not work overnight, but it worked. It is also important to remember that China's trade deficit with the United States for last year climbed to $23 billion dollars--second only to Japan. Moreover, almost 40 percent of China's exports are to the United States while China receives less than 2 percent of our exports. As this Nation has learned throughout its history, we develop our strongest alliances, garner our greatest respect, and safeguard lasting security when we stand firmly and unequivocally for the principles upon which our Nation was founded. To the extent that our actions must affect China, let it not be at the expense of individual freedoms and human dignity. Mr. Speaker, the Pelosi substitute will provide us with that opportunity, and I urge my colleagues to support it. Let us pass the Pelosi bill. Let us be serious when we commit ourselves to human rights. Mr. BUNNING. Mr. Chairman, I yield such time as he may consume to the gentleman from New York [Mr. Solomon]. (Mr. SOLOMON asked and was given permission to revise and extend his remarks.) Mr. SOLOMON. Mr. Chairman, I rise in very strong support of the Pelosi bill and in opposition to the Hamilton alternative. Mr. Chairman, adopting the Pelosi bill to revoke MFN on products of the Chinese military is not only the moral thing to do, but it is absolutely essential for our national security. The Chinese People's Liberation Army is growing fat and ever-more dangerous, and it is financed by the trade surplus that we give China with our annual extensions of MFN. As I stated earlier, last year's monstrous $23 billion trade deficit with China is now funding a massive 22-percent increase in Chinese military spending. So, Mr. Chairman, if there ever was an example of Lenin's prediction that we would sell the Communists the rope with which they will hang us, this is it. Mr. Chairman, I would like to submit for the Record an article by William Triplett that appeared in the Washington Post and which clearly explains why it is so important to pass the Pelosi bill. Mr. Triplett estimates that when profits earned by front companies of the Chinese military are added in, actual Chinese military expenditures are 3 times the official numbers, or close to $100 billion annually. Mr. Chairman, this is 2\1/2\ times that of Japan. And Chinese military spending has doubled since 1989. And what is China buying with all of this? Some of the best military hardware available: Su-27 Flankers, a top Russian fighter. The Russian T-80U tank, comparable to our Abrams. Guided missile technology, solid-fuel rocket boosters, uranium enrichment technology and air-to-air refueling capabilities. According to Mr. Triplett, it is clear that China is striving to create a strategic force of modern, highly accurate, mobile ICBM's. And according to former Ambassador James Lilley, China's buildup clearly reflects a desire to develop the ability to project power beyond her own borders. Mr. Chairman, it is simply against our own interests to fund this drive with favorable trade conditions for front companies of China's military machine. Many analysts believe that China could be the foremost threat to peace and stability in the 21st century. Anything can happen, but the Pelosi bill would be a prudent step toward ensuring that this nightmare scenario does not occur. I urge my colleagues to vote ``yes'' for Pelosi. Mr. BUNNING. Mr. Chairman, I yield such time as he may consume to the gentleman from Iowa [Mr. Leach]. (Mr. LEACH asked and was given permission to revise and extend his remarks.) Mr. LEACH. Mr. Chairman, I rise in opposition to the Pelosi amendment. Mr. Chairman, I rise to suggest that Ms. Pelosi's concerns are well- founded but not well-advanced by the legislative prescription before us today. The questions advocates of a conditional MFN approach must examine is one of means, not ends, whether a policy premised on self-righteous indignation advances or undercuts a just cause. What is at issue is less a question of indignation than of judgment. If history is a guide, almost every effort to coerce China has not only failed to produce greater political openness but accentuated unpredictable xenophobic nationalism. On the other hand, almost every U.S. step toward civil dialog has been met with a liberalized response. Because denial of MFN would be such a profoundly self-destructive act, Ms. Pelosi has suggested fine tuning the MFN-human rights linkage. The trouble is that as preferably restrained as her new approach is, it is more effectively advanced by the Executive Branch than legislative fiat. But modifying MFN is a nonstarter: It will threaten to begin a new cold war in Sino-American relations; undercut the prospect of Sino- American cooperation on North Korea and other important foreign policy issues; produce no demonstrable improvement in Chinese human rights behavior; and prove difficult if not impossible to enforce. My own view is that when confronted with the choice of high walls versus open doors in Sino-American relations, open doors are preferable. By way of perspective, several decades ago a group of French journalists interviewed the late Chou En-lai and asked what he thought the historical significance was of the French Revolution, to which he responded: ``It is too early to tell.'' It strikes me that it may be too early to tell the exact ramifications of the profound socio-economic changes occurring in China. But those ramifications are of historic dimensions. They involve not only the near-total delegitimatizing of Marxist philosophy but a weakening of party as well as state authority and--despite continuing serious human rights abuses--far greater personal freedom for most Chinese than any time in Chinese history. These changes were not the result of external pressures, but external examples revealed by China's policy of reform and opening to the outside world. For those who believe--as I do--that free economics drives free politics, the most aggressive human rights policy we can pursue is to maintain free and fair trade with China. Can it possibly be rational to pursue a misguided policy that, through miscalculation or design, undercuts the stepchildren of Adam Smith and allows a tightening of the reins of political power by the discredited disciples of Marx, Lenin, and Mao? The administration's Executive order approach to China-MFN set up either Beijing or Washington for enormous international embarrassment. In this case, Washington was ultimately the party that flinched. Despite the administration's attempt to save face, its decision not to revoke was a flinch, but a flinch from a mis-designed policy is far better than plowing ahead with a demonstrably counterproductive approach. This administration and this Congress should stop playing games with MFN. It is time to stop toying with the linchpin of Sino-American relations and make decisions that advance the national interest of the American people as well as the humanitarian well-being of the Chinese people. The United States would be better advised to develop a bipartisan and bi-institutional approach that maintains the open door to China and with it a relationship which could be key to peace, stability, and prosperity in the 21st century than continue to play political brinksmanship on the House floor. Mr. BUNNING. Mr. Chairman, I yield 3 minutes to the gentleman from New York [Mr. Gilman]. (Mr. GILMAN asked and was given permission to revise and extend his remarks.) Mr. GILMAN. Mr. Chairman, I thank the gentleman for yielding me the time. Mr. Chairman, I am pleased to rise in strong support of H.R. 4590, legislation to revoke most-favored-nation trading status for products produced by the Peoples Liberation Army, Chinese Government defense trading companies, and State-owned enterprises. I commend the gentlewoman from California, Ms. Pelosi, for her leadership and tireless efforts on behalf of democracy in China. She has earned herself a place as a recognized champion for freedom and a voice for those who suffer under tyranny. It is a great honor to serve with her. At Tiananmen Square 5 years ago, the Chinese military demonstrated to the world that it is an antidemocratic force of repression and the ultimate guarantor of Communist rule over the people of China. The Chinese military and related security agencies run a vast gulag with some 16 to 20 million prisoners who serve as slave laborers for its profit making ventures. China faces no external threat to its national security, but its military is engaged in a massive buildup of the most modern conventional and strategic forces threatening peace and security in Asia and the Pacific rim. Chinese military companies are helping to finance that nation's massive military buildup with arms sales to the Middle East and commercial product sales to the United States. It is the only military force in the world targeting the United States with nuclear weapons and China is the only nation still testing nuclear weapons. The Chinese military is the occupying force in Tibet, a country the size of Western Europe and the only nation in the world since the end of the cold war to still have a foreign Communist force within its borders. According to some of our senior Federal officials, Chinese military and civilian intelligence are the most active intelligence services in the United States collecting American technology. Chinese intelligence services are also extremely aggressive and active in suppressing the Chinese people both at home and abroad here in this country. The Chinese intelligence services are also engaged wholeheartedly in commercial cover ventures in the United States in order to be economically self-sustaining. Are we to believe that it is logical to continue United States financing the Communist Chinese military machine, the same one run by the very same people who fought us in Korea and Vietnam and who conquered Tibet--does that makes good sense? Do we truly believe that our national security will not be affected by directly subsidizing the People's Liberation Army? The answer of course is obvious. Accordingly, I urge my colleagues to support the gentlelady's resolution to revoke MFN for China's military and state run enterprises. Mr. MATSUI. Mr. Chairman, I yield 3 minutes to the gentleman from Washington [Mr. McDermott]. (Mr. McDERMOTT asked and was given permission to revise and extend his remarks.) Mr. McDERMOTT. Mr. Chairman, 15 years ago President Carter extended most-favored-nation trading status to China. President Carter's decision was the culmination of a long period of quiet diplomacy with the Chinese that had been initiated by the late President Nixon in 1969. Today we are here to debate whether we should continue to embrace or reverse over two decades of successful American diplomacy toward China by removing or limiting China's trading status with the United States. When President Nixon decided to initiate 2 years of top secret negotiations with the Chinese in 1969, contacts between the United States and China basically did not exist. At that turbulent time in our world history, the United States was bogged down in Vietnam, the Cultural Revolution in China was in one of its most anti-democratic phases, China and the Soviet Union were engaged in terrible border clashes and war between the two countries was seen by many as inevitable. China, with one quarter of the world's population, was isolated in world affairs. The tactical advantages of a diplomatic initiative toward Beijing were obvious to President Nixon and Secretary Kissinger, despite the fact that things in China were anything but stable or democratic. Nixon and Kissinger were able to see past China's internal chaos to the danger that an isolated, xenophobic China posed to the world. Relations between the United States and China in the last 25 years have rarely been untroubled. United States-Sino relations have continued to expand despite numerous challenging events: American arms sales to Taiwan; disruptive surges of Chinese exports to the United States; the Soviet invasion of Afghanistan; the Cambodian peace process; Chinese nuclear proliferation policies and the tragedy in Tiananmen Square. Despite all of the challenges to United States-Sino relations, it was not until 1989 that legislative efforts to condition renewal of most- favored nation status for China were linked to improvements in human rights in China. In 1989, Members in this body decided that we should move from diplomacy to punishment and that the bipartisan approach of five former Presidents was wrong. Although what happened at Tiananmen was deplorable and the Chinese leadership deserved the widespread condemnation that it received, it is time to declare a statute of limitations on Tiananmen Square. If we want a safer, more stable international community, we cannot allow one incident to determine our policy toward China for the next 25 years. The realities of the current situation in China and in the international community are far different and more complex than the unforgettable image of a lone man standing in front of a tank that CNN has indelibly printed on all of our minds. Since Tiananmen, the Chinese economy has grown at approximately 10 percent a year and the market-oriented reforms started in 1980 have continued. United States trade with China has approximately doubled, to $40 billion in 1993, with China's total foreign trade reaching $200 billion. Along with the People's Liberation Army are the armies of Avon ladies in China. Along with state censorship are MTV and CNN brought into China by satellite dishes, often installed and sold by the PLA. During the last 15 years, as Chinese economic reforms have progressed, the quality of life of the average Chinese has vastly improved. The continuing market-oriented reforms have dramatically changed the relationship of individuals to the state and reduced their reliance on Beijing for the basic necessities of life. Since 1978, changes which have taken place which affect average Chinese citizens include: a great expansion of internal travel, choice of residence, choice of job, shorter workweeks, higher paying jobs, and most importantly, access to information. Twenty years ago, the Chinese government had total control over what its people could know about the outside world. Today, there are now seven times as many newspapers and magazines in China as in 1978, and one in five people have access to a TV versus 1 in 300 in 1978. Over 100 million Chinese have access to satellite dishes bringing in MTV, CNN and other western broadcasts. The past 16 years have been China's most sustained period of peace and stability in the past 150 years. From 1978 to the present is the only period of time since the opium war in 1839 that China has experienced a 15-year period without foreign invasion, civil war or widespread chaos. China's leaders have placed a high priority upon maintaining stability in China and avoiding at all costs a return to chaos and foreign domination. It must be remembered that China has over four times the population of the United States but less than 60 percent of America's tillable land. China's leaders face much different development choices than those faced by America's leaders. China must make a smooth transition from an economy based on agriculture to an economy centered on manufacturing. China needs continued strong economic growth in order to be able to provide the basic necessities for its ever-growing population. In order to prevent China from sliding back toward chaos, the world needs to participate in China's economic growth and development. Removing or limiting MFN for China would be the first step in China's slide backwards. Prior to 1989, there was little external pressure on China to improve human rights. The positive changes which have occurred in China over the last 15 years have occurred as a direct result of China's opening to foreign trade, investment and ideas from around the world. China's leaders were willing to allow the influx of foreign ideas in order to allow China to become a strong, prosperous world power. However, China's way is not our way. We urge China to move more deliberately toward true democracy, but we must understand that a chaotic China could destabilize the world economy and vastly complicate international stability. We must act responsibly today. I urge Members to vote against any attempts to remove or limit MFN for China. {time} 1710 Mr. CRANE. Mr. Chairman, I yield 1 minute to our distinguished colleague, the gentleman from Pennsylvania [Mr. Gekas]. (Mr. GEKAS asked and was given permission to revise and extend his remarks.) Mr. GEKAS. Mr. Chairman and colleagues, if I thought for one moment that extending most-favored-nation treatment to China would end our country's responsibility and involvement in the human rights struggle in that vast country, then I would support the Pelosi amendment. But I cannot, because I believe forcefully that the total involvement of the regional alliances continuing pressure on China, the United Nations, the Helsinki accords, the one-on-one contacts that America has with China, and all of the other private enterprises that are continuing their good pressure on china will mount in intensity, not end with granting the most-favored-nation status, and so we would have then not only the ongoing contact but that great tool of diplomacy, free trade, massive trade, Americans streaming into the mainland of China, talking with other merchants, talking with the people. That is the way to bring about human rights change and continue our American involvement. Mr. CRANE. Mr. Chairman, I yield 1 minute to our distinguished colleague, the gentleman from Ohio [Mr. Oxley]. (Mr. OXLEY asked and was given permission to revise and extend his remarks.) Mr. OXLEY. Mr. Chairman, I keep asking myself: Why are we here today? Everybody knows the Solomon amendment was soundly defeated. The Pelosi proposal, even if it were to pass, is going nowhere. If this were a debating society, I would say wonderful, we can stand here and debate this issue for 6 hours. But the fact is that I would think the House would have something else to do in trying to pass substantive legislation. The Clinton administration, through some very difficult efforts, finally came to the right conclusion, that is, delinking human rights with our efforts on MFN. That was the right decision. The Clinton administration got it right. Here we are several weeks later, still debating an issue whose time has clearly passed. The decision has been made by the administration, I think we should follow it. Economic growth is important for political change. I have been to China twice, most recently last December. We had an opportunity to look at the changes being made there, and I am impressed with what we can do in the future there with our trade. Let us defeat the Pelosi proposal. Let us pass the Hamilton proposal and get on with the business of the Nation. Ms. PELOSI. Mr. Chairman, I yield such time as he may consume to the gentleman from Maryland [Mr. Cardin]. (Mr. CARDIN asked and was given permission to revise and extend his remarks.) Mr. CARDIN. Mr. Chairman, I rise in strong support of the Pelosi substitute. Mr. Chairman, I stand today as a strong supporter of the Pelosi substitute. This proposal speaks to our longstanding linkage of favorable trade access to this Nation and respect for human rights. Breaking this link would be giving up something that is fundamental to this Nation--something that makes us unique and successful in the world. We would be sacrificing our principles for short-term economic gains. Tying trade to human rights has worked. A generation of Soviet emigres prospering in new homes around the world; the piece of the Berlin Wall I keep in my office; and the historic elections and new- found freedoms celebrated in South Africa this year, all speak to the success of our Nation taking a stand. Using access to American markets has been a crucial tool to effect change abroad through peaceful means. There is a reason protestors in Tianamen Square carried a home-made statue of liberty. From our founding days the United States of America has been a beacon of freedom. Our Nation has held out hope to freedom- loving people throughout the world. Time and again Americans have fought and died to protect freedom in this Nation and around the world. We should be proud of our leadership in human rights and we should support the Pelosi substitute. Ms. PELOSI. Mr. Chairman, I yield 1 minute to the gentleman from California [Mr. Horn]. Mr. BUNNING. Mr. Chairman, I yield 30 seconds to the gentleman from California [Mr. Horn]. Mr. HORN. Mr. Chairman, I rise today to stress that this debate on most-favored-nation status for China is not over whether we want export opportunities for our workers and companies. We obviously do. However, there is an important principle at stake. By our vote today, we must clearly and decisively demonstrate that human rights matter. Commercial considerations must not be the sole factor determing American foreign policy. Who among us is not deeply suspicious of the present Chinese Government, especially since the tragic events in Tiananmen Square in 1989? This action is not targeted at the Chinese people; it is targeted at the trade activities of a repressive government. In 1981, I was part of a 15-person delegation of university presidents to review 25 institutions of higher education in China. When students could get us aside outside of the ears of the secret police, they said then, as they do now, that they want freedom. Hopefully, increased trade will cause China's leaders to value political freedom. In the mean time, we cannot close our eyes to repression. I urge my colleagues to do the right thing, and to vote for the bipartisan Pelosi amendment. Mr. CRANE. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, I rise in strong opposition to H.R. 4590, a bill to apply unworkable trade sanctions to the People's Republic of China. The debate over trading with China is serious and difficult. Because of the tragic human rights situation in China, it is easy to stray from the central question of what is the most effective policy to achieve what we all want for the Chinese people--a better life. Setting up a unilateral policy of confrontation with the Chinese Government is not the answer. I urge my colleagues to support the President's policy of aggressively pursuing human rights objectives through economic and political engagement with China. Vote ``no'' on H.R. 4590 and ``yes'' for the Hamilton substitute. I do not question the intentions of proponents of H.R. 4590, but I worry about the practical effects it would have. China, the most populous nation on earth, has an economy which is expanding at an astonishing pace. Chinese trade with the world grows by about 12 percent every year, twice the growth rate of global trade overall. Asia will lead the world in economic growth during the next century, and to participate effectively, the United States needs a strong presence in China. Currently China is our 10th largest export market. The potential for substantial, additional exports is impressive. At this stage in its development process, China will be purchasing heavily in sectors such as capital goods, telecommunications, agriculture equipment and computers. I will include in the Record at the conclusion of my remarks, a letter to Mr. Archer from the business coalition for United States-China trade containing a list of 307 United States companies and associations who attest that their exports markets will be damaged severely by H.R. 4590. Poisoning our bilateral relationship with China would be a futile effort. Instead of joining us, our European and Japanese competitors would rush in to reap all the sales that we lose. I ask my colleagues, would passage of this bill put us in a better position to work with China to clean up the environment, or to control the development of nuclear weapons in the region? Clearly it would not. Three years before Hong Kong reverts to Chinese Communist control is not the time for the United States to be disengaging from a leadership role in the region. This bill purports to strike at state-owned companies in China, to the exclusion of more entrepreneurial enterprises. While an attractive idea, it is one which is manifestly unworkable. Matching a product that has made its way out of China with the arbitrary definitions of state- ownership set out in this bill would be an unmanageable task for the Customs Service. The task would soon become impossible as firms worked to disguise their identify, in an attempt to avoid the sanctions in this bill-- something they do not do today. The further assignment of distinguishing which companies were recipients of government subsidies could not be administered given the murky line between free markets and state involvement in China. In the end, the legal issues involved in making these designations would virtually bring United States-China trade to a halt. I would agree with proponents of this bill that China is one of the most protectionist countries with which we trade. The answer is not unilateral legislated sanctions but solid, negotiated solutions to targeted market access problems. USTR should pursue aggressive enforcement of the intellectual property rights agreements and the 1992 MOU on market access which addresses a broad range of sectors. Currently more needs to be done to implement these bilateral deals at the provincial level in China. The Chinese may indeed face sanctions under the special 301 intellectual property statute, for example, but these can be tailored to achieving a particular market opening measure, not a complete societal change. I support the President's policy because he has realized after a year in office that business plays a positive role in exposing the Chinese people to ideas and skills necessary to succeed in a free market. Prosperity and expanded contact with American citizens is the best way to nurture the growth of democracy in China. We need a China policy that recognizes the broad range of our interests in this enormous country. I urge a ``no'' vote on H.R. 4590. I submit the following letter from 307 American companies and associations to be included in the Record. Business Coalition for U.S.-China Trade, Washington, DC, August 3, 1994. Hon. Bill Archer, U.S. House of Representatives, Longworth House Office Building, Washington, DC. Dear Congressman Archer: We, the undersigned American companies, farm organizations, consumer groups, and trade associations, are writing to express our strong opposition to H.R. 4590, which was introduced by Congresswoman Pelosi on July 16. We are concerned that the Pelosi bill would seriously undermine the President's China policy by revoking MFN tariff treatment for certain imports from China and put American trade and thousands of American jobs at risk. In announcing his new China strategy on May 26, President Clinton noted that the real issue for the United States is ``how we can best support human rights in China and advance our other very significant issues and interests,'' including securing China's cooperation on weapons proliferation and in managing the North Korean nuclear crisis. The President determined that the best way to advance U.S. objectives on trade, human rights, proliferation, and security is to ensure that ``our nations are engaged in a growing web of political and economic cooperation and contacts.'' As American firms doing business in China, we see every day tangible proof that China's free market economic reforms have led to expanded freedom and better living standards for the Chinese people. Any American visitor can only be struck by the dynamism of free markets and the underlying entrepreneurialism of the Chinese people. We share the President's conviction that America's engagement with China must continue, and that U.S. trade and investment are important long-term positive forces for human rights and democracy. The Pelosi bill is not a compromise. It would undermine the President's policy and cause serious damage to U.S. trade. While taking aim at the Chinese government, the Pelosi bill would harm Chinese reformers who support trade and investment with the United States and Chinese workers and managers who are employed by American companies. The bill invites a protectionist trade war that would put at risk nearly $9 billion of U.S. exports and almost 180,000 high-wage U.S. export jobs. The loss of China trade would also threaten thousands of jobs in America's retail establishments, financial institutions, ports, and services industries. It would also lead to substantial increases in the retail prices of many imported products familiar to American consumers. Because China is about to embark on a massive infrastructure program, the loss of access to this rapidly emerging market would deal a catastrophic blow to the future global competitiveness of American companies. This would only benefit our European and Japanese competitors. China is a major customer for American aerospace, computers, telecommunications, wheat, power generation, motor vehicles, chemicals, and fertilizer products. Finally, U.S. companies regularly adopt principles for business conduct on a company-by-company basis. By specifying in legislation recommended principles of business conduct for doing business in China, including principles that touch on highly sensitive political activities, the Pelosi bill would undermine individual company efforts and the President's initiative to work with leaders of the business community. The bill risks creating an appearance in China that U.S. companies are acting as agents of a foreign government and violating Chinese law. In today's highly competitive global economy, the U.S. can ill afford actions which have the effect of handicapping the ability of American companies to compete and create jobs. On behalf of the American business community, we urge you to strongly oppose the Pelosi bill. For U.S. companies involved in U.S.-China trade, this is a potentially costly vote. It will send important signals about America's reliability as a trading partner and our nation's commitment to competing in emerging global markets. We look forward to working closely with you to support the President's leadership on China policy and to defeat the Pelosi bill. Sincerely, ABB Inc.; A & C Trade Consultants, Inc.; The AES Corporation; AM General Corporation; ATC International, Inc.; AT&T Inc.; Abacus Group of America, Inc.; Abbott Laboratories; Adidas America; Advanced Aquatic Technology Associates, Inc.; Aerospace Industries Association; Aetna Asia Pacific; Aetna Life & Casualty; AlliedSignal Inc.; American Automobile Manufacturers Association; American Cyanamid Company; American Express Company; American Farm Bureau Federation; American Forest & Paper Association; American Home Products Corp.; American International Group; American Pacific Enterprises Inc.; Ameritech; Amgen Inc.; Amoco Corporation; Ascom Timeplex, Inc.; ASICS Tiger Corp.; Applause, Inc.; Armstrong World Industries; Ashe Associates; Associated Merchandising Corporation; Atlantic Richfield Company; Avon Products, Inc.; B.H. Aircraft Co. Inc.; Baker Hughes Oilfield Operations; Bandai America Inc.; Bank of America; BBC International; Bennett Importing; D. B. Berelson & Company; Bethlehem Steel Corporation; Blue Box Toys, Inc.; The Boeing Company; Bradford Novelty Co., Inc.; Bristol-Myers Squibb Company; Brown & Root, Inc.; Brown Shoe Co.; The Business Roundtable; Buxton Co.; California R & D Center, Inc.; Caltex Petroleum Corporation; Cargill, Incorporated; Caterpillar Inc.; Central Purchasing Inc.; Cherokee Shoe Co.; Chevron Corporation; China Human Resources Group; China Products North America, Inc.; China Trade Associates; Chrysler Corporation; The Chubb Corporation; CIGNA Corporation; CMS Industries; The Coca-Cola Company; Cole Hann; C.O. Lynch; Commercial Intertech Corporation; ConAgra, Inc.; CONCORD; Consolidated Minerals Inc.; Consumers for World Trade; Continental Grain Company; Cooper Industries; Coopers & Lybrand; CSX Corporation; Cypress Enterprises; Daisy Manufacturing Co., Inc.; Dakin, Inc.; Dana Corporation; Davis Wright Tremaine; Dayton Hudson Corp.; Daytona Inc.; Deere & Company; The Dexter Corporation; Diamond Power Specialty Co.; Digital Equipment Corp.; R.R. Donnelly & Sons Co.; The Dow Chemical Company; Dresser Industries, Inc.; The Dun & Bradstreet Corporation; E. I. du Pont de Nemours & Company; Duracell International Inc.; Dynasty Footwear; EEI, Inc.; Eastern American, Inc.; Eastman Chemical Company; Eastman Kodak Company; Eaton Corporation; Eden Toys, Inc.; Edison Brothers Stores; Elan-Polo, Inc.; Electronic Industries Association; Endicott Johnson; The Ertl Company, Inc.; Essex Group, Inc.; Excel Importing Corporation; Emergency Committee for American Trade; Enron Corp.; Exxon; The Fertilizer Institute; Fluor Corporation; FMC Corporation; FOOTACTION USA; Footwear Distributors and Retailers of America; Ford Motor Company; Foster Wheeler Corporation; The Foxboro Company; Frequency Electronics, Inc.; Fun World/Div. of Easter Unlimited, Inc.; GenCorp; General Electric Company; General Motors Corporation; Genesco, Inc.; The Gillette Company; The Goodyear Tire & Rubber Company; Grand Imports, Inc.; Great Eastern Mountain Investment Company; Guardian Industries Corp.; Gund, Inc.; Hasbro, Inc.; HASCO Components International Corporation; HMS Productions, Inc.; Halliburton Company; Hallmark Cards, Inc.; R.A. Hanson Company, Inc.; Harris Corporation; Hedstrom Corporation; Henry Gordy International, Inc.; Hercules Incorporated; Hewlett-Packard Company; H.H. Brown; Hawe Yue/Rayjen Intl.; Hills & Company; Hoechst Celanese Corporation; Honeywell, Inc.; Hongson; Hughes Aircraft Company; Hull Corporation; IBM Corporation; Intel Corporation; Inter-Pacific Corp.; International Seaway; ITOCHU International Inc.; ITT Corporation; International Development Planners; International Insurance Council; Jack Guttman, Inc./Bakery Crafts; Janex Corporation; J. Baker, Inc.; Jerry Elsner Company, Inc.; Jimlar Corporation; Jirch Resources Co., Inc.; Johnson Controls; Kinney Shoe Co.; K-Swiss, Inc.; L.A. Gear; Laird, Ltd.; Leather Apparel Association; Lewis Galoob Toys, Inc.; Liberty Classics; The Limited, Inc.; Liz Claiborne; LJO, Inc.; Lockheed Corporation; MG Trading & Development; M. W. International, Inc.; The M. W. Kellogg Co.; Mangelsen's; Manley Toys, Ltd.; Mattel, Inc.; Marine Midland Bank; McDermott Incorporated; McDonnell Douglas; McGraw-Hill, Inc.; Meldisco; Merck & Co., Ltd.; Mercury Int'l.; Merrill Lynch & Co., Inc.; Midwest of Cannon Falls; Might Star, Inc.; Mobil Corporation; Monarch Import Company; Monsanto Company; Morrison Knudsen Corp.; Motorola Inc.; Mustang International Groups Inc.; Nadel & Sons Toy Corp.; National Association of Manufacturers; National Foreign Trade Council, Inc.; National Semiconductor; Natural Science Industries, Ltd.; Nature's Farm Products, Inc.; NIKE, Inc.; Nikko America, Inc.; Norman Broadbent International, Inc.; North American Export Grain Association; Northern Telecom Inc.; Nylint Toy Company; NYNEX Corporation; The Ohio Art Company; Olem Shoe Corp.; Owens Corning; Pacific Basin Economic Council; Pacific Rim Consulting; Pacific Trade Institute, Inc.; Pagoda; Payless ShoeSource; J.C. Penney Company, Inc.; PepsiCo, Inc.; Perkin Elmer; Petroleum Equipment Suppliers Association; Pfizer Inc.; Philip Morris Companies Inc.; Phillips Petroleum Company; Pic'n Pay Stores; The Portman Companies; Portman Overseas; Praxair, Inc.; Premark International, Inc.; Pressman Toy Corporation; Price Brothers Company; Processed Plastic Company; Procter & Gamble Company; Reebok International, Ltd.; Reeves International, Inc.; Revell-Monogram, Inc.; Ridgewood Partners Ltd.; Riggs Tool Company Inc.; Ripple Investments, Inc.; Rockwell International Corporation; Rohm and Haas Company; Russ Berrie & Co., Inc.; Safari Limited; Saint-Gobain Corporation; Schering-Plough International; Scientific Design Company, Inc.; Sea-Land Service, Inc.; Sears Roebuck & Co.; Sega of America, Inc.; Shanghai Industrial Consultants; Shelcore, Inc.; Shoe Town, Inc.; Shonac Corp.; Sierra Machinery, Inc.; Southern Electric International; Spectrum HoloByte, Inc.; Sporting Goods Manufacturers Association; The Stride Rite Corp.; Sundstrand Corporation; TRW Inc.; Tasco Sales, Inc.; Tendler Beretz Associates Ltd.; Tenneco Inc.; Texaco Inc.; Texas Instruments Incorporated; The Bee Gee Shoe Corp.; The Butler Group; The Kobacker Co.; Thom McAn Shoe Co.; Thomson Consumer Electronics, Inc.; 3M Company; Time Warner Inc.; Topline Imports; Tradehome; Trade Wind Imp.; Trans-Ocean Import Co., Inc.; Tomy America, Inc.; Toy Manufacturers of America, Inc.; Toys `R' Us, Inc.; Tyco Playtime; Tyco Toys, Inc.; USX Engineers & Consultants, Inc.; US-China Industrial Exchange, Inc.; U.S. Chamber of Commerce; U.S. Council for International Business; Uneeda Doll Company, Inc.; Unicover Corporation; Union Camp Corporation; Union Carbide Corporation; UNISYS; Uniroyal Chemical Company, Inc.; United States Association of Importers of Textiles & Apparel; United States-China Business Council; United Technologies Corporation; Unocal Corp.; Venture Stores Inc.; VTech Industries, Inc.; Waco Products Corporation; Warner-Lambert Company; Western Atlas; Westinghouse Electric Corporation; Weyerhaeuser Company; Whirlpool Corporation; Wilsons The Leather Experts; Windmere Corporation; Witco Corp.; Wm. Wrigley Jr. Company; Xerox Corporation. {time} 1720 Ms. PELOSI. Mr. Chairman, I yield 1 minute to the gentleman from Guam [Mr. Underwood]. (Mr. UNDERWOOD asked and was given permission to revise and extend his remarks.) Mr. UNDERWOOD. Mr. Chairman, I thank the gentlewoman for yielding this time to me. Mr. Chairman, once again, this Congress must consider matching our declarations with our dollars. We must decide if we will send a bold and meaningful signal to the Peoples' Republic of China or hide behind a veil of empty rhetoric. The bill introduced by the gentlewoman from California is a solid, pragmatic means of confronting the PRC's human rights abuses without disrupting the expanding private sector trade between our nations. No one in this Chamber disputes the PRC's abysmal human rights record. Amnesty International and Asia Watch have documented the PRC's lack of due process rights to a fair trial, the detention of prisoners of conscience, the repression of the right to peaceful assembly, and a crackdown against religious activity. In 1993, 77 percent of all the world's death sentences were carried out in the PRC, a role model for death penalty supporters, including for such nonviolent offenses as embezzlement. According to the International Campaign for Tibet, repression against Tibetan Buddhist nuns has increased. In 1993, 12 nuns, including a 15-year-old girl, were sentenced to up to 7 years in prison. And we are expected to extend favors to this country. All these actions contradict customary international law which binds all nations. The universal declaration on human rights and the covenant on civil and political rights represent the international family's attempt to confront and combat human rights abuses, such as those found in the PRC. As a member of the United Nations and a permanent member of the security council, the PRC has a responsibility to uphold these international standards. The PRC also stands as a threat to modern nonproliferation efforts. Of the five recognized nuclear powers, it is the only one that will not observe a nuclear test ban. Questions remain about the PRC's alleged exports of chemical weapons munitions to Iran and its export of M-11 missile technology to Pakistan. In addition to recognizing the PRC's human rights and proliferation records, no one in this Chamber denies the economic importance to the United States of our trade relationship with the PRC. Our nations have a $40 billion trade relationship, including $9 billion in U.S. exports. This trade relationship provides the best tool for us to make a statement about the behavior of the PRC. This bill strikes a delicate balance between confronting the human rights abuses and preserving a healthy trade relationship. It would only target trade with the PRC's military and other state-owned industries, leaving private industry free to trade with United States firms and the growth of private industry is readily acknowledged as a promoter of democratic reform. The PRC claims to have a relatively small defense budget of $22 billion, but has engaged in budget smoke-and-mirrors, hiding funds in its police budget and elsewhere, and securing an annual defense growth rate of 10 percent per year. Many of the goods procured with these funds are made by slave labor. I believe we can put a wrench in the gears of China's war machine and human rights abuses, while allowing the engine of free trade to keep moving forward. It would be a bold foreign policy action and a smart economic protection. I urge support for the measure. We do not need to extend more favors to the PRC. Ms. PELOSI. Mr. Chairman, I yield 2 minutes to the gentlewoman from Washington [Mrs. Unsoeld], and thank her for her courageous leadership on human rights throughout the world. (Mrs. UNSOELD asked and was given permission to revise and extend her remarks.) Mrs. UNSOELD. I thank the gentlewoman for yielding this time to me. Mr. Chairman, some Members oppose the use of trade measures against China on the grounds that unfettered commercial exchanges will bring about political reform. Well, I have a few questions for them. Would these same members argue that the use of sanctions to press for the end to apartheid in South Africa was a mistake? Would they argue that the use of sanctions against the old Soviet Union was a mistake? Are they prepared today to argue the case for lifting sanctions against Iraq, Haiti, and Serbia? I doubt it. Let us be honest. Most of the resistance to the Pelosi amendment stems from the fact that large commercial interests have a stake in maintaining markets in China. Those of us supporting the Pelosi amendment are sensitive to that. I would remind Members that if this measure is adopted China would still enjoy a huge trade surplus with the United States. That surplus will provide plenty of leverage to forestall retaliation. So what will the Pelosi amendment do? It will go after goods produced by the Chinese military. They are the ones who drove tanks over protesters in Tiananmen Square. They are the ones guilty of imprisoning and torturing human beings in Tibet and China for their religious and political beliefs. If we end MFN status for goods produced by the very inappropriately named People's Liberation Army, we will be turning off the spigot that is financing their arms build-up and aiding the suppression of those who advocate freedom. The cause of human rights is about standing for the individual against a tyrannical government. One such courageous individual has been traveling our country, sharing her story. Tsultrim Dolma was a nun in Tibet arrested by the PLA for taking part in a political demonstration. While in custody she was raped and tortured. A device was rammed into her mouth sending volts of electricity through her body--volts so powerful that her teeth were knocked out and she was left unconscious. That is the PLA whose products now get more favored treatment. Mr. Chairman, this is a great Nation because we have stood for certain principles. America's founding principle was most powerfully expressed by Thomas Jefferson: ``We hold these truths to be self- evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights * * *'' This House has the opportunity to answer whether those words still ring true for us today. I hope Members answer overwhelmingly that they do--that we are still a people willing to stand up for freedom. Support the Pelosi amendment. Mr. MATSUI. Mr. Chairman, I yield 2 minutes to the gentleman from Virginia [Mr. Payne]. Mr. PAYNE of Virginia. Mr. Chairman, I thank the gentleman for yielding this time to me, and I rise in opposition to the Pelosi bill. Mr. Chairman, no one disagrees that China must improve its record in the area of human rights. China continues to fall far short of international standards. The United States must continue to publicly raise concerns about the detention of political prisoners, prison conditions, use of forced labor, and human rights violations in Tibet. However, I believe that through our business contacts with China, we are helping to develop an entrepreneurial middle class there--men and women whose lives will be improved and who will have the experience and the benefit of China's transition to a market economy. Delinking MFN and human rights conditions will promote a broad engagement between the United States and China, not only through economic contacts but also through cultural, educational, and other exchanges. In the long run, I believe this is the best approach to promoting and achieving real progress on human rights in China. The Pelosi bill would prohibit all imports from China that are a product of the Chinese Army or are goods produced, manufactured, or exported by state-owned Chinese enterprises. This targeted approach while well-intentioned is not workable. The Pelosi bill would force the U.S. administration into countless numbers of hearings and reviews to determine what products are prohibited and what products are not, what exactly is a state-owned enterprise and what is not. In addition, it would put in jeopardy hundreds of thousands of American jobs. The Pelosi bill is unworkable and counterproductive to achieving increased human rights protection in China because it will sever important cultural and economic ties. We should be resolute in our efforts to achieve progress on human rights while at the same time developing a fair trading system between the the United States and China. I urge my colleagues to reject the Pelosi bill. Ms. PELOSI. Mr. Chairman, I am pleased now to yield 1 minute to the gentleman from Indiana [Mr. McCloskey]. Mr. McCLOSKEY. Mr. Chairman, I thank the gentlewoman for yielding this time to me, and I commend her for her leadership. Mr. Chairman, how can we look American working people in the eye and say we want to extend MFN protection to Chinese goods manufactured in slave labor factories and prison cmps? If we can not say ``no'' to this for fear of offense, what is our leverage to say ``no'' to anything? As to their $24 billion and growing surplus with us, why do we allow the Chinese market to remain rife with internal barriers crafted specifically to deflect United States exports? A memorandum of understanding between the United States and China in August, 1992, provided a mechanism for United States investigations of suspect slave labor facilities. More than a year after that agreement was signed, the Chinese had acknowledged only 16 of 31 United States requests to investigate factories suspected of using slave labor. They granted only one request during that visit, United States representatives were denied access to parts of the compound. The United States request to revisit that facility was denied. This is good intentions? I might say this is ridiculous and absurd. We see where their intentions are. Vote ``yes'' on Pelosi, vote ``yes'' for humanity and fairness. Ms. PELOSI. Mr. Chairman, I yield 1 minute to the gentlewoman from California [Ms. Eshoo]. Ms. ESHOO. I thank the gentlewoman from California for yielding this time to me, and I thank her for her extraordinary leadership on this issue. Mr. Chairman, I rise in support of the Pelosi substitute to H.R. 4590 which revokes most-favored-nation [MFN] status for products made under the control of the Chinese Government and its military. This substitute directs the Treasury Department to publish a list of military, state-owned, and defense industrial trading companies in China and urges the Treasury Department to encourage U.S. firms operating there to adopt a voluntary code of conduct which respects basic human rights. I have listened to and read what has been advanced by those who support delinkage. Their words ring hollow when we see Chinese citizens sent to forced labor camps where they must make goods for shipment to the United States. Our business community, particularly the high technology industry in my district, sees tremendous commercial opportunities in China. China is cited as the greatest market in history for United States exports. I share their view that we pursue new markets. But, Mr. Chairman, I also know the most valuable export our great Nation has is democracy. And the best lesson in democracy we can give the world is the standard we set for ourselves. That standard is this: We will not give special trade privileges to those who do not give basic human rights to their citizens. Will China learn democracy sooner or later if we all United States businesses to trade with China as a favored nation? Perhaps. But should the United States traffic in products made by Chinese workers wit bayonets held to their throats? No, Mr. Chairman, we do not need to be trading in that kind of work product. The Pelosi substitute provides a clear message to the Chinese Government. It says we respectfully inform you that there are consequences in failing to meet basic human rights standards we set for nations we grant special privileges to. Mr. Chairman, those standards were set by the President with the support of Congress and American business last year. I believe that not equivocating on those standards sends a clear and firm message to China's leaders which may be more beneficial to us than any short term economic benefits. I urge my colleagues to support the Pelosi substitute to H.R. 4590. {time} 1730 Ms. PELOSI. Mr. Chairman, I yield such time as she may consume to the gentlewoman from California [Ms. Woolsey]. (Ms. WOOLSEY asked and was given permission to revise and extend her remarks.) Ms. WOOLSEY. Mr. Chairman, I commend my colleague, the gentlewoman from California [Ms. Pelosi], for her rational and appropriate compromise on the issue of China MFN. Like Ms. Pelosi, all of us want to bring about freedom and democracy in China. Yet, none of us want to cut off trade with that nation, or to harm American companies that do business there. The real issue here is leverage. How can we use leverage with the Chinese Government to help bring about real change? Some say, ``Let market forces continue--and, change is inevitable.'' But, no leverage at all is hardly convincing to leaders who murder and imprison their citizens to prevent change. Some say, Cut off MFN entirely. But, such a blunt tool could spark a counterproductive trade war and prevent continued dialog with China's leaders. The real solution is H.R. 4590. It lets the United States stand up for human rights, while using our leverage to move China's leaders closer to respect for human rights. We all look forward to a day when sanctions are not needed--when freedom is a fact of life for the Chinese people. H.R. 4590 will bring that day closer, and that's why we should support it. Mr. CRANE. Mr. Chairman, I yield myself the balance of the time at this moment so my distinguished colleague from California can make the concluding remarks. Mr. Chairman, at the outset I do want to pay tribute to a most gracious woman, and she has a firm commitment that I have recognized certainly and respect profoundly even though we have honest disagreements. So, I say to the gentlewoman, ``I salute you, Ms. Pelosi.'' I simply want to reiterate a few things that were said earlier, and that has to do with the importance of an American presence in mainland China. The fact of the matter is we are there to set a positive example, amongst other things. The treatment of the work force by American employers in terms of worker safety, worker welfare, in terms of looking to environmental concerns, these set the kinds of positive examples that can have that rippling effect that will touch other people's lives in China that have never been exposed to that before. The United States has been in the vanguard in all of these areas, and I think it is important to remember Ben Franklin's counsel: ``A good example is the best sermon.'' Mr. Chairman, the United States presence there provides that good example and that sermon, and it is for that reason that I think expanded U.S. participation and presence on mainland China serves to advance not just the economic interests of the United States or the economic interests of mainland China. It serves to advance the interests that we share and that are being expressed in the effort by the gentlewoman from California [Ms. Pelosi] but which can be better achieved by having a continuing U.S. presence there and an expanded one. So, I urge Members, with all due respect, to defeat H.R. 4590 and to support the gentleman from Indiana [Mr. Hamilton]. Mr. BUNNING. Mr. Chairman, I yield myself the balance of the time. Mr. Chairman, I do not think anyone here has suggested that we disengage in trading with China. The policy that we are now discussing is whether we should grant them MFN status. Everyone, and I think it is indisputable, knows that China is the worst as far as human rights violations in the whole world. This legislation merely asks that MFN status for China be denied in relationship to products produced by the People's Liberation Army, the Chinese defense industry companies and Communist state owned enterprises. I think it is important that we make that distinction, and I urge support for the Pelosi amendment. Mr. MATSUI. Mr. Chairman, I yield 2\1/2\ minutes, which is all the time we have remaining, to the gentleman from Kansas [Mr. Glickman], the chairman of the Permanent Select Committee on Intelligence. Mr GLICKMAN. First of all, Mr. Chairman, I have to tell my colleagues a little bit about the gentlewoman from California [Ms. Pelosi]. She is one of the most persistent, doggedly tenacious people on the issue of human rights that I ever met. We were in China together about a year ago on a Permanent Select Committee on Intelligence trip. Wherever we went, from the highest government official down, she tenaciously raised the issue of human rights in a vigorous fashion, even in circumstances that probably they never thought it would be raised in their lifetime, and I think she made her point, and it was an important point, but I disagree with her on this issue and for a couple of reasons, and let me tell my colleagues why. Just a few months ago the President of the United States announced a major foreign policy initiative, the renewal of MFN to China, and, yes, there was some controversy about it, but can my colleagues imagine how indecisive America will now look in the world if today we cut not only his legs off, but cut American foreign policy legs off in terms of that position? We are being accused of being indecisive in Bosnia, of being indecisive in Haiti, of being indecisive in other parts of the world. We have one place where we have made a clear foreign policy decision. It is China. And now the U.S. Congress is going to say to this President, who has not had the most stellar record in the world of consistency in foreign policy, ``I'm sorry, Mr. President, you're wrong. We are going to do this one away from you.'' Mr. Chairman, this is a very bad thing to do to this country, not just to this President, but to this country at a time when he has made a decision and one that we need to stand by. The second thing has to do with human rights, and it is no question that China has a much less than stellar record in human rights, but this is one of the most important countries in the world economically, diplomatically and militarily. China soon, with the United States, will probably be the two most economically powerful nations in the world. China is also a country that, believe it or not, was quite helpful to the United States during the cold war when our efforts were focused on containing Moscow. China was of extreme help to our country in making sure that the Soviets were contained. This is not a country that has been a constant adversary of the United States. Yes, it is a country that has a different standard for its people and the one that we have got to find the right leverage to change so that they improve their standard, but by adopting the Pelosi resolution, Mr. Chairman, we isolate China, we isolate them at a time that the North Korean Government has the potential, if not the reality, of developing nuclear weapons and missiles to deliver to Japan, to China and sell all over the world, and our only ace in the hole is China. We isolate them at a time when other countries in Southeast Asia are developing, and we need Chinese help in order to make sure that we have opportunity to influence those countries diplomatically and economically. We isolate them at a time when we need to improve their human rights record, and they will laugh at us when we try to cause their improvement without continuing the trade relationship. So, while I honor the commitment of the gentlewoman from California [Ms. Pelosi], I think she is wrong on this one. I urge my colleagues to support the Hamilton resolution. Ms. PELOSI. Mr. Chairman, I yield myself the balance of my time. Mr. Chairman, I feel very privileged to rise today to close the debate on H.R. 4590. Of course I rise in support of my own legislation, and in doing so I want to thank my colleagues who have spoken here today, who have lent their names as cosponsors to the legislation: The gentleman from Missouri [Mr. Gephardt], the gentleman from Michigan [Mr. Bonior], the gentleman from New York [Mr. Gilman], the gentleman from Virginia [Mr. Wolf], and the list goes on and on to over a hundred Members, Democrats and Republicans alike. I believe that Wei Jing Jung, who has not been seen since he had a meeting with Secretary Shattuck, should be very pleased that so many Members of this House of Representatives have stood by him in this debate in the face of intense lobbying from those who, while certainly supportive of human rights, do not give it the priority that we do in our relationship with China, and I say that very forthrightly, Mr. Chairman. {time} 1740 Mr. Chairman, one of our colleagues who use to be in this body, Representative Lindy Boggs from Louisiana, had a saying that she would say to us from time to time in the Women's Caucus especially. She would say: ``Know thy power.'' I say that to our colleagues here today. Know thy power. With your vote today, you can make a statement in support of the moderates and the reformers in China, and the succession there is very important to our national interests. It is important that it go in a more open politically reformed direction. With your vote, knowing thy power, you can make a great advance for the American worker. Because you can recognize the linkage, yes, the linkage that is there between the fate of the American worker and the promotion of human rights abroad. Human rights activists and labor activists abroad have said that what we are doing in Asia with our trade is racing to the bottom. Companies in countries compete for the worst laws, and the weaker the laws are, the better they like it. The American worker's job is dependent on workers' rights in other countries, because as long as those countries repress their workers and their rights, as well as other rights, the American worker is ill-served, because we cannot compete with no-cost labor for like-prison labor. The CHAIRMAN. All time for general debate has expired. Pursuant to the rule, the bill is considered as read for amendment under the 5-minute rule. The text of H.R. 4590 is as follows: H.R. 4590 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``United States-China Act of 1994''. SEC. 2. FINDINGS AND POLICY. (a) Findings.--The Congress makes the following findings: (1) In Executive Order 12850, dated May 28, 1993, the President established conditions for renewing most-favored- nation treatment for the People's Republic of China in 1994. (2) The Executive order requires that in recommending the extension of most-favored-nation trade status to the People's Republic of China for the 12-month period beginning July 3, 1994, the Secretary of State shall not recommend extension unless the Secretary determines that such extension substantially promotes the freedom of emigration objectives contained in section 402 of the Trade Act of 1974 (19 U.S.C. 2432) and that China is complying with the 1992 bilateral agreement between the United States and China concerning export to the United States of products made with prison labor. (3) The Executive order further requires that in making the recommendation, the Secretary of State shall determine if China has made overall significant progress with respect to-- (A) taking steps to begin adhering to the Universal Declaration of Human Rights; (B) releasing and providing an acceptable accounting for Chinese citizens imprisoned or detained for the nonviolent expression of their political and religious beliefs, including such expressions of beliefs in connection with the Democracy Wall and Tiananmen Square movements; (C) ensuring humane treatment of prisoners, and allowing access to prisons by international humanitarian and human rights organizations; (D) protecting Tibet's distinctive religious and cultural heritage; and (E) permitting international radio and television broadcasts into China. (4) The Executive order requires the executive branch to resolutely pursue all legislative and executive actions to ensure that China abides by its commitments to follow fair, nondiscriminatory trade practices in dealing with United States businesses and adheres to the Nuclear Nonproliferation Treaty, the Missile Technology Control Regime guidelines and parameters, and other nonproliferation commitments. (5) The Government of the People's Republic of China, a member of the United Nations Security Council obligated to respect and uphold the United Nations charter and Universal Declaration of Human Rights, has over the past year made less than significant progress on human rights. The People's Republic of China has released only a few prominent political prisoners and continues to violate internationally recognized standards of human rights by arbitrary arrests and detention of persons for the nonviolent expression of their political and religious beliefs. (6) The Government of the People's Republic of China has not allowed humanitarian and human rights organizations access to prisons. (7) The Government of the People's Republic of China has refused to meet with the Dalai Lama, or his representative, to discuss the protection of Tibet's distinctive religious and cultural heritage. (8) It continues to be the policy and practice of the Government of the People's Republic of China to control all trade unions and suppress and harass members of the independent labor union movement. (9) The Government of the People's Republic of China continues to restrict the activities of accredited journalists. (10) The People's Republic of China's defense industrial trading companies and the People's Liberation Army engage in lucrative trade relations with the United States and operate lucrative commercial businesses within the United States. Trade with and investments in the defense industrial trading companies and the People's Liberation Army are contrary to the national security interests of the United States. (11) The President has conducted an intensive high-level dialogue with the Government of the People's Republic of China, including meeting with the President of China, in an effort to encourage that government to make significant progress toward meeting the standards contained in the Executive order for continuation of most-favored-nation treatment. (12) The Government of the People's Republic of China has not made overall significant progress with respect to the standards contained in the President's Executive Order 12850, dated May 28, 1993. (b) Policy.--It is the policy of the Congress that, since the President has recommended the continuation of the waiver under section 402(d) of the Trade Act of 1974 for the People's Republic of China for the 12-month period beginning July 3, 1994, such waiver shall not provide for extension of nondiscriminatory trade treatment to goods that are produced, manufactured, or exported by the People's Liberation Army or Chinese defense industrial trading companies or to nonqualified goods that are produced, manufactured, or exported by state-owned enterprises of the People's Republic of China. SEC. 3. LIMITATIONS ON EXTENSION OF NONDISCRIMINATORY TREATMENT. (a) In General.--Notwithstanding any other provision of law-- (1) if nondiscriminatory treatment is not granted to the People's Republic of China by reason of the enactment into law of a disapproval resolution described in subsection (b)(1), nondiscriminatory treatment shall-- (A) continue to apply to any good that is produced or manufactured by a person that is not a state-owned enterprise of the People's Republic of China, but (B) not apply to any good that is produced, manufactured, or exported by a state-owned enterprise of the People's Republic of China, (2) if nondiscriminatory treatment is granted to the People's Republic of China for the 12-month period beginning on July 3, 1994, such nondiscriminatory treatment shall not apply to-- (A) any good that is produced, manufactured, or exported by the People's Liberation Army or a Chinese defense industrial trading company, or (B) any nonqualified good that is produced, manufactured, or exported by a state-owned enterprise of the People's Republic of China, and (3) in order for nondiscriminatory treatment to be granted to the People's Republic of China, and subsequent to the granting of such nondiscriminatory treatment, the Secretary of the Treasury shall consult with leaders of American businesses having significant trade with or investment in the People's Republic of China, to encourage them to adopt a voluntary code of conduct that-- (A) follows internationally recognized human rights principles, (B) ensures that the employment of Chinese citizens is not discriminatory in terms of sex, ethnic origin, or political belief, (C) ensures that no convict, forced, or indentured labor is knowingly used, (D) recognizes the rights of workers to freely organize and bargain collectively, and (E) discourages mandatory political indoctrination on business premises. (b) Disapproval Resolution.-- (1) In general.--For purposes of this section, the term ``resolution'' means only a joint resolution of the two Houses of Congress, the matter after the resolving clause of which is as follows: ``That the Congress does not approve the extension of the authority contained in section 402(c) of the Trade Act of 1974 recommended by the President to the Congress on ______________________ with respect to the People's Republic of China because the Congress does not agree that the People's Republic of China has met the standards described in the President's Executive Order 12850, dated May 28, 1993.'', with the blank space being filled with the appropriate date. (2) Applicable rules.--The provisions of sections 153 (other than paragraphs (3) and (4) of subsection (b)) and 402(d)(2) (as modified by this subsection) of the Trade Act of 1974 shall apply to a resolution described in paragraph (1). (c) Determination of State-Owned Enterprises and Chinese Defense Industrial Trading Companies.-- (1) In general.--Subject to paragraphs (2) and (3), not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury shall determine which persons are state-owned enterprises of the People's Republic of China and which persons are Chinese defense industrial trading companies for purposes of this Act. The Secretary shall publish a list of such persons in the Federal Register. (2) Public hearing.-- (A) General rule.--Before making the determination and publishing the list required by paragraph (1), the Secretary of the Treasury shall hold a public hearing for the purpose of receiving oral and written testimony regarding the persons to be included on the list. (B) Additions and deletions.--The Secretary of the Treasury may add or delete persons from the list based on information available to the Secretary or upon receipt of a request containing sufficient information to take such action. (3) Definitions and special rules.--For purposes of making the determination required by paragraph (1), the following definitions apply: (A) Chinese defense industrial trading company.--The term ``Chinese defense industrial trading company''-- (i) means a person that is-- (I) engaged in manufacturing, producing, or exporting, and (II) affiliated with or owned, controlled, or subsidized by the People's Liberation Army, and (ii) includes any person identified in the United States Defense Intelligence Agency publication numbered VP-1920-271- 90, dated September 1990. (B) People's liberation army.--The term ``People's Liberation Army'' means any branch or division of the land, naval, or air military service or the police of the Government of the People's Republic of China. (C) State-owned enterprise of the people's republic of china.--(i) The term ``state-owned enterprise of the People's Republic of China'' means a person who is affiliated with or wholly owned, controlled, or subsidized by the Government of the People's Republic of China and whose means of production, products, and revenues are owned or controlled by a central or provincial government authority. A person shall be considered to be state-owned if-- (I) the person's assets are primarily owned by a central or provincial government authority; (II) a substantial proportion of the person's profits are required to be submitted to a central or provincial government authority; (III) the person's production, purchases of inputs, and sales of output, in whole or in part, are subject to state, sectoral, or regional plans; or (IV) a license issued by a government authority classifies the person as state-owned. (ii) Any person that-- (I) is a qualified foreign joint venture or is licensed by a governmental authority as a collective, cooperative, or private enterprise; or (II) is wholly owned by a foreign person, shall not be considered to be state-owned. (D) Qualified foreign joint venture.--The term ``qualified foreign joint venture'' means any person-- (i) which is registered and licensed in the agency or department of the Government of the People's Republic of China concerned with foreign economic relations and trade as an equity, cooperative, contractual joint venture, or joint stock company with foreign investment; (ii) in which the foreign investor partner and a person of the People's Republic of China share profits and losses and jointly manage the venture; (iii) in which the foreign investor partner holds or controls at least 25 percent of the investment and the foreign investor partner is not substantially owned or controlled by a state-owned enterprise of the People's Republic of China; (iv) in which the foreign investor partner is not a person of a country the government of which the Secretary of State has determined under section 6(j) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)) to have repeatedly provided support for acts of international terrorism; and (v) which does not use state-owned enterprises of the People's Republic of China to export its goods or services. (E) Person.--The term ``person'' means a natural person, corporation, partnership, enterprise, instrumentality, agency, or other entity. (F) Foreign investor partner.--The term ``foreign investor partner'' means-- (i) a natural person who is not a citizen of the People's Republic of China; and (ii) a corporation, partnership, instrumentality, enterprise, agency, or other entity that is organized under the laws of a country other than the People's Republic of China and 50 percent or more of the outstanding capital stock or beneficial interest of such entity is owned (directly or indirectly) by natural persons who are not citizens of the People's Republic of China. (G) Nonqualified good.--The term ``nonqualified good'' means a good to which chapter 39, 44, 48, 61, 62, 64, 70, 73, 84, 93, or 94 of the Harmonized Tariff Schedule of the United States applies. (H) Convict, forced, or indentured labor.--The term ``convict, forced, or indentured labor'' has the meaning given such term by section 307 of the Tariff Act of 1930 (19 U.S.C. 1307). (I) Violations of internationally recognized standards of human rights.--The term ``violations of internationally recognized standards of human rights'' includes but is not limited to, torture, cruel, inhuman, or degrading treatment or punishment, prolonged detention without charges and trial, causing the disappearance of persons by abduction and clandestine detention of those persons, secret judicial proceedings, and other flagrant denial of the right to life, liberty, or the security of any person. (J) Missile technology control regime.--The term ``Missile Technology Control Regime'' means the agreement, as amended, between the United States, the United Kingdom, the Federal Republic of Germany, France, Italy, Canada, and Japan, announced on April 16, 1987, to restrict sensitive missile- relevant transfers based on an annex of missile equipment and technology. (d) Semiannual Reports.--The Secretary of the Treasury shall, not later than 6 months after the date of the enactment of this Act, and the end of each 6-month period occurring thereafter, report to the Congress on the efforts of the executive branch to carry out subsection (c). The Secretary may include in the report a request for additional authority, if necessary, to carry out subsection (c). In addition, the report shall include information regarding the efforts of the executive branch to carry out subsection (a)(3). SEC. 4. PRESIDENTIAL WAIVER. The President may waive the application of any condition or prohibition imposed on any person pursuant to this Act, if the President determines and reports to the Congress that the continued imposition of the condition or prohibition would have a serious adverse effect on the vital national security interests of the United States. SEC. 5. REPORT BY THE PRESIDENT. If the President recommends in 1995 that the waiver referred to in section 2 be continued for the People's Republic of China, the President shall state in the document required to be submitted to the Congress by section 402(d) of the Trade Act of 1974, the extent to which the Government of the People's Republic of China has made progress during the period covered by the document, with respect to-- (1) adhering to the provisions of the Universal Declaration of Human Rights, (2) ceasing the exportation to the United States of products made with convict, force, or indentured labor, (3) ceasing unfair and discriminatory trade practices which restrict and unreasonably burden American business, and (4) adhering to the guidelines and parameters of the Missile Technology Control Regime, the controls adopted by the Nuclear Suppliers Group, and the controls adopted by the Australia Group. SEC. 6. SANCTIONS BY OTHER COUNTRIES. If the President decides not to seek a continuation of a waiver in 1995 for the People's Republic of China under section 402(d) of the Trade Act of 1974, the President shall, during the 30-day period beginning on the date that the President would have recommended to the Congress that such a waiver be continued, undertake efforts to ensure that members of the General Agreement on Tariffs and Trade take a similar action with respect to the People's Republic of China. The CHAIRMAN. No amendment shall be in order except the amendments printed in House Report 103-673, which may be offered only by the Member designated in the report, shall be considered as read, and shall not be subject to amendment. Debate on each amendment will be equally divided and controlled by the proponent and an opponent of the amendment. If more than one of the amendments printed in the report is adopted, only the last to be adopted shall be considered as finally adopted and reported to the House. It is now in order to consider the amendment numbered one in House Report 103-673. amendment in the nature of a substitute offered by mr. hamilton Mr. HAMILTON. Mr. Chairman, pursuant to the rule, I offer an amendment in the nature of a substitute. The CHAIRMAN. The Clerk will designate the amendment in the nature of a substitute. The text of the amendment in the nature of a substitute is as follows: Amendment in the nature of a substitute offered by Mr. Hamilton: Strike all after the enacting clause and insert the following: SECTION 1. SHORT TITLE. This Act may be cited as the ``United States China Policy Act of 1994''. SEC. 2. FINDINGS. The Congress makes the following findings: (1) The economic, social, political, and cultural welfare of the people of China, who constitute one-fifth of the world's population, is a matter of global humanitarian concern. (2) By virtue of its size, its economic vitality, its status as a nuclear power, and its role as a permanent member of the United Nations Security Council, China plays a significant role in world affairs. (3) The United States policy toward China involves balancing multiple interests, including promoting human rights and democracy, securing China's strategic cooperation in Asia and the United Nations, protecting United States national security interests, controlling the proliferation of weapons of mass destruction, promoting a peaceful and democratic transition in Hong Kong, and expanding United States economic contact with China. (4) United States policy toward China must include as a key objective the promotion of internationally recognized human rights. Specific priorities and methods should be appropriate to the circumstances. Engagement with China rather than its isolation is more likely to foster United States interests. (5) The opening of China to the West, the adoption of free market economic reforms, the emergence of a strong and entrepreneurial economy that ensures the rise of a Chinese middle class; all have led to expanded individual freedom, a weakening of state control over personal expression, access to the media in the United States, Hong Kong, and the West, and major improvements in living standards for the Chinese people. (6) United States policies that encourage economic liberalization and increased contact with the United States and other democracies foster respect for internationally recognized human rights and can contribute to civil and political reform in China. (7) The President's policy statement of May 26, 1994, provides a sound framework for expanding and extending the relationship of the United States with China while continuing the commitment of the United States to its historic values. The United States must develop a comprehensive and coherent policy toward China that addresses the complex and fast- changing reality in that country and promotes simultaneously the human rights, diplomatic, economic, and security interests of the United States toward China. (8) The United States has an interest in a strong, stable, prosperous, and open China whose government contributes to international peace and security and whose actions are consistent with the responsibilities of great power status. Whether those expectations are met will determine the breadth, depth, and tone of the United States-China bilateral relationship. (9) Peace and economic progress in East Asia is best assured through a web of cooperative relations among the countries of the region, including China and the United States. The emergence of a militarily powerful China that seeks to dominate East Asia would be regarded as a matter of serious concern by the United States and by other countries in the Asia-Pacific region. (10) Yet China's performance has been uneven on a number of issues of concern to the United States. In particular, the Chinese Government has failed to observe internationally recognized human rights. In this regard the Congress makes the following declarations: (A) The Chinese Government itself has made commitments to observe universal human rights norms. (B) Human rights have universal application and are not solely defined by culture or history. (C) Chinese policies of particular concern to the United States are the criminalization of dissent, the inhumane treatment in prisons, and the serious repression in non-Han- Chinese areas like Tibet. (11) Genuine political stability in China and greater respect for internationally recognized human rights, as well as continued economic growth and stability, will only occur in China as a result of a strengthened legal system (based on the rule of law and property rights), the emergence of a civil society, and the creation of political institutions that are responsive to public opinion and the interests of social groups. (12) China has entered a major transition in its political history which will determine the nature of the domestic system, including respect for internationally recognized human rights, and the Chinese Government's foreign policy. The Chinese Government should accelerate the process of reform of all aspects of Chinese society. (13) Existing official bilateral and multilateral institutions provide useful venues for engagement with China concerning the rule of law, civil society, respect for internationally recognized human rights, and political institutions that provide humane and effective governance. (14) American nongovernmental and business organizations, in their various forms of engagement in China, have contributed in that country to the initial emergence of civil society, the strengthening of the legal system, and the expansion of economic autonomy. SEC. 3. RECOMMENDATIONS FOR IMPLEMENTATION OF UNITED STATES POLICY. Congress affirms the President's policy and makes the following recommendations for the conduct of United States policy toward China: (1) The United States should continue a steady and comprehensive policy of pressing for increased Chinese adherence to international norms, especially those concerning internationally recognized human rights. (2) Of particular concern to the United States are the following: (A) The accounting and release of political prisoners. (B) Access to Chinese prisoners by international humanitarian organizations. (C) Negotiations between the Chinese Government and the Dalai Lama on Tibetan issues. (3) The official dialogue with the Chinese Government on human rights issues should continue and be intensified. (4) As he considers appropriate, the President should use other available modes of official interaction with China to pursue initiatives that are relevant to promoting increased respect for human rights in China. (5) The United States should expand broadcasting to China, through the Voice of America and Radio Free Asia. (6) The United States should work through available multilateral fora, such as the United Nations Human Rights Commission, to express concerns about human rights in China and to encourage Chinese adherence to, and compliance with, international human rights instruments. At all appropriate times, the United States should work toward and support joint actions to address significant problems. In particular, the United States should seek to secure the participation of other governments in overtures to secure the accounting and release of political prisoners, to encourage access to Chinese prisoners by international humanitarian organizations and negotiations between the Chinese Government and the Dalai Lama. (7) Where possible, the United States should take further steps to foster in China the rule of law, the creation of a civic society, and the emergence of institutions that provide humane and effective governance. (8) To better carry out the recommendation in paragraph (7), the Secretary of State should encourage United States posts in China to increase reporting on the human rights situation, the rule of law, civil society, and other political developments in China, and to increase appropriate contacts with domestic nongovernmental organizations. (9) United States non-governmental organizations should continue and expand activities that encourage the rule of law, the emergence of a civic society, and the creation of institutions that provide humane and effective governance. (10) When considering the termination of the suspensions of United States Government activities enacted in section 902(a) of the Foreign Relations Authorization Act, Fiscal Years 1990 and 1991, the President should explore whether such terminations could be used to elicit specific steps by the Chinese government to enhance respect for internationally recognized human rights or correct abuses of such rights. SEC. 4. UNITED STATES GOVERNMENT PROGRAMS SUPPORTING HUMAN RIGHTS IN CHINA. (a) Statement of Policy.--Concerning the promotion of human rights in China, it shall be the policy of the United States to promote the following objectives: (1) An effective legal system, based on the rule of law. (2) Respect for internationally recognized human rights. (3) The emergence of civil society. (4) The creation of institutions that provide humane and effective governance. (b) Factors.--In determining how to carry out the objectives stated in subsection (a), the President should consider the following factors: (1) The circumstances under which it is appropriate to provide support to organizations and individuals in China. (2) The circumstances under which it is appropriate to provide financial support, including through the following means: (A) Directly by the United States Government. (B) Through United States nongovernmental organizations which have established a sound record in China. (3) The extent to which the objectives of subsection (a) should be promoted through exchanges, technical assistance, grants to organizations, and scholarships for advanced study in the United States. (4) How to assure accountability for funds provided by the United States Government. (c) Authorization of Appropriations for Fiscal Year 1995.-- (1) Of the amounts authorized to be appropriated for education and cultural exchange programs of the United States Information Agency for fiscal year 1995, up to $1,000,000 is authorized to be available for programs to carry out the objectives of subsection (a). (2) In addition to such amounts as may otherwise be made available for broadcasting to China for fiscal year 1995, of the amounts authorized to be appropriated for international broadcasting for fiscal year 1995, an additional $5,000,000 may be used for broadcasting to China . SEC. 5. INTERNATIONAL HUMANITARIAN ORGANIZATIONS. It is the sense of Congress that, in the event that international humanitarian organizations undertake activities in China related to the treatment of prisoners, the President should make available an additional contribution to those organizations to support such activities. SEC. 6. PRINCIPLES TO GOVERN THE ACTIVITIES OF UNITED STATES BUSINESS IN CHINA. (a) In General.--Congress endorses President Clinton's efforts to work with the leaders of the United States business community to develop voluntary principles that could be adapted by United States companies doing business in China to further advance human rights and commends United States companies that have previously adopted such principles or are considering taking such action. (b) Other Countries.--Congress urges the President to encourage other governments to adopt similar principles to govern the activities of their business organizations with activities in China. SEC. 7. PERIODIC REPORTS. Not more than 180 days after the date of the enactment of this Act and annually for the 2 subsequent years, the President shall submit to the Speaker of the House of Representatives and the Chairman of the Committee on Foreign Relations of the Senate, a report (in a classified form in whole or in part as necessary) which reviews for the preceding 12-month period those activities supported by the United States Government to promote the objectives stated in section 4(a). SEC. 8. COMMISSION ON LAW AND SOCIETY IN CHINA. The President is authorized to establish a United States commission on law and society in the People's Republic of China to undertake the following responsibilities and such other duties as the President considers appropriate: (1) To monitor developments in China with respect to the following: (A) The development of the Chinese legal system. (B) The emergence of civil society. (C) The development of institutions that provide humane and effective governance. (2) To engage in an ad hoc dialogue with Chinese individuals and nongovernmental organizations who have an interest in the subjects indicated in paragraph (1). (3) To report to the President and to the Congress the commission's findings regarding the subjects identified in paragraph (1) and its discussions with Chinese individuals and organizations concerning those subjects. (4) To make recommendations to the President on United States policy toward China in promoting the objectives identified in section 4(a). (5) To assess and report to the President and the Congress on whether the creation of a United States-China Commission on Law and Society would contribute to the objectives identified in section 4(a). Amend the title to read as follows: ``Concerning United States efforts to promote respect for internationally recognized human rights in China.''. The CHAIRMAN. Under the rule, the gentleman from Indiana [Mr. Hamilton] will be recognized for 15 minutes, and a Member opposed will be recognized for 15 minutes. Is the gentleman from New York [Mr. Gilman] in opposition to the Hamilton amendment? Mr. GILMAN. Mr. Chairman, I rise in opposition to the amendment. The CHAIRMAN. The gentleman from New York [Mr. Gilman] will be recognized for 15 minutes in opposition. The Chair recognizes the gentleman from Indiana [Mr. Hamilton. Mr. HAMILTON. Mr. Chairman, I yield myself 4 minutes. Mr. Chairman, the question the House faces in consideration of HR 4590, offered by my good friend, the gentlewoman, from California, is not whether human rights should be a central objective of the United States policy toward China. We both agree that it should. The question is how best to promote all United States interests in China. The choice is clear cut. Do we promote our security, economic and human rights interests in China through engagement, or through confrontation? The Pelosi bill represents a policy of confrontation. It continues the linkage between trade and human rights, and it will increase tariffs on half of China's exports to the United States. The Hamilton Amendment endorses a policy of engagement. It is the President's policy. It is a policy of engaging China in a web of cooperation. It de-links China's MFN status from its human rights record, and urges that we pursue our human rights objectives and other important interests through more effective means. pelosi approach: costs, but little gain Passage of the Pelosi bill would bring heavy costs but few benefits. First, it would seriously damage U.S. security and political interests. According to Secretary of Defense William Perry, it could have ``adverse consequences'' for the ``nation's security.'' If we pass this bill, China could undermine our policy in North Korea, block sanctions resolutions at the United Nations, and increase tensions with Taiwan. Second, the Pelosi bill would seriously damage U.S. economic interests. If we denied MFN treatment for half of its exports to the United States, China would surely retaliate against United States exporters. Our exports would plummet. Our trade deficit would soar. According to Commerce Secretary Ron Brown, the Pelosi bill has ``potentially devastating consequences'' for our current exports, for our future competitiveness in the Chinese market, and our global competitiveness in key high-tech industries. Besides jeopardizing current exports to China, the Pelosi bill will endanger follow-on United States exports totalling $12 billion. In telecommunications alone, China will require imports of $3 billion during this decade. Those are the costs of the Pelosi bill, and they are heavy. In return, we would get little. Human rights would not improve, and probably worsen. China's leaders would conclude that the goal of U.S. policy was to bring down their regime. They would have no incentive to release political prisoners or negotiate with the Dalai Lama. Chinese who favor political liberalization would be deprived of the freedoms they have. Make no mistake about it: those in China seeking more political freedom want the United States to extend MFN, not end it or restrict it. My amendment differs significantly from the policy of confrontation contained in the Pelosi bill: The Hamilton alternative reinforces the President's policy, rather than undermines it. The Administration supports the Hamilton amendment and ``strongly opposes'' the Pelosi approach. At a time of transition in China, my amendment promotes positive forces for change rather than provoking the negative elements of the Chinese regime. The Hamilton Amendment protects and promotes all United States interests--security, economic, and human rights interests--in China. The Hamilton alternative emphasizes a multilateral approach toward human rights in China instead of a go-it-alone approach. I urge Members to vote for the Hamilton amendment and to support the President's policy toward China. Members today have a clear choice. But they cannot have it both ways. Some have suggested it is possible to vote for the Pelosi amendment and the Hamilton amendment. These two approaches cannot be reconciled. We cannot confront China one day and engage China the next. Members have to choose. I believe the choice is clear, and simple. The Pelosi bill imposes severe costs on the United States, with little or no gain to the national interest. The President's policy, contained in the Hamilton amendment, advances our national security, our economic well-being, and our interest in human rights. It gives us maximum leverage at a critical time in China. The Hamilton Amendment: Emphasizes the importance of human rights as a goal of United States China Policy. Urges the Administration to work through international organizations such as the United Nations Human Rights Commission to press human rights concerns. Reallocates existing United States funds for programs to promote human rights in China and for increased international broadcasting to China. Urges American non-governmental organizations to dedicate more resources to human-rights-related activities in China. Endorses the President's effort to work with United States businesses to create a voluntary code of conduct to govern business activities in China. Authorizes the President to establish a United States commission to monitor human rights conditions in China. Mr. Chairman, I reserve the balance of my time. Mr. GILMAN. Mr. Chairman, I yield myself such time as I may consume. (Mr. GILMAN asked and was given permission to revise and extend his remarks.) Mr. GILMAN. Mr. Chairman, I rise in strong opposition to H.R. 4891, the substitute amendment introduced late last week by Chairman Hamilton. I am troubled by the fact that the Foreign Affairs Committee has not had an opportunity to address the issues in the Hamilton bill. The Hamilton substitute does not refer to the issues raised by the Pelosi bill. It does not concern itself with our Nation's subsidization of the People's Liberation Army. I ask my colleagues, how can we rationalize giving trade benefits to the very same military forces that fought us in Korea and slaughtered the young peaceful protesters in Tiananmen Square? I ask my colleagues to please consider--does it make any sense whatsoever to assist the only military force in the world that is still targeting the United States with nuclear weapons and is still testing nuclear weapons? The Hamilton bill does not address these problems that are so critical to our national security. Many of the workers for the Chinese military industrial plants are not even paid. They are prisoners who peacefully protested for democracy and now toil to produce products that are dumped on our markets. The profits go to supporting an offensive Communist military machine that results in our own defense budget allocating resources to contend with this threat. Where is the logic in that equation. Mr. Chairman, allow me to close by reminding our President of what he said in 1992 about President Bush's policy toward China and I quote: In China, the President continues to coddle aging rulers with undisguised contempt for democracy, human rights, and the need to control the spread of dangerous technologies. Such forbearance on our part might have been justified during the cold war as a strategic necessity, where China was a counterweight to Soviet power. But it makes no sense to play the China card now, when our opponents have thrown in their hand. ``A Strategy for Foreign Policy.'' Delivered by Governor Bill Clinton to the Foreign Policy Association, New York, N.Y., April 1, 1992. Accordingly, I urge my colleagues to defeat the Hamilton substitute and to support the Pelosi bill. {time} 1750 Mr. Chairman, I reserve the balance of my time. Mr. HAMILTON. Mr. Chairman, I yield 1 minute to the distinguished gentleman from Illinois [Mr. Crane]. Mr. CRANE. Mr. Chairman, conditioning the annual renewal of MFN on human rights objectives is a foreign policy stick that failed to produce the progress which we all seek from the Communist Chinese Government. This approach, debated in the House every year since 1990, is counterproductive to our goals of fostering the growth of freedom and democracy in that nation. I welcomed President Clinton's decision on June 2 to extend MFN to China, and to formally delink human rights objectives from the annual extension of MFN. I will vote for the Hamilton substitute, H.R. 4891, because it affirms this policy and expresses my desire for the country to speak in unison on international problems. In making his announcement, the President said that a policy of engagement gives us the best chance to achieve success in all areas of interest to the United States--human rights, weapons proliferation, and market access for our exports. We need a strong and coherent policy which does not elevate a single United States interest above the others. We need a policy that is viewed with respect by China, and by our allies with whom we must cooperate if our pressure is to succeed. I urge a ``yes'' vote on the Hamilton substitute. Mr. GILMAN. Mr. Chairman, I yield 3 minutes to the gentleman from California [Mr. Berman], a senior member of the Subcommittee on International Security, International Organizations and Human Rights. (Mr. BERMAN asked and was given permission to revise and extend his remarks.) Mr. BERMAN. Mr. Chairman, I rise in opposition to the Hamilton substitute, and in support of H.R. 4590. I support H.R. 4590 because I believe it will offer moral support at a critical moment to both Chinese dissidents and those arguing for reform within the system. Although I do not expect this legislation to survive a veto and be enacted into law, I believe that a strong vote in its favor today can actually strengthen the President's hand in dealing with the Chinese Government, even as he explores other means for promoting the cause of human rights in China. By the administration's own account, the human rights situation in China and Tibet remains deplorable. In announcing extension of MFN and delinking MFN from human rights, the President stated that ``China continues to commit very serious human rights abuses''. The Secretary of State, in his recommendations to the President, noted that ``Despite several significant prisoner releases, many more dissidents were detained, tried and sentenced during a nationwide crackdown on political and religious dissent.'' The Secretary also noted that new laws were codified which would abridge political and religious rights. One might conclude from this that, since linking MFN and human rights appeared to be so ineffective, we have little to lose from trying the administration's approach. That would ignore the effect of the administration's mixed messages to the Chinese Government in the weeks and months before the decision. It would also overlook the very real possibility that, if the mere threat of a sanction was insufficient to extract concessions from a hard-line dictatorship intent on calling our bluff, the natural next step might be to actually do what we had threatened to do. But most important is the obvious evidence of the Chinese Government's behavior in response to the new policy. The human rights situation has deteriorated as an immediate consequence of the President's decision. On July 14, the first major political trial since 1991 began in Beijing to try 14 persons whom Amnesty International has declared prisoners of conscience. This is the largest joint political trial in many years. The defendants had been in detention for more than 2 years, and the trial had been postponed several times since September 1993. In Tibet, Phuntsog Yangkyi, a 20-year-old nun, died from injuries sustained after she was severely beaten for singing nationalist songs. Her body was hurriedly cremated against the wishes of her family, making it impossible for them to arrange an independent medical investigation into the cause of death. Phuntsog Gyaltsen, a 36-year-old monk and prisoner of conscience, is reported to be seriously ill as a result of sustained beatings in Drapchi prison in Lhasa. According to unofficial sources, his body has become helpless, and he suffers from liver and stomach ailments. Nevertheless, he is compelled to continue hard labor such as digging, emptying toilets, and cultivating. Five Tibetans were sentenced recently to 12 to 15 years imprisonment and 4 to 5 years disenfranchisement for nothing more than destroying a name plate on a government building and pasting up proindependence slogans. What all this suggests is that the delinking of human rights and trade has had a negative effect on the position of reformists within the Chinese Government, and has emboldened the hard-liners. It is difficult under these circumstances to understand the administration's position that conditioning MFN on human rights was the right policy a year ago but is the wrong one now. Perhaps if we had never threatened to restrict MFN unless the issues of human rights was satisfactorily addressed, I might today be persuaded that the two matters should not be linked. However, to have conditioned a particular privilege on human rights improvements, only to have the Chinese Government defy our concerns about human rights, compels some indication from the United States Government of the seriousness of our resolve to use trade sanctions. If I felt that the administration is today considering adequate alternative instruments to promote our interest in human rights, I might still be persuaded that we ought not to use trade sanctions. However, I do not believe that adequate means are under consideration, and I see no alternative to the very precisely crafted approach of H.R. 4590. Let me make clear at the outset that I am all for engagement with that great civilization. I accept that we must acknowledge the global importance of China, and the legitimacy of its people's aspirations to a better life. I also agree that our economic interests in the region suggest that we not fatally burden our trade relationship with China. However, our long-term interests are in siding with the Chinese people in their struggle against one of the most oppressive and violent governments in recent times. I believe that H.R. 4590 is an intelligent and precise instrument of United States policy in China. It would leave the vast bulk of United States-China trade entirely free to accomplish the economic and political benefits that are claimed for it. While I applaud the President's ban on import of munitions, I believe that to be insufficient. In any case, that was a measure we needed to take to make our streets safer. The voluntary code of conduct for United States businesses, proposed by the administration, can have no effect at all on the behavior of the Chinese Government, and is in any case opposed by United States business. H.R. 4590 would target for trade sanctions precisely those Chines exports to the United States which bolster the Chinese Government's capacity to repress its citizens and build up the strength of the military and the state. I have reviewed the administration's arguments against this modest approach, and I am not persuaded by them. The administration suggests that it is extremely difficult to assess exactly what products are covered by the act, but then proceeds to suggest that it estimates that the value of goods covered by the act would be $17 billion. I fail to understand how this estimate is arrived at if indeed there is such great doubt about the goods covered. In fact, the goods to be covered are quite specific, and procedures are provided for determining them. Products made by the Chinese armed forces or their subsidiaries, as determined by the Secretary of the Treasury, and specified classes of goods from a U.S. Tariff Schedule which are provided by State Owned Enterprises, also determined by the Secretary of the Treasury. While the administration argues the worst case that almost any company that received subsidized inputs could be defined as a state owned, H.R. 4590 provides a clear exception for collective, cooperative, private or foreign enterprises. Most significant of all is the provision of H.R. 4590 which allows the President to waive any restriction that he determines would have a serious adverse effect on the vital national security interests of the United States. Thus, the legislation would not hobble our nation's capacity to pursue other aspects of our relationship with China. Even were the Chinese Government to engage in fraud to evade the restrictions, we already have in place instruments and procedures for determining the origin of goods, for purposes of trade law enforcement. Reliable estimates of the value of defined types of imports suggest that approximately goods worth about $5 billion would be subject to higher tariffs. Given the fact that China would still have a trade surplus of approximately $20 billion with the United States, it defies credibility to suggest that they would retaliate against United States businesses, risk counter-retaliation, and kill the goose that lays the golden egg. Even if the goods at stake were worth the $17 billion inaccurately estimate by the administration, we would still the only major nation running a substantial trade deficit with China. I must note that the United States buys 40 percent of Chinese exports, while China buys 2 percent of United States exports. Which nation depends more on this trade relationship? I believe that the approach of the substitute, which reflects the administration's policy, towards the promotion of human rights, is an ineffective instrument. The only substantive provision of the substitute relate to educational and cultural exchange programs of the United States Information Agency [USIA], broadcasting, and the Commission on Law and Society in China. The provision on USIA programs makes no new money available, and adds nothing to the President's existing authority to use existing funds for programs in China. The same is true of the broadcasting provision; whatever additional money was used for broadcasting to China would be at the expense of an already insufficient broadcasting budget. The Commission is a fine idea, although it is unclear how much force a private commission can add to the bilateral dialogue on human rights. Moreover, even a significantly expanded broadcasting capacity, while important as one instrument of policy among many, cannot be relied on too greatly. It is noteworthy that in noting improvements justifying the extension of MFN, the President pointed to Chinese cooperation on jamming of United States broadcasts. Recent developments suggest that hope was ill-founded and that the Chinese Government remains as intransigent as ever. Mr. HAMILTON. Mr. Chairman, I yield 2 minutes to the gentleman from Arizona [Mr. Kolbe]. (Mr. KOLBE asked and was given permission to revise and extend his remarks.) Mr. KOLBE. Mr. Chairman, as President Clinton stated in May, conditioning trade as a policy tool has outlived its usefulness-- particularly in our China policy. Instead, we must recognize--as this amendment does--that United States policies that engage China and promote economic liberalization, greater international trade, and increased contact with the West are the policies that contribute to civil and political reform in China. Our bill affirms those beliefs and does not condition trade with China on specific actions by the Chinese Government. It sets forth a policy supporting human rights in China as a key United States foreign policy objective, but which does not undermine our national security and economic interests in China and the rest of Asia. This debate is not about deals versus ideals. It is not about principle over profit. This debate is about constructing a United States foreign policy towards China and all of Asia that meets the diverse interests of the American and Chinese people. We all agree on the importance of promoting respect for human rights in China. U.S. foreign policy must be based on deeply held moral and political convictions that derive from 200 years of experience with American democracy and over 2,000 years of Western civilization and Judeo-Christian values. Such values are now nearly universally accepted, regardless of a nation's religious faith or culture. However, we should not use trade sanctions when sanctions will not achieve our interpretation of human rights in China and when the trade sanctions only hurt the very Chinese people we are trying to help. But do not listen to me, listen to what ordinary Chinese citizens are saying to the New York Times Beijing bureau chief. He says: Talk to Chinese peasants, workers, and intellectuals and on one subject you get virtual unaniminity: Don't curb trade. For this reason, I encourage Members to vote yes on H.R. 4891. Mr. GILMAN. Mr. Chairman, I yield 3 minutes to the gentleman from Virginia [Mr. Wolf]. (Mr. WOLF asked and was given permission to revise and extend his remarks.) Mr. WOLF. Mr. Chairman, let me just stipulate that there are good and decent Members on both sides, and I believe that very deeply. And they both share the same goal. Let me just say, as I was thinking, siting out there, what would we be doing in the Congress today if we were debating MFN in 1933 for Germany? What would we be doing? We went back and got some telegrams and memos from Cordell Hull. On March 3, 1993, Cordell Hull reveals he had received reports that the entire Jewish population was ``living under the shadow of a campaign of murder'' scheduled to begin in a few days, but he ``paid no credence to them.'' The second cablegram, March 21, 1933, although the State Department admits the United States press was reporting widespread mistreatment of Jews in Germany, ``telegrams thus far received from the embassy do not appear to bear out the gravity of the situation.'' March 24, 1933, despite receiving pleas to take up the issue of the German Government, Cordell Hull was ``of the opinion that outside intercession rarely produced the results desired and that frequently aggravated the situation.'' I am enclosing for the Record those cables and also the New York Times article that said, in it, he stated, ``in the opinion of the embassy, stabilization has been reached in the field of personal mistreatment, and there are indications that in other phases, the situation is improving.'' {time} 1800 Mr. Chairman, we all know what happened after that. Please understand that I am not suggesting that the People's Republic of China in the 1994 version of the genocidal Nazi Germany. But as in the 1930's, when there was an unwillingness to believe the human rights violations could be occurring, I fear the world today may be naively turning away from the ongoing brutal repression in the PRC. The world should not be silent in 1994 as it was 1933. If this bill fails, the issue of MFN for China may never come up again. The Chinese people will continue to be thrown into prison because if they dare to think independently, the Chinese military will continue to defy international pressure to improve its behavior, the Chinese martyrs will continue to believe that no one is there to comfort them, and the memories of Tiananmen will continue to fade. Mr. Chairman, I must say that my sense is that many of the businesses, although they are good businesses, will no longer speak out. I really have not heard of the business community, which I generally support in this speaking out on this issue. In fact, I have been getting cablegrams from our intelligence agencies that have been saying the business communities have been very silent when they meet with the Chinese Government. Mr. Chairman, I would urge my colleagues to support this, and hope that whatever we do, we will be vigilant on this issue from here on into the future. Mr. Chairman, I include for the Record copies of telegrams and articles describing the situation regarding Jewish persecution in Germany: Department of State, Washington, March 3, 1933. The following appeared as an ASSOCIATED PRESS dispatch from London today in the PUBLIC LEDGER, Philadelphia: ``London Daily Herald said today plans were complete for Anti-Jewish program in Germany on a scale as terrible as any instance Jewish persecution in two thousand years.'' The paper ascribed its information to ``high source'' and ``whole Jewish population of Germany totaling six hundred thousand is living under shadow of a campaign of murder which may be initiated within a few hours and cannot be postponed for more than a few days''. While this Government is disinclined to lend credence to this report, it is causing widespread distress among a large section of the American people. You may, in your discretion, talk the matter over with the German Government and acquaint them with the apprehension and distress that is being felt here. ____ Department of State, Washington, March 21, 1933. Press reports indicating widespread mistreatment of Jews in Germany, are causing deep concern and even alarm to a large section of our population. This is showing itself not only in press comment, but in a series of meetings and conferences, the most important of which is to be a mass meeting scheduled in New York for March 27. A delegation of important Jewish leaders called at the Department this afternoon. Telegrams thus far received from the Embassy would not appear to bear out the gravity of the situation reported above. It is important, however, for us to have an exact picture of what is taking place. Please therefore telegraph us the facts as you see them, after consulting the principal Consulates, by telephone if necessary, with a view to ascertaining the situation throughout different parts of the country. ____ Department of State, Washington, DC, March 24, 1933. Public opinion in this country continues alarmed at the persistent press reports of mistreatment of Jews in Germany. We are under heavy pressure to make representations in their behalf to the German Government. I am of the opinion that outside intercession has rarely produced the results desired and has frequently aggravated the situation. Nevertheless if you perceive any way in which this Government could usefully be of assistance, I should appreciate your frank and confidential advice. On Monday next there is to be held in New York a monster mass meeting. If prior to that date an amelioration in the situation has taken place, which you could report in form susceptible of release to the press, together with public assurances by Hitler and other leaders, it would have a calming effect. ____ [From the New York Times, Mar. 27, 1933] Nazis End Attacks on Jews in Reich, Our Embassy Finds Washington, March 26.--Mistreatment of Jews in Germany has virtually ceased, according to Secretary of State Hull, who conveyed this information today in telegrams to Dr. Cyrus Adler of Philadlphia and Rabbi Stephen S. Wise of New York, who came to Washington last week to protest against German treatment of Jews. Mr. Hull said Germans felt that such a far-reaching political readjustment could not have taken place without some delay in reaching a state of equilibrium. The situation was improving, he asserted, largely as the result of demands for discipline by Chancellor Hitler and also the reiteration by Vice Chancellor von Papen of the necessity for a cessation of individual depredations. The Secretary of State will continue to watch the situation, he said, but felt hopeful that conditions would soon become normal. Secretary Hull's telegram to Rabbi Wise and Dr. Adler follows: You will remember that at the time of your recent call at the department I informed you that, in view of numerous press statements indicating widespread mistreatment of the Jews in Germany, I would request the American Embassy at Berlin in consultation with the principal consulates in Germany to investigate the situation and submit a report. A reply has now been received indicating that whereas there was for a short time considerable physical mistreatment of Jews, this phase may be considered virtually terminated. There was also some picketing of Jewish merchandising stores and instances of professional discrimination. These manifestations were viewed with serious concern by the German Government. Hitler, in his capacity as leader of the Nazi party, issued an order calling upon his followers to maintain law and order, to avoid molesting foreigners, disrupting trade, and to avoid the creation of possibly embarrassing international incidents. Later, von Papen delivered a speech at Breslau in which he not only reiterated Hitler's appeals for discipline but abjured the victors of the last election not to spoil their triumph by unworthy acts of revenge and violence which could only bring discredit upon the new regime in foreign countries. As a result, the embassy reports that the authority of the regular police has been reinforced. The feeling has been widespread in Germany that following so far-reaching a political readjustment as has recently taken place, some time must elapse before a state of equilibrium could be re-established. In the opinion of the embassy, such a stabilization appears to have been reached in the field of personal mistreatment, and there are indications that in other phases the situation is improving. I feel hopeful, in view of the reported attitude of high German officials and the evidences of amelioration already indicated, that the situation, which has caused such widespread concern throughout this country, will soon revert to normal. Meanwhile, I shall continue to watch the situation closely, with a sympathetic interest and with a desire to be helpful in whatever way possible. Cordell Hull, Secretary of State. ____ Leaders Reply to Hull The American Jewish Congress, through its officers, announced last night that the organization had replied to Secretary Hull's telegram. The text of the reply was as follows: In the name of the American Jewish Congress we wish to thank you for your prompt report on the situation in Germany, which confirms our fears that there has been ``considerable physical mistreatment of Jews, picketing of Jewish merchandising stores, and instances of professional discrimination.'' The American Jewish Congress notes your statement that Hitler ``has issued an order calling upon his followers to maintain law and order, to avoid molesting foreigners, disrupting trade and to avoid the creation of possibly embarrassing international incidents.'' We are deeply grateful for your assurances that you will continue to watch the situation closely with a sympathetic interest. For we feel that, in view of the official program of the Nazi party and its record of thirteen years disseminating hatred against the Jewish people, the Jews of Germany are in great and imminent jeopardy of life and property, of civil rights and religious liberty. Until the status of the Jewish citizens of Germany is safeguarded and the position of the non-national Jews is secured, the enlightened opinion of America must watch with profoundest anxiety the development of events in Germany. May we repeat what we emphasized in the course of our visit to the State Department, namely, that we are moved by no feeling of unfriendliness or ill will to the German nation. Our concern is for the security of the Jews of Germany and the safeguarding of their human and political rights. Stephen S. Wise, Honorary President. Bernard S. Deutsch, President. The American Jewish Congress. ____ Neurath Denies Rumors Berlin, March 26.--Foreign Minister Constantine von Neurath, ordinarily the Hitler Cabinet's silent man who seldom receives journalists, broke his silence today to throw the entire weight of his internationally known personality against what he considers ``the deliberate, sudden rebirth of the vilification campaign conducted during the World War against the German Government.'' Speaking quietly, but with an inner emotion that even his composed attitude of a man of the world could not hide, he declared: ``It is my duty, both because I must defend the honor of my people and because I am a responsible statesman, to warn the world against permitting the baneful spirit of calumny in vogue during the war to flare up again.'' To a general question regarding the Federal Government's attitude toward news published in the foreign press or alleged acts of terror committed against different-minded persons, and especially Jews, Baron von Neurath replied: ``Even the best organized administrative apparatus would not suffice to go to the bottom of each and every one of these malicious false reports and deny them. ``I find no other explanation for the present propaganda unloosed against the German Government than to consider it a deliberate, sudden rebirth of the vilification campaign conducted during the World War. ``Just as Belgian atrocity stories then mentioned chopped- off children's arms, so there is talk today of allegedly gouged eyes and cut-off ears. One would really think that the foreign public, which meanwhile realized the untruth of the World War atrocity stories, would not so easily again be deceived by a new dishing-up of similar fairy tales. socialists found uninjured ``How absurd such propaganda is you yourself experienced Tuesday. That very morning you could read of unbelievable atrocities committed on Messrs. Breitscheld and Wels, but in the afternoon you had the opportunity with your own eyes to see these two gentlemen participate in the Reichstag session. [Dr. Rudolf Breitscheld and Otto Wels are Socialist members of the Reichstag.] ``It would seem to me that this one reference renders unnecessary my dwelling on other details. ``If at the beginning of the national revolution certain excesses may have been committed by isolated individuals, then that is certainly regrettable. At the same time it must be said that never in history did a revolutionary upheaval occur like that which now is completed in Germany without an accompaniment of certain hardships. ``According to my opinion, the German people gave proof of their tremendous innate discipline by the fact that such arbitrary individual acts took place only in a few cases, and even then only in comparatively mild form. ``You will yourself have noticed that the energetic appeals by the Reich's Chancellor and Minister Goering, who several days ago decreed severest penalties for such like arbitrary acts by individuals, were thoroughly and unqualifiedly successful and that no more cases of unauthorized procedure became known. ``As concerns Jews, I can only say that their propagandists abroad are rendering their co-religionists in Germany no service by giving the German public, through their distorted and untruthful news about persecution and torture of Jews, the impression that they actually halt at nothing, not even at lies and calumny, to fight the present German Government. ``Why, even a prominent Jewish banker told one of your American colleagues, `We reject all foreign interference. German Jews are hemen enough to help ourselves.' ``Actually, every visitor must agree that when he walks through the streets of Berlin even today he encounters Jews, poor as well as elegantly dressed, who are attending their business. Nobody has harmed them. says press was duped ``It is most regrettable that not only the yellow press but even some papers of the highest standing have permitted themselves to be duped by this propaganda. For instance, a big American sheet wrote several days ago that foreign correspondents must submit their reports to a censor. You must admit this was not the case. ``In those few instances where telegraph authorities, on the basis of an international treaty, held up reports of foreign correspondents, their news items were either untrue or so distorted that their publication indubitably had to be considered dangerous to the State. ``That in times like these steps were taken against them can be considered by nobody who thinks impartially as an arbitrary interference with the freedom of the press. Amicable relations between peoples are not served if the press degrades itself to an organ for irresponsible, malicious rumor mongering. ``When, therefore, in this very frank talk I have spoken so sharply against this sort of propaganda by the foreign press, I did it not only because I must defend the honor of my people but because as a responsible statesman I also have the duty to warn the world against permitting the baneful war- time spirit of vilification to flare up again.'' Mr. HAMILTON. Mr. Chairman, I yield such time as he may consume to the gentleman from North Carolina [Mr. Valentine]. (Mr. VALENTINE asked and was given permission to revise and extend his remarks.) Mr. VALENTINE. Mr. Chairman, I rise in support of the Hamilton substitute. Mr. Chairman, this is not a debate about whether or not the United States should promote human rights in China. Of course we should. We have a moral obligation to promote human rights in China. To turn our backs on more than a billion Chinese people would be to deny our own heritage and to dash the hopes of people around the world who have looked to the United States for inspiration. Our own interests also demand that we promote human rights in China. One in every five human beings on the face of the Earth is Chinese, and the course of human rights in that nation will have a profound effect on the rest of East Asia and indeed the world. This debate is about the best way to promote human rights in China. I readily admit that flexing our economic muscles by hitting the Chinese with immediate penalties is tempting. I have succumbed to that temptation in the past. But the satisfaction of slapping economic sanctions on the Chinese is likely to be transitory. The blunt reality is that the Chinese Government will respond by throwing up greater defenses rather than by giving in to outside pressure. In the end, we could punish American consumers, workers, and businesses without helping Chinese citizens. There is a better way--and it is already working. The greatest weapon in our democratic, free market arsenal is the example we set. By increasing our economic activity in China, we will be allowing the Chinese population to see firsthand how our system functions. American companies operating in China are already providing educational, health care, housing and other benefits to Chinese employees. What better way to build a movement toward a Western-style economy and political system among Chinese citizens? Those American initiatives, still in their infancy, will grow if our economic relations with China are allowed to grow. The result will be expansion of American businesses, more American jobs, a better deal for American consumers, and an example that the Chinese will not be able to ignore. If, on the other hand, we try to use trade to solve a problem that it cannot solve, everyone will lose. We should not encourage Chinese Government hardliners to crack down further to protect themselves. And we should not allow our competitors in Europe and especially Japan to expand unchallenged in the largest market in the world. Mr. Chairman, the time has come to replace a policy that will not work with one that will. The time has come to reach out to the Chinese people directly. Let us show some confidence in the power of our own system. I urge my colleagues to support the Hamilton substitute and oppose the Pelosi substitute. Mr. HAMILTON. Mr. Chairman, I yield 1 minute to the gentleman from Iowa [Mr. Lightfoot]. (Mr. LIGHTFOOT asked and was given permission to revise and extend his remarks.) Mr. LIGHTFOOT. Mr. Chairman, I thank the gentleman for yielding time to me. Mr. Chairman, I rise in support of the Hamilton amendment. I had prepared a substitute amendment of my own which I was prepared to offer today. However, I am pleased to say that Mr. Hamilton has incorporated into his amendment the main features of my proposal as well as those of other Republican Members. My substitute emphasized three principles which are now embodied in the Hamilton substitute. First, seeking areas where we can work to improve democracy in China right now. They include village reform, rule of law, and corruption. Second, expanding discussions with China on economic and trade issues. Finally, working with nongovernmental and multilateral organizations to raise the level of international concern about human rights in China. The Hamilton amendment gives this House the opportunity to demonstrate a commitment to human rights and democracy in China that does not have to resort to the tired, failed policy of constant confrontation. Mr. Chairman, no one in the House disagrees on the problems in China. Its human rights violations and predatory trade practices are well documented. Where we all appear to honestly disagree is in the approach we should take toward our goals in China I give Bill Clinton a lot of credit for his May 26, 1994, decision to renew most-favored-nation status for China and end its linkage with human rights. His decision recognized the fact that American policy toward China must be viewed within the context of many different issues and his decision provided a direction to address human rights and the other issues which divide our two countries. It is unfortunate the media decided to portray the President's decision as a victory for ``business over human rights.'' It is just not that simple. Human rights should continue as an important aspect of our policy toward China. But I also think we need to end this annual brinksmanship on MFN renewal. A large number of House Members share that view. In May, 104 House colleagues joined Jim McDermott and me in a letter to President Clinton supporting unconditional renewal of MFN to China and urging the President to consider the creation of a bilateral human rights commission with China. The Pelosi approach and the Hamilton approach are not complementary. The Pelosi approach proposes to sanction the Chinese but in a way that is both unworkable and detrimental to our efforts to enforce NAFTA and maintain our borders. The Hamilton amendment takes a long-term, realistic approach. It is not a policy which seeks immediate gratification, but it is a policy which will achieve results. I urge House Members to join us in this new direction by supporting the Hamilton amendment. Mr. GILMAN. Mr. Chairman, I am pleased to yield 2 minutes to the gentleman from California [Mr. Hunter]. Mr. HUNTER. Mr. Chairman, I thank the gentleman for yielding me this time. Mr. Chairman, I have heard a lot of Members stand up on this floor and say that this is a matter of economic benefit for the United States. Let me remind my colleagues, to start our with, we are not talking about a $30 billion trade surplus for our workers. That would mean that we would be employing about 750,000 more workers with respect to trade than the other side. We are talking about a $30 billion trade deficit with China. That means if we talk about 25,000 jobs per billion dollars of economic activity, we have a jobs deficit with China, a jobs deficit which, if eradicated, would mean some $750,000 jobs for American workers. Mr. DREIER. Mr. Chairman, will the gentleman yield on that point? Mr. HUNTER. Mr. Chairman, I am not going to yield to the gentleman at this time. I am happy to meet with him in debate later. Mr. Chairman, let me remind my friends, we are talking about 750,000 jobs that Americans could have if we did not have that deficit, Mr. Chairman. However, let us go to the heart of this issue. The heart of this issue is principle. An American President and an American candidate for the Presidency laid down a set of standards for the Chinese Government to follow, to hold the Chinese Government up to, and those standards we told them in no uncertain words would determine whether or not we would give MFN status to that government. They have failed to meet the standard. The credibility of American foreign policy will be on the line if we go ahead and give them this status in light of their failure, and we are going to see failures around the world with other countries in exactly the same situation if we do not discipline ourselves to hold ourselves to the standard that we set. Mr. Chairman, it has been said that if we give up this principle, in this case, we are going to get an economic benefit. I quarrel with that, but I think that any nation that gives up its principles to get a perceived economic benefit is going to end up with neither. Mr. HAMILTON. Mr. Chairman, I yield 1\1/2\ minutes to the distinguished gentleman from California [Mr. Dreier]. (Mr. DREIER asked and was given permission to revise and extend his remarks.) Mr. DREIER. Mr. Chairman, I thank my friend, the gentleman from Indiana, for yielding time to me. Mr. Chairman, I rise in very strong support of the Hamilton amendment. When President Clinton announced his comprehensive China policy on May 26, he set forth a clear strategy to achieve the goal that we all share. Mr. HUNTER. Mr. Chairman, will the gentleman yield? Mr. DREIER. I am pleased to yield to the gentleman from California. Mr. HUNTER. Mr. Chairman, will the gentleman yield on my point that we have about a 750,000 job deficit on China? Maybe he would like to respond to that. Mr. DREIER. Mr. Chairman, if I could reclaim my time, what I was trying to ask my friend is would he claim that those 750,000 jobs would all be right here in the United States? They would not be in other countries, in Indochina, they would not be in Latin America? Mr. Chairman, the fact of the matter is that they would be. Mr. HUNTER. Mr. Chairman, if the gentleman will let me answer, yes. Mr. DREIER. Mr. Chairman, if the gentleman would make a claim that that trade imbalance is all of a sudden going to create a tremendous number of jobs here in the United States, that is a tremendous amount of baloney. Mr. HUNTER. Mr. Chairman, my answer is yes, if we had a well-reasoned trade policy, those jobs would be in the United States, and this vast ocean of people who are on welfare in the United States, those people would have jobs. Mr. DREIER. Reclaiming my time, Mr. Chairman, it is absolutely ludicrous to believe that we in the United States would be creating or manufacturing the kinds of goods that are created in China and other low-wage countries, because American workers are not going to be doing them. That is why this whole argument of this trade imbalance is absolutely ludicrous. Mr. HUNTER. If the gentleman will yield, Americans have the right to buy from whoever they want to, if Americans want to buy from them. Mr. DREIER. I am happy to further yield to the gentleman from California. Mr. HUNTER. If they have that particular policy, yes, those 750,000 jobs that we are now in deficit to Red China on could be American jobs, my answer is yes. Mr. DREIER. Mr. Chairman if I could reclaim my time, the gentleman is absolutely wrong, but I thank him for his very helpful contribution. Mr. Chairman, I rise in support of the Hamilton amendment. When President Clinton announced his comprehensive China policy on May 26, he set forth a clear strategy to achieve the goal we all share--to foster better human rights in China. The Hamilton amendment incorporates that comprehensive strategy. It is unquestionably the best, most humane, most effective human rights policy. We face a choice between feeling good, and doing good. Trade sanctions make us feel better, but they hurt the very people we want to help. The Hamilton amendment will focus diplomatic resources on improving human rights in China. In addition, it will encourage the continued development of a market economy in China--the real hope for democracy and human rights. Nicholas Kristoff, NY Times Beijing bureau chief, reported in May that if you talk to ``Chinese peasants, workers and intellectuals, on one subject you get virtual unaniminity: Don't curb trade.'' Those same peasants, workers and intellectuals would add: ``Support the Hamilton amendment.'' Mr. GILMAN. Mr. Chairman, I am pleased to yield the remainder of my time, 4\1/2\ minutes, to the gentlewoman from California [Ms. Pelosi]. Ms. PELOSI. Mr. Chairman, I thank the gentleman from New York, the ranking member of the Committee on Foreign Affairs, for yielding this time to me. Mr. Chairman, I rise in opposition to the Hamilton resolution. Before speaking in opposition to it, however, I want to correct some representations that were made about my legislation on this floor. Mr. Chairman, first of all, in the remarks of the gentleman from Indiana [Mr. Hamilton], Mr. Hamilton said some damning remarks from Secretary of Commerce Ron Brown, saying that if we issued these sanctions against China terrible things would happen, both political and economic. Mr. Chairman, the fact is that if we carry that to the next step, we are saying that we, the United States of America, cannot issue sanctions against China for trade violations as well. Right now we are giving China until the end of the year to deal with the gross violations and piracy of our intellectual property. If they do not comply, we in the United States will issue sanctions. Mr. Chairman, is the message that the gentleman from Indiana [Mr. Hamilton] and the Secretary of Commerce are making, is the message that they want to go forward that we will never issue sanctions for fear of retaliation, both political and economic? I certainly hope not. However, Mr. Chairman, if it applies to intellectual property, it should apply in terms of human rights. If we can apply sanctions in one case for intellectual property, we should be able to apply them to intellectuals who are under arrest for professing their religious and political beliefs. In addition to that, Mr. Chairman, I want to correct misrepresentations that our bill is not implementable, and that the Comptroller of the Customs Office is incapable of figuring out what companies are fronts for the People's Liberation Army and the Chinese industrial companies. In fact, Mr. Chairman, the Chinese military advertises. They send out catalogs. It would take a 7-year-old who knows how to read to know what many, many, many of the companies are. I have them here for Members' review. It would take too much time to go through all of the names of their export commodities and the companies that would be easy for the Comptroller of the Customs to identify. {time} 1810 In turn if this bill is implemented, the tens of millions of dollars that it would reap could go into customs for them to be able to control the customs, because clearly they are having a problem now. The Chinese have bribed, and the customs officer was convicted, of receiving over $1 million in bribes from the Chinese Communist government. Mr. Chairman, we have the names of the Chinese military industrial companies. The Defense Intelligence Agency produced a chart and the software to determine who these companies are. We did not issue this sanction frivolously, or put this in this legislation frivolously. Others have said it could apply to $18 billion. The legislation clearly uses the figure of $5 billion, \1/8\ of the products coming in from China to the United States. Mr. Chairman, fair is fair. Let us debate the issue. What priority do we give human rights in the scheme of things? How related to the fate of American workers are the human rights of others abroad? As I have said before, if countries repress their workers' rights, they will repress their workers' wages, putting our workers in unfair competition. I can assure Members that if the Hamilton amendment prevails today, in 2 or 3 years the United States will have a trade deficit with China which will surpass our trade deficit with Japan. Mr. Chairman, think about where we go from here. With all due respect to the distinguished chairman of the Committee on Foreign Affairs, his legislation is nothing, it does nothing, and if that is what Members want to vote for, then I understand that. But let us not represent that it is part of any comprehensive China policy. It is what it is, it says that we are going to give money to human rights groups in China? People who speak out for human rights in China are in jail in China. As I said earlier, the last person who met with a U.S. representative of our Government, Wei Jingsheng, has not been seen since. He is under arrest and being discredited by the Chinese regime. Let me talk again about some other points. They talk about putting up to $5 million in Voice of America. Congress has already passed them by on this. We voted 318 votes in support of $10 million for Radio Free Asia, over the objections of the administration. The administration had said on the day of President Clinton's announcement that Radio Free Asia was going to be a priority of the administration. When the vote came to the floor, they said, ``We have other priorities.'' Mr. Chairman, we have been down this road. The bill does very little. If Members want to do nothing, vote for Hamilton. If Members want to take a tax break from the Chinese military, vote for Pelosi. Mr. HAMILTON. Mr. Chairman, I yield 1 minute to the distinguished gentleman from Minnesota [Mr. Oberstar]. Mr. OBERSTAR. Mr. Chairman, this is one of the more difficult foreign policy issues the country and this Congress will face, difficult because perhaps the sentimental vote would be to vote for heavier economic sanctions. But after careful deliberation on the merits, and I have given this a great deal of thought, I do not see how we can isolate 1 billion people with economic sanctions. We cannot shut them out of the world economic or political community. We certainly cannot do it alone, and we will not do it alone. We will more effectively open up China and move that society toward openness through trade, integrating China into the world economic community. In the aviation sector alone, the United States has considerable access to this market. Last year one out of every seven aircraft Boeing produced was sold and delivered to China. The estimates are that China will need $40 billion in new aircraft by the year 2010. Mr. Chairman, 45,000 American jobs have been generated from our aerospace industry trade with China. I think the way to continue opening up China is through trade that opens doors rather than closes them. Mr. HAMILTON. Mr. Chairman, to close the debate, I yield my remaining time to the gentleman from Washington [Mr. Foley], the distinguished Speaker of the House. The CHAIRMAN. The distinguished Speaker is recognized for 4 minutes to close the debate. (Mr. FOLEY asked and was given permission to revise and extend his remarks.) Mr. FOLEY. Mr. Chairman, I rise in support of the Hamilton substitute to H.R. 4590. I believe we must improve human rights in China while at the same time preserving our common interests with China. The President's executive order on MFN for China is a good one, and the substitute reinforces the President's policy. I want to commend my colleagues for their serious and obviously very sincere attention to this important and understandably emotional issue. I want to particularly pay credit to the gentleman from New York and the gentlewoman from California who have such deep personal concerns and an abiding commitment to their belief of what is right in supporting human rights in China. This debate has been grounded in principles and convictions, and I think that makes it a good and important debate, but I believe, Mr. Chairman, that it is especially important for us to support the broad foreign policy interests of the United States as well as supporting human rights. The President of the United States has been criticized in some quarters for an inconsistent or vacillating foreign policy, but he faces, as all Presidents do, difficult and sometimes almost intractable problems. Certainly the most important and difficult problem we face today internationally is the potential problem of confrontation with North Korea, and here the support and assistance of China has been essential in moving forward to develop an international consensus of how to deal with this serious and potentially destructive problem. In addition, on issue after issue, China as a member of the Security Council is in a position to be of assistance in the orderly resolution of international concerns and problems, and we have had time and time again--from the Gulf war until recent days--the evidence of China's willingness to be cooperative. But that can change. We need not jeopardize our relationship with China in order to support human rights. The question is not whether we will support other issues, such as the issues of our interest in expanding trade and in reaching solutions with China on missile technology and proliferation as well as human rights. We do not have to sacrifice a lack of concern and a lack of influence with respect to China on human rights in order to obtain other objectives in our relationship. Mr. Chairman, I do not believe that sanctions against trade will add to the protection of human rights in China. The fundamental problem is that it is by expansion rather than by retraction of trade that we are most likely to influence the Chinese in a positive direction toward the respect of human rights. What is our influence going to be if we were to take the draconian action of cutting or even severely restricting trade? Our word, our influence, our position , the position of our citizens will be less important in China than it will be if trade is expanded. If we give the ordinary Chinese worker and businessperson the opportunity to share in expanded trade, all of our recent experience has indicated that that rising economic interest, that expansion of trade, has broken down political resistance and restrictions on human rights in country after country. {time} 1820 Our experience in Eastern Europe and the Soviet Union, virtually everywhere, has been that where there has been expanding economic opportunity, there has been a greater respect for human rights. So the choice today is not between throwing away the interests and concerns that we rightfully have to advance human rights in China, but to do it in a way that is compatible with our other interests and concerns. We can do both. That is why the voluntary code of conduct embraced and applied by American business is such a good idea. That is why the Hamilton substitute is such a wise and I think important alternative today in this debate. Expanded trade will, I believe, take hold on fertile soil. The Chinese are yearning to participate in a broader economic opportunity. By expanding trade we will give ourselves the best change to influence them, their government, and their people toward expanded human rights. I urge the support of the Hamilton substitute. It is the right time, the right policy; it is the right strategy for our long-term goals and to maintain our essential relationships with China and advance, not restrict, the human rights movement in China so important to this debate and to all of us. Mr. FRANKS of Connecticut. Mr. Chairman, I rise today in reluctant opposition to the Solomon and Pelosi measures which disapprove the extension of most-favored-nation status to the Peoples Republic of China. In the past, I have traditionally supported the legislation before us today. While I am still very concerned about human rights abuse in China, I am no longer convinced that revoking MFN status provides the correct answer. In fact, the termination of MFN may lead to a substantial deterioration of human rights in the Peoples Republic of China. I certainly have strong reservations about granting MFN status to any nation that exhibits the current practices of the Chinese Government. However, I believe we can better improve the situation in China by exposing the Chinese people to free market principles and Western ideals. Historically, the Chinese have reacted negatively to isolationism. Revoking MFN, in my opinion, would be counter productive from a human rights standpoint. Economic sanctions would harm the emerging Chinese private sector. Sanctions would serve to weaken those individuals in China who are championing the cause of economic and political freedom. The United States currently has substantial economic interests in China. The United States currently exports about $10 billion in United States goods and services to the Peoples Republic of China. Revoking MFN status would seriously jeopardize one of the fastest growing export markets for United States manufactured goods. An export State like Connecticut would be devastated by passage of this legislation. It is important to view United States-China relations from a national security standpoint. China is a permanent member of the U.N. Security Council and a very influential member of the international community. I believe that maintaining strong relations with the Chinese Government is in the best interest of the United States. Again, I have come to the conclusion that increased trade and the continued presence of Western business is the best way to bring about reform. Many of my colleagues will try to suggest that supporting MFN for China represents opposition to human rights. As a strong advocate of human rights, I want to say that nothing could be further from the truth. There is not one Member of Congress that would not like to see an end to the human rights abuses in China. Since I have been on the other side of the fence on this issue, I certainly understand the arguments and rationale of the other side. However, after carefully reviewing this issue, I believe that promoting capitalism offers the Chinese people the best prospect for freedom. In closing, I urge my colleagues to make the rough vote and do what is best for the Chinese people. Support the Hamilton substitute and oppose the Solomon and Pelosi resolutions. Mrs. LLOYD. Mr. Chairman, I rise today in support of the Hamilton Amendment to H.R. 4590 which would reinforce the President's decision to de-link human rights with most-favored-nation status for the People's Republic of China. Human rights violations in China and other developing nations have always concerned me. The citizens of the PRC face some of the most oppressive conditions in the world. Freedom of thought, expression, association, and religion are rights on which this country was founded, and rights which the Chinese still hope to achieve. Many of my colleagues have argued that such blatant abuses of human rights warrant the removal of MFN status. In fact, in the past I have voted against extension of MFN for China for these same reasons. However, as I have studied the issue more closely over the past year and consulted with many of my colleagues in Congress and academia, I have reconsidered my opposition. Since the Chinese Government enacted economic reforms in 1979, the PRC has begun an incredible transition. Premier Deng Xiaoping could not have imagined that in 1994 he would be presiding over the fastest growing economy in the world. As the Chinese people continue to gain affluence, I believe the Communist government will have a much more difficult time suppressing the desire for basic human rights. As history has shown, ideas follow trade. I believe economic and political engagement is the best course to promote democratic ideals, rather than by withdrawing our growing presence in China. The Hamilton alternative offers a realistic, multilateral means of promoting human rights, such as working through forums like the U.N. Human Rights Commission, rather than actions like economic sanctions which will be counterproductive. It also preserves the broad range of security, diplomatic, and economic interests that we share with China, rather than provoking the Chinese Government into retaliation against United States companies doing business there. Trade in China is a very difficult issue. However, as we attempt to settle this issue once and for all, Congress must carefully balance the interests of United States businesses which seek to take advantage of the enormous Chinese market with the desire to improve human rights in the world's most populous nation. I believe the Hamilton Amendment strikes that balance. Mr. BALLENGER. Mr. Chairman, I rise in support of continuing most- favored-nation [MFN] trade status with China. I, therefore, oppose any legislation that attempts to overturn the President's decision to extend MFN status or that places economic sanctions on China. However, we should not remove the issue of human rights from the picture. We must continue to pursue human rights as an important foreign policy objective and implement new initiatives to strengthen the current focus. We must continue to engage the Chinese actively on human rights on a broad front through diplomatic, multilateral and nongovernmental means. These contacts, combined with aggressive efforts to promote human rights, are more likely to encourage constructive change in China. I firmly believe that the United States can do more to advance the cause of human rights and protect other American interests if we engage the Chinese in political and economic cooperation and contacts. Social freedoms are a direct result of economic liberalization. However, by placing restrictions on or removing all of China's trade privileges, we are isolating that country will lose any chance of improving human rights in China. Perhaps as much as $17 billion in United States imports from China might be affected by removing MFN privileges. Retaliation by China would place at risk the approximately $9 billion in annual United States exports to China, as well as nearly 180,000 United States jobs. This would in turn greatly affect the U.S. economy. In the end, punishing China would be counterproductive from all perspectives. I am supporting Representative Hamilton's substitute to maintain MFN trade status for China. This substitute would fund programs to promote human rights; authorize increased funding for broadcasting to China; urge United States businesses to adopt a voluntary set of principles to govern their activities; and authorize the President to establish a commission to monitor human rights conditions in China. Mr. Speaker, we must not isolate China, continue MFN trade status. Mr. DOOLEY. Mr. Chairman, I rise today to express my opposition to efforts to link extension of most-favored-nation trading status for China to human rights practices. I fully support President Clinton's position that human rights improvements can be made through other more effective means. China is becoming an increasingly important trading partner for the United States. While it is clear that human rights violations continue to be a problem in China, cutting off trade relations will not improve their situation. Instead, the United States needs to remain an active economic participant with China and keep communication open. There is no doubt that the Chinese government would retaliate against the United States for cutting off MFN status. With the United States becoming an increasingly important market for Chinese products, there is no doubt that retaliation would be severe. Efforts to increase United States exports to China would be damaged. The United States business community overwhelmingly supports extension of MFN-status for China because they recognize the importance of this large market for increased sales. The economic well-being of the U.S. lies in our ability to continue to build and maintain international markets. Severing relations with China is counter- productive in this effort. The President has laid out a comprehensive plan to improve human rights practices in China. This plan includes increased international broadcasts to China, development of a set of voluntary principles for doing business in China, and expanded multilateral efforts to improve human rights in China. In closing, it would be easy to vote to deny MFN-status for China and think that we were making progress in addressing the very serious human rights problems in that country. However, that vote would not materialize into actual changes in China. By remaining engaged and renewing our commitment to work toward improved human rights conditions in China we are benefiting both the citizens of China and the United States. I urge my colleagues to vote to support the President's policy on China MFN. Mr. FALEOMAVAEGA. Mr. Chairman, I have the deepest and utmost respect for my colleagues the gentlewoman from California [Ms. Pelosi] and the gentleman from New York [Mr. Solomon] for their leadership and concerns on the issue that is before us. Obviously, the question of granting MFN status for China is not one that can be easily labeled as black or white--there are many grey areas that just cannot be defined in simple terms. Yes, China has serious human rights problems--but so is the fundamental right to provide a basic meal for some 1.3 billion people living in the most populous nation on Earth. Mr. Chairman, since the founding of the People's Republic of China in 1949, the population of that country was at 400 million--almost double the population of our country today--but some 45 years ago. If we are asking China to make improvements on its human rights record, are we also exacting the same expectations from other nondemocratic countries? Is this institution placing appropriate pressures on the State Department and the President to make sure that human rights issues are evenly applied against those countries with similar records? Mr. Chairman, my understanding in discussing the MFN issue with Chinese officials is simply this--if you, the Congress and President of the United States do not grant MFN status, obviously it will affect our economy, but we will continue to do the best we can under the circumstances. But it is your decision to make, not ours. And quit being so arrogant and self-righteous about human rights violations-- examine your own history and see how long it took for certain segments of your society to have their civil rights finally recognized and restored. Mr. Chairman, China several weeks ago did in fact explode an underground nuclear device, and much against the wishes of the nuclear- club countries, including our own Nation. But, Mr. Chairman, let's examine the record. Since 1945, the United States conducted 215 nuclear explosions in the atmosphere, and 812 nuclear explosions underground. Since 1949, the former Soviet Union exploded 207 atmospheric tests and 508 underground tests. France, since 1961, conducted 45 atmospheric tests and 147 underwater detonations. For China, since 1964, PRC has exploded 23 atmospheric tests and 17 underground detonations. Mr. Chairman, the record speaks for itself. Mr. Chairman, I support the President's policy on China and after careful examination of the legislation, I believe Chairman Hamilton's bill best provides a balanced focus not only of our fundamental foreign policy toward China, but to promote and enhance a market economy not only for China, but for as many countries throughout the world. Mr. Chairman, even the major dissidents in China support MFN status for China. Mr. Chairman, the Hamilton substitute works toward progress in human rights in China without exacting a terribly high price: the loss of face of the Chinese government, with the undermining of SINO-United States relations the net result. The Hamilton measure supports engagement with China by increasing funds for USIA exchange programs and radio broadcasting to the country, and reinforces the President's call on the United States business community in China to promote human rights with a voluntary code of conduct. The bill further encourages the establishment of a commission to monitor human rights advancement in China. These are good and constructive steps that will ensure that human rights progress shall continue in China, while fostering a strong and cooperative relationship between our nations to address the spectrum of interests we share. I cannot more strongly urge our colleagues to support the Hamilton substitute. Mr. MICHEL. Mr. Chairman, I rise in opposition to H.R. 4590 which would provide conditions for renewing most-favored-nation treatment for the People's Republic of China. Let me begin with a story that might put this debate into context: The great American journalist, H.L. Mencken, used to receive a lot of mail from critics and supporters of his controversial views. Because of the great volume, he was unable to answer all of them individually. So he came up with an all-purpose answer which he sent to anyone who wrote to him, supporter or critic. This is what it said. Dear Sir or Madam: For all I know, you may be right. Sincerely, H.L. Mencken. I feel the same way about the proposal offered by Ms. Pelosi. For all I know it may be right, but I don't think so. I disagree with the bill because I do not believe it will work. And I believe that if it were ever passed, the Chinese Communists would take its very passage as an unacceptable diplomatic rebuff. They would retaliate against American workers and employers, not to mention the Chinese who support free enterprise. But there is no way we can be certain of these things. Each of us has to look at the complicated issues and then make up his or her mind. There is no moral high ground in either position. Each side is trying to help human rights. I happen to believe the course followed by President George Bush and now by President Clinton is the right course, a course of engagement. The United States exported over $8 billion worth of goods to China last year. Those exports supported 150,000 American jobs. Why put those jobs at risk? In my view, we cannot risk walking away from our relationship with such an historically great and potentially powerful people as the Chinese. Equally important, the Chinese people can't risk it. Do the Chinese Communist leaders benefit by the current arrangement? Of course they do. No one denies that, but this benefit to the Communist leaders is, in my view, a short-lived one. It is a side-effect of a powerful medicine whose long-range effects can eventually cure the evil of human rights abuses in China. The name of that medicine is economic freedom. Taken in consistent large doses, over a long period of time, it can help to bring economic and political health to the Chinese people. So I urge our colleagues to vote no on this well-intentioned, but, in my view, ultimately unworkable bill. Mr. DICKS. Mr. Chairman, I rise in strong support of the balanced approach to our policy with China encompassed in the Hamilton substitute and in opposition to the approach advocated by the gentlelady from California. The President has undertaken what I believe is a prudent and effective approach to our relations with the People's Republic of China. He has clearly indicated his intention to pursue our very legitimate concerns in areas such as human rights, arms proliferation, and unfair trade. At the same time he has chosen not to abandon constructive dialog with the most populous nation in the world. He concluded that ending direct linkage between trade policy and other foreign policy goals, including promotion of human rights and nuclear nonproliferation, will enhance the prospect for success on all fronts. The Hamilton substitute codifies the steps that the administration pledged to undertake in May to demonstrate its continued commitment to human rights issues in China. It includes increased authorizations for Radio Free Asia broadcasts. It enhances United States support for Red Cross prisoner visits in China. It endorses a code of conduct for United States businesses operating in China. And it establishes a United States Commission on Law and Society in China to act as human rights watchdog. But it does not jeopardize our overall political and economic relationship in a way that could well prove counterproductive for both nations and undermine our ability to cooperatively deal with real crises such as the situation in North Korea. Currently, there is a sizable trade imbalance between our nations. To some extent that reflects unfair trade practices that we have to resolve, just as is the case with Japan and other nations. But to a very large extent this is more a reflection of shifting trends among East Asian exporters since our overall trade picture with the region has not dramatically changed. But importantly, we are on the threshold of fully tapping the immense Chinese market for American exports. China's economy is expanding two and one-half times faster than the economies of North America and Europe. Economists estimate that the $9 billion in goods and services we exported to China in 1993 translate into 170,000 jobs. The impact on the financially strapped aerospace industry is especially significant. In 1992 China was the only commercial aircraft customer for McDonnell Douglas. For Boeing, China represented 17 percent of its total sales, nearly matching all its domestic sales. For the future, industry analysts put the China aerospace market at $40 billion. Because of this high leverage, and high visibility, the Chinese have made no secret that aerospace industry will be the first to bear the burden of retaliation. But there are also sizable potential markets for a wide range of American products, such as computers, medical instruments, power generating machinery, and even apples, which were shipped to China for the first time recently. This potential will never be realized if we slip into a full-fledge trade war. H.R. 4590, the Pelosi bill, purports to take a middle approach that focuses on enterprises most closely linked to the Chinese Government. But the Department of State has advised us that the definition of state-owned enterprises included in the bill ``can be read to encompass almost the entire industrial base of China.'' It is certain to precipitate a long list of legal challenges over which firms should be on the list, and which should not. In addition, frequently those products of township and village enterprises go through wholesalers or exporters who would fit the state-owned enterprise definition, and thus undermine the very kind of grassroots small businesses we would like to see nurtured in China. On the other hand, major firms can creatively reorganize the skirt the definitions in the act. The bottom line is that the mechanism that H.R. 4590 seeks to establish is simply unworkable. President Clinton summed up the argument well in his August 4 letter to House Members: Legislation restricting MFN will isolate China, undermine U.S. interests from nuclear security to human rights and cost tens of thousands of Americans their jobs. Legislation supporting the Administration's policy will place our relations with China on sound footing and give us maximum leverage to bring about the change we seek in China. I urge support for the Hamilton substitute. Mr. LEACH. Mr. Chairman, I certainly concur with the thrust of the Hamilton substitute. The development of a civil society based on the rule of law is far more likely to advance human rights in China than the unilateral sanctions approach of the Pelosi bill. I would simply note that the administration crafted its initial Executive order approach precisely in order to obviate today's congressional action on China. That this body is again engaged in debate on China-MFN is an irony of extraordinary dimensions. In any regard, I want to turn to the most important issue in Sino- American relations today: cooperation in peacefully resolving the North Korean nuclear crisis. North Korea is clearly the paramount national security challenge confronting the United States today. In stark contrast to other regional trouble-spots such as Haiti--where no vital United States interests are at stake and no convincing rationale has yet been advanced for an American invasion--our interests in stability on the Korean peninsula and nuclear nonproliferation are both compelling and in jeopardy. It is premature to suggest that ``the crisis is over,'' and that China's role may yet prove peripheral. Bilateral negotiations with the DPRK are proceeding in Geneva. All of us naturally hope that a breakthrough will soon occur. But given North Korea's history of ignoring its commitments, great caution is in order. We must fully expect that in the weeks ahead North Korea will again seek to test American leadership and resolve. In this context, Sino-American cooperation will likely be crucial to any credible multilateral strategy for peacefully resolving the North Korean nuclear crisis. The reasons are obvious: China is a permanent member of the U.N. Security Council, it is an important actor in Northeast Asia, and it maintains the most extensive--though not always decisive--leverage with North Korea of any outside power. China remains North Korea's most important bilateral relationship. The two Communist parties maintain ties. A 1961 defense treaty remains in force. China is also the DPRK's largest trading partner. According to the Hong Kong daily Ta Kung Pao, China provides the DPRK with about 72 percent of all its grain imports, 75 percent of the petroleum, and 88 percent of all coal. Nevertheless, the United States and China share an impressive identity of interests in Korea. China clearly favors a nuclear-free Korean peninsula. It helped get North Korea to reach a safeguards agreement with the IAEA. It has not obstructed action in the U.N. Security Council and in one case even sponsored a relevant statement on North Korea. The PRC also has an interest in maintaining peace and stability in Korea. It has extensive interests in northeast Asia that would be jeopardized by conflict in Korea. North Korea is also a close neighbor, and the gateway to Manchuria, where a large Korean minority lives just across the border from the North. One would presume that as early as March 1993, when North Korea announced its intent to withdraw from the NPT, a compelling priority of United States foreign policy would have been to achieve an understanding with China--in close consultation with South Korea and Japan--on the need for firm, concerted steps to defuse the North Korean nuclear challenge. But such has not occurred. In part this has been a function of Washington's badly misplaced foreign policy priorities and its fatally flawed approach to China-MFN. But it is also a function of Chinese perceptions, both about of United States intentions--a mistaken belief we may be seeking to destabilize China as well as North Korea through a policy of peaceful evolution--and the nature of the North Korean nuclear problem. This helps explain why Beijing has often appeared aloof and ambivalent--rather than engaged and committed--as others grapple with this crisis. China may doubt whether North Korea truly seeks to develop nuclear weapons. Senior Chinese leaders evidently attached great weight to pledges to this effect made by the late Kim II-Sung. In addition, PRC- owned Hong Kong press reports suggest that Beijing does not believe there is any direct evidence that North Korea has developed an atomic bomb or bombs. That having been said, Pyongyang's actions in the weeks ahead could decisively affect key Chinese assumptions about the North Korean program. For example, China has genuinely angered and alarmed by Pyongyang's decision to defuel its 25mwt reactor. Beijing's objections were ignored. While China is relieved that diplomatic dialogue appears back on track, it could well be compelled to contemplate sterner alternatives if North Korea recklessly proceeds with nuclear reprocessing. China also does not believe that North Korea would launch a suicidal war of aggression to reunify the peninsula. The PRC is more concerned that external pressure on North Korea over the nuclear issue-- particularly in the context of leadership succession and rapid economic decline--may foreclose diplomatic options and prompt Pyongyang to resort to force. Tactically, therefore, Beijing prefers an incremental approach. Its preferred solution is to emphasize patient dialog and encourage North Korea to open up to the outside world. While China has so far failed to convince Pyongyang to emulate senior leader Deng Xiaoping's policy of reform and opening, it fears that without such reform the survival of the North Korean regime is in doubt. North Korea also presents China with a political problem. It puts China in the hot seat at the United Nations because in principle China is opposed to economic sanctions. Yet China faces international isolation if it blocks U.N. action and appears to align itself with Pyongyang. Hence it favors maintaining a low profile and the status quo. But events could soon compel China to take sides. Within weeks North Korea could declare that it intends to begin separating plutonium from recently discharged spent fuel. It may even do so with inspectors from the IAEA present. Although this would breach an understanding with the United States, it would not violate IAEA rules or the NPT. As long as there is no diversion, reprocessing is considered a peaceful nuclear activity. While the material would be under IAEA monitoring, the North could at any time complete its now-suspended withdrawal from the NPT or simply oust the inspectors. China must understand that if North Korea is allowed to proceed with reprocessing under any pretext, it could soon have enough plutonium to develop four or five nuclear weapons. Should that occur, pressure in South Korea and possibly Japan to develop an independent nuclear deterrent could well become irresistible. Any such development would of course be of profound concern. If Pyongyang proceeds with nuclear reprocessing, there will be no choice for China and the world community but to demonstrate conclusively to the North that they have no option but to comply with their NPT obligations and end their nuclear weapons program. For this Congress not to understand that North Korea is our highest national security priority--and to be threatening normal nondiscriminatory trade with a country whose cooperation is likely to be crucial to a resolution of the issue--is so foolhardy and counterproductive as to defy rational explication. I urge the defeat of the Pelosi bill and support for a bi-partisan, bi-institutional approach to Sino-American relations. Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Chairman, the people of China should be treated fairly. The extension of most-favored-nation trading status for China should be continued in order to ensure that America can improve the human rights situation in that nation through a positive working relationship with the people of China and the Chinese Government. During debate on the MFN status of China, statements were made on the floor of the House which claimed that although China needs us, we don't need them. We have needed them, and we continue to need China as a friend of the United States. President Richard Nixon needed China to drive a wedge in the Communist bloc. We need China now to help advance American interests on the Korean peninsula. In this globally interdependent economy, it is highly likely we will need China in the future. Many may be misled by the term most-favored-nation status, because it implies that China is getting some special treatment from the United States in our trade relationship. In fact, MFN is the standard way the United States does business around the world. China would be no more favored than any other nation around the world with whom we have a normal trade relationship. Obviously, human rights are a crucial concern with regard to America's foreign policy. But just as obviously, the use of trade sanctions is not an effective vehicle for influencing the human rights policy of foreign nations. Again and again, the use of trade sanctions to improve human rights in distant lands has been tried, and, again and again, the attempt has failed. Trade sanctions hurt the working class, not the wealthy leaders of nations. In Haiti, where America is using trade sanctions, small businesses are being destroyed, and the common citizen is being deprived of human and economic rights. On the other hand, the influence of America, properly applied, has been very successful in improving the human rights conditions of many nations around the world. South Korea and Argentina are but two examples of the achievement of the United States in improving human rights through interaction with the people and government of these nations. In China itself, fantastic changes have occurred since the opening of the nation in the early 1970's. This opening has allowed interaction between American and Chinese businesses, and American technology has allowed the people of China to improve their economic standing. With improvement in technology comes more access to information. The power of information will effect change in China, as it already has. Whose information? That provided by America and our allies, which, as long as we continue to trade with China, will continue to filter through to each and every Chinese citizen. American ideals, as always, can best be advanced by exposing others to our values and our successes. If we close down our trade with China, who profits? Not the citizens of China, whose economic freedoms will likely decline, and whose access to American information and ideals will be shut off. Not the American worker, who will no longer have access to the enormous Chinese market. We may feel a little better for a short time, and think that we have done what is right. But when China begins to fall backward in human rights, our brief good feeling will die. The common citizen of China, and his or her human rights, should be the focus of our human rights policy. What does that common citizen want? During my visits to China, I have talked to many of the citizens of China, and not once was I asked to revoke MFN status. Many, many times, however, I was asked to continue to work to improve the relationship between our two nations. This very point is what separates China and this situation from the past American policy toward South Africa. Essentially every South African who was not associated with the government of that nation cried out to the United States and to rest of the world to impose stringent economic sanctions against South Africa. This was the right thing to do, and I was proud to lead the effort in Texas to gain sanctions against South Africa. Our goal was to effect a total change in the governing body of the nation, and we succeeded. In so doing, we destroyed the economic infrastructure of the nation, which we are now helping to rebuild. In China, the circumstances are very different. Our goal, as stated by many Members, is to improve the situation of the common citizen of China, not to force a change in government. We do not have the support of the world. In fact, should we decide not to trade with China, many other nations will jump in to take our place. Then, high-paying American jobs will be lost as European aeronautical firms move into supply aircraft, and as other nations rush to supply China's technological needs. Human rights conditions will not be improved, and the ability of America to exert positive influence will be lost. This is not South Africa, and although Europeans agreed that ``We ain't gonna play Sun City,'' you can be sure that the European Union will be only to happy to play Beijing. My colleagues and I do agree that human rights policy is of utmost importance to this Nation, and America should do all it can to improve the way other nations treat their citizens. What we need to realize is that American can do more to help these people by interacting with them than by ignoring them. The CHAIRMAN. The question is on the amendment in the nature of a substitute offered by the gentleman from Indiana [Mr. Hamilton]. The question was taken; and the Chairman announced that the ayes appeared to have it. recorded vote Mr. HAMILTON. Mr. Speaker, I demand a recorded vote. A recorded vote was ordered. The vote was taken by electronic device, and there were--ayes 280, noes 152, not voting 8, as follows: [Roll No. 382] AYES--280 Ackerman Allard Andrews (NJ) Andrews (TX) Archer Armey Bacchus (FL) Bachus (AL) Baesler Baker (LA) Ballenger Barca Barcia Barlow Barrett (NE) Bartlett Bateman Becerra Bereuter Bevill Bilirakis Bishop Blackwell Bliley Blute Boehner Bonilla Boucher Brewster Brooks Browder Brown (CA) Brown (FL) Bryant Buyer Callahan Calvert Camp Canady Cantwell Carr Castle Chapman Clement Clinger Coble Coleman Combest Condit Cooper Coppersmith Cramer Crane Crapo Cunningham Danner Darden de la Garza de Lugo (VI) Deal DeLauro DeLay Derrick Deutsch Dicks Dingell Dooley Doolittle Dornan Dreier Dunn Edwards (TX) Ehlers Emerson English Ewing Faleomavaega (AS) Fawell Fazio Fields (TX) Filner Fingerhut Flake Foglietta Foley Fowler Franks (CT) Franks (NJ) Frost Furse Gallegly Gekas Geren Gibbons Gilchrest Gillmor Gingrich Glickman Goodlatte Gordon Goss Grams Grandy Greenwood Hall (TX) Hamilton Hancock Hansen Harman Hastert Hastings Hoagland Hoekstra Hoke Houghton Huffington Hughes Inhofe Inslee Istook Jacobs Jefferson Johnson (CT) Johnson (GA) Johnson (SD) Johnson, E. B. Johnson, Sam Johnston Kanjorski Kennelly Kim King Kingston Kleczka Klein Knollenberg Kolbe Kopetski Kreidler Kyl LaFalce Lambert LaRocco Laughlin Lazio Leach Lehman Levin Levy Lewis (CA) Lightfoot Linder Livingston Lloyd Long Lucas Machtley Maloney Mann Manton Manzullo Martinez Matsui McCandless McCollum McCrery McCurdy McDade McHugh McInnis McKeon McMillan McNulty Meek Menendez Meyers Mica Michel Miller (FL) Mineta Minge Montgomery Moorhead Moran Morella Murphy Murtha Myers Neal (MA) Neal (NC) Nussle Oberstar Ortiz Orton Oxley Packard Parker Pastor Paxon Payne (VA) Penny Peterson (FL) Peterson (MN) Petri Pickett Pickle Pombo Pomeroy Portman Price (NC) Pryce (OH) Quillen Quinn Ramstad Rangel Reed Regula Reynolds Roberts Roemer Rostenkowski Roth Rowland Roybal-Allard Royce Rush Sabo Sangmeister Santorum Sarpalius Sawyer Saxton Schaefer Schenk Schumer Serrano Shaw Shays Shuster Sisisky Skaggs Skeen Skelton Slattery Slaughter Smith (IA) Smith (MI) Smith (OR) Spence Stenholm Stump Sundquist Swift Synar Talent Tanner Taylor (NC) Tejeda Thomas (CA) Thomas (WY) Thompson Thornton Thurman Torkildsen Torres Tucker Valentine Visclosky Volkmer Vucanovich Walsh Wheat Whitten Williams Wilson Wise Wyden Young (AK) Zeliff Zimmer NOES--152 Abercrombie Andrews (ME) Applegate Baker (CA) Barrett (WI) Barton Beilenson Berman Bilbray Boehlert Bonior Borski Brown (OH) Bunning Burton Byrne Cardin Clay Clayton Collins (GA) Collins (IL) Collins (MI) Conyers Costello Cox Coyne DeFazio Dellums Diaz-Balart Dickey Dixon Duncan Durbin Edwards (CA) Engel Eshoo Evans Everett Farr Fields (LA) Fish Ford (MI) Ford (TN) Frank (MA) Gejdenson Gephardt Gilman Gonzalez Goodling Green Gunderson Gutierrez Hall (OH) Hamburg Hayes Hefley Hefner Hilliard Hinchey Hobson Hochbrueckner Holden Horn Hoyer Hunter Hutchinson Hutto Hyde Inglis Kaptur Kasich Kennedy Kildee Klink Klug Lancaster Lantos Lewis (FL) Lewis (GA) Lewis (KY) Lipinski Lowey Margolies-Mezvinsky Markey Mazzoli McCloskey McDermott McHale McKinney Meehan Mfume Miller (CA) Mink Moakley Molinari Nadler Norton (DC) Obey Olver Owens Pallone Payne (NJ) Pelosi Porter Poshard Rahall Richardson Ridge Rogers Rohrabacher Ros-Lehtinen Rose Sanders Schiff Schroeder Scott Sensenbrenner Sharp Shepherd Smith (NJ) Smith (TX) Snowe Solomon Spratt Stark Stearns Stokes Strickland Studds Stupak Swett Tauzin Taylor (MS) Torricelli Towns Traficant Underwood (GU) Unsoeld Upton Velazquez Vento Walker Washington Waters Watt Waxman Weldon Wolf Woolsey Wynn Yates Young (FL) NOT VOTING--8 Bentley Clyburn Gallo Herger Mollohan Ravenel Romero-Barcelo (PR) Roukema {time} 1840 Mr. CLAY and Mr. LEWIS of Georgia changed their vote from ``aye'' to ``no.'' Mr. BARTLETT of Maryland changed his vote from ``no'' to ``aye.'' So the amendment in the nature of a substitute was agreed to. The result of the vote was announced as above recorded. amendment in the nature of a substitute offered by ms. pelosi Ms. PELOSI. Mr. Chairman, I offer an amendment in the nature of a substitute. The CHAIRMAN. The Clerk will designate the amendment in the nature of a substitute. The text of the amendment in the nature of a substitute is as follows: Amendment in the nature of a substitute offered by Ms. Pelosi: Strike all after the enacting clause and insert the following: SECTION 1. SHORT TITLE. This Act may be cited as the ``United States-China Act of 1994''. SEC. 2. FINDINGS AND POLICY. (a) Findings.--The Congress makes the following findings: (1) In Executive Order 12850, dated May 28, 1993, the President established conditions for renewing most-favored- nation treatment for the People's Republic of China in 1994. (2) The Executive order requires that in recommending the extension of most-favored-nation trade status to the People's Republic of China for the 12-month period beginning July 3, 1994, the Secretary of State shall not recommend extension unless the Secretary determines that such extension substantially promotes the freedom of emigration objectives contained in section 402 of the Trade Act of 1974 (19 U.S.C. 2432) and that China is complying with the 1992 bilateral agreement between the United States and China concerning export to the United States of products made with prison labor. (3) The Executive order further requires that in making the recommendation, the Secretary of State shall determine if China has made overall significant progress with respect to-- (A) taking steps to begin adhering to the Universal Declaration of Human Rights; (B) releasing and providing an acceptable accounting for Chinese citizens imprisoned or detained for the nonviolent expression of their political and religious beliefs, including such expressions of beliefs in connection with the Democracy Wall and Tiananmen Square movements; (C) ensuring humane treatment of prisoners, and allowing access to prisons by international humanitarian and human rights organizations; (D) protecting Tibet's distinctive religious and cultural heritage; and (E) permitting international radio and television broadcasts into China. (4) The Executive order requires the executive branch to resolutely pursue all legislative and executive actions to ensure that China abides by its commitments to follow fair, nondiscriminatory trade practices in dealing with United States businesses and adheres to the Nuclear Nonproliferation Treaty, the Missile Technology Control Regime guidelines and parameters, and other nonproliferation commitments. (5) The Government of the People's Republic of China, a member of the United Nations Security Council obligated to respect and uphold the United Nations charter and Universal Declaration of Human Rights, has over the past year made less than significant progress on human rights. The People's Republic of China has released only a few prominent political prisoners and continues to violate internationally recognized standards of human rights by arbitrary arrests and detention of persons for the nonviolent expression of their political and religious beliefs. (6) The Government of the People's Republic of China has not allowed humanitarian and human rights organizations access to prisons. (7) The Government of the People's Republic of China has refused to meet with the Dalai Lama, or his representative, to discuss the protection of Tibet's distinctive religious and cultural heritage. (8) It continues to be the policy and practice of the Government of the People's Republic of China to control all trade unions and suppress and harass members of the independent labor union movement. (9) The Government of the People's Republic of China continues to restrict the activities of accredited journalists. (10) The People's Republic of China's defense industrial trading companies and the People's Liberation Army engage in lucrative trade relations with the United States and operate lucrative commercial businesses within the United States. Trade with and investments in the defense industrial trading companies and the People's Liberation Army are contrary to the national security interests of the United States. (11) The President has conducted an intensive high-level dialogue with the Government of the People's Republic of China, including meeting with the President of China, in an effort to encourage that government to make significant progress toward meeting the standards contained in the Executive order for continuation of most-favored-nation treatment. (12) The Government of the People's Republic of China has not made overall significant progress with respect to the standards contained in the President's Executive Order 12850, dated May 28, 1993. (b) Policy.--It is the policy of the Congress that, since the President has recommended the continuation of the waiver under section 402(d) of the Trade Act of 1974 for the People's Republic of China for the 12-month period beginning July 3, 1994, such waiver shall not provide for extension of nondiscriminatory trade treatment to goods that are produced, manufactured, or exported by the People's Liberation Army or Chinese defense industrial trading companies or to nonqualified goods that are produced, manufactured, or exported by state-owned enterprises of the People's Republic of China. SEC. 3. LIMITATIONS ON EXTENSION OF NONDISCRIMINATORY TREATMENT. (a) In General.--Notwithstanding any other provision of law-- (1) if nondiscriminatory treatment is not granted to the People's Republic of China by reason of the enactment into law of a disapproval resolution described in subsection (b)(1), nondiscriminatory treatment shall-- (A) continue to apply to any good that is produced or manufactured by a person that is not a state-owned enterprise of the People's Republic of China, but (B) not apply to any good that is produced, manufactured, or exported by a state-owned enterprise of the People's Republic of China, (2) if nondiscriminatory treatment is granted to the People's Republic of China for the 12-month period beginning on July 3, 1994, such nondiscriminatory treatment shall not apply to-- (A) any good that is produced, manufactured, or exported by the People's Liberation Army or a Chinese defense industrial trading company, or (B) any nonqualified good that is produced, manufactured, or exported by a state-owned enterprise of the People's Republic of China, and (3) in order for nondiscriminatory treatment to be granted to the People's Republic of China, and subsequent to the granting of such nondiscriminatory treatment, the Secretary of the Treasury shall consult with leaders of American businesses having significant trade with or investment in the People's Republic of China, to encourage them to adopt a voluntary code of conduct that-- (A) follows internationally recognized human rights principles, (B) ensures that the employment of Chinese citizens is not discriminatory in terms of sex, ethnic origin, or political belief, (C) ensures that no convict, forced, or indentured labor is knowingly used, (D) recognizes the rights of workers to freely organize and bargain collectively, and (E) discourages mandatory political indoctrination on business premises. (b) Disapproval Resolution.-- (1) In general.--For purposes of this section, the term ``resolution'' means only a joint resolution of the two Houses of Congress, the matter after the resolving clause of which is as follows: ``That the Congress does not approve the extension of the authority contained in section 402(c) of the Trade Act of 1974 recommended by the President to the Congress on ______________________ with respect to the People's Republic of China because the Congress does not agree that the People's Republic of China has met the standards described in the President's Executive Order 12850, dated May 28, 1993.'', with the blank space being filled with the appropriate date. (2) Applicable rules.--The provisions of sections 153 (other than paragraphs (3) and (4) of subsection (b)) and 402(d)(2) (as modified by this subsection) of the Trade Act of 1974 shall apply to a resolution described in paragraph (1). (c) Determination of State-Owned Enterprises and Chinese Defense Industrial Trading Companies.-- (1) In general.--Subject to paragraphs (2) and (3), not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury shall determine which persons are state-owned enterprises of the People's Republic of China and which persons are Chinese defense industrial trading companies for purposes of this Act. The Secretary shall publish a list of such persons in the Federal Register. (2) Public hearing.-- (A) General rule.--Before making the determination and publishing the list required by paragraph (1), the Secretary of the Treasury shall hold a public hearing for the purpose of receiving oral and written testimony regarding the persons to be included on the list. (B) Additions and deletions.--The Secretary of the Treasury may add or delete persons from the list based on information available to the Secretary or upon receipt of a request containing sufficient information to take such action. (3) Definitions and special rules.--For purposes of making the determination required by paragraph (1), the following definitions apply: (A) Chinese defense industrial trading company.--The term ``Chinese defense industrial trading company''-- (i) means a person that is-- (I) engaged in manufacturing, producing, or exporting, and (II) affiliated with or owned, controlled, or subsidized by the People's Liberation Army, and (ii) includes any person identified in the United States Defense Intelligence Agency publication numbered VP-1920-271- 90, dated September 1990. (B) People's liberation army.--The term ``People's Liberation Army'' means any branch or division of the land, naval, or air military service or the police of the Government of the People's Republic of China. (C) State-owned enterprise of the people's republic of china.--(i) The term ``state-owned enterprise of the People's Republic of China'' means a person who is affiliated with or wholly owned, controlled, or subsidized by the Government of the People's Republic of China and whose means of production, products, and revenues are owned or controlled by a central or provincial government authority. A person shall be considered to be state-owned if-- (I) the person's assets are primarily owned by a central or provincial government authority; (II) a substantial proportion of the person's profits are required to be submitted to a central or provincial government authority; (III) the person's production, purchases of inputs, and sales of output, in whole or in part, are subject to state, sectoral, or regional plans; or (IV) a license issued by a government authority classifies the person as state-owned. (ii) Any person that-- (I) is a qualified foreign joint venture or is licensed by a governmental authority as a collective, cooperative, or private enterprise; or (II) is wholly owned by a foreign person, shall not be considered to be state-owned. (D) Qualified foreign joint venture.--The term ``qualified foreign joint venture'' means any person-- (i) which is registered and licensed in the agency or department of the Government of the People's Republic of China concerned with foreign economic relations and trade as an equity, cooperative, contractual joint venture, or joint stock company with foreign investment; (ii) in which the foreign investor partner and a person of the People's Republic of China share profits and losses and jointly manage the venture; (iii) in which the foreign investor partner holds or controls at least 25 percent of the investment and the foreign investor partner is not substantially owned or controlled by a state-owned enterprise of the People's Republic of China; (iv) in which the foreign investor partner is not a person of a country the government of which the Secretary of State has determined under section 6(j) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)) to have repeatedly provided support for acts of international terrorism; and (v) which does not use state-owned enterprises of the People's Republic of China to export its goods or services. (E) Person.--The term ``person'' means a natural person, corporation, partnership, enterprise, instrumentality, agency, or other entity. (F) Foreign investor partner.--The term ``foreign investor partner'' means-- (i) a natural person who is not a citizen of the People's Republic of China; and (ii) a corporation, partnership, instrumentality, enterprise, agency, or other entity that is organized under the laws of a country other than the People's Republic of China and 50 percent or more of the outstanding capital stock or beneficial interest of such entity is owned (directly or indirectly) by natural persons who are not citizens of the People's Republic of China. (G) Nonqualified good.--The term ``nonqualified good'' means a good to which chapter 39, 44, 48, 61, 62, 64, 70, 73, 84, 93, or 94 of the Harmonized Tariff Schedule of the United States applies. (H) Convict, forced, or indentured labor.--The term ``convict, forced, or indentured labor'' has the meaning given such term by section 307 of the Tariff Act of 1930 (19 U.S.C. 1307). (I) Violations of internationally recognized standards of human rights.--The term ``violations of internationally recognized standards of human rights'' includes but is not limited to, torture, cruel, inhuman, or degrading treatment or punishment, prolonged detention without charges and trial, causing the disappearance of persons by abduction and clandestine detention of those persons, secret judicial proceedings, and other flagrant denial of the right to life, liberty, or the security of any person. (J) Missile technology control regime.--The term ``Missile Technology Control Regime'' means the agreement, as amended, between the United States, the United Kingdom, the Federal Republic of Germany, France, Italy, Canada, and Japan, announced on April 16, 1987, to restrict sensitive missile- relevant transfers based on an annex of missile equipment and technology. (d) Semiannual Reports.--The Secretary of the Treasury shall, not later than 6 months after the date of the enactment of this Act, and the end of each 6-month period occurring thereafter, report to the Congress on the efforts of the executive branch to carry out subsection (c). The Secretary may include in the report a request for additional authority, if necessary, to carry out subsection (c). In addition, the report shall include information regarding the efforts of the executive branch to carry out subsection (a)(3). SEC. 4. PRESIDENTIAL WAIVER. The President may waive the application of any condition or prohibition imposed on any person pursuant to this Act, if the President determines and reports to the Congress that the continued imposition of the condition or prohibition would have a serious adverse effect on the vital national security interests of the United States. SEC. 5. REPORT BY THE PRESIDENT. If the President recommends in 1995 that the waiver referred to in section 2 be continued for the People's Republic of China, the President shall state in the document required to be submitted to the Congress by section 402(d) of the Trade Act of 1974, the extent to which the Government of the People's Republic of China has made progress during the period covered by the document, with respect to-- (1) adhering to the provisions of the Universal Declaration of Human Rights, (2) ceasing the exportation to the United States of products made with convict, force, or indentured labor, (3) ceasing unfair and discriminatory trade practices which restrict and unreasonably burden American business, and (4) adhering to the guidelines and parameters of the Missile Technology Control Regime, the controls adopted by the Nuclear Suppliers Group, and the controls adopted by the Australia Group. SEC. 6. SANCTIONS BY OTHER COUNTRIES. If the President decides not to seek a continuation of a waiver in 1995 for the People's Republic of China under section 402(d) of the Trade Act of 1974, the President shall, during the 30-day period beginning on the date that the President would have recommended to the Congress that such a waiver be continued, undertake efforts to ensure that members of the General Agreement on Tariffs and Trade take a similar action with respect to the People's Republic of China. The CHAIRMAN. Pursuant to the rule, the gentlewoman from California [Ms. Pelosi] will be recognized for 15 minutes, and a Member in opposition will be recognized for 15 minutes. Mr. GIBBONS. Mr. Chairman, I rise in opposition to the amendment in the nature of a substitute. The Chairman. The gentleman from Florida [Mr. Gibbons] will be recognized for 15 minutes. The Chair recognizes the gentlewoman from California [Ms. Pelosi]. Ms. PELOSI. Mr. Chairman, it is with great pride that I yield 3 minutes to the Democratic majority whip, the gentleman from Michigan [Mr. Bonior], a champion for human rights, a champion for workers' rights throughout the world, and, more importantly, in addition to all of that, a champion of American workers' rights. Mr. BONIOR. Mr. Chairman, I thank the gentlewoman from California for yielding this time to me. Mr. Chairman, sometimes, I think we take a lot of things for granted in this country. Every one of us in this Chamber today has been doing something that the people of China would never dream of doing: We have openly debated the policies of our Government. We have questioned the direction our country should go. You cannot do that in China. If you speak out against the Government, you get arrested, If you actively work to build support to oppose a policy, you get thrown in jail. And if you say a prayer in public in some parts of China--like we did this morning--you might never be heard from again. I think that is part of the reason why those students in Tiananmen Square read from our Constitution and quoted Thomas Jefferson 5 years ago. It is the same reason why people in the most distant reaches of South Africa used to carry copies of the Declaration of Independence in their pockets: because they know America is supposed to stand for something. Because when tyrants around the world oppress their own people, they know the principals that this country was founded on are supposed to stand out like a beacon. And they hope that we will speak out on behalf of human rights and democracy in the world. That is all we are asking for today. We are not asking to end most-favored-nation trading status with China--because that issue has been decided for now. We are not asking to hang a keep out sign for Chinese products on the United States border--because we know that's not going to happen. And we are not asking to turn our backs on the China market--because we recognize the opportunities there. We are simply asking that we target the most egregious offenders of human rights in China today, and that we end the taxpayer subsidies for the very people who are doing the torturing, the abusing, the arresting, and the murdering in China today. Is that really too much to ask? Do you really think our trade with China is going to collapse if the Chinese Army loses its most-favored-nation status? We have a $23 billion trade deficit with China today. Do you really think they will abandon the U.S. market if we drop MFN for 5 billion dollars' worth of state-run enterprises? There is not a single industrialized nation in the world that gives them the same breaks we do. And you know why? Because they know it's not fair to ask their workers to compete with Chinese workers who are forced to work for 10 cents an hour. Because they know they can not compete with products made in the prisons of the Chinese Army. And what about the budget of the Chinese Army--that increased by more than 20 percent last year thanks to their special trade status with the United States. What do you think that money is going for? More uniforms and desk chairs? Or more tanks, torture, and persecution of the Chinese people? It is interesting that during this entire debate, nobody has disavowed the fact that China's human rights record is getting worse. Nobody has said it is getting better. And that's really what this debate comes down to. The students who marched in China 5 years ago did not march for money or for power. They marched for the freedom of speech. They marched for the freedom to organize and the freedom to vote. They marched for the right to build a better life for their families--and for more opportunities than 10 cents an hour. And today, I hope that just once we will stand up for them, and for people like them in our country and all over the world. I hope we will vote to end MFN for the Chinese military. Not because it is the popular thing to do. Not because it is the political thing to do. But because it is right. Because we are the hope of the Chinese people. And we can not afford to turn our backs on them. Mr. GIBBONS. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, I want you all to know that this is not my idea of a rule. I have never really come upon one exactly like this, but I do not want to prolong the agony. I think the House has demonstrated that it has made up its mind with that rather outstanding vote in favor of the Hamilton proposal just a few moments ago. Let me say that Ms. Pelosi has striven hard to do what she thinks is correct in this matter. I simply disagree with her position. First, her proposal would interrupt about half of the trade that we have with China. Second, all of us have a letter from the U.S. Commissioner of Customs who says it would be impossible to administer, and extremely costly to try to enforce, the restrictions that the gentlewoman outlines in her proposal. Commissioner Weise points out that it would take the investigation of about 100,000 companies in China in order to determine which products would be targeted by the sanctions authorized in H.R. 4590. The U.S. Customs Service would have to identify and report publicly on these companies controlled by the state in China or by the People's Liberation Army. The Commissioner notes that there is just no way to do that. The Customs Service does not have that many people who can speak Chinese. Customs Commissioner Weise doubts that the Chinese Government would allow his personnel the access necessary to carry out such investigations. Customs law is difficult enough without adding the impossible task of administering this bill. {time} 1850 So, as well intentioned as the amendment offered by the gentlewoman from California [Ms. Pelosi] is, this measure would restrict trade with China, touch off a prolonged period of instability in U.S.-China relations, and most importantly, undercut the President's new comprehensive China policy. The President seeks to engage the Chinese on every front, and we need the Chinese to help us manage the North Korean nuclear threat. The Chinese have never had the kind of traditions on freedom, democracy, and human rights that we have had but I believe that they are moving closer to, rather than further from, internationally recognized norms in such areas. The people in China are freer today than ever before in my lifetime, and perhaps, in the entire 6,000 years of Chinese history. So, Mr. Chairman, we are making progress, and I think that the President has outlined a good policy for furthering such progress. I believe that disrupting trade would rupture our relations with China, and I would add that the United States would be the only industrialized society disengaging from China. None of our competitors in the industrialized world have any intention of doing what the gentlewoman from California [Ms. Pelosi] is asking us to do here today. I urge my colleagues to vote ``no'' on the Pelosi substitute. Mr. Chairman, I ask unanimous consent that the gentleman from California [Mr. Matsui], the Chairman of the Subcommittee on Trade who has just done a wonderful job in organizing and supporting all of this effort, may be able to control the balance of my time. The CHAIRMAN. Is there objection to the request of the gentleman from Florida? There was no objection. Ms. PELOSI. Mr. Chairman, I yield 2 minutes to the gentleman from Massachusetts [Mr. Markey] who has been a champion on the issue of proliferation, especially in the case of China, and because of him at least we have the gun ban in the President's policy statement of last May. Mr. MARKEY. Mr. Chairman, I thank the gentlewoman from California [Ms. Pelosi] very much, and I congratulate her on her amendment here today. Human rights violations, they continue unabated in China. Use of slave labor continues unabated inside of China. Even if, however, on balance one believes that it makes sense to turn a blind eye to that because we need this trade imbalance of $30 billion a year with the Chinese Government with their companies, how can we ignore the fact that this country is the No. 1 proliferater of nuclear materials on this planet? Over the last half-dozen years they have exported to North Korea, to Syria, to Algeria, to Iran, to Iraq, to Pakistan. Now out here on the floor on an ongoing basis we have to appropriate tens of billions of dollars of American taxpayers' money to then isolate these troublespots around the world. Why? Because China, the Kmart of nuclear materials, of other ballistic materials, continues to drop oil onto every trouble spot on this planet. Now I ask my colleagues why in the world should we spend tens of billions of taxpayers' dollars so that we can run up a $30 billion trade deficit, and turn a blind eye and a deaf ear to the cries of the human rights dissidents sitting in this gallery today crying for us to stand up for their people? My colleagues, this is not a difficult decision. The Chinese Government needs us more than we need them. They are not helping us with North Korea, and, if they do, it is only out of their own national defense self-interest. We get nothing out of this but long-term trouble for this Government for our people. Vote for the Pelosi amendment and save this Government tens of billions of dollars in years ahead. We should have done this with the Shah of Iran. We should have done this in Iraq. We would have paid a much smaller price as a people if we had been wiser far in advance of the problems that we sowed by ourselves by our own actions here in the floor of this Congress. Vote for the Pelosi amendment. Mr. MATSUI. Mr. Chairman, I yield such time as he may consume to the gentleman from Texas [Mr. Fields]. (Mr. FIELDS of Texas asked and was given permission to revise and extend his remarks.) Mr. FIELDS of Texas. Mr. Chairman, I rise in support of MFN and against the amendment offered by the gentlewoman from California [Ms. Pelosi]. Mr. Chairman, I rise in support of the Hamilton amendment to H.R. 4590, the U.S.-China Act of 1994. I strongly oppose terminating China's current trade status by revoking most-favored-nation [MFN] status or by imposing broad trade sanctions. Our current policy balances a host of concerns which have been voiced on the floor today, such as political and human rights concerns. Human rights progress must be achieved in China; however, it should be done through nontrade means such as expanding private and multilateral efforts, increasing international broadcasts to China and supporting Chinese businesses in developing voluntary principles on human rights. Renewing China's MFN status remains consistent with our goal of bringing China into the expanding world of free-market societies. Isolating China by cutting off MFN only serves to weaken the ties to the west and increase repression. There are also a number of economic arguments to support extending MFN status to China. Engaging China in a trade war will not only lower American exports, but will also effectively kill more than 150,000 American jobs. Our constituents would feel the effects of this action through higher prices resulting from an increase in U.S. tariffs on a variety of Chinese products. I urge my colleagues to vote in favor of the Hamilton amendment to maintain MFN trade status for China. Mr. MATSUI. Mr. Chairman, I yield 2 minutes to the gentleman from New York [Mr. Walsh]. Mr. WALSH. Mr. Chairman, in the past I have supported MFN with the People's Republic of China, but only with the most stringent conditions attached. I have little respect for the octogenarian administration of PRC and their abysmal human rights record. On a personal basis, I lived and worked with Tibetan refugees in Nepal as a Peace Corps volunteer. I have a great measure of love and respect for those people and their culture. Tibetan Lamaic Buddhism is among the world's great religious traditions. I was very fortunate to have witnessed and participated in some of the richest and most beautiful religious services I have ever seen. In the 1950's, the Communist Chinese set out to destroy this culture. They have not been successful, but the people have suffered great harm. Therefore it is with great difficulty that I face this decision today. Events of the past have changed my view. The opening of Eastern Europe to democracy began with economic reform. As Western culture, good and bad, flowed east, and information expanded exponentially, people were empowered. They knew what they were missing. They were freer to exchange ideas, challenge authority and enrich their lives materially. And once the door flew open they could not close it. Human rights violations were witnessed not be silent neighbors, but by an outraged world. Mr. Chairman, I have become convinced that this is the only way to open the Chinese doors and windows. They need to look out and we need to see in to make sure that another Tibetan pogrom cannot take place. Economics drives much of our foreign policy, and all of the economic arguments in favor of MFN are strong. But we must cope with the human condition these policies affect. The time has come to open China to trade, to information interchange, and to democratic ideas that, once introduced, should bring the desired result. For these reasons, Mr. Chairman, I urge a no vote on the Pelosi amendment and a yes vote for most-favored-nation status with China. Ms. PELOSI. Mr. Chairman, I yield 2 minutes to the gentleman from New York [Mr. Gilman], a leader on this issue in the Congress. (Mr. GILMAN asked and was given permission to revise and extend his remarks.) Mr. GILMAN. Mr. Chairman, I rise in strong support of the amendment offered by the gentlewoman from California [Ms. Pelosi]. Mr. Chairman, the issue before us is not isolating the People's Republic of China. The issue before us is trade with the People's Liberation Army. There is no sound reason that the military forces of Communist China should be granted any preferential trading status. How could we rationalize such a shortsighted policy? The Chinese military is the only armed forces in the world that still are targeting our Nation with nuclear weapons. Do we support that kind of policy? Our senior counterintelligence officials inform us that the Chinese military has the most active industrial espionage network here in our own country. Do we support that kind of a policy? The Chinese military is supporting the North Koreans. Do we support that policy? Where is our long-term foreign policy thinking? Bear in mind that our deficit in trade with China is more than $23 billion. I say, ``Vote yes on the Pelosi bill to revoke MFN for the Chinese army. Support our American workers here at home by supporting the human rights abroad.'' {time} 1900 Mr. MATSUI. Mr. Chairman, I yield 1 minute to the gentleman from Virginia [Mr. Bliley]. (Mr. BLILEY asked and was given permission to revise and extend his remarks.) Mr. BLILEY. Mr. Chairman, I thank the gentleman for yielding. Mr. Chairman, I have great respect for our colleague, the gentlewoman from California [Ms. Pelosi], but on this issue, she is wrong. We need to divorce trade from foreign policy. We need China. If we are going to be able to do anything diplomatically to solve the problem with nuclear proliferation in North Korea, we need China. The oriental people, the Chinese in particular, are very sensitive to face. If they determine in any way that we are applying any kind of pressure, overt or covert, we will be totally unsuccessful. And who will suffer? Our farmers in the Midwest, our people in high-technology industries, our people in Seattle and other places with airplanes and other sophisticated products that the Chinese need. We need to divorce this situation, make trade, trade, and make foreign policy, foreign policy. The framers of our Constitution were right when they said the President shall set foreign policy. Ms. PELOSI. Mr. Chairman, I yield myself 3\1/2\ minutes. Mr. Chairman, I thank my colleagues for their attention today and for their participation in this important debate. Mr. Chairman, before I proceed I want to acknowledge the wonderful staff support of Eric Weiss, Mike Wessel, Miles Lackey, Karen Ann Feever, Carolyn Bartholomew, and so many other people on our staffs who worked so very hard on this issue for such a long time. I, too, would like to join the gentleman from Massachusetts [Mr. Markey] in recognizing the dissidents who are in the Chamber with us today. Mr. Chairman, why are we having this debate? Why are we here today? I contend that this debate is central and fundamental to how we proceed into the global and international marketplace. This is a debate about the American worker, it is a debate about human rights throughout the world, and, in this particular case, particularly in China, it is about how we are smart in our trade relationships and how they relate to the proliferation of weapons. Over the past 5 years, this House has demonstrated its concern about the trade deficit with China, which this year will be $30 billion, and I promise you if we do nothing today, it will surpass Japan. Second, we are concerned about the serious repression in China and Tibet, and, third, seriously concerned about the proliferation of weapons to unsafeguarded countries, including the sale of weapons to the Khmer Rouge. In the speaker's remarks, it was curious to me he made two points. He said first, China was cooperating with us on North Korea; the Chinese military is not. The military has pledged 82,000 troops in case of war to the North Korean armed forces, and also pledged food and energy and credit assistance in case of U.N. sanctions. So let us be straight about what China is doing. Why is it that people in our midst here wish to ignore the violations in our trade relationship, in our proliferation arrangements, and, yes, indeed, even on the question of human rights? I said earlier that I did not believe that the Hamilton amendment did that much. I do not think it does. So I think it is very possible for Members to vote for that. It does nothing to negate voting also for the Pelosi amendment. So I hope some Members will register their support also for my legislation. Why is that? Is it a difficult thing to ask our colleagues that they vote not to give a tax break to the Chinese military, the same Chinese military where these three issues converge, who are proliferating weapons, who are repressing people in China and Tibet, and flooding our markets with their products, many of them made by prison labor, because the Chinese military oversees a great deal of the prison labor camps itself? Is it too much to say the American taxpayer should not be subsidizing the proliferation of weapons into the Third World and to unsafeguarded countries? Is it too much to say do not subsidize the Chinese military when they are the oppressors in China? Well, we have heard all of that. I think that in 3 years, if we do nothing today, we will look back and say, how did this trade deficit get to this point? So I am asking my colleagues to vote in favor of the American worker, to get the American consumer off the hook for unwittingly subsidizing the Chinese military, and, as I said, help the American worker by promoting human rights abroad. Once again I want to thank my colleagues for their attention, both here today and their courtesies in the course of this deliberation. Mr. MATSUI. Mr. Chairman, I yield 2 minutes to the gentleman from Arizona [Mr. Kolbe]. (Mr. KOLBE asked and was given permission to revise and extend his remarks.) Mr. KOLBE. Mr. Chairman, we are arriving at the last and the final twist in this debate, which has gone on for some time today, and which surely has taken a number of twists. Mr. Chairman, I would suggest to you that the Pelosi amendment, the Pelosi bill, is in some ways a worse alternative than the Solomon approach which at least has the advantage of being a straightforward revocation of most-favored-nation status for China. Partial revocation, as this legislation would have us do, is in some ways the worst possible change that we could make. To try to limit most-favored-nation status to only those companies that are completely Simon pure in being privately owned, not having a government subsidy, not being owned in part by the People's Army, is an almost impossible task to administer, as I think most of us on reflection in this body would agree. Customs itself has said that it is almost impossible for them to determine what is and what is not owned by the government or by the People's Army. We can just imagine what would occur in terms of creating shall corporations that would be owned by somebody, but would still be owned by the army. It is going to be impossible to administer this. In the meantime we have had a vote, a positive vote, on the Hamilton substitute, which expresses our support for human rights, which recognizes that human rights can be promoted by involvement, by trade, by interaction, by staying engaged with another country. The House of Representatives and the Congress of the United States has traditionally been bipartisan on foreign policy and trade. This action today in support of Hamilton continues that tradition. So I urge my colleagues to support the bipartisan approach that we have adopted here today, to say that we do support human rights, but we support human rights in China by continuing to be engaged in trade with China. Mr. Chairman, I urge my colleagues to vote no on the Pelosi substitute. Mr. MATSUI. Mr. Chairman, I yield myself 3 minutes. Mr. Chairman, I want to first of all commend the gentlewoman from California [Ms. Pelosi], certainly the gentleman from Indiana [Mr. Hamilton], the chairman of the Committee on Foreign Affairs, the gentleman from Illinois [Mr. Crane], and the gentleman from New York [Mr. Gilman], the ranking member of the Republican side. I think this debate was a very fruitful one, and I think everybody has gained from it. Certainly I think this is an issue of national import, and one that all of us well remember for some time to come. I want to divide my remarks very briefly into three areas on the issue of military and proliferation of weapons by the Chinese. What is very, very interesting is that since the United States has been engaging the Chinese, since the United States has been trying to get the PLA to move from a military-industrial base to a consumer-based economy, we have now seen over 50 percent of the former military-run companies now engaged in consumer goods. In fact, the Secretary of Defense has sent to every Member's office in the last 3 days a letter basically saying that he is embarking on a major military conversion effort with the Chinese. In October the Chinese military leaders will be coming to the United States for the purpose of talking about further conversion. {time} 1910 So if Members want to stop the proliferation of weapons, then vote down the Pelosi amendment. Second, let me talk about economic leverage, if I may, because everybody is talking, rightfully so, about the trade deficit. We have a $22 billion trade deficit with the Chinese at this particular time. It is growing and we know it could be $30 billion this year. The reason that we have not been able to engage the Chinese to open up their markets is because unfortunately, our entire relationship with the Chinese over the last year and a half has been defined by MFN and the issue of human rights. We cannot have it both ways. We cannot say that we want to open their markets up and spend all the time arguing about human rights. We have to deal with the trade issue by trying to open up their markets, and then also we need a multilateral discussion with the Chinese by talking about human rights, by uncoupling the issue of trade. Let me last talk about the issue of human rights, because that is why we are really here, and I believe the gentlewoman from California [Ms. Pelosi] has done a wonderful job heightening this issue with respect to the Chinese. There is no question the Chinese have over the years been very repressive in their government. At the same time, I think all of us will acknowledge that if Richard Nixon and Jimmy Carter did not normalize relations with the Chinese, the dissidents sitting in the audience would not be sitting here today. We would never have the scene at Tiananmen Square because normalizing relations with the Chinese has opened up trade with the Chinese and commerce with the Chinese. In fact, Don Kennedy, the former President of Stanford University, said this three years ago, that we have over 45,000 students from China per year coming to the United States, visiting our universities and colleges. They are now exporting from the United States into China democracy and our way of life. If Members really want to improve human rights, they need to engage them, not isolate them from us and the rest of the world. I urge a ``no'' vote on the Pelosi amendment. Mr. Chairman, I yield 3 minutes to the gentleman from Indiana [Mr. Hamilton]. Mr. HAMILTON. Mr. Chairman, I thank the gentleman for yielding time to me. Let me remind my colleagues, first, that we are proceeding under a king of the hill procedure, so I urge very strongly a no vote on Pelosi, even though we had a very solid vote a moment ago in support of the Hamilton amendment. Some have suggested that it is possible to vote for both of these. But I want to say that the two approaches in the Hamilton and in the Pelosi amendments cannot be reconciled. One approach is an approach of engagement. That is the President's policy. That is the Hamilton amendment. The Pelosi amendment is a policy of confrontation. The choice is simple and it is clear, and we cannot reconcile these two amendments. Let me say that I think the Pelosi amendment damages our national security interests, damages our economic interests, will do nothing to improve human rights in China and is unenforceable. Listen to the secretary of defense, and I quote him, ``in the context of the deteriorating relationship that would inevitably result from the passage of this bill,'' referring to the Pelosi bill, ``important U.S. security interests would be undermined.'' And he lists them: North Korea, sanctions at the United Nations, Taiwan and arms sales. The Pelosi confrontational amendment would seriously undermine our economic interests. Listen to the secretary of commerce, and I quote him, ``passage of Pelosi would have potentially devastating consequences on our current exports. And the secretary of state says that the Pelosi bill would create chaos in U.S.-China trade. If we adopt the policy of confrontation offered by the gentlewoman from California [Ms. Pelosi], we will not persuade the Chinese to ease up on human rights. We will not persuade the Chinese to cooperate more fully in stopping North Korea's nuclear program. We will not serve our economic interests. Confrontation will not help U.S. companies. It will not help U.S. workers. Confrontation will not give us the leverage that we need in the global community. The President's policy is one of engagement here. It would give us the leverage we need to press North Korea in the UN Security Council. It would give us the leverage we need to open Chinese markets. It would give us the leverage we need to encourage the liberalization of Chinese society. What we are trying to do with this policy of engagement is to draw China into a web of cooperation; that is one of the most difficult things to do in the conduct of foreign policy. Engaging China serves our interests economically and politically and strategically. And it will make us a key player in the most important question in China today; and that is the transition of leadership. I urge Members to support the President's policy of engagement, to reject the policy of confrontation, to vote ``no'' on the Pelosi amendment. Ms. PELOSI. Mr. Chairman, I yield the balance of my time to the gentleman from Missouri [Mr. Gephardt], the Democratic majority leader, a champion for workers rights in the United States and human rights abroad. (Mr. GEPHARDT asked and was given permission to revise and extend his remarks.) Mr. GEPHARDT. Mr. Chairman, first I want to commend the gentlewoman from California [Ms. Pelosi] who has been the spiritual and real leader of this effort. I want to commend the gentleman from Michigan [Mr. Bonior], and the gentleman from Virginia [Mr. Wolf], and the gentleman from New York [Mr. Gilman], who have been also great leaders on this subject. I rise today to ask my colleagues to support the Pelosi bill, to stand up for human rights in China and economic rights here at home. For more than 5 years, ever since the brutal state-sanctioned terrorism of Tiananmen Square, this debate has raged here in this Capitol. Make no mistake, this debate is about more than our wallets. It is about our will as a nation and as a people. Should America use its economic might to stand up for human rights? Should we demand for the people of China the basic rights and justice that we cherish for ourselves and our children? And when America says that we care about human rights, when we say that we care about a people who suffer physical torture and forced labor and political persecution, do we mean that we care only when it is convenient for us? In 1988, I traveled to China and met with many of the students and workers who asked for human and civil rights. Their feelings seemed to me to be irrepressible, undeniable. And just one year later we all watched as the tanks rolled across at Tiananmen Square. I returned to China with some Members this January and, believe me, when you tour the factories and walk the back alleys, you can feel, palpably feel the yearning of the people of that country for freedom and for civil rights. I sat with the president of their country and listened to him as he said, ``We know that America likes to threaten the removal of trade preferences,'' he said, ``but when push comes to shove, we know that you will never, ever do it.'' Today, my colleagues, we are asking Members to prove him wrong. We are asking Members to send this message to the government of China: that when they refuse to even negotiate with the Dalai Lama on behalf of the people of Tibet, when they refuse to release even those political prisoners with grave medical conditions, and when they read the riot act to the young patriots who are fighting for freedom and workers rights, America is not going to pick up the tab. {time} 1920 I am asking you to send a message to the working people of America as well: That they should not have to compete with forced labor, prison labor. You see, this is a moral issue, but it is also an economic issue. How can the United States possibly compete with people who are working in prisons? How can we compete with a nation that refuses to adopt even modest, internationally recognized labor laws? Given these rampant abuses, is it any wonder that we have a trade deficit of $25 billion, on its way to $30 billion, probably on its way to $40 billion or $50 billion? I think this bill is reasonable and fair. By selectively removing trade preferences, by carefully targeting our aim at the people that have the power to change the policies, we stand the best chance of real progress. Mr. Chairman, some say it is the wrong approach. They say we need to tap into China's growing market of 1.2 billion people, that this will lift the people of China up, and it is the only way that we can get democracy. While we can never ignore the fact that development breeds democracy, neither can we abandon our commitment to democracy through development. Mr. Chairman, the notion of a ``trickle-down'' trade policy, one in which all political and social reforms flow freely from the marketplace, is not just simplistic, it flies in the face of history. Mr. Chairman, just think, just think of where we would be in South Africa today if America had not stood for the moral rights of the people of South Africa. Let me tell the Members where we would be. Nelson Mandela would be in a prison, he would not be the president of South Africa, if America had not stood for the moral and legal rights of the people of that country. Finally, Mr. Chairman, the question we have to ask is, if we will not stand for the rights of the people of China, who will. If we let down the people of China, what do we say to the nations that look to us for hope and inspiration and leadership? Do we say that our principles are still strong, they are just hiding for a while behind a sign called ``For Sale''? Of course, international trade is about dollars and cents, but it is also about people and it is about principles. If we abandon our commitment to the freedoms that are the very foundation of free markets, then we trade away everything that our country stands for. Mr. Chairman, more than 170 years ago, Thomas Jefferson wrote that ``this country remains to preserve and restore light and liberty'' for the nations of the world. ``The flames kindled on the fourth of July, 1776,'' he wrote, ``have spread over too much of the globe to be extinguished by the feeble engines of despotism; on the contrary, they will consume these engines--and all who work them.'' Vote for this bill. Vote to let the whole world know that when it comes to human rights, when it comes to human decency, the United States will always be the light of liberty--and in that endeavor, we yield for no purpose and we yield for no price. Mr. GUNDERSON. Mr. Chairman, today as we debate whether to revoke or restrict most-favored-nation [MFN] trade status to China I think it is important that we understand the policy the United States has followed and why we are still debating MFN in 1994. The United States first granted MFN to China in 1980. At that time, China had shown that it was serious about implementing pro-democracy reforms. Commerce prospered. Human rights appeared to improve. Then, in 1989, the world watched in horror as a massive pro-democracy demonstration in Beijing's Tiananmen Square turned into a government- led massacre. President Bush implemented sanctions against China to express the disapproval of the United States. But the true measure of disapproval was voiced by the Congress. As a result of the Tiananmen Square incident, I joined with my colleagues on both sides of the aisle three times over the past 4 years to try and revoke MFN. I believed strongly that revocation would help make China accountable for its actions in 1989 and to curb future abuses. Each time the House and the Senate succeeded in passing legislation to revoke MFN status, however, the President vetoed it. Today, Tiananmen is 4 years old and times have changed--few of us believe that a complete revocation would succeed in punishing China for its 1989 atrocities. Without a doubt, the expansion in United States- China trade has had positive effects on many aspects of life in China. Unfortunately, measurable improvement in human rights is not one of them. In fact, in the last 6 months, human rights conditions in China have arguably deteriorated. President Clinton announced in June that the United States would extend MFN to China and de-link trade and human rights. At that time, I announced that I would support the President's decision to extend MFN unless China indicated it would not support United States security interests in the region. The direct motivation for my statement was the potentially explosive situation in North Korea. Recent press accounts have proven, however, that China has contributed to North Korea's military buildup by transferring advanced missile technology to North Korea. This action demonstrates that China is actively opposing United States security interests in the region. Consequently, I can no longer support the President's determination wholesale. If we continue business-as-usual with China, human rights may improve as personal income and personal freedoms improve. The most sure way to encourage human rights improvements, however, is to provide the Government with an incentive to actively change its human rights policy. And we must do so without compromising the substantial amount of trade which we conduct each year. In my opinion, we must find a middle ground approach--one that allows most trade to continue while attacking those enterprises that are guilty of the most severe abuses. I believe that the Pelosi alternative achieves that reasonable approach. The Pelosi approach focuses on sanctions where it will hurt most, on the military-run enterprises which manufacture military and civil goods and on certain state-run enterprises. These are the enterprises which fund the expansion and modernization of China's armed forces or which employ forced labor and engage in human rights violations. The Pelosi alternative also calls for the President to include an assessment of China's progress on human rights, exports which use convict, forced or indentured labor, unfair trade practices, and weapons proliferation. Most important, the Pelosi bill focuses on improving the lives of ordinary Chinese people that have fought for democracy in their country. Restriction of these goods will have a measurable effect on these Chinese industries, and also on the human rights record of the Chinese Government. Mr. STOKES. Mr. Chairman, I rise today to express my strong support for the Pelosi substitute to H.R. 4590, a bill to disapprove most- favored-nation [MFN] status for products of state-owned-enterprises in China. I also want to take this opportunity to commend the gentlewoman from California, Representative Pelosi, for her steadfast determination, and tireless efforts to keep this issue before our Nation's leaders, and for bringing this legislation to the floor today for a vote. Many of us in the House of Representatives have come to rely on Representative Pelosi for her leadership on this issue over the past 5 years, and we look to her as our conscience and our guide. This gentlewoman deserves the thanks of all the Members of this House for her unwavering support of human rights and democratic reforms in China. It is absolutely imperative that this House insist that the United States Government not reward the Chinese regime which brutally massacred pro-democracy demonstrators in Tiananmen Square just 5 years ago with carte blanche on the importation of their goods into our market. Granting most-favored-nation status to all Chinese products rewards the Chinese regime for its intransigence on human rights, and its refusal to engage in fair trade. The Pelosi substitute to H.R. 4590 is carefully targeted to send a strong message to the Chinese Government that continued suppression of human rights, production of export goods through forced prison labor, flaunting of international agreements on nuclear nonproliferation, and engaging in unfair trade practices cannot be tolerated, nor ignored, nor rewarded. Denying most-favored-nation status for products made by the Chinese military and state-owned-enterprises which rely on forced prison labor to produce their goods is a reasonable compromise to the continuing controversy over trade and human rights policy in regard to China. Mr. Chairman, despite the arguments of those who support totally unfettered trade with China, the fact remains that trade and human rights are inextricably linked. A nation that suppresses its peoples' human rights also suppresses their wages. This, in turn, leads to an unnatural advantage in trade, which adversely impacts American businesses and workers, and causes the loss of American jobs. In point of fact, the United States trade deficit with China is now over $30 billion a year, second only to our trade deficit with Japan. Yet, despite the freedom we grant to Chinese imports to the United States, China does not grant most-favored-nation status to United States goods, and continues to bar certain United States goods from the Chinese market. For those who advocate free trade, it seems rather illogical and inconsistent to grant free access to our market to a country which denies free access to their market for our goods. Nearly 40 percent of China's total exports are to the United States, which means that most-favored-nation status for their goods is vital to the Chinese economy. Therefore, most-favored-nation status is logically the most effective tool for influencing the Chinese Government to improve their record on human rights. If the United States continues to grant most-favored-nation status to Chinese goods, without requiring improvements in human rights, than there is no incentive for the Chinese regime to alter their policies. I ask my colleagues who support unrestricted most-favored-nation status for China to identify what other means we have available to influence the Chinese Government? They cannot give me an answer, because they have no answer. Mr. Chairman, I strongly urge all my colleagues to insist that the United States stand up for the principles of human rights, and for the freedom of the Chinese people. Vote for the Pelosi substitute, and send he clear, unmistakable message to the dictators in Beijing, and your constituents, that you believe in freedom and democracy for people all over the world. Mr. EDWARDS of California. Mr. Chairman, I rise in support of the bill and substitute amendment authored by my dear friend and respected colleague, Representative Nancy Pelosi. This reasoned and reasonable approach to United States-Chinese policy would promote respect for human rights without inadvertently punishing reformists. No one here can dispute that the government of the People's Republic of China must improve its repressive human rights record. Our decision today is how to achieve that goal. I side with those who believe that the worst offenders are not entitled to the privilege of most-favored-nation status which is afforded civilized trading partners. Unfettered access to the American market, the largest unified market in the world, is not the answer. Economic growth may help promote openness, but it is not the only factor or the only path to democracy. If it were, you can be sure that the Chinese would not allow economic reform. By denying MFN to official institutions, we can provide incentives for the government, particularly the military, to divest itself. This would further the interests of the United States which include promoting human rights, democracy, fair trade, livable working conditions, nuclear non-proliferation, regional stability and more. These are the goals we all share. These things will be more difficult to achieve if we do not use the leverage of targeted MFN denial. The Pelosi bill is workable. The list of targeted enterprises, in fact the concept of targeted denial of MFN, was drawn up by the administration before the undoing of our China policy. The alternative offered by my colleague from Indiana merely advocates doing what we ought to be doing already: protecting intellectual property, encouraging responsible business practices, and expanding broadcasting to tyrannized societies. Without the human rights violations, without the prison labor, without the missile proliferation, without the subjugation of Tibet, the Chinese would still be among the worst of our unfair trading partners. China does not afford the United States national treatment, the common denominator among trading partners that entitles countries to most-favored-nation status. China turns a blind-eye to industrial and intellectual piracy. China uses prisoners and laborers in near- slavery to fuel its economic engine. Because of all this, the United States suffers a tremendous $24 billion trade deficit with China. Confucius said centuries ago, ``do not treat others as you would not have them treat you.'' The Golden Rule, as spoken by the venerable Chinese sage, applies. The Chinese Government must treat other nations as they would be treated. Perhaps even more importantly, the Chinese Government must respect the Chinese people if it is to deserve respect. We must stand up for the average Chinese, like the man before the tank, and help to put an end to repression. Support the Pelosi amendment, oppose the Hamilton amendment. Mr. KENNEDY. Mr. Chairman, I rise today in strong support of the Pelosi bill, which will revoke MFN for goods produced by the People's Liberation Army and China's defense trading companies. This is the principled approach. It is the pragmatic approach. As a strong supporter of free trade, I do not come to this position lightly. China is not only the world's largest country, but it also has the world's fastest growing economy. Our relationship with China is one of the most important issues that this Nation faces on the international scene in the years and decades ahead. Mr. Chairman, as we begin to face that challenge, a simple extension of most-favored-nation trading status--without regard to China's restrictions on imports, their export of missile technology and their performance in human rights--will not advance our values. It will not advance our interests. Targeted sanctions are justified for many reasons: the Chinese Government acknowledges holding more than 3,000 prisoners for counter- revolutionary activities. This is a mere fraction of tens of thousands of political and religious detainees. They can be held for 3 years without a trial, and that is often extended for another 3 years. China continues to export products made with prison labor to the United States. Just this spring, the human rights group Asia Watch released a report documenting import to the United States of 100 tons of latex medical gloves inspected by prison labor. There has been no progress in negotiations between China and the Dalai Lama, Tibet's spiritual leader. There are hundreds of prisoners of conscience in Tibet, including 15 nuns arrested last year and sentenced to up to 7 years in prison. China has started discussions with the International Committee of the Red Cross [ICRC] about prison inspections, but to date, no prison visits have been allowed. 1993 was the worst year for political arrests and trials since mid-1990 in the aftermath of the Tiananmen Square massacre. Mr. Chairman, the Pelosi bill strikes the right balance between our interests in expanding trade and in defending human rights. I thank my colleague from California for her leadership on this issue, and urge a ``yes'' vote on H.R. 4590. Mr. PORTER. Mr. Chairman, I commend the gentlelady from California for her constant and eloquent leadership for human rights for the Chinese people. Throughout the years since Tiananmen she has been the guiding light of the Congress on this issue and a beacon of hope for every Chinese person who yearns for freedom. The United States has emerged from the cold war the preeminent political, economic, military, and ideological power in the world. I believe we have the best opportunity in history to promote human rights, the rule of law, free markets, and democracy--the values on which our country is based--in the far corners of the globe. We must, however, implement the foreign policies that reflect this golden opportunity and advance it. The Pelosi bill recognizes the need to find a workable means for moving China toward a greater openness and respect for human rights. Our former policy of conditioning MFN on improvements in human rights ultimately failed because it was to broadly drawn and in the end so draconian we would not use it for fear we might well undermine the very influence toward greater economic and political freedom we wished to foster. The bill that the gentlelady from California offers today, however, is narrowly drawn to target the groups--the People's Liberation Army and the large state-run industries--that are the prime human rights abusers in China. Harry Wu has provided irrefutable evidence that state-run industries use slave labor, and the PLA, which has extensive mechanism used by the Chinese leadership for abuses like Tienanmen Square. I am cosponsor of the Pelosi bill because I believe it sends a well- honed message to the Chinese that our concern for human rights in China is abiding and strong. I urge Members to support this targeted measure. Now, Mr. Chairman, taken together, the legislation offered by Ms. Pelosi and Mr. Hamilton represent a broad-based approach to promoting human rights in China that contains carrots and sticks which, I believe, is how we should be proceeding. I do not believe these two approaches are mutually exclusive, and I support them both. Unfortunately, the Committee on Rules has made it impossible for the two approaches to both pass today, which I believe is unfair to Members and particularly unfair to Mr. Hamilton, who has produced an excellent bill. I am particularly supportive of provisions in his bill that encourage the Chinese to enter meaningful negotiations with the Dalai Lama regarding the future of Tibet, Identify preserving the social and economic system of Hong Kong as a very high priority, and authorize additional funds for Radio Free Asia, for which the house expressed overwhelming support a few weeks ago. After we have completed action here today, I believe the Rules Committee should reconvene and produce another rule allowing the approach that does not prevail--either Pelosi or Hamilton--to be brought back to the floor for an up-or-down vote. The House should be given a fair opportunity to work its will on this very important issue. I will support both of these approaches today, which are offered by Members with a deep and earnest interest in improving conditions in China. I cast my votes, however, while protesting the convoluted rule that does not give Members flexibility and will result in the adoption of one approach or the other, and not both. The CHAIRMAN. All time has expired. The question is on the amendment in the nature of a substitute offered by the gentlewoman from California [Ms. Pelosi]. The question was taken; and the Chairman announced that the ayes appeared to have it. recorded vote Ms. PELOSI. Mr. Chairman, I demand a recorded vote. A recorded vote was ordered. The vote was taken by electronic device, and there were--ayes 158, noes 270, not voting 11, as follows: [Roll No. 383] AYES--158 Abercrombie Andrews (ME) Applegate Baker (CA) Barrett (WI) Barton Beilenson Berman Bilbray Bilirakis Blackwell Boehlert Bonior Borski Browder Brown (OH) Bunning Burton Byrne Cardin Clay Clayton Collins (GA) Collins (IL) Collins (MI) Conyers Costello Cox Coyne de Lugo (VI) DeFazio Dellums Diaz-Balart Dickey Dixon Dornan Duncan Durbin Edwards (CA) Engel Eshoo Evans Everett Farr Fields (LA) Fish Foglietta Ford (MI) Ford (TN) Frank (MA) Gejdenson Gephardt Gilman Gonzalez Goodling Green Gunderson Gutierrez Hall (OH) Hamburg Hefley Hefner Hilliard Hinchey Hobson Hochbrueckner Holden Horn Hoyer Hunter Hutchinson Hutto Hyde Inglis Kaptur Kasich Kennedy Kildee King Klink Klug Lancaster Lantos Levin Lewis (GA) Lewis (KY) Lipinski Lowey Margolies-Mezvinsky Markey Mazzoli McCloskey McHale McKinney Meehan Menendez Mfume Miller (CA) Mink Moakley Molinari Nadler Neal (MA) Norton (DC) Obey Olver Owens Pallone Payne (NJ) Pelosi Porter Poshard Rahall Rangel Richardson Rogers Rohrabacher Ros-Lehtinen Rose Sanders Schiff Schroeder Scott Sensenbrenner Sharp Shepherd Smith (NJ) Smith (TX) Snowe Solomon Spence Spratt Stearns Stokes Strickland Studds Stupak Swett Taylor (MS) Taylor (NC) Torricelli Towns Traficant Underwood (GU) Unsoeld Upton Velazquez Vento Washington Waters Watt Waxman Weldon Wolf Woolsey Wynn Yates Young (FL) NOES--270 Ackerman Allard Andrews (NJ) Andrews (TX) Archer Armey Bacchus (FL) Bachus (AL) Baesler Baker (LA) Ballenger Barca Barcia Barlow Barrett (NE) Bartlett Bateman Becerra Bereuter Bevill Bishop Bliley Blute Boehner Bonilla Boucher Brewster Brooks Brown (CA) Brown (FL) Bryant Buyer Callahan Calvert Camp Canady Cantwell Carr Castle Chapman Clement Clinger Coble Coleman Combest Condit Cooper Coppersmith Cramer Crane Crapo Cunningham Danner Darden de la Garza Deal DeLauro DeLay Derrick Deutsch Dicks Dingell Dooley Doolittle Dreier Dunn Edwards (TX) Ehlers Emerson English Ewing Faleomavaega (AS) Fawell Fazio Fields (TX) Filner Fingerhut Flake Fowler Franks (CT) Frost Furse Gallegly Gekas Geren Gibbons Gilchrest Gillmor Gingrich Glickman Goodlatte Gordon Goss Grams Grandy Greenwood Hall (TX) Hamilton Hancock Hansen Harman Hastert Hastings Hayes Hoagland Hoekstra Hoke Houghton Huffington Hughes Inhofe Inslee Istook Jacobs Jefferson Johnson (CT) Johnson (GA) Johnson (SD) Johnson, E. B. Johnson, Sam Johnston Kanjorski Kennelly Kim Kingston Kleczka Klein Knollenberg Kolbe Kopetski Kreidler Kyl LaFalce Lambert LaRocco Laughlin Lazio Leach Lehman Levy Lewis (CA) Lewis (FL) Lightfoot Linder Livingston Lloyd Long Lucas Machtley Maloney Mann Manton Manzullo Martinez Matsui McCandless McCrery McCurdy McDade McDermott McHugh McInnis McKeon McMillan McNulty Meek Meyers Mica Michel Miller (FL) Mineta Minge Mollohan Montgomery Moorhead Moran Morella Murphy Murtha Myers Neal (NC) Nussle Oberstar Ortiz Orton Oxley Packard Parker Pastor Paxon Payne (VA) Penny Peterson (FL) Peterson (MN) Petri Pickett Pickle Pombo Pomeroy Portman Price (NC) Pryce (OH) Quillen Quinn Ramstad Reed Regula Reynolds Ridge Roberts Roemer Rostenkowski Roth Rowland Roybal-Allard Royce Rush Sabo Sangmeister Santorum Sarpalius Sawyer Saxton Schaefer Schenk Schumer Serrano Shaw Shays Shuster Sisisky Skaggs Skeen Skelton Slattery Slaughter Smith (IA) Smith (MI) Smith (OR) Stenholm Stump Sundquist Swift Synar Talent Tanner Tauzin Tejeda Thomas (CA) Thomas (WY) Thompson Thornton Thurman Torkildsen Torres Tucker Valentine Visclosky Volkmer Vucanovich Walker Walsh Wheat Williams Wilson Wise Wyden Young (AK) Zeliff Zimmer NOT VOTING--11 Bentley Clyburn Franks (NJ) Gallo Herger McCollum Ravenel Romero-Barcelo (PR) Roukema Stark Whitten {time} 1943 Mr. JOHNSTON of South Dakota changed his vote from ``aye'' to ``no.'' Mr. DORNAN changed his vote from ``no'' to ``aye.'' So the amendment in the nature of a substutite was rejected. The result of the vote was announced as above recorded. The CHAIRMAN. Under the rule, the Committee rises. Accordingly the Committee rose; and the Speaker pro tempore [Mr. Skaggs] having assumed the chair, Mr. Sharp, Chairman of the Committee of the Whole House on the State of the Union, reported that that Committee, having had under consideration the bill (H.R. 4590) to provide conditions for renewing nondiscriminatory--most-favored- nation--treatment for the People's Republic of China, pursuant to House Resolution 509, he reported the bill back to the House with an amendment adopted by the Committee of the Whole. The SPEAKER pro tempore. Under the rule, the previous question is ordered. The question is on the amendment The amendment was agreed to. The bill was ordered to be engrossed and read a third time, was read the third time, and passed, and a motion to reconsider was laid on the table. ____________________