[Congressional Record Volume 140, Number 68 (Thursday, May 26, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 26, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
RENEWING MOST-FAVORED-NATION TRADING STATUS WITH THE PEOPLE'S REPUBLIC 
                                OF CHINA

  The SPEAKER pro tempore (Mr. Fingerhut). Under a previous order of 
the House, the gentleman from Oregon [Mr. Kopetski] is recognized for 5 
minutes.
  Mr. KOPETSKI. Mr. Speaker, just moments ago, President Clinton made a 
significant policy statement with respect to renewing most-favored-
nation trading status with the People's Republic of China. In his 
statement he said that he has made the decision to delink the human 
rights issue with the MFN accord.
  I rise this evening to praise the President for this very, very 
difficult policy decision and tough, tough political decision. He has 
once again decided to lead based on fact, based on good policy.
  This is a bold step in advancing United States relations with China 
beyond the stalemate of recent years. And with this announcement, 
President Clinton acknowledges the shortcomings, yes, of recent United 
States-China policy but also takes the opportunity not to retreat from 
our values of human rights in the United States and our commitment to 
human rights throughout the world.
  It fits in with the new policy begun last year to engage the People's 
Republic not just on trade, not just on the human right issue, but 
across the board. The United States has sent many delegations and 
exchanges to China to engage them comprehensively, whether it is in 
commerce, whether it is in human rights, whether it is in education. It 
is on many fronts that we must do this.
  Mr. Speaker, all of these meetings stressed though, as part of those 
meetings, the importance of human rights with this administration and 
with the American people. There are many avenues to pressure human 
rights, the human rights issues on China, and the President announced 
this evening that we will move forward by establishing a United States 
Commission on Human Rights to focus on China, to allow people in 
government and business leaders to come forward and present ideas, 
further ideas to move China in a more positive direction.
  We also need to work multilaterally to pressure China to improve the 
human rights situation, whether it is through the World Bank, the Asian 
Development Bank, and other U.N. development programs. All of these 
programs offer an opportunity for the United States, working with the 
international community, to pressure China for human rights 
improvements and democratic reform.
  Contact with the United States interests and advances in the cause of 
human rights and democratic reform in China is paramount, and 
businesses such as Hewlett-Packard and, Mr. Speaker, I am including in 
this point in the Record their statement of their code of conduct for 
their companies, Chinese employees doing business in China and working 
in China.
  The President is calling upon the American business community doing 
business in China to adopt a code of conduct that they will adhere to, 
and this code of conduct, as Hewlett-Packard has already implemented, 
says they will treat their workers the same way that they treat 
American workers.
  I want to take just a few moments to recognize two great champions in 
the United States on human rights, and that is Congresswoman Nancy 
Pelosi and Senator George Mitchell. Because of their work, I think the 
President has made a decision that is going to help China move toward 
human rights, to do that by taking a new approach, and it is through 
their continuous hard-fought advocacy that this will occur.
  Finally, let me commend the President on this tough political 
decision, but one that I am certain is in the best interests of the 
people of China and the people of the United States.

                 China Hewlett-Packard and Human Rights

       Hewlett-Packard in 1985 formed a joint venture in China 
     which has grown to employ approximately 550 employees located 
     throughout the country. Through the contacts created by this 
     business, HP is transferring the Western values and HP values 
     which are helping to transform China at a grassroots level. 
     Ultimately, it is the development of our people which 
     promotes the human rights values which are the focus of the 
     current debate. The HP programs which enhance--directly and 
     indirectly--human rights in China include:
       Overseas Training Trips: 309 trips in 1993, 1,214 in the 
     last four years create eye-opening exposure the CHP employees 
     to the outside world.
       Foreign Assignments and Extended Travel: enable key 
     employees and future leaders to obtain comprehensive outside 
     exposure.
       House Purchasing Programs: permits employees to personally 
     enjoy the benefits of private ownership, extended credit, and 
     profit. The program was publicly announced Monday, April 25, 
     and 47 employees signed purchase agreements and mortgage 
     agreements on the first day.
       HP Profit Sharing Program: all employees learn to benefit 
     from company growth and productivity.
       HP Stock Appreciation Program: rewards top performers for 
     special efforts/results.
       HP Electronic Mail: enables employees to communicate with 
     peers around the world on business issues.
       HP personnel policies also focus particularly on the 
     importance of the individual and individual contributions and 
     initiative:
       HP Way: individual goal setting, responsibility, 
     accountability.
       Management Training: career growth and promotion, emphasis 
     on delegation of authority, management by objective.
       HP practices in China are consistent with HP policies 
     worldwide as established in Palo Alto, CA at corporate 
     headquarters.
       Labor Standards: general working conditions, worker safety, 
     and office equipment are world-class.
       Pay: HP salaries are several times the comparable local 
     salary levels.
       Environmental Standards: identical to those in U.S. and 
     elsewhere.
       Facilities: likewise first class, and inspected frequently 
     by international management teams.
       Donations: HP makes contributions to local universities 
     consistent with our worldwide practices and guidelines.
       Other comments from the local China Hewlett-Packard 
     perspective:
       The U.S. image in the Far East has been tarnished 
     significantly by the MFN debate. Many countries in the region 
     consider the U.S. MFN policy foolish, short-sighted, and neo-
     colonialist, and several are publicly critical of it.
       Our competitors--Seimens, Alcatel, NEC Fujitsu--are firmly 
     entrenched in the China marketplace, and would benefit 
     immensely from a disruption of U.S.-China trade, at a time 
     when large infrastructure projects are being bid which will 
     determine supplier relationships for the next 10-20 years.
       China has been historically receptive to outsiders (often 
     for good cause), as evidenced by the Great Wall, Boxer 
     Rebellion, and Cultural Revolution. We have a unique 
     historical opportunity to integrate China into the rest of 
     the world, and U.S. policy should therefore emphasize the 
     broadcast possible engagement, and not cut off contacts by 
     revoking MFN.
       Since the British agreed to cede Hong Kong to China, the 
     major question mark in the Far East has been whether Beijing 
     (with its control, non-market economy) would transform Hong 
     Kong (with its free enterprise economy), or Hong Kong 
     transform Beijing. The odds on Hong Kong were not good. But 
     miraculously, there is growing hope that through the back 
     door of trade and engagement, Hong Kong's values will yet 
     prevail. We should do what we can to help Hong Kong preserve 
     and extend its free enterprise values into the rest of China.

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