[Congressional Record Volume 142, Number 94 (Monday, June 24, 1996)]
[Extensions of Remarks]
[Pages E1154-E1155]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             TEN TREASURY SECRETARIES ENDORSE MFN FOR CHINA

                                 ______


                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                         Monday, June 24, 1996

  Mr. HAMILTON. Mr. Speaker, I have received a letter from Secretary of 
the Treasury Robert Rubin enclosing another letter signed by all 10 
living former Secretaries of the Treasury, calling for unconditional 
renewal of most-favored-nation status for China.
  These distinguished Americans--Douglas Dillon, Henry Fowler, George 
Shultz, William Simon, Michael Blumenthal, William Miller, Donald 
Regan, James Baker, Nicholas Brady, and Lloyd Bentsen--have guided 
America's financial and economic destiny during every administration 
since President Kennedy's.
  Their collective wisdom and judgment should not be ignored.
  Mr. Speaker, I ask that Secretary Rubin's letter be inserted in the 
Record, along with the letter of the 10 former Secretaries.

                                   Department of the Treasury,

                                    Washington, DC, June 18, 1996.
     Hon. Lee H. Hamilton,
     House of Representatives,
     Washington, DC.
       Dear Lee: I wanted to bring to your attention a letter 
     signed by all ten former Secretaries of the Treasury that 
     called for President Clinton to renew most favored nation 
     trading status for China. In the letter, the former 
     Secretaries emphasized that more can be achieved on 
     contentious issues such as nuclear non-proliferation, the 
     environment and international security by engaging China 
     fully in an active trading relationship than by trying to 
     isolate China. In addition, the letter clearly demonstrates 
     the strong national interest America has in renewing MFN 
     trading status for China. They note, for

[[Page E1155]]

     example, that China is currently one of the fastest growing 
     economies in the world and a recipient of $12 billion of U.S. 
     exports that support more than 170,000 U.S. jobs. In 
     addition, the U.S.-China Business Council estimates that U.S. 
     direct investment in China totals more than $24 billion.
       Yesterday, Acting USTR Charlene Barshefsky announced that 
     she had successfully reached an agreement with the Chinese 
     government on measures they must take to enforce the terms of 
     our trade. These hard-fought measures will substantially 
     improve the protection of and market access for intellectual 
     property. In addition, they represent a good example of how 
     the policy of engagement is working.
       The President has said we are now at a cross-road in our 
     relationship with China. On May 31st, the President sent his 
     recommendation to Congress calling for unconditional renewal 
     of MFN trade status for China. Renewing MFN will continue our 
     policy of full engagement which is the most effective means 
     to improve its actions in a number of areas, including human 
     rights. In the coming days, you will be asked to vote on this 
     renewal. Having closely examined this issue over a number of 
     years, the bipartisan group of former Treasury Secretaries 
     concluded that renewal is strongly in America's national 
     interest. I urge you to consider your support for renewal of 
     MFN for China in light of this distinguished group's 
     recommendation and hope that you will reach the same 
     conclusion.
           Sincerely,
                                                  Robert E. Rubin,
                                        Secretary of the Treasury.
       Enclosure.

                                                Former Secretaries


                                              of the Treasury,

                                                     May 22, 1996.
     The President of the United States,
     The White House,
     Washington, DC.
       Dear Mr. President: As former Secretaries of the Treasury, 
     we strongly support unconditional renewal of our most favored 
     nation trading status with China. Our relations with China 
     are a cornerstone to the U.S. security and economic interests 
     in the Pacific. The consequences of terminating MFN would set 
     back prospects for progress in those relations in many 
     critical areas.
       U.S. exports to China are now running at $12 billion a 
     year, providing more than 170,000 American jobs. U.S. 
     businesses already have large investments in China. Revoking 
     MFN will invite almost certain retaliation, costing U.S. jobs 
     and imperiling existing investments. This would place 
     American companies and workers at a competitive disadvantage 
     compared to our principal competitors. It is estimated that 
     China is now the third largest economy in the world, and 
     among the fastest growing. It is not in our interest to 
     handicap Americans in pursuing this market.
       In our view, it is important to engage China fully on a 
     number of issues. By dropping MFN and diminishing U.S. 
     presence, we would seriously hinder our ability to influence 
     China's behavior in areas such as trade, environment, 
     proliferation and security. Revoking MFN would also 
     jeopardize the nascent economic reforms already taking place 
     in China.
       It is in America's interest to renew MFN and to remain 
     engaged with China in all areas of our national concern.
           Sincerely,
         Douglas Dillon; George P. Shultz; W.M. Blumenthal; Donald 
           Regan; Nicholas F. Brady; Henry H. Fowler; William E. 
           Simon; William Miller; James Baker III; Lloyd Bentsen.

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