[Congressional Record (Bound Edition), Volume 146 (2000), Part 12]
[Senate]
[Pages 17579-17588]
[From the U.S. Government Publishing Office, www.gpo.gov]



 TO AUTHORIZE EXTENSION OF NONDISCRIMINATORY TREATMENT TO THE PEOPLE'S 
                      REPUBLIC OF CHINA--Continued


                           Amendment No. 4119

  The PRESIDING OFFICER. The Senator from Minnesota is recognized.
  Mr. WELLSTONE. Thank you, Mr. President.
  Mr. President, amendment No. 4119 deals with the human rights 
question; it deals with the trade question; it deals with the issue of 
Chinese exports to the United States of goods made by prison labor.
  To curb such exports, this amendment is about existing agreements 
that we already have with China. This amendment just says we want China 
to live up to the existing agreements. The United States and China 
first signed a memorandum of understanding in 1992, which I will refer 
to as MOU throughout the debate. Then we signed a statement of 
cooperation in 1994. This amendment would require that the President 
certify that China is fully compliant with the two trade agreements 
that China has already made with us before extending PNTR to China.
  Let me provide some background on U.S.-China agreements on trade in 
prison labor products and discuss China's deplorable record in 
complying with these agreements. Actually, they haven't complied with 
these agreements. The MOU was intended to end the export to the United 
States of goods produced by prison labor in China. China agreed to the 
United States' request back in 1992 that it would promptly investigate 
any companies that were involved in using prison labor to export 
products back to our country. But basically the Ministry of Justice in 
China completely ignored the agreement.
  In 1994, therefore, we signed another statement of cooperation with 
them in which China said: We will agree and we will set some time 
limits so that within 60 days of the United States' request to visit 
such a facility we will make that happen. We will be expeditious in 
making sure we follow through on this agreement.
  For the last 3 years, they have not followed through on any of these 
agreements.
  Because of the good work of my colleagues, Senator Harkin from Iowa 
and Senator Lautenberg from New Jersey--both of whom are going to speak 
on the floor of the Senate--for the first time in 3 years we had 
Customs able to visit one of these factories. But this really was the 
first time that China has budged at all. Other than that, we have seen 
no agreement, or no followthrough on these agreements.
  When I became a member of the Foreign Relations Committee 3 years 
ago, I remember the first hearing we held had to do with prison labor 
conditions in China and this whole problem of trade with China. 
Basically the consensus of all of the witnesses who testified, 
including administration witnesses, was that the Chinese compliance 
with our trade agreements was pitifully inadequate. There has been 
virtually no compliance with these agreements.
  The State Department issued a country-by-country report in 1999 and 
also in the year 2000. I will summarize. I could quote extensively. 
Both of these reports make it clear that during the last 2 years, China 
has not complied with these existing agreements.
  Let me simply raise a question with my colleagues. Here we have two 
trade agreements with China--two understandings. We have basically said 
to the Chinese Government that people in the United States of America 
would be outraged if they knew that part of what they were doing was 
exporting products to our country produced by prison labor. This is a 
human rights issue. It is a labor issue. And it is also a trade issue.
  It is interesting. I talked about a memorandum of understanding. In 
1994, the administration used as evidence the fact that China had 
signed the statement of cooperation. For the first time, the President 
said: I am going to switch my position and I am going to delink human 
rights from trade because it is a great step forward that China has 
signed this statement of cooperation. That judgment turned out to be 
premature. China's Ministry of Justice ignored seven U.S. Customs' 
requests for investigation submitted in March of 1994, the same month 
that the agreement was passed.
  China, for years, has refused to allow U.S. officials access to its 
reeducation through labor facilities--let me repeat that--reeducation 
through labor facilities, arguing that these are not prisons.
  China, in spite of these agreements, has said: We will not allow the 
United States access to our reeducation through labor facilities 
because these are not prisons. Beijing would have us believe that these 
are merely educational institutions. And nothing, if we are at all 
concerned about human rights in the Senate, could be further from the 
truth.
  Reeducation through labor--known as ``laojiao'' in Chinese--is a 
system of administrative detention and punishment without trial. That 
is what it is. The U.S. Embassy in Beijing insists that reeducation 
through labor camps are covered by our trade agreements, the MOU. And 
this is confirmed by the MOU record. Beijing disagrees and continues to 
claim that these reeducation

[[Page 17580]]

through labor facilities are not prisons. For over 5 years, China has 
repeatedly denied or ignored all U.S. requests to visit one of these 
facilities. We haven't been able to visit even one of these facilities.
  What has been this administration's reaction to China's refusal to 
allow a visit? It has been the same as for all denied visits. We renew 
our request every 3 months, and the Chinese totally ignore us. This 
charade ought to stop. It ought to stop now. That is why I hope there 
will be strong bipartisan support for this amendment.
  What does ``reeducation through labor'' mean? Let me read some 
excerpts from Human Rights Watch reports on this subject:

       The usual procedure is for the police acting on their own 
     to determine a re-education term. Sentences run from one to 
     three years' confinement in a camp or farm, often longer than 
     for similar criminal offenses. A term can be extended for a 
     fourth year if, in the prison authorities' judgment, the 
     recipient has not been sufficiently re-educated, fails to 
     admit guilt, or violates camp discipline. The recipient of a 
     re-education through labor sentence has no right to a 
     hearing, no right to counsel, and no right to any kind of 
     judicial determination of his case.

  That is a quote from a Human Rights Watch report on this subject.
  Human Rights Watch also points out that inmates may have their 
reeducation sentence extended indefinitely, and concludes that 
reeducation through labor violates many of the provisions of 
international law, including the International Covenant on Civil and 
Political Rights, which China signed in 1998. The covenant states:

       Anyone who is deprived of his liberty by arrest or 
     detention shall be entitled to take proceedings before a 
     court in order that the court may decide without delay on the 
     lawfulness of his detention.

  Among other things, reeducation through labor bars the presumption of 
innocence, involves no judicial officer, provides for no public trial 
or defense against the charges.
  Amnesty International has concluded that it is impossible for China 
to claim a commitment to the rule of law while maintaining a system 
that sentences hundreds of thousands of people without due process. I 
couldn't agree more.
  According to the 1999 State Department report on human rights, there 
are 230,000 people in reeducation through labor camps. Conditions in 
these camps are similar to those in prisons. What does the report say 
about these conditions in prisons? It describes them as ``harsh, and 
frequently degrading for both political criminals and common 
criminals.'' The report says it is common for political prisoners to be 
segregated from each other and placed with common criminals. There are 
credible reports that common criminals have physically beaten up 
political prisoners at the instigation of the guards.
  I am sure my colleagues will agree that reeducation through labor 
doesn't qualify as an institution whose sole aim is education and 
rehabilitation, as China claims.
  Before certifying that China is in compliance with the MOU and SOC 
under this agreement, the President must affirm that China is 
permitting investigation and U.S. inspection of reeducation through 
labor facilities under the terms of both the memorandum of 
understanding and the statement of cooperation, two agreements that we 
have signed with China in 1992 and 1994.
  I am offering this amendment because I think it addresses concerns 
that many Members have in the Senate about PNTR, concerns about China's 
appalling and worsening human rights record.
  I heard my colleague from Nebraska say that the evidence is clear 
that opening up trade leads to more respect for human rights. The 
evidence is not clear on that. We have been doing record trade with 
China. We have a record trade imbalance. They export much more to the 
United States than vice versa. They export products made by forced 
prison labor in China. Over the last 10 years, we haven't seen more 
respect for human rights. Our own State Department reports that all of 
the human rights organizations reports point to harsh--and in some 
cases, worsening--conditions.
  How can Senators reviewing our trade relations with China give up 
this little leverage that we have and think somehow it will promote 
human rights when, as a matter of fact, we have seen no evidence 
whatever that the Government is moving in that direction. We will give 
up what little leverage we have.
  This amendment is about human rights. It is an amendment that speaks 
to whether or not we can depend upon China to honor trade agreements. 
It is an amendment that speaks to the concerns of working people, that 
they can't possibly compete with prison labor in China.
  Senators, I offer this amendment and I call for support on this 
amendment for three reasons: (A) out of respect for human rights; (B) 
because we already have these trade agreements with China. This is the 
most directly relevant amendment to PNTR awaiting action. We already 
have trade agreements with China and they have not abided by these 
agreements. Tomorrow they could. In this amendment, we call upon China 
to live up to these agreements before we automatically extend normal 
trade relations. What is unreasonable about that?
  Finally, I say to Democrats first, and Republicans second--Democrats 
first, because we are supposed to be more the party of the ``people''--
in all due respect, a lot of our constituents, a lot of working people, 
a lot of labor people, have every reason in the world to be a bit 
skeptical about this new trade agreement and the new global economics 
when we have China exporting to our country products produced by prison 
labor.
  I think this amendment is all about on whose side are we. Are we on 
the side of a repressive government that basically pays no attention to 
anything we say because the message we communicate is: We will, for the 
sake of commerce, sign any agreement; we are not concerned about these 
harsh conditions. But are we on the side of human rights? Are we on the 
side of the idea that China ought to live up to these trade agreements? 
Are we on the side of working people, laboring people in our own 
country who, by the way, will say to each one of you back in your 
States: Senator, we do not want to be put in a position of losing our 
jobs because this repressive government can export products made by 
forced prison labor in China and has not been willing to live up to any 
of the agreements they have signed with our country.
  I ask my colleagues to carefully consider the following questions:
  (A) How can we expect China to honor trade agreements with us when it 
systematically violates the two agreements we signed committing China 
and the United States to cooperate in curbing trade in prison labor 
products? They are in noncompliance with two agreements.
  (B) How can we do nothing, year after year, to bar imports of Chinese 
forced labor products when we know that China operates the world's 
largest forced labor system estimated to encompass over 1,100 camps and 
as many as 8 million Chinese prisoners? This is the Chinese version of 
the Soviet gulag. It encompasses a massive complex of prisons, labor 
camps, and labor farms for those sentenced judicially. Do we want to 
turn our gaze away from this, Senators? Do we want to pretend we didn't 
sign these agreements? Do we want to pretend China is complying with 
these agreements? Do we want to pretend that it is not an important 
human rights question? Do we want to pretend that this is not important 
to working people in our country? Do we want to pretend that citizens 
in our country would not have real indignation if they realized that we 
weren't willing to at least insist China live up to these trade 
agreements? And we are not going to if we do not pass this amendment.
  (C) How can the administration allow China to ignore agreements to 
halt forced labor exports, thereby abetting a dehumanizing system that 
imprisons and persecutes Chinese democrats--Republicans, I use 
democrats with a small ``d''--for peacefully advocating human rights, 
while enabling Beijing to profit from exports of prison products?

[[Page 17581]]

  Finally, how can the administration risk the displacement of U.S. 
workers while we turn a blind eye and China does nothing to bar exports 
to the United States of products made by prison labor. U.S. citizens 
are losing jobs.
  Colleagues, I look forward to hearing from the other side. H.R. 4444 
proposes a toothless remedy. I do not want to let anyone in this debate 
get away with saying we are very concerned about this question. H.R. 
4444 mandates the establishment of an interagency task force on 
prohibiting importation of products of forced or prison labor. This 
task force is to make recommendations to the Customs Service on seeking 
new agreements.
  Another task force. In all due respect, this toothless remedy has a 
made-for-Congress look to it. We do not want to bite the bullet, we do 
not want to do something substantive and important, so we do something 
that is symbolic--at best. Do we need another task force? We do not 
need another task force. We do not need an interagency task force. We 
already have two agreements with China--1992 and 1994. Another task 
force is meaningless.
  Let me just point out some of the more pointed Chinese proposals 
which were conveyed in a message sent in May from China's Ministry of 
Justice to the U.S. Customs attache in Beijing. The message admonishes 
the U.S. Embassy to abide by certain principles, which include:

       . . . the rule that Chinese officials conduct 
     investigations first, then if necessary arrange visits for 
     American counterparts.

  I quote again:

       Unnecessary visits will not be arranged if we can clarify 
     and answer questions through the investigations.

  Really what the message from the Chinese Government is, is we conduct 
the investigations first and only afterwards permit the United States 
to visit suspected sites. This is in total opposition to the memorandum 
of understanding and the statement of cooperation. We already have the 
agreements. They are not in compliance with these agreements. And we 
want to set up a task force?
  Let me simply say the view of the Chinese Ministry of Justice that we 
should trust China's sincerity and therefore reduce the necessity of 
U.S. on-site visits is nothing short of ridiculous. This is pretty 
incredible.
  The other thing is, H.R. 4444 stipulates that the task force is to:

       . . . work with the Customs Service to assist the People's 
     Republic of China in monitoring the sale of goods mined, 
     produced or manufactured by convict labor, forced labor, or 
     indentured labor under penal sanctions to ensure that such 
     goods are not exported to the United States.

  The Chinese Government controls prison labor in China. It can curb 
the export of forced prison labor products anytime it chooses. It 
certainly does not need the assistance of the United States. This is, 
frankly, ludicrous. It is just ludicrous.
  The State Department, in 1997, affirmed both the memorandum of 
understanding and the statement of cooperation, of 1992 and 1994, to be 
binding international agreements. The trouble is that China does not. 
It continues to get away with this because we impose no penalties for 
these egregious and continuing Chinese violations. In contrast to the 
provision now in H.R. 4444, which is toothless, my amendment for the 
first time will provide China with a strong incentive to comply with 
the MOE and SOC, for, if it fails to do so, then it will put PNTR at 
risk. An added benefit is that it would help restore U.S. credibility 
by holding China accountable for violating trade agreements with the 
United States.
  We are just insisting that China stop treating the bilateral 
agreements it has signed with us concerning prison labor exports as 
mere scraps of paper. What does this amendment ask for? It asks simply 
that PNTR be denied until the President can certify that China is 
honoring agreements it has repeatedly violated in the past. Is that too 
much to ask? Is that too much to ask?
  Mr. President, I have a document dated May 8, 2000, from the Deputy 
Director General of the Prison Administration Bureau, PRC, to David 
Benner, U.S. Customs Attache. I ask unanimous consent that it be 
printed in the Record, and I reserve the remainder of my time.
  There being no objection, the material was ordered to be printed in 
the Record as follows:

                                     Prison Administration Bureau,


                                          Ministry of Justice,

                                                 PRC, May 8, 2000.
     David Benner,
     U.S. Customs Attache, American Embassy Beijing.
       Mr. Benner: It was a pleasure to meet you on April 20, 2000 
     and the meeting was successful. As a follow-up, this letter 
     presents the concerned principles and suggestions we 
     mentioned at the meeting. We hope that your government can 
     give us a clear reply as soon as possible.


            i. brief summary of our cooperation in the past

       The signing of MEMO and COOPERATION AGREEMENT shows our 
     principles and sincerity of cooperation. In the past seven 
     years since the signing of MEMO, we have made great efforts 
     to arrange eight visits to eleven places for American 
     officials. We also conducted investigations into over fifty 
     places and provided the results to American counterpart. We 
     have noticed that American officials have closed most of the 
     cases related to the above places. Among these visits and 
     investigations, no evidence at all has been found to prove 
     the allegation of prison products exportation to the U.S. 
     These facts well show our serious attitude and cooperation 
     sincerity.


 ii. additional explanation and emphasis on some cooperation principles

       1. The objects that will be investigated are prison 
     products being exported to the U.S. No third country should 
     be involved.
       2. Abide by the principle that Chinese authorities should 
     hold the sovereign right to conduct investigations.
       3. Abide by the rule that Chinese officials conduct 
     investigations first, then if necessary arrange visits for 
     American counterparts. Unnecessary visits will not be 
     arranged if we can clarify and answer questions through the 
     investigations.
       4. So-called ``PENDING'' or unresolved cases should be 
     agreed to both sides.
       5. All American visitors have to be diplomats.
       6. Any visits and investigations in China have to abide by 
     concerned Chinese laws and regulations.
       7. The time limit of sixty days is valid to both sides.
       8. The results of the visits and investigations made by 
     American officials have to be formally submitted to Chinese 
     government by American government.
       9. American counterparts should provide sufficient 
     information and evidence to support the allegations and to 
     warrant the investigations and arrangement of visits.
       10. The investigation of one case must be completed and 
     case closed before starting another or second case.


                          i. some suggestions

       1. In the past seven years, both sides have made great 
     efforts to do tremendous work, no prison products exportation 
     to the U.S. has been found so far. Therefore, a summary is 
     very necessary.
       2. American counterpart must trust our sincerity and 
     investigation results, which is the most important basis upon 
     which we cooperate with each other. Site visits are not 
     necessary if we can clarify the allegation by our 
     investigations. Reduction of site visits can result in higher 
     efficiency and avoid unnecessary troubles and unexpected 
     snags.
       3. American officials should standardize the ways and norms 
     when close cases regarding the suspected units.
       4. American counterpart should be cautious and prudent 
     towards the sources of information and its authenticity. As a 
     matter of fact, a lot of information obtained by American 
     officials was not accurate, some even groundless. This 
     creates unnecessary troubles for both of us. Pertaining to 
     the practice these years, we think it is very necessary for 
     both sides, especially our side to verify the information and 
     evidence obtained by American counterpart.
       5. Abide by the regulation in COOPERATION AGREEMENT to 
     conduct investigation one case by one case. This is a serious 
     and responsible attitude and standardized and effective 
     method.
                                                   Wang Shu-sheng,
                                          Deputy Director General.

  The PRESIDING OFFICER. The Chair recognizes the Senator from 
Delaware.
  Mr. ROTH. Mr. President, I make a point of order a quorum is not 
present.
  Mr. WELLSTONE. Mr. President, I ask consent this not be charged 
against my side.
  The PRESIDING OFFICER. The quorum call is charged to the side that 
suggests it.
  Mr. WELLSTONE. I thank the Chair.
  The PRESIDING OFFICER. The clerk will call the roll.

[[Page 17582]]

  The legislative clerk proceeded to call the roll.
  Mr. WELLSTONE. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. WELLSTONE. I say to my colleagues, Senator Lautenberg will be 
speaking in just a moment, but until he comes out, I yield the floor.
  The PRESIDING OFFICER. Who yields time? If no Senator yields time, 
time will be charged equally to both sides.
  The Senator from Minnesota.
  Mr. WELLSTONE. Mr. President, until my colleague from New Jersey is 
ready, I want to again summarize this amendment for other Senators. 
This is the issue of Chinese exports to the United States of goods made 
by prison labor. This is an issue of the memorandum signed in 1992, I 
say to my colleague from Delaware, to deal with this problem. The 
Chinese Government agreed: Yes, we are going to stop this.
  Then we signed another agreement, a statement of cooperation, in 
1994. I have been on the floor citing State Department reports and 
other evidence--no question about it--that the Chinese have refused to 
comply with these agreements. It has been blatant. People in our 
country would be outraged to know this.
  I say to Senators, this is a three-pronged issue. I have talked about 
these reeducation labor camps. I have talked about the deplorable 
conditions. It is a human rights issue. I have cited human rights 
reports. I have said this is a trade issue. They have signed these 
agreements and have not lived up to them. I have said this is a labor 
issue. It permits ordinary people--which I mean in a positive way--in 
the States to be a little suspicious that they could lose their jobs as 
a result of this.
  I hope my colleagues will support this. It is an eminently reasonable 
amendment. It simply says the President needs to certify that China is 
fully compliant with these two agreements, which they have already made 
with us, before extending PNTR to China.
  I yield 12 minutes to my colleague from New Jersey.
  The PRESIDING OFFICER. The Senator from New Jersey.
  Mr. LAUTENBERG. Mr. President, I thank my friend and colleague from 
Minnesota for offering this amendment. I ask unanimous consent to be 
added as an original cosponsor.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. LAUTENBERG. Mr. President, I rise today in support of the 
Wellstone amendment on prison labor.
  China has an extensive prison labor system, and many people are in 
China's prisons for expressing their opinions, practicing their 
religion, or engaging in other activities we would regard as the 
exercise of their fundamental human rights.
  Many of these political prisoners have been sentenced to what the 
Chinese call ``re-education through labor'' without even being accused 
of a crime, much less having a fair trial.
  In the early 1990s, the U.S. had reason to believe China was using 
prison labor to produce goods for export, including goods intended for 
the U.S. market. China's government denied this until we found a 
document directing the use of prison labor to produce goods for export.
  China had long agreed not to use prison labor to make items destined 
for the U.S. market. In August 1992, after protracted negotiations, the 
United States and China signed a memorandum of understanding on 
prohibiting import and export trade in prison labor products. This was 
followed by a statement of cooperation in 1994.
  For several years, the system put in place by these agreements 
allowed U.S. Customs to investigate when we suspected that prison labor 
was being used to make goods for sale in the U.S.
  Under the agreements, U.S. Customs officers--working with their 
Chinese counterparts--investigated suspicious sites. Cooperation under 
the MOU included visits to 11 sites over several years.
  In 1997--this is 4 years after the agreement was signed--China 
stopped allowing U.S. Customs to conduct these inspections. Apparently, 
the Chinese felt that the U.S. should give them a clean bill of health 
and accept their assurances on prison labor without further 
inspections. They went so far as to seek a renegotiation of the 
memorandum of understanding.
  For me, China's compliance with its freely accepted international 
obligations on prison labor is a critical issue in considering PNTR. 
China's willingness to suspend implementation of the memorandum of 
understanding is very troubling.
  For China's accession to the World Trade Organization and the 1999 
bilateral market access agreement to be meaningful, we need to have 
confidence that China will fulfill the letter and spirit of its 
international obligations.
  Senator Harkin and I recently traveled to China, and China's failure 
to fulfill its commitments on prison labor was a major focus of our 
visit. Before we left, we worked with the U.S. Embassy in Beijing and 
the Chinese Embassy in Washington to arrange to accompany U.S. Customs 
on a long-overdue prison labor site inspection visit.
  When we arrived in Beijing, we were told that the Chinese authorities 
did not understand our request, and then we were told such a visit 
would not be possible. But we did not give up.
  We pressed the point in our first formal meeting in Beijing, with 
Vice Foreign Minister Yang. We did not make any progress on the issue, 
but I think the Chinese Government got the message that we were 
serious.
  Later the same day, we met with Vice Premier Qian Qichen. We again 
pressed the point that China must fulfill its obligations to allow U.S. 
Customs to inspect suspected prison labor sites, and we asked that we 
be permitted to join an inspection.
  Vice Premier Qian agreed that the time had come to resume 
implementation of the MOU on prison labor. He agreed that the first 
inspection would take place in September.
  We had a debate about the interpretation of understanding. We wanted 
to go with Customs. At first, they said we could go to a prison, but 
that was not our mission. I was distressed by the fact that they chose 
to interpret what the understanding was after having worked on it for a 
month before we left the United States for China.
  We saw Premier Zhu Rongji and he reaffirmed China's readiness to 
resume full implementation of the prison labor agreement. We urged that 
U.S. Customs be allowed to conduct inspections sooner than they 
planned.
  While this trade-related agreement should have been implemented all 
along, without need for our intervention, I am glad our visit produced 
progress.
  The first long-overdue prison labor site inspection by U.S. Customs 
took place last Friday, September 8. According to a preliminary report 
from our Embassy in Beijing, Chinese authorities cooperated well with 
U.S. Customs and other personnel inspecting a factory in Shandong 
Province.
  I hope the implementation of the agreement will now resume in full, 
including rapid completion of other outstanding inspection requests.
  The amendment before us would make China's implementation of the 
prison labor memorandum of understanding and statement of cooperation a 
condition for granting PNTR. In my view, this is a reasonable condition 
that Premier Zhu has already assured me China will fulfill and that 
appears to be back on track.
  If the Chinese follow through, the President should have no problem 
reporting to Congress that China is complying with its international 
obligations under the prison labor agreement by the time China enters 
the WTO.
  I believe this issue of prison labor is critical to our consideration 
of PNTR for China.
  I urge my colleagues to support the Wellstone amendment so that we 
can be assured China understands that when we have an agreement, we 
want it complied with.
  That is one of the questions that loomed large in our visit. We had 
an opportunity to meet some of the distinguished leadership of the 
Chinese Government. We met with the mayor of

[[Page 17583]]

Shanghai. We met with people who had an influence in provincial policy. 
More than anything else, I wanted to know that when we had an 
agreement, when we had an understanding, it was going to be followed 
through and it was not sufficient to produce excuses such as: Well, we 
didn't understand what was meant and that wasn't our interpretation; 
or, we are sorry we can't quite do that now.
  That is not sufficient. This is an important agreement we are facing 
overall--this amendment first and then the overall decision on PNTR.
  We need, in my view, to have a positive relationship with the Chinese 
Republic. It is such an enormous country with so much potential that it 
would be a positive step for the United States and China to work 
together for us to have access, not just to their marketplace. The 
marketplace is important, but there is something more. One billion two 
hundred million people reside in China, and we do not want to have an 
area of constant instability. We want to let them know that democracy 
works. What they have in place now just does not cut the mustard, as we 
say. So we want to have this understanding.
  But in order to move ahead with it, we have to have a clear view that 
promises made--especially those that are so clear as to have been 
signed on a document--we want upheld; we do not want them skirted with 
purported misunderstandings.
  So I congratulate my friend from Minnesota for having, as he usually 
does, a look at the side of the issue that says: This is what is fair 
and equitable. That is what counts. And when we look at the 
marketplace, that is important. But in order to have the kind of 
wholesome relationship I would like to see us have with China, I think 
we have to deal with this issue of prison labor right now. I hope our 
colleagues will support it.
  I thank the Chair.
  Mr. WELLSTONE addressed the Chair.
  The PRESIDING OFFICER. The Senator from Minnesota.
  Mr. WELLSTONE. I thank my colleague from New Jersey. Before he came 
to the floor, I mentioned a report that he and Senator Harkin had done. 
I really appreciate their strong voices as Senators for human rights.
  Mr. President, I reserve the remainder of my time.
  I will wait to respond to arguments from the other side.
  Mr. HARKIN. Mr. President, this is an important amendment and one 
that deserves careful consideration and debate by the Senate.
  Senator Lautenberg and I just returned from China last weekend. I'll 
have a great deal more to say about our trip and its impact on my 
thoughts about our relationships with China later. But I do want to 
speak briefly to our efforts in China as they related to prison labor 
and directly to this amendment.
  As my friend and colleague from Minnesota has pointed out, the U.S. 
and China entered into an official agreement on prison labor in 1992. 
Its intent is to prevent the importation of goods into our country made 
by prison labor in China--a practice made illegal here under Section 
1307 of the Tariff Act of 1930.
  The agreement is officially titled the ``Memorandum of Understanding 
Between the United States of America and the People's Republic of China 
on Prohibiting Import and Export Trade in Prison Labor Products.'' It 
was signed on August 7, 1992.
  Let me read some of the key components. Under the terms of the 
agreement the United States and China agree to:

       Promptly investigate companies, enterprises or units 
     suspected of violating relevant regulations and will 
     immediately report results.
       Upon the request of one Party, meet to exchange information 
     on the enforcement of relevant laws.
       Will furnish the other Party available evidence and 
     information regarding suspected violations.
       Promptly arrange and facilitate visits by responsible 
     officials to its respective enterprises or units.

  In March of 1994 we entered into an accompanying statement of 
cooperation on the implementation of the MOU. This statement fleshes 
out the details of how our two governments were to carry out the 
agreement.
  This is an important agreement. It aims to assure that U.S. workers 
aren't forced to compete with hundreds of prison labor factories in 
China. Factories that are filled at least partially with prisoners 
whose only crime is seeking democracy or formation of a true labor 
union. Prisoners who are held in so-called ``re-education facilities'' 
for up to 3 years without trials.
  Unfortunateley, China's compliance with this agreement has been 
dismal. From 1992 to 1997 there were joint inspections, but usually 
only after great effort on our part and often only after long delays--
not within 60 days of request as required under the MOU.
  But since 1997 China has stopped all compliance with the agreement. 
They have denied all requests by our U.S. Customs to inspect prison 
labor facilities suspected of exporting products to the United States.
  Let me read a portion of one of the recent letters sent by U.S. 
Customs to Chinese officials.
  So when Senator Lautenberg and I went to China, we asked to accompany 
Chinese officials and our U.S. Customs officials on a visit to one of 
these 8 sites previously requested by Customs.
  We raised this at every level. We first raised it prior to our visit 
with the Chinese Embassy here in Washington. Then we raised it with the 
Deputy Foreign Minister Yang Jiechi, then we raised it with Vice 
Premier Quian QiChen.
  We raised our concerns about the failure to abide by the MOU and 
asked that we be allowed to go along on a visit to see for ourselves 
that the Tariff Act of 1930 is not being violated.
  At first we ran into a brick wall. We were simply told ``no.'' Then 
we were told they misunderstood our request.
  Then they said it was very complicated and would take more time.
  Then we had a breakthrough.
  They refused to let Senator Lautenberg and I go on a visit to one of 
these facilities, but they have agreed to renew their compliance with 
the MOU. We got that assurance personally from Premier Zhu Ronji.
  We got word last Friday--inspections resumed at one site.
  So the first renewed inspection was completed Friday. Now we all see 
if the Chinese are serious about complying with this agreement. Their 
track record clearly does not inspire confidence. That is why I am 
supporting the Wellstone amendment. It would add to our leverage to 
ensure long-term compliance with this important agreement.
  So I urge a vote for this amendment and commend Senator Wellstone for 
bringing it forward.
  As I mentioned earlier, I will have a good deal more to say about my 
trip to China and on the underling PNTR legislation as the debate 
continues.
  Mr. President, I ask unanimous consent to print the memoranda of 
understanding and a letter to Wang Lixian in the Record.
  There being no objection, the material was ordered to be printed in 
the Record as follows:

 Memorandum of Understanding Between the United States of America and 
 the People's Republic of China on Prohibiting Import and Export Trade 
                        in Prison Labor Products

       The Government of the United States of America and the 
     Government of the People's Republic of China (hereinafter 
     referred to as the Parties),
       Considering that the Chinese Government has noted and 
     respects United States laws and regulations that prohibit the 
     import of prison labor products, has consistently paid great 
     attention to the question of prohibition of the export of 
     prison labor products, has explained to the United States its 
     policy on this question, and on October 10, 1991, reiterated 
     its regulations regarding prohibition of the export of prison 
     labor products;
       Considering that the Government of the United States has 
     explained to the Chinese Government U.S. laws and regulations 
     prohibiting the import of prison labor products and the 
     policy of the United States on this issue; and
       Noting that both Governments express appreciation for each 
     other's concerns and previous efforts to resolve this issue,
       Have reached the following understanding on the question of 
     prohibiting import and export trade between the two countries 
     that

[[Page 17584]]

     violates the relevant laws and regulations of either the 
     United States or China concerning products produced by prison 
     or penal labor (herein referred to as prison labor products).
       The Parties agree:
       1. Upon the request of one Party, and based on specific 
     information provided by that Party, the other Party will 
     promptly investigate companies, enterprises or units 
     suspected of violating relevant regulations and laws, and 
     will immediately report the results of such investigations to 
     the other.
       2. Upon the request of one Party, responsible officials or 
     experts of relevant departments of both Parties will meet 
     under mutually convenient circumstances to exchange 
     information on the enforcement of relevant laws and 
     regulations and to examine and report on compliance with 
     relevant regulations and laws by their respective companies, 
     enterprises, or units.
       3. Upon request, each Party will furnish to the other Party 
     available evidence and information regarding suspected 
     violations of relevant laws and regulations in a form 
     admissible in judicial or administrative proceedings of the 
     other Party. Moreover, at the request of one Party, the other 
     Party will preserve the confidentiality of the furnished 
     evidence, except when used in judicial or administrative 
     proceedings.
       4. In order to resolve specific outstanding cases related 
     to the subject matter of this Memorandum of Understanding, 
     each Party will, upon request of the other Party, promptly 
     arrange and facilitate visits by responsible officials of the 
     other Party's diplomatic mission to its respective companies, 
     enterprises or units.
       This Memorandum of Understanding will enter into force upon 
     signature.
       Done at Washington, in duplicate, this seventh day of 
     August, 1992, in the English and the Chinese languages, both 
     texts being equally authentic.

     For the Government of the United States of America:

                                                Arnold Kanter,

                                          Under Secretary of State
                                            for Political Affairs.

     For the Government of the People's Republic of China:
                                                       Liu Huoqiu,
     Vice Foreign Minister, PRC.
                                  ____


  Statement of Cooperation on the Implementation of the Memorandum of 
  Understanding Between the United States of America and the People's 
  Republic of China on Prohibiting Import and Export Trade in Prison 
                             Labor Products

       As the Chinese government acknowledges and respects United 
     States laws concerning the prohibition of the import of 
     prison labor products, and the United States government 
     recognizes and respects Chinese legal regulations concerning 
     the prohibition of the export of prison labor products;
       As China and the United States take note and appreciate the 
     good intentions and efforts made by both sides in 
     implementing the ``Memorandum of Understanding'' signed in 
     August 1992;
       The Chinese government and the United States government 
     agree that conducting investigations of suspected exports of 
     prison labor products destined for the United States requires 
     cooperation between both sides in order to assure the 
     enforcement of the relevant laws of both countries. Both 
     sides agree that they should stipulate clear guidelines and 
     procedures for the conduct of these investigations. 
     Therefore, both sides agree to the establishment of 
     specialized procedures and guidelines according to the 
     following provisions:
       First, when one side provides the other side a request, 
     based on specific information, to conduct investigations of 
     suspected exports of prison labor products destined for the 
     United States, the receiving side will provide the requesting 
     side a comprehensive investigative report within 60 days of 
     the receipt of said written request. At the same time, the 
     requesting side will provide a concluding evaluation of the 
     receiving side's investigative report within 60 days of 
     receipt of the report.
       Second, if the United States government, in order to 
     resolve specific outstanding cases, requests a visit to a 
     suspected facility, the Chinese government will, in 
     conformity with Chinese laws and regulations and in 
     accordance with the MOU, arrange for responsible United 
     States diplomatic mission officials to visit the suspected 
     facility within 60 days of the receipt of a written request.
       Third, the United States government will submit a report 
     indicating the results of the visit to the Chinese government 
     within 60 days of a visit by diplomatic officials to a 
     suspected facility.
       Fourth, in cases where the U.S. government presents new or 
     previously unknown information on suspected exports of prison 
     labor products destined for the U.S. regarding a suspected 
     facility that was already visited, the Chinese government 
     will organize new investigations and notify the U.S. side. If 
     necessary, it can also be arranged for the U.S. side to again 
     visit that suspected facility.
       Fifth, when the Chinese government organizes the 
     investigation of a suspected facility and the U.S. side is 
     allowed to visit the suspected facility, the U.S. side will 
     provide related information conducive to the investigation. 
     In order to accomplish the purpose of the visit, the Chinese 
     side will, in accordance with its laws and regulations, 
     provide an opportunity to consult relevant records and 
     materials on-site and arrange visits to necessary areas of 
     the facility. The U.S. side agrees to protect relevant 
     proprietary information of customers of the facility 
     consistent with the relevant terms of the Prison Labor MOU.
       Sixth, both sides agree that arrangements for U.S. 
     diplomats to visit suspected facilities, in principle, will 
     proceed after the visit to a previous suspected facility is 
     completely ended and a report indicating the results of the 
     visit is submitted.
       Both sides further agree to continue to strengthen already 
     established effective contacts between the concerned 
     ministries of the Chinese government and the U.S. Embassy in 
     Beijing and to arrange meetings to discuss specific details 
     when necessary to further the implementation of the MOU in 
     accordance with the points noted above.
       Done at Beijing, in duplicate, this fourteenth day of 
     March, 1994, in the English and the Chinese languages, both 
     texts being equally authentic.
                                  ____

                                                    Embassy of the


                                     United States of America,

                                                February 22, 2000.
     Mr. Wang Lixian,
     Director for Foreign Affairs, Ministry of Justice, Beijing, 
         100020, China.
       Dear Mr. Wang: In accordance with the provisions of the 
     Memorandum of Understanding prohibiting Import and Export of 
     Prison Labor Products and the Statement of Cooperation, the 
     U.S. Embassy renews our request for investigation of the 
     following factories for evidence of prison labor exports. The 
     request to investigate these facilities was first made 
     February 28, 1994 and was again made on February 24, 1998, 
     March 8, 1999 and July 7, 1999.
       The below listed investigations were requested five years 
     ago and again last year. The Ministry of Justice has not 
     responded with information on these cases. Therefore, we 
     would like to renew our request that your ministry 
     investigate the following facilities to determine if these 
     sites are involved in prison labor exports:
       Nanchong Laodong Factory, Sichuan.
       Fuyang General Machinery Factory, Anhui.
       Dingxi Crane Works, Gansu.
       Jilin forging and Pressing Equipment Plant, Jilin.
       Jingzhou Xinsheng Dyeing and Weaving Mill. Hubei.
       Lanzhou Valve Plant.
       Shaoguan Xinsheng Industrial General Plant.
       In my letter of February 24, 1998 I enclosed background 
     information which should assist in identifying these 
     facilities. I have maintained copies of identifying 
     information if this would be of assistance to your office. I 
     feel that we have made significant progress in clearing up 
     some of these old prison labor investigations and I look 
     forward to continued cooperation.
       I would also like to call to your attention my letters of 
     April 24, 1998 and October 7, 1998, which requested 
     investigation of the Zhengzhou Detention Center which was 
     alleged to be manufacturing Christmas lights for export to 
     the US and the Dafeng County Reform Through Labor Camp and 
     the Tilanqiao Prison Labor Facility which were alleged to 
     have manufactured ADIDAS soccer balls which were exported to 
     the United States and other countries. The Ministry of 
     Justice has not responded to these investigative requests 
     within the sixty day time limit as agreed upon in the 
     Statement of Cooperation. Please inform us of the status of 
     these investigations.
       If you have any questions or need further clarification 
     please do not hesitate to contact me. Thank you.
           Sincerely yours,
                                                  David J. Benner,
                                                          Attache.

  The PRESIDING OFFICER. Who yields time?
  Mr. ROTH addressed the Chair.
  The PRESIDING OFFICER. The Senator from Delaware.
  Mr. ROTH. Mr. President, I am opposed to the use of forced prison 
labor in the manufacture of goods for sale in international markets. 
And, I firmly believe that any allegation, whether with respect to 
China or any other nation, regarding the use of prison labor ought to 
be vigorously investigated under section 307 of the Tariff Act of 1930, 
which bars imports of prison-made goods into the United States.
  That said, I nonetheless rise in opposition to the proposed 
amendment. I do so for three reasons.
  First, the amendment is unnecessary. Under section 307 of the 1930 
act, the Secretary of the Treasury and the Commissioner of Customs 
already have ample authority to investigate allegations that Chinese 
enterprises are

[[Page 17585]]

using prison labor. No new authority is needed, and no new 
certification is necessary.
  Second, there is nothing about China's accession to the WTO or the 
passage of PNTR that limits in any way the ability of the United States 
to investigate allegations of the use of prison labor in the 
manufacture of goods destined for the U.S. market and to bar imports of 
such goods if the allegations prove true.
  The WTO contains a provision that expressly permits the United 
States, as well as other WTO members, to bar entry of goods made with 
prison labor from their markets. Just to be entirely clear about what 
the WTO allows, let me quote from the relevant title of the WTO 
agreement. It states that:

       nothing in this Agreement shall be construed to prevent the 
     adoption or enforcement by any contracting party of measures 
     . . . relating to the products of prison labor.

  In other words, we will retain the leverage we need following China's 
accession to the WTO to encourage China's compliance with its 
international commitments in respect of prison labor, particularly the 
1994 bilateral agreement it signed with the United States.
  Third, the House bill before us, H.R. 4444, already addresses the 
issue of prison labor and does so more constructively. The bill creates 
an executive branch task force to assist the U.S. Customs Service in 
the effective enforcement of our laws barring imports of goods made 
with prison labor.
  As I said at the outset of my remarks, I join those who have been 
very critical of the Chinese Government for its failure to be more 
cooperative--on a more consistent basis--in rooting out and ending 
these practices. But, the proposed amendment would not advance our 
argument with the Chinese; it would, instead, prove counterproductive, 
by killing the chances of the passage of PNTR.
  In light of that fact, I ask my colleagues to join me in opposing 
this amendment.
  Again, let me reiterate, it is my deep concern that any amendment 
would kill this legislation, would kill PNTR. For that reason, I oppose 
the amendment, and urge my colleagues to do the same.
  Mr. President, I yield the floor.
  Mr. WELLSTONE addressed the Chair.
  The PRESIDING OFFICER. The Senator from Minnesota.
  Mr. WELLSTONE. I reserve a little bit of time for my colleague, 
Senator Harkin. But let me just say to my colleague from Delaware, as 
to the argument that it is not necessary to have any new agreements, 
there is nothing new here. We have existing trade agreements. We signed 
an agreement in 1992 and in 1994. The Chinese Government agreed not to 
export products to our country made by prison labor.
  They have not lived up to those agreements. This amendment just says 
we call on them to live up to the existing trade agreements before we 
go forward with PNTR. It is really that simple.
  The bitter irony is they are in violation of one law; they are not 
supposed to be exporting products made by prison labor. And we are in 
violation of another law: We are not supposed to be importing those 
products.
  My second point is, my colleague cites H.R. 4444. It is just a 
toothless remedy. This has a ``made-for-Congress'' look. We are going 
to set up a task force, and we are going to assist the Chinese 
Government in living up to these trade agreements. The Chinese 
Government does not need any assistance. They control the prison labor 
camps. They can live up to the agreements today. They can live up to 
the agreements tomorrow. They do not need a task force set up. So I 
cannot let my good friend from Delaware get away with this.
  I just think it boils down to this: They have the largest forced 
prison labor system in the world; these are the functional equivalent 
of gulags. I could use, frankly, stronger terms, I say to my colleague 
from Delaware, to describe them.
  Do we really want to be implicated in this? Do we want to be 
beneficiaries of these gulags? Do the citizens of our country--we are 
now speaking and voting in their name--want to be beneficiaries of this 
forced prison labor system, the largest in the world, these gulags, 
where we get products at a lower price because it is on the backs of 
people who are political prisoners, who have done nothing more than 
speak out for their freedom? I think not.
  If we are concerned about it, we will support this amendment. There 
is no way around that, I say to my colleagues. This is a straight up-
or-down vote on whether or not this is a concern to us.
  I reserve the remainder of my time.
  The PRESIDING OFFICER. Who yields time?
  If no one yields time, the time will be divided equally.
  The PRESIDING OFFICER. The Senator from Minnesota.
  Mr. WELLSTONE. Mr. President, how much time do I have remaining?
  The PRESIDING OFFICER. The Senator has 9 minutes.
  Mr. WELLSTONE. Mr. President, I informed the distinguished chair of 
the Finance Committee that I would be ready to yield back time. I 
wonder if I could take 2 minutes and then I will yield back.
  We will have a vote on the Thompson-Torricelli amendment, and there 
are going to be Senators who will come out and say: This is not about 
trying to scuttle this overall trade agreement. We will go to 
conference committee. We will get this worked out. And there is such 
strong sentiment for this overall agreement, this is a good thing to 
do.
  I want to say to Senators, I hope when we vote on the amendment I 
have offered with Senator Lautenberg--and I believe Senator Harkin will 
want to be an original cosponsor--there will be the same sentiment. If 
you think it is the right thing to do to vote for this amendment, if 
you think it is the right thing to do to say to China: We already have 
these trade agreements with you in regard to prison labor conditions 
and we are just asking you to live up to those agreements before, in 
fact, we finally go forward with PNTR--if you think this is an 
important human rights issue, if you think we should not be implicated 
in any way, shape, or form in the functional equivalent of these 
gulags, if you think this is a labor issue, if you think this is a 
trade issue--it is a very compelling issue--then please don't vote 
against what you think is right.
  We can't have Senators being selective on this and voting one way on 
one amendment. Senators can say: We will not vote for any amendments, 
period. I have heard that. But now different people are voting for some 
amendments and not others.
  I say to my colleagues: Vote for what you think is right. If you 
think this amendment I have offered is wrong, it is not the right thing 
to do based upon your sense of justice or right or anything else, then 
vote against it. Otherwise, please vote for this amendment. Don't make 
the argument that I am voting against all amendments when, in fact, 
Senators are obviously going to be voting for some amendments.
  I yield the remainder of my time.
  Mr. ROTH. Mr. President, I yield the remainder of my time, and ask 
for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The question is on agreeing to the amendment of the Senator from 
Minnesota. The clerk will call the roll.
  The legislative clerk called the roll.
  Mr. NICKLES. I announce that the Senator from Vermont (Mr. Jeffords) 
is necessarily absent.
  Mr. REID. I announce that the Senator from Hawaii (Mr. Akaka) and the 
Senator from Connecticut (Mr. Lieberman) are necessarily absent.
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
who desire to vote?--
  The result was announced--yeas 29, nays 68, as follows:

                      [Rollcall Vote No. 238 Leg.]

                                YEAS--29

     Ashcroft
     Bayh
     Boxer
     Bunning
     Byrd
     Campbell
     Collins
     Dorgan
     Edwards
     Feingold
     Gregg
     Harkin

[[Page 17586]]


     Helms
     Hollings
     Hutchinson
     Inhofe
     Kennedy
     Lautenberg
     Leahy
     Mikulski
     Reed
     Santorum
     Sarbanes
     Sessions
     Smith (NH)
     Snowe
     Specter
     Torricelli
     Wellstone

                                NAYS--68

     Abraham
     Allard
     Baucus
     Bennett
     Biden
     Bingaman
     Bond
     Breaux
     Brownback
     Bryan
     Burns
     Chafee, L.
     Cleland
     Cochran
     Conrad
     Craig
     Crapo
     Daschle
     DeWine
     Dodd
     Domenici
     Durbin
     Enzi
     Feinstein
     Fitzgerald
     Frist
     Gorton
     Graham
     Gramm
     Grams
     Grassley
     Hagel
     Hatch
     Hutchison
     Inouye
     Johnson
     Kerrey
     Kerry
     Kohl
     Kyl
     Landrieu
     Levin
     Lincoln
     Lott
     Lugar
     Mack
     McCain
     McConnell
     Miller
     Moynihan
     Murkowski
     Murray
     Nickles
     Reid
     Robb
     Roberts
     Rockefeller
     Roth
     Schumer
     Shelby
     Smith (OR)
     Stevens
     Thomas
     Thompson
     Thurmond
     Voinovich
     Warner
     Wyden

                             NOT VOTING--3

     Akaka
     Jeffords
     Lieberman
  The amendment (No. 4119) was rejected.
  Mr. ROTH. Mr. President, I move to reconsider the vote.
  Mr. MOYNIHAN. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.


                           Amendment No. 4132

  The PRESIDING OFFICER. The Senator from Texas.
  Mrs. HUTCHISON. Mr. President, I rise in support of the Thompson 
amendment.
  I have been listening to the debate on the Thompson amendment for the 
last day or so. I am very concerned that his amendment has been 
portrayed as a bill killer.
  I support PNTR. I want to open trade with China. This is very 
important for the future of both of our countries. But I am also very 
concerned about the proliferation of weapons of mass destruction. I 
cannot see any situation in which the security of the United States of 
America would take second place to a trade issue, even a most important 
trade issue. Nevertheless, I would never, ever I put the security of 
our country in a secondary position.
  To say that we cannot go back to the House and resolve our 
differences because we would vote on a responsible amendment that would 
require a reporting of the proliferation of weapons of mass destruction 
is just beyond my comprehension. This is the United States Senate. To 
say we cannot amend a bill that has been passed by the House would be 
the height of irresponsibility.
  I am also speaking today in favor of normal trade relations with 
China because I want our countries to have a mutually good 
relationship. The idea that we would have a good relationship on trade 
but one that gives a wink and a nod to proliferation of weapons of mass 
destruction to people intent on hurting the United States of America is 
not a fair trade. I couldn't possibly exercise my responsibility as a 
Senator and vote against the Thompson amendment.
  In early 1969, newly elected President Richard Nixon asserted:

       One-fourth of the world's people live in Communist China. 
     Today they are not a significant power, but 25 years from now 
     they could be decisive. For the United States not to do what 
     it can at this time, when it can, would lead to a situation 
     of great danger. We could have total detente with the Soviet 
     Union, but that would mean nothing if the Chinese are outside 
     the international community.

  Today, President Nixon's words sound remarkably prescient. China is 
undeniably a major world power, thanks in large part to leaders such as 
Presidents Nixon and Bush and Reagan, Secretary Jim Baker, Secretary 
Henry Kissinger, China is not outside the international community but 
neither is China fully a member in good standing of the family of 
responsible nations.
  The major issues our two nations must confront are difficult and 
complex: China's military buildup, arms sales and proliferation, the 
future of Taiwan, bilateral trade, and human rights. All of the 
previous Presidents in my lifetime have recognized the unfolding 
importance of China, and they have all pursued policies aimed at 
constructive engagement with the Chinese Government.
  The question at issue with our vote on PNTR and our vote on the 
amendments that condition the Senate's approval of PNTR must be, what 
are the underlying goals of our relationship with China and what are 
the primary issues that should guide American policymaking and actions.
  My answer is, our policies should be focused on cultivating a stable 
and peaceful Asia. We should look to economic competition and mutual 
prosperity to bring this about, and we must at all times consider the 
security interests of the United States.
  As the distinguished chairman of the Foreign Relations Committee, 
Jesse Helms, pointed out yesterday, the Chinese proliferation of 
weapons of mass destruction poses a direct threat to the national 
security of the United States. I share his view that it would be 
irresponsible for us not to address that threat.
  The Federal Government has no greater responsibility nor higher duty 
to the people of our country and to our allies than to provide for the 
common defense of the United States of America.
  The bipartisan amendment offered by Senators Thompson and Torricelli 
is a responsible vote. It does not scuttle PNTR, as some have warned. 
This is the responsible action of the Senate. It would be my fervent 
wish that we could vote our conscience on this very important issue, 
and not in any way respond to the scare tactics that have been put 
forth that this will kill the bill, but instead do what is right for 
both of our countries; that is, open, normal trade relations, and 
secure the United States from weapons proliferation by China or any 
other country or rogue nation that would seek to harm our people or our 
allies anywhere in the world.
  Mr. ROTH. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER (Mr. Thompson). The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. TORRICELLI. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. TORRICELLI. Mr. President, it has been obvious for some time now 
that when permanent normal trade relations for China comes to a vote in 
the Senate, it will, indeed, pass overwhelmingly. My colleagues 
proceeding with this debate in recent days have detailed at length the 
enormous potential economic benefits to the U.S. economy. Other 
colleagues have appropriately discussed the human rights record in 
China, problems with religious freedom, and the rights of workers in 
China. They are all legitimate points and each belongs in a debate on 
PNTR with China, but the debate is not complete.
  The relationship of the United States with the People's Republic of 
China is not only about economics; it must include human rights, 
religious rights, and workers rights. But it is not just about those 
rights; it is also ultimately about the security of the United States.
  Our relationship with the People's Republic of China, a nation of 1.3 
billion people, an immense land of economic, geopolitical significance, 
goes beyond that, perhaps, of any other trading partner of our country. 
Indeed, how we define this relationship in this vote and in this debate 
has enormous ramifications in the next generation.
  Indeed, just as the debate in those first few months and years after 
the Second World War changed permanently the security and economic 
relationship between the United States and Western Europe and the 
remainder of the world, this debate will permanently alter our 
relationship with the People's Republic of China, and it is not right 
and it is not appropriate that it be done on a single plane. Economics 
is important, but it is not everything. That is why Senator Thompson 
and I have offered our amendment to address the continuing problem of 
the proliferation of weapons and technology from the People's Republic 
of China.

[[Page 17587]]

  It was, of course, our hope that this vote could have been taken 
independently of PNTR. It was our desire not to complicate PNTR but to 
have a separate debate and separate vote. Regrettably, that proved not 
to be possible. So we return today with this amendment actually on the 
bill.
  As I understand the arguments now for the bill, the most compelling 
is that PNTR will integrate China into the international economy, that 
it will encourage China to follow international trading rules. It is a 
strong argument, but even with passage of PNTR, even if the proponents 
are correct that China will then adhere to international trading rules, 
that does not automatically make China a member in good standing of the 
global community. Trading rules do not govern all international 
conduct. A nation is not a nation in good standing in the world simply 
because it trades according to these rules; it is by all the rules by 
which it chooses to live.
  Truly to participate in the global community, China will, as has been 
argued on this floor, have to reform its human rights practices, the 
way it treats its workers, the way it relates to Taiwan, and how it 
deals with sensitive military technology that threatens all peoples 
everywhere.
  Despite many assurances that it will reform its behavior, China has 
continued to be one of the most persistent and serious violators of 
international nonproliferation agreements. Ultimately, that is the 
question every Senator must ask themselves: If, indeed, PNTR is passed 
and China continues to violate trade agreements, you can go to your 
local townhall meeting and complain to the autoworkers and you can 
explain it to the Chamber of Commerce, but if China continues to 
violate proliferation agreements which leads to the spread of nuclear 
technology and missiles to a variety of dangerous neighbors that one 
day leads to warfare involving our Nation or others, to whom will you 
apologize then? Where will the explanations lie? That is the question 
before the Senate.
  Last month, the Director of Central Intelligence delivered to the 
Congress the intelligence community's biannual ``Unclassified Report on 
the Acquisition of Technology Relating to Weapons of Mass 
Destruction.''
  The DCI report clearly states that China has increased its missile-
related assistance to Pakistan, and it continues to provide missile-
related assistance to countries such as Iran, North Korea, and Libya. 
What is especially troubling about China's activities is that this 
sensitive assistance is going to the most dangerous nations in the most 
volatile areas of the world, with the greatest potential to do harm.
  Indeed, looking at this map I have here--from Algeria to Libya to 
Syria to Iran--what is it that China could do more? What would be 
worse? What other nation would have to receive nuclear or missile 
technology before it would offend Members of the Senate? In the entire 
list of rogue nations, almost no one is absent.
  Just a couple of months ago, Chinese sales to Iran led to the test by 
Iran of a Shahab-3 medium-range ballistic missile. It is believed that 
components of Iran's missile program are from Beijing.
  The People's Republic of China companies were sanctioned in 1997 for 
transfers to Iran, contributing to chemical weapons proliferation. Yet 
the DCI's August 2000 report said Iran continues to seek production 
technology, expertise, and chemicals for its chemical weapons program.
  So it is missiles and chemicals.
  Pakistan is a country located, perhaps, in the most volatile region 
of the world, which in recent years exploded a nuclear device and has 
come to the brink of war with India on several occasions since its new 
nuclear status.
  The DCI reported last month that the PRC provided ``extensive 
support'' to Pakistan's weapons of mass destruction program, and in the 
second half of 1999 Iran had ``ongoing contacts'' that could not be 
ruled out, despite a 1996 promise by the PRC to stop assistance to 
unsafeguarded nuclear facilities.
  In unpublished press accounts, U.S. intelligence agencies have 
reportedly concluded that China has stepped up its shipment of 
specialty steels, guidance systems, and technical expertise to 
Pakistan. Chinese experts have also been sighted around Pakistan's 
newest missile factory, which appears to be partly based on Chinese 
design.
  Libya is a country with a history of promoting regional instability, 
sponsoring state terrorism, including the destruction of our own 
aircraft and our own citizens.
  The August 2000 DCI report publicly confirmed the PRC's assistance to 
Libya for the first time. The Defense Department reportedly discovered 
in December 1999 that the PRC plans to build a hypersonic wind tunnel 
in Libya for missile designs for the Al-Fatah missile program.
  According to reports in the Washington Times, the director of Libya's 
Al-Fatah missile program is planning to travel to China to attend 
China's premier training center for missile scientists and technicians.
  North Korea's missile program is now believed to be achieving the 
potential to reach the United States with a ballistic missile, 
potentially by the year 2005--a direct security concern of the United 
States, leading this Congress to authorize and appropriate billions of 
dollars for missile defense, leading all of us to a sense of new 
vulnerability.
  The DCI first publicly confirmed in 1999 that the PRC is supplying 
components to North Korea. The August 2000 report states that North 
Korea acquired missile-related raw materials and components 
``especially through firms in China'' in the second half of 1999.
  These countries--Iran, Pakistan, Libya, and North Korea--are just the 
countries China has proliferated to in recent years. In the past, 
proliferation by the People's Republic of China has also included 
sending weapons technology to Iraq, Syria, and Algeria.
  I cannot imagine any accusation against a foreign government that 
could or should raise more serious concerns in this body. How, indeed, 
could any Member of this Senate ever explain to the American people 
granting the greatest economic gift in the world, a normalized trade 
relationship with the United States, the greatest economy in the world, 
without at least, at a minimum, seeking enforcement of previous 
agreements for arms control and nonproliferation?
  Until China ceases to allow this type of sensitive equipment, 
technology, and expertise to flow through its borders, it must 
understand that it can never have normalized political and economic 
relationships with the United States or, indeed, be accepted into the 
family of nations on an equal status with all other nations.
  Opponents of our amendment contend that the current nonproliferation 
laws are effective; that Chinese proliferation is under control; that 
unilateral sanctions never work. They could not be more wrong.
  As the reports I have just cited demonstrate, Chinese proliferation 
behavior is not improving. It is not getting better. And the DCI's 
report delivered to this Congress proves it. Existing nonproliferation 
laws are simply not working. This provides a real incentive, in actual 
quantifiable costs, for sharing technology with dangerous nations.
  Our nonproliferation laws must be strengthened. This amendment--and 
only the Thompson-Torricelli amendment--offers that opportunity. Under 
this amendment, the President of the United States would submit a 
report to Congress by June 1st of each year identifying entities in key 
proliferating nations that have contributed to the development or 
acquisition of nuclear, chemical, or biological weapons, or ballistic 
or cruise missiles by foreign countries--every year a report 
identifying the entities.
  The President would be required to impose measures against companies 
in key supplier nations that have been identified as proliferators, and 
the President would also be authorized to impose measures against any 
supplier countries as he sees fit. The President is given the 
discretion, but he is also given the responsibility. And this Congress 
is given the information that it needs to know whether or not the 
Nation is being safeguarded.

[[Page 17588]]

  Over the past several months, we have substantially revised this 
legislation to address a number of concerns by the administration and 
by our colleagues. This amendment was not drafted by Senator Thompson 
or by myself alone. The administration raised legitimate concerns that 
it dealt only with specific technologies, only with the nations about 
which we should be concerned. It has been redrafted to deal 
specifically with those concerns.
  The revised bill now applies to all countries identified by the 
Director of Central Intelligence as key suppliers of weapons of mass 
destruction. The list currently includes China, Russia, and North 
Korea. Countries could be added or removed from the list over time 
based on the DCI's guidelines. So there are no unintended consequences 
of other states.
  There were objections originally that the President did not have 
enough discretion in applying the sanctions; that the sanctions in the 
bill were too broad; and that they were applied with a standard of 
evidence that was too low. Every one of those problems was changed to 
meet the administration's objectives.
  The bill is now drafted so that any sanctions against supplier 
countries are totally within the discretion of the President. The list 
of measures available to the President are the same as in the original 
bill. But now the President is authorized--not mandated--to apply these 
sanctions.
  So those within the Senate who had concerns that we were taking away 
Presidential discretion, forcing him to act when the facts may not 
warrant it, prohibiting him from negotiating by not having this 
discretion, have had their concerns addressed. The President is given 
authorization. He is not mandated.
  The only mandatory measures remaining in the bill would be applied 
against specific entities or countries that are determined by the 
President to be proliferators. Only if the President determines they 
are a proliferator will any entity be sanctioned.
  If a company is determined to be a proliferator, the President must 
deny all pending licenses and suspend all existing licenses for the 
transfer to that company that are controlled for export under the Arms 
Export Control Act, the Export Administration Act of 1979, or the 
Export Administration Regulations. Isn't that how the Senate would have 
it? If a company has been identified, if they have been multiple 
violators, if they have been cited by the President, shouldn't that 
company then be denied the benefits of these various export acts?
  There is also an across-the-board prohibition on any U.S. Government 
purchase of goods or services from, and U.S. Government assistance or 
credits to, the proliferator. Would any Member of the Senate argue with 
this? To use the taxpayers' money, U.S. Government resources to buy 
from a company that has been repeatedly cited as a proliferator by the 
U.S. Government? Certainly they should not be entitled to the benefits 
of trade with the Government itself.
  Is it too much to ask that we impose the sanctions on companies that 
are already identified, already established as having been engaged in 
this conduct? But for some Members of the Senate, this was not enough. 
So we gave the President one further set of powers, waiver authority, 
which allows the President to waive the imposition of measures required 
under this legislation if he determines that the supplier country was 
taking appropriate actions to penalize the entity for such acts of 
proliferation and to deter future proliferation. The President also can 
waive the sanctions if he determines that such a waiver is important to 
the national security of the United States.
  How little would be enough? It isn't mandatory. It is optional. It 
requires multiple instances. It must be an entity already identified by 
the President. It must be a technology already identified by the 
Government. It isn't mandatory. The President can waive it. He can cite 
larger national interests.
  I believe there is a positive impact with the passage of this 
amendment.
  Now I ask the Senate another question: What is the impact of failing 
to enact it? Who could ever believe that this Senate considers 
proliferation issues to be serious, that we are concerned that there is 
a price to selling these weapons of mass destruction or these 
technologies to other nations, if we cannot at a minimum pass this 
authorizing sanction on an optional basis, to be used if the President 
wants to use it?
  Imagine the message in Beijing or North Korea or Iran or Iraq. Are we 
so desperate for trade, is this economy so desperate for that one more 
dollar immediately, not to offend a potential investor or buyer, that 
we would compromise our own good judgment?
  I don't believe we would lose a dollar of trade with this amendment. 
I don't believe we lose a product, a job. But even if we did, even if I 
were wrong and we did, is the price too high to send a message that in 
our proliferation policy there is more than words?
  Words will not defend us. It is not at all clear that our missile 
defense shield will ever protect us. This might. It can't hurt. It at 
least can set a serious tone that we will not be dealt with with 
impunity. Trade with us; get the benefits of our market. But we will 
look the other way while you send dangerous technologies to nations 
that kill our people or threaten the peace.
  In a recent editorial, the Washington Post noted:

       China's continuing assistance to Pakistan's weapons program 
     in the face of so many U.S. efforts to talk Beijing out of it 
     shows the limits of a nonconfrontational approach.

  The Post went on to say:

       The United States should make clear that . . . Chinese 
     missile-making is incompatible with business as usual.

  A Wall Street Journal editorial stated:

       If there is an assumption in Beijing that it can be less 
     observant to U.S. concerns now that its WTO membership seems 
     assured, the Chinese leadership is making a serious mistake.

  Are they? The Wall Street Journal was too optimistic. Whether they 
are making a serious mistake will be judged by the vote on this bill, 
win or lose. How many Senators consider proliferation issues and 
national security to be more than words but a policy with strength, 
with cost, with sanction, if our security is violated?
  If we pass PNTR alone and do not pass legislation addressing these 
important national security concerns, I fear for the message that is 
sent and the priorities of this Senate. This Senate will always be 
sensitive to business investment, trading opportunities, and economic 
growth. It is our responsibility to assure that America is prosperous 
and strong and growing. We will meet that responsibility.
  But it is the essence of leadership to understand that no one 
responsibility stands alone. As we govern the national economy, we 
possess responsibility for the national security. No economy can be so 
big, no economy can grow so swiftly, there can be no number of jobs 
with national income that can reach no level that makes for a secure 
American future if missile technology spreads to Iraq and Iran, if 
nuclear weapons begin to circle the globe and unstable regimes.
  Where, my colleagues, will your economy take you then? Balance, my 
friends. The Thompson-Torricelli amendment offers balance. We are 
pleased by our prosperity, but we are not blinded by it. We are blessed 
to live in a time of peace, but we understand how we earned it--by 
strong policies of national security. That is what the Thompson-
Torricelli amendment offers today.
  I yield the floor.

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