    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book I)]
    [June 14, 1997]
    [Pages 734-735]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    June 14, 1997

        Good morning. In just 17 days, after 150 years, Hong Kong returns to
    Chinese sovereignty. Today I want to talk to you about America's role in
    that and America's stake in the transition.
        More than 1,100 American companies operate in Hong Kong today,
    making it the heart of American business in the fastest growing part of
    the world. Our naval ships put in dozens of port calls to Hong Kong
    every year. And it matters to us that the people of Hong Kong retain
    their distinct system with its political freedoms and its open economy,
    not only because we hold these principles in common with them and with a
    growing number of people around the world but because we are involved
    with them.
        China has made important commitments to maintain Hong Kong's freedom
    and autonomy, and our Nation has a strong interest in seeing that these
    commitments are kept. The United States is doing its part to keep faith
    with the people of Hong Kong. We've negotiated agreements that will
    safeguard our presence and continue our cooperation. We will work with
    the new Hong Kong Government to maintain a productive relationship that
    takes into account both its changed relationship with China and its
    promised autonomy. We'll keep a close watch on the transition process
    and the preservation of freedoms that the people of Hong Kong have
    relied on to build a prosperous, dynamic society.
        The transition process did not begin and will not end on July 1st.
    It will unfold over the months and years ahead. One thing we must not do
    is take any measures that would weaken Hong Kong just when it most needs
    to be strong and free.
        No step would more clearly harm Hong Kong than reversing the course
    we have followed for years by denying normal trading status to China.
    That's one important reason why, a month ago, I decided to extend to
    China the same most-favored-nation treatment we give to every country on
    Earth, as every President has done since 1980. I want to just take a
    minute to say that even though we call it most-favored-nation treatment,
    that's really misnaming it. It really means normal trading status.
        Why do we do this? Well, Hong Kong handles more than half of the
    trade between the United States and China, which makes it acutely
    sensitive to any disruption in our relations. The Hong Kong Government
    estimates that our revocation of normal trade status would cut Hong
    Kong's growth in half, double unemployment by eliminating up to 85,000
    jobs, and reduce its trade by as much as $32 billion.
        The full spectrum of Hong Kong's leaders, even those most critical
    of Beijing, have strongly

    [[Page 735]]

    supported normal trading status for China. As Hong Kong Governor Chris
    Patten, who has done so much for democracy and freedom in Hong Kong,
    said in a letter I received just this week, ``Unconditional renewal of
    China's MFN status for a full year is the most valuable single gift the
    United States can present to Hong Kong during the handover period.''
        Those who oppose normal trading relations with China have legitimate
    concerns. I share their goals of advancing human rights and religious
    freedom, of promoting fair trade, and strengthening regional and global
    security. But reversing our course and revoking normal trade status will
    set back those goals, not achieve them. It will cut off our contact with
    the Chinese people and undermine those dedicated to openness and
    freedom. It will derail our cooperation on fighting the spread of
    dangerous weapons, drug trafficking, and terrorism. It will close one of
    the world's emerging markets to American exports and jeopardize more
    than 170,000 high-paying American jobs. And it will make China more
    isolationist and less likely to abide by the norms of international
    conduct.
        I am convinced the best way to promote our interests and our values
    is not to shut China out but to draw China in, to help it to become a
    strong and stable partner in shaping security and prosperity for the
    future. Our strategic dialog with China has led to cooperation on
    nuclear nonproliferation issues, on promoting stability on the Korean
    Peninsula, on protecting American intellectual property rights, which is
    so important to our high-tech industry.
        If we maintain our steady engagement with China, building areas of
    agreement while dealing candidly and openly with our differences on
    issues like human rights and religious freedom, we can help China to
    choose the path of integration, cooperation, and international
    recognition of human rights and freedoms. But if we treat China as our
    enemy, we may create the very outcome we're trying to guard against.
        In the days ahead, the Congress will face this test as they take up
    the debate on China's trading status. I urge the Congress and all
    Americans to remember: Extending normal trading status is not a
    referendum on China's policies, it's a vote for America's interests.
    Hong Kong's leaders, present and future, understand the stakes involved.
    They want to maintain their freedom and their autonomy. They know they
    need normal trading status to do it. We need to continue to stand with
    the people of Hong Kong and maintain our course of pragmatic cooperation
    with China. That is the best guarantee of a secure, stable, and
    prosperous 21st century for the United States.
        Thanks for listening.

    Note: The address was recorded at 6:26 p.m. on June 13 in the Roosevelt
    Room at the White House for broadcast at 10:06 a.m. on June 14.