[Public Papers of the Presidents of the United States: William J. Clinton (1999, Book I)]
[April 8, 1999]
[Pages 518-527]
[From the U.S. Government Publishing Office www.gpo.gov]



The President's News Conference With Premier Zhu Rongji of China
April 8, 1999

    President Clinton. Good afternoon. Please be seated. Premier Zhu and 
members of the Chinese delegation, I want to thank you again for coming 
to the United States. It is important for the leaders of America and 
China to meet regularly.
    Today we were able to make progress in areas that benefit both the 
American and Chinese people. We had the chance to speak directly and 
openly on matters where we have disagreements. We reviewed our ongoing 
efforts to enhance the security of both our nations and to build world 
peace and stability in our efforts to seek peace on the Korean 
Peninsula, to work with India and Pakistan to curb their nuclear 
competition, to join in adherence to international agreements limiting 
the spread of weapons of mass destruction.
    In that regard, let me say I hope that both our nations soon will 
ratify the Comprehensive Test Ban Treaty to end all nuclear testing.
    We also discussed our common efforts to increase prosperity for both 
our nations. Economics is Premier Zhu's primary portfolio. With his 
leadership, China's economy has withstood Asia's financial turmoil and 
helped to mitigate its impact on other nations in the region. Now, with 
Asia's recovery underway but regional growth still fragile, Premier Zhu 
has been squarely addressing China's toughest economic challenges: 
reforming state-owned industries and financial institutions, rooting out 
corruption, bringing China into the information age, and expanding 
international trade. These efforts will benefit China and its trading 
partners, including America's businesses, workers, and farmers.
    Our nations also will benefit from new cooperative initiatives we 
have agreed upon in recent days to develop a private housing market in 
China, to create a U.S.-China dialog on job training and labor rights, 
to support clean energy projects in China. Today we will sign a civil 
aviation agreement that will double passenger and cargo flights between 
our countries, bringing jobs and economic activity to both.
    And after extensive efforts by our negotiators, China has agreed to 
direct all its government agencies to use only licensed computer 
software, which will greatly assist our software industry in China, now 
the world's fifth-largest personal computer market. Additionally, we 
have reached an important agreement that will open China's markets for 
U.S. exports of citrus, meat products, and Pacific Northwest wheat, all 
highly important for our farmers.
    I am also pleased we have made significant progress toward bringing 
China into the World Trade Organization on fair commercial terms, 
although we are not quite there yet. A fair WTO agreement will go far 
toward leveling the playing field for our companies and our workers in 
China's markets, will commit China to play by the rules of the 
international trading system, and bring China fully into that system in 
a way that will bring greater opportunity for its citizens and its 
industries as well.
    Today we are issuing a joint statement recording the significant 
progress we have made on WTO and committing to work to resolve all 
remaining issues this year.
    Ultimately, to succeed in the market-based, information-driven world 
economy, China must

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continue its efforts toward reform. Premier Zhu has worked very hard on 
them. There is still work to be done, and we want to support China in 
its efforts to strengthen its legal system, impose stronger labor and 
environmental protections, improve accountability, give citizens greater 
freedom, and increase their access to information.
    We disagree, of course, on the meaning and reach of human rights, 
because I am convinced that greater freedom, debate, and openness are 
vital to improving China's citizens' lives as well as China's economy 
over the long run. It is troubling that in the past year, China has 
taken some steps backwards on human rights, in arresting people 
basically for seeking to express their political views. I also regret 
that more progress has not been made to open a dialog with the Dalai 
Lama.
    We honor China's remarkable achievements, its greater prosperity, 
and the greater range of personal choices available to its citizens, as 
well as the movement toward local democracy. We appreciate the magnitude 
of its struggles, far greater than those faced by any other country in 
the world. But the American people and, indeed, people all around the 
world believe that all persons are entitled to fundamental freedoms that 
include freedom of speech, religion, and association.
    I hope that China's leaders will conclude that in these areas, too, 
benefits of change outweigh the risks. I hope and believe we can make 
the kind of progress together that will enable both of us to have the 
kind of strong partnership that would be very much in the world's 
interest in the 21st century, a partnership against war and terrorism, 
against dangerous weapons and crime, for better health care and 
education, for a cleaner environment, achievements in the arts and the 
sciences, a deepening of democratic values, and prosperity for all our 
citizens and, indeed, for all the world.
    I have no illusions that cooperation with China can resolve all of 
our differences. Our countries are too large. Our backgrounds are too 
different. Where our interests diverge, we will continue to stand for 
our values and to protect our national security. But a policy of 
confrontation for confrontation's sake, as I said yesterday, will 
accomplish nothing but the fulfillment of the bleakest prophecies held 
by people in both the United States and China.
    Yesterday I said we should not see this relationship through rose-
colored glasses, nor should we see it through a glass darkly. We should 
see it with clear eyes. It is in the interest of the American people and 
the Chinese people that whenever we can cooperate, we should. This 
relationship, complex though it may be, is profoundly important to the 
future of every American and every Chinese citizen and, indeed, to all 
the world.
    Premier Zhu.
    Premier Zhu. Thank you.
    Ladies and gentlemen, I'd like to thank President Clinton for his 
invitation, and now the delegation of the People's Republic of China is 
visiting the United States. And today I'm very honored to join President 
Clinton, to meet all the friends coming from the press. And I am ready 
to convey through the friends from the media my most sincere greetings 
and best regards to the American people.
    From the moment since I set foot on the American soil, which started 
from Los Angeles, when maybe God did not welcome me very much, for it 
rained very hard, but it appears to me that the American people like me. 
And today we received a very grand welcome from the President, and we 
had a very good talk with the President and his colleagues. And at noon 
I also attended a very grand luncheon hosted by Secretary Albright, 
which was an opportunity for me to meet many old friends.
    I believe that our talks were frank and candid, and they were 
constructive and fruitful. Naturally, the result has not been measured 
by how many agreements we may have reached; I believe we've already 
reached quite a number of agreements. What is the key that the PRC 
delegation is able to have the opportunity of meeting people from 
different walks of life in the United States and that we can have an 
opportunity to talk directly to the American people to explain to them 
what is our views.
    As I said in the morning, it is not that only friends who say yes to 
you are good friends. We believe that maybe the friends who are able to 
say no to you are the best friends for you.
    And from Washington, I will also travel to Denver, to Chicago, to 
New York, and to Boston, where I will meet quite a lot of friends from 
the United States. I'm ready to talk to them, and I'm also prepared to 
argue, to debate with them. I believe by doing so, we will be able to 
promote the communication and mutual

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understanding between our two peoples, thus promoting the relationship 
between us, or rather, the objective of working to build a constructive 
strategic partnership between the two sides as opened up by the two 
Presidents, and also to continue to develop the friendship between us.
    As the President said earlier this morning, we also reached certain 
agreement on the WTO question, and we shall issue a joint statement on 
this question. And also on these areas we've already agreed upon, such 
as on the agricultural questions, we will sign certain agreements. In my 
view, all these will further promote the development of friendship and 
cooperation between China and the United States.
    And today I am ready to answer your questions in a very candid 
manner. But as the Premier of China, I took my office only on the 17th 
of March last year, and today is my first time to experience such press 
conference--so my heart is now beating. [Laughter] I'm not as 
experienced as the President, because the President is very experienced 
in dealing with you. [Laughter] I'm not that experienced, so should I 
say something which is not appropriate very much, I do hope that you 
will exercise certain leniency and try to promote what is good and try 
as much as you can to cover what may not be that appropriate. [Laughter]
    Thank you.

Premier Zhu's Visit

    Q. Thank you, Mr. Premier. As a matter of fact, before your visit to 
the United States, and also since you set your foot on the American 
soil, many of our leaders have such a question--that is, given such 
difficulties that the China-U.S. relations encountered, why did you 
still decide to visit the United States as scheduled? What are your real 
thoughts? And how do you think China-U.S. relations should develop at 
the turn of the century?
    Premier Zhu. Are you asking me to tell you the truth? To tell you 
the truth, I was really reluctant to come. [Laughter] Two days before my 
departure from China for the United States, I received two congressional 
delegations from the United States, one headed by Mr. Thomas, the other 
by Mr. Roth. All together, more than 20 Senators and Congressmen were at 
the meetings. I said to them, ``As the current political atmosphere in 
the United States is so anti-China, I really lack the guts to pay the 
visit to the United States at present.'' And they told me that ``You 
should go. We welcome you, because we Americans like your new face.''
    I said, ``My old friend Ambassador Sasser told me he was going to go 
back to the United States before me, and he was going to each and every 
place that I was going to visit to introduce me to the local people and 
also to promote my trip. And he also told me that he was fully prepared 
to be even beaten black and blue, and maybe with a bandage wrapped 
around his face when he saw me in the United States.'' Then I said, 
``Even your Ambassador Sasser, an American, had such a risk of being 
beaten black and blue, then what would my fate be as a Chinese? Will my 
new face be turned into a bloody face?'' [Laughter]
    The Senators and the Congressmen didn't give me any guarantee. But 
President Jiang Zemin decided that I should come according to a 
schedule, and he is number one in China, so I had to obey him. 
[Laughter] Now, I can tell you that I am now in a much better mood than 
when I was just about to make the trip, because since I came to the 
United States I've seen so many friendly faces, and I've been accorded 
very warm welcome and reception.
    I believe that through my current visit to the United States I will 
be able to contribute some of my part to the continued growth of the 
friendly relations and the cooperation between China and the United 
States. And more than that, I will also be able to get more 
understanding from the American people and maybe develop more consensus 
with the American side on the issues over which we still argue.
    And we'll also be able to conclude several agreements in the 
economic field, for instance on SPS. And actually, our negotiations in 
the field of WTO have been going on for 13 years. And on the part of the 
Chinese side, we have already made a lot of concessions. For instance, 
in the area of TCK wheat, now we have already agreed to lift the ban on 
the exports of wheat from seven American U.S. States to China. And now 
we have also decided to lift the restriction on the export of citrus 
from four States of the United States, including California, to China.
    On the question of China's accession into the WTO, in my view, the 
gap between the two sides is really not very significant. Maybe Mr. 
President does not quite agree with me on that; their side still 
believes that the gap is significant.

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So that's why at present we are only in a position to sign a joint 
statement instead of a full package agreement.
    If you want to hear some honest words, then I should say that now 
the problem does not lie with this big difference or big gap but lies 
with the political atmosphere. But we are very optimistic about the 
prospect of the development of friendly relations and the cooperation 
between China and the United States.
    As I said this morning, I don't think there's any problem or 
question between our two countries that cannot be resolved 
satisfactorily through friendly consultations.
    As for some other issues, such as human rights and the Dalai Lama, 
President Clinton mentioned all these issues in his opening remarks. I 
think we have enough time to argue over these questions, so I don't want 
to dwell on these questions long here.
    President Clinton. Helen [Helen Thomas, United Press International].

Situation in the Balkans

    Q. Mr. President, I have a three-part question on--[laughter]----
    President Clinton. You learned from her, right?
    Q. ----on Kosovo. Solana says that there are ongoing discussions on 
ground troops. Has the U.S. position changed? Two, has the Cypriot 
intervention helped to pave the way for the release of the American 
servicemen? And three, is Milosevic a war criminal by Nuremberg 
standards?
    President Clinton. The answer to the first question is no. I believe 
our present strategy will work if we can keep the allies with it.
    The answer to the second question is, I don't know. I hope so. We 
would like to see the servicemen released, because 
they never should have been detained in the first place. They were in 
Macedonia. They had nothing to do with the operations against Serbia. 
And I would be for anything honorable that would secure their release, 
obviously.
    The answer to the third question is that that is, strictly speaking, 
a legal decision that has to be made, but I certainly think it should be 
looked into.
    Q. Why are nine commanders named by the State Department to be 
possibly indicted, and you don't mention Milosevic?
    President Clinton. The answer to that is, I'm not sure. The question 
I want to emphasize to you is, when you start talking about indicting 
people, there are laws, there are standards of proof, there are 
coverages, there are all those issues. We have asked that this be looked 
at.
    What we do know is this. Let's look at what we know. What we know is 
that by a deliberate policy he has caused 
hundreds of thousands of people to be refugees. We know that thousands 
of innocent people have been killed--defenseless, completely defenseless 
people. We know that people were herded up and pushed to the borders and 
pushed over the borders. And today you all have stories saying that the 
same borders that people were herded up and pushed over or pushed up 
next to are now being mined, so if they try to get across them to save 
their lives they can be blown up.
    We know that he supported, strongly, 
the Serbian actions in the Bosnian war, which led to the deaths of over 
a quarter of a million people and over 2\1/2\ million people being made 
refugees.
    Now, the important thing to me is to stop the killing, to stop the 
exodus, to see the refugees return, to see them safe, to see a political 
solution that gives them the autonomy that they were promised, to have 
an international peacekeeping force that will prevent this from 
happening again.
    But I have been very clear, Helen--I think quite unambiguous that, 
on the war crimes issue, that is something--we have a tribunal set up 
for that. We have people whose job it is to make that determination. 
They should examine it and make that determination.
    And I think that's all that is appropriate for me to say, because 
it's not my job, and I'm not a legal expert on that question. But I do 
think that the facts are clear. The humanitarian suffering and loss here 
is staggering, and it is a repeat of what we saw in Bosnia. And it is 
his direct political strategy for first 
getting and then maintaining power. And the human loss has been 
breathtaking.

Taiwan

    Q. Seven hours before you landed in Andrews Air Force Base 
yesterday, President Clinton made a foreign policy speech in which he 
mentioned the sending of carriers to the waters in the Taiwan Straits in 
March 1996. And he said that that move had helped maintain the security

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in the Taiwan Straits. So in your view, how do you see the effect of the 
military capabilities of the United States on the situation across the 
Taiwan Straits? And do you think there should be a timetable for the 
reunification of the mainland and Taiwan of China? And do you wish to 
pay a visit to Taiwan?
    Premier Zhu. The policy of China and the reunification of the 
mainland and Taiwan of China is a very clear-cut one and the President, 
Jiang Zemin, has already expounded on China's policy in this regard. So 
I don't see the need for me to reiterate here.
    Since the return of Hong Kong to the motherland, the policy of one 
country, two systems, Hong Kong people administering Hong Kong, Hong 
Kong enduring a high degree of autonomy, have been fully implemented, 
which is a fact there for the people in the entire world to see. And our 
policy for the reunification of China with Taiwan is more generous than 
our policy towards Hong Kong. That is to say, Taiwan will be allowed to 
maintain its army, and we're also prepared to let the head of Taiwan 
come to the central government to serve as the deputy head.
    But as for whether he or she is able to be the head, then I'm not 
sure. But I'm afraid it would not get enough votes. Nobody would vote 
for him.
    On the question of the reunification, the Chinese Government has 
repeatedly stated that we strive for a peaceful reunification of the 
motherland. But we have never undertaken to renounce the use of force in 
this regard, because if we were to make such a pledge, make such an 
undertaking, then I'm afraid that Taiwan would be in the perpetual state 
of separation from the motherland.
    Just now, in the Oval Office of President Clinton, I saw the 
portrait of President Abraham Lincoln. Abraham Lincoln, in order to 
maintain the unity of the United States and oppose independence of the 
southern part, he had resorted to the use of force and fought a war for 
that, for maintaining the unity of the United States. So I think Abraham 
Lincoln, President, is a model, is an example.
    As for whether I'm going to visit Taiwan, since none of them have 
issued an invitation to me, so how can I go there and in what capacity 
should I go there? I hope you will also help me to think of this. 
[Laughter]
    Thank you.
    President Clinton. I think I have to say just one thing, if I might, 
since I got zapped by Abraham Lincoln. [Laughter] First of all, the 
United States has a ``one China'' policy, and I have reaffirmed that at 
every opportunity. I do so again today.
    Secondly, we believe that this matter should be resolved peacefully. 
The facts of the relationship between Taiwan and China over the last 50 
years are somewhat different than the facts leading up to the American 
Civil War, as I'm sure that you would all agree.
    It does seem to me that China and Taiwan, apart from the blood ties 
of being Chinese--even the native Taiwanese--that you have a lot to 
offer each other, including economic power but beyond that as well.
    And so I hope that we will see a resolution of this. And I think if 
the Premier is as humorous and clever in Taiwan as he is here, I think 
it would be a good thing for him to go. [Laughter]
    Terry [Terence Hunt, Associated Press].
    Premier Zhu. President Clinton's black and blue. [Laughter]

Chinese Nuclear Espionage/1996 Campaign Financing/Benefits of Engagement

    Q. A question to the Premier. Sir, how do you respond to charges 
that China stole nuclear warhead designs and perhaps neutron bomb 
technology from the United States, and also funneled hundreds of 
thousands of dollars to President Clinton's reelection campaign? 
[Laughter]
    And Mr. Clinton, do you find any of these charges credible? And what 
do you say to criticism that your policy of engaging China has benefited 
China and not penalized them at all for human rights abuses, trade 
problems, and espionage?
    Premier Zhu. In the capacity of the Premier of the State Council of 
the People's Republic of China, I'd like to make a very solemn statement 
here that I have no knowledge whatsoever of any allegation of espionage 
or the theft of nuclear technology. And I don't believe such a story.
    I've also asked President Jiang, and he does not have any knowledge 
of that at all. It is not the policy of China to steal so-called 
military secrets from the United States. And I don't think there can be 
such a problem, given the tight security measures in the United States 
and advanced technology. Although, it seems that

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to the technology, with regard to this microphone, is not that advanced. 
[Laughter]
    I think it's entirely impossible for China to have any effective--or 
to steal any nuclear technology or military secrets from the United 
States effectively under such conditions, such tight security measures.
    In the scientific exchanges between scholars of our two countries, 
they may have some exchanges concerning defense technologies. But I 
don't believe that such exchanges will involve any substantive or key 
technologies.
    As a senior engineer, I've been in charge of the industry in China 
for more than 40 years, and I have never known any of our most advanced 
technology came from the United States. But the technology development, 
or technologies, are the common heritage or common property of mankind. 
And in scientific inventions, actually, all roads lead to Rome. And in 
terms of the missile and the nuclear technologies, indeed, we have 
learned that from foreign countries.
    While in the area of missile technology, the pioneer in China is Mr. 
Tsien Hsueh-sen, who returned from the United States. And in terms of 
the nuclear technology the pioneer in China is Qian Sanqiang, who 
returned from the lab of Madame Curie of France. But I can assure you 
that when they returned back, they didn't bring back even a piece of 
paper; they just brought back with them their brains.
    That's why I said at the press conference last March that I hope you 
don't underestimate your own ability, your own security ability, or your 
own ability to keep secrets, and don't underestimate the capability of 
the Chinese people to develop their own technology.
    At a luncheon hosted by the mayor of Los Angeles, the wife of the 
mayor asked me, ``How are you going to celebrate the 50th anniversary of 
the founding of the People's Republic?'' I told her that we planned to 
hold a very grand military review and also the latest weaponry will be 
on display. And I also told her that all the weaponry are developed by 
China itself, not stolen from the United States. The wife of the mayor 
gave me advice, and she said, ``Maybe you should put a sign on the 
weaponry, the missiles, that they are `Made in China, not from the 
United States.' '' I appreciated her sense of humor very much, and I 
said, ``That's a good idea.'' [Laughter]
    Mr. Clinton stated in the speech that the United States has more 
than 6,000 nuclear missiles, while China only has less than two dozen. I 
think he knows better than I do. I, to tell you the truth, don't know 
the exact number of missiles that we have. [Laughter] Although I do not 
know the exact number of our missiles, I agree with you in your 
conclusion; that is, we have a very small number of missiles, and you 
have a very large number. So China does not constitute a threat 
whatsoever to the United States.
    On the allegation of political contributions or campaign financing, 
I can also state in a very responsible manner here that neither I nor 
President Jiang Zemin know anything about that. And we, too, also once 
asked the senior military leaders in China, and they told us they didn't 
have any knowledge of that.
    I think this shows that some Americans really had underestimated us. 
If the political contribution were to be really that effective, then now 
I have $146 billion U.S. of foreign exchange reserve, so I should have 
put out at least $10 billion U.S. for that purpose. Why just $300,000? 
That would be too foolish. [Laughter] I've learned that some people have 
spent a lot in lobbying here, but I never believed such rumors.
    I think through such mutual discussions and even debates, we can 
develop consensus and reach agreement on many issues that will serve the 
interests of both the Chinese and American peoples. And we also trust 
the American people, and we, actually, we have never and we would not do 
such kind of thing. Thank you.
    President Clinton. Let me respond to the question you asked me. 
First of all, with regard to the two issues, the campaign finance issue 
and the espionage allegations, I raised both these issues with Premier 
Zhu last night. He gave me the same answer he just gave you today. And 
my response was that I hope that he and his Government would cooperate 
with these two investigations.
    You know, China is a big country with a big Government. And I can 
only say that America is a big country with a big Government, and 
occasionally, things happen in this Government that I don't know about. 
And so I think it's important that we continue the investigation and do 
our best to find out what happened, and I asked for his cooperation.

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    Now as to the second part of your question, which is, ``What do we 
get out of this''--the sort of anti-China crowd in America says--first 
of all, the implication is that if someone wants to have a relationship 
with us, they should agree with us about everything. That's just not 
going to happen.
    But I would like to point out the following things: Because of our 
cooperation with China, we have lessened the tensions on the Korean 
Peninsula for several years. China has participated with us in any 
number of arms control initiatives, including an agreement to restrain 
its transfers of dangerous weapons and technology to other countries. 
China is a signatory to the Comprehensive Test Ban Treaty. And China has 
worked very hard, as I already said, to stabilize the Asian economy at a 
time when it was not only hurting people in Asia but it was beginning to 
affect the American economy. So we get quite a lot out of our 
cooperation with China.
    Last point. When you say, ``What do we get out of it,'' he could 
have people asking him that in China. They could say, ``It is the United 
States, not the European Union, that sponsors the human rights 
resolution. The United States has stricter controls on technology 
transfer to China than any other country with which it deals.'' Both of 
which are true.
    But let me just give you one final example--take the WTO. How could 
it possibly serve America's interests not to open more Chinese markets 
to America's workers and businesses and farmers? They have a much bigger 
share of our market, in terms of exports, than we have of theirs. How 
could it possibly be against our interest to bring more Chinese into 
contact with more Americans and to give more opportunities for America 
to honestly compete in the Chinese market?
    I think it is clear that the more we work together and talk 
together, and the more China is involved with the rest of the world, the 
more likely we are to reach positive outcomes. That is the logic of the 
policy and the logic of what we are doing in particular on WTO.
    Premier Zhu. I agree to cooperate with your side in investigation, 
so long as you can provide some clues. And no matter who it may involve, 
we will investigate into it.
    I'd like here to respond to what President Clinton said on WTO. He 
said that to allow China in the WTO will be in the best interest of the 
American people. And I want to say that, although China has made the 
biggest concessions, that will also be in the interest of the Chinese 
people. Many Hong Kong newspapers say that I've come to the United 
States to present a very big gift. I don't think such a suggestion is 
right. I'm sorry; I'm afraid I've offended the press. [Laughter]
    Because if China wants to join the WTO, wants to be integrated in 
the international community, then China must play by the rules of the 
game. China cannot do that without making concessions. Of course, such 
concessions might bring about a very huge impact on China's national 
economy, on some state-owned enterprises, and also on China's market.
    But I have every assurance to say here, thanks to the achievements 
made in our reform and opening up process, we will be able to stand such 
impact. And the competition arising from such impact will also promote a 
more rapid and more healthy development of China's national economy.
    Here I'd like to call the attention of the Hong Kong press people. 
In your future reports, don't ever write things like ``present a big 
gift,'' because that would be interpreted--equivalent to a political 
contribution or campaign financing. That would be very much detrimental 
to President Clinton. [Laughter]

China and the Asian Economies

    Q. I'm a correspondent with CCTV China. Recently, there has been 
much talk within and out of China about China's economic development, 
reform, and opening up policy. So, Mr. Premier, would you please make 
some observations on the current state of China's economy and the 
prospect of economic development in China? And what impact do you think 
China's economic development will have on the stability and the 
development of the economy in Asia and the world at large?
    Premier Zhu. Last year, China's economy experienced extreme 
difficulties due to the Asian financial crisis and the devastating 
floods hitting some areas in China. But we have tided over these 
difficulties and managed to achieve a 7.8 percent growth of our GDP. And 
we have maintained a policy of not to devaluate the RMB currency. And 
the prices in China have been maintained basically stable, and some have 
somewhat declined or have dropped.

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    As for the economic development in China this year, many foreigners 
are predicting that China will be the next to be hit by an economic 
crisis. But I don't think that will be the case. This year the projected 
GDP growth is 7 percent, but in the first quarter of the year the growth 
rate was 8.3 percent. So I expect China's economic development this year 
to be better than that of last year, not in terms of the speed, simply 
in terms of speed, but in terms of the economic efficiency, economic 
results.
    Secondly, some foreigners are saying that China's economic reform 
has come to a stop. I wish to state here in very explicit terms that 
last year, instead of coming to a standstill, China's reforms made 
greater progress than originally planned.
    Firstly, in terms of the reform of the Government institutions, last 
year we set the objective of cutting the size of the central Government 
by half in 3 years' time; that is, from 33,000 people to 16,000 people. 
And this objective had been realized last year, just in one year. Apart 
from 4,000 Government functionaries who have now gone to universities or 
colleges for further study, all the rest have been reemployed by other 
sectors, by enterprises. And so I think that represents a very major 
achievement.
    And this year, we plan to press forward the reform of the local 
governments. We also plan to cut the size of the local governments by 
half in 3 years' time; that is, to cut from 5 million people to 2.5.
    Third, some foreigners are saying that there is a very serious 
problem of unemployment in China, a lot of people have been laid off 
from state-owned enterprises, and this has caused a social instability 
in China. I think anybody who has been to China will know that this is 
not true.
    In the beginning of last year, indeed, there were 10 million laid-
off workers or unemployed workers. Thanks to our efforts over the past 
year, we have put in place a social security system. Now all those laid-
off workers or unemployed workers can get basic living allowances. And 
many of them have been reemployed. Now there are 6 million unemployed or 
laid-off workers who are in those reemployment service centers waiting 
for being reemployed, while the establishment of such a social security 
system is very helpful to our efforts to revitalize, rejuvenate the 
state-owned enterprises by introducing shareholding system into the 
large state-owned enterprises and also to reform the small and the 
medium-sized enterprises in various ways, including to privatize some of 
the small ones.
    Lastly, China now is introducing an unprecedented reform in its 
banking system. We are drawing on the experience of the RTC in the 
United States to form the assets management companies in China to handle 
the nonperforming loans of the state-owned banks. I believe that such 
reform is conducive to turning the state-owned commercial banks into 
genuine commercial banks, and is also conductive to helping enhance the 
ability of the central bank to supervise and to regulate according to 
international practice.
    So here I'd like to say that China's RMB will not be depreciated, 
and it will remain stable. So here I'd like to call on the American 
business people to go to China for investment. You will not face the 
risk of devaluation of RMB. If you don't believe me, then I would take 
the advice from Professor Milton Miller of Chicago University. He 
advised me to offer a put option to those who don't believe me.
    Thank you very much.
    President Clinton. Larry [Larry McQuillan, Reuters]?

[At this point, while the microphone was being passed to Mr. 
McQuillan, Sam Donaldson, ABC News, feigned asking a question.]

    Q. That was tough.
    President Clinton. That was real statesmanship. [Laughter]

Human Rights/Chinese Nuclear Espionage

    Q. I think it was more of a ham, but I have questions for both you 
gentlemen. Mr. Premier, as you know, the U.S. State Department issued a 
rather scathing report on human rights abuses in your country, and the 
United States is in the process of sponsoring a resolution before a U.N. 
group to criticize human rights in your country. Do you consider these 
assessments totally unfair, or do you think it's possible that there are 
problems within your country that need to be corrected?
    And President Clinton, at your last formal news conference, you 
spoke about the problems, or at least allegations, of Chinese spying, 
and you said that it mainly dealt in the 1980's, that there were no 
indications that it involved your Presidency. In the wake of today's New 
York Times report, can you still make that statement?

[[Page 526]]

Or are you concerned that perhaps you were misled or had information 
withheld from you about the extent of the allegations?
    Premier Zhu. Me first? [Laughter]
    President Clinton. You're the guest. [Laughter]
    Premier Zhu. Thank you. Firstly, I wish to say I'm firmly opposed to 
the U.S. tabling of a draft resolution directed at China at the Human 
Rights Commission session. I not only regard that as unfair but also 
take it as an interference in China's internal affairs.
    I wish to make three points here. Firstly, China has made very big 
progress in the human rights area over the past several decades since 
the founding of new China. And the Chinese people today enjoy 
unprecedented extensive democratic and political rights. Through certain 
legal procedures, through certain procedures, the Chinese people can 
voice their criticisms of the Government, and they can also exercise 
supervision over the Government. And they can express fully their 
opinions. And in my view, in terms of the freedom of speech and freedom 
of press, China indeed has made very great progress.
    Secondly, I also think that we should put the question of human 
rights in a historical perspective. And I think different countries may 
have a different understanding of this question. In terms of the human 
rights concept, Mencius, who lived in a period more than 2,000 years ago 
in China, he stated that people are the most important and the most 
precious, while the state is next to that, and the emperor or the kings 
are the least important. So that kind of thought was much earlier than 
Rousseau of France and then the Human Rights Declaration of France.
    And also, different countries have different conditions, and human 
rights actually is also a concept that has evolved in history. In terms 
of per capita income, the per capita income of the United States is 20 
times that of China. And also, in terms of education, the ratio of 
university graduates in the United States, in its total population, is 
higher than the ratio of the illiterate people, plus the primary school 
graduates to the total population in China. So given such different 
levels of education and also income, it's natural that people may have 
different concepts of human rights.
    For instance, if you want to talk about human rights to a very poor 
person, maybe what he is more interested in is--if you want to just talk 
to him about direct election. But maybe that is not what he is most 
interested in. What he is interested in most is the other aspects of 
human rights, such as the right to education, the right to subsistence, 
the right to development, the right to a cultural life, and the right to 
medical care, health care. So I think human rights actually include so 
many aspects.
    So I think every country has its own approach in improving its human 
rights. One should not be too impatient, but to tell the truth, I'm more 
impatient than you are in how to further, constantly improve the human 
rights in China.
    Thirdly, I concede that there is room for improvement in human 
rights conditions in China. As you may know, China has a history of 
several thousand years of a feudal system, feudal society, so people 
have very deep-rooted concepts influenced by this historical background. 
It's quite difficult to change such mentality or concept overnight.
    And also in China, the legal workers, the people working in the 
legal and the judicial field, some of them are not that qualified, are 
not that competent, so sometimes in dealing with certain cases they need 
to improve their work. So under such conditions it's really not 
realistic to demand a very perfect practice in the human rights field.
    So we are willing to listen to you, and we are willing to have 
channels of dialog on human rights questions. We don't want to stage a 
confrontation in this regard.
    Actually, in China, when I received some foreign visitors, they tend 
to put forward a list of so-called dissidents and ask me to release 
these people. Well actually, we took this matter very seriously, and we 
have looked into all these cases, and if we found that the person on the 
list has not committed any criminal offenses, then we will just release 
him.
    Well, before I came to the United States, many of my friends mailed 
me a lot of materials in which they contained a lot of information about 
the problems of human rights in the United States. And they urged me to 
bring such materials to President Clinton, but I haven't brought them 
with me. I don't want to hand that over to President Clinton because I 
trust you are able to resolve your own problems.
    President Clinton. Actually, sometimes we could use a little outside 
help, too. [Laughter]

[[Page 527]]

    Let me say, first of all, in response to the question you raise, I 
read the New York Times article today, and while I can't comment on 
specific intelligence reports as a matter of policy, I noted that even 
the article acknowledged that the alleged espionage might not have been 
connected to the national labs, which is the question I was asked in the 
press conference.
    But let me say, I've looked into it, and we're doing our best to 
resolve all outstanding questions. And I've asked the law enforcement 
agencies to try to accelerate their inquiries insofar as they can.
    The real issue is, and one that we made perfectly clear last week, 
is that for quite a long while, from the eighties coming right up 
through the time I became President, the security at the labs was 
inadequate. And I think it grew out of, partly, the kind of dual culture 
of the labs--part of--they're great centers of science and learning, and 
they've done a lot of pathbreaking work in energy and alternative 
sources of energy and computer processing and the use of software for 
all kinds of very important nondefense matters, while maintaining their 
responsibilities in the nuclear area.
    And to me, the most important thing of all now, besides finishing 
the investigations in an appropriate way, is making sure we get the 
security right. You know that I signed that Executive order in early 
1998. You know what Secretary Richardson has 
done recently. And I have also asked the President's Foreign 
Intelligence Advisory Board Chairman, Senator Rudman, to head a bipartisan panel to look into what we have done 
and to tell us if we haven't done enough and what else we ought to do.
    So I think the most important thing now is to recognize that for 
quite a long while, the security at the labs was not adequate, that we 
have been moving to do a lot of things in the last year-plus, that we 
have much more to do, perhaps, and we asked somebody to look into it, 
and then to do these investigations and do them right and do them as 
quickly as possible.

Note: The President's 172d news conference began at 3:51 p.m. in 
Presidential Hall (formerly Room 450) in the Old Executive Office 
Building. In his remarks, the President referred to Staff Sgt. Andrew A. 
Ramirez, USA, Staff Sgt. Christopher J. Stone, USA, and Specialist 
Steven M. Gonzales, USA, infantrymen in custody in Serbia; and President 
Slobodan Milosevic of the Federal Republic of Yugoslavia (Serbia and 
Montenegro). He also referred to Presidential Decision Directive 61. 
Premier Zhu spoke in Chinese, and his remarks were translated by an 
interpreter. In his remarks, Premier Zhu referred to Mayor Richard 
Riordan of Los Angeles, CA, and his wife, Nancy.