[Weekly Compilation of Presidential Documents Volume 33, Number 25 (Monday, June 23, 1997)]
[Pages 875-876]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 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

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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.