Speech #960186078

It lays the foundation for the expansion of trade and financial ties between our two countries. with major mutual benefits. Chinas pursuit of a longterm modernization program calls for ongoing high levels of imported capital goods and technology. and Chinas leaders are counting on placing substantial orders with firms in this country. As my colleagues know. section 402 of the Trade Act of 1974. the JacksonVanik amendment. prohibits the extension of mostfavorednation treatment and official credits. credit guarantees. or investment guarantees. to any nonmarketeconomy country which restricts the right of its citizens to emigrate freely. The President. however. may waive these prohibitions with respect to a particular country. if he reports to the Congress that: First. he has determined that such waiver will substantially promote the objective of free emigration. and second. he has received assurances that the emigration practices of that country will henceforth lead substantially to the achievement of the objective of free emigration. The President has determined that these two requirements have been met by the Peoples Republic of China. and he has issued an Executive order waiving the application of section 402 (a) and (b). I am pleased to see that the President has based his case for MFN to China both on assurances regarding future emigration practices provided by Chinese leaders in official exchanges. and on assurances publicly stated by senior Chinese leaders. Administration spokesmen have told us that during his visit to this country last January. Vice Premier Deng Xiaoping. in personal talks with top U.S. officials. gave assurances on Chinas future emigration practices. The administration has also informed us that before the trade agreement was signed last year on July 7. top U.S. Embassy officers discussed Chinese emigration policy and practice with the Ministry of Foreign Affairs in Beijing in light of the legal requirements of the JacksonVanik amendment. The Chinese were fully apprised of these requirements. including the requirement that assurances regarding future emigration practices be given. and at that time senior Chinese officials provided the assurances the law requires. There is a written record of these official exchanges on the basis of which administration officials have informed the Senate Finance Committee regarding the substance of these assurances. On several occasions. Chinese leaders have publicly given assurances regarding their Governments future policies on emigration. For example: In a Washington. D.C.. speech before the National Association of ChineseAmericans & Overseas Chinese in the United States on January 30 last year.