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To: jmhollen who wrote (6126)3/28/2000 7:57:00 PM
From: jmhollen  Respond to of 7209
 
"....From the jus' so's ya know Department....":

Taiwan Calm, So China Gains in Trade Talks

By JOSEPH KAHN and ERIC SCHMITT WASHINGTON, March 23 -- A rare burst of moderation on both sides of the Taiwan Strait has fortified proponents of granting China permanent trading rights in the United States as a Senate committee formally took up the trade measure today. Clinton administration officials said prospects for passage had improved.

Several key members of Congress said that China's low-key reaction to the election of Chen Shui-bian of the independence-leaning Democratic Progressive Party as Taiwan's new president had offered some reassurance that Beijing would take a "wait and see" attitude toward the new government. China maintains that it has sovereignty over Taiwan.

Some United States lawmakers said they had feared after last weekend's presidential vote that China might take military action against Taiwan, following through on threats made shortly before the election.

Taiwan, so far at least, has returned the moderate overtures. Mr. Chen has said repeatedly in recent days that he thinks Congress should normalize trade relations with China and that both Taiwan and China should join the World Trade Organization as soon as possible, signaling that whatever their political differences they should move forward on strengthening economic ties.

"Some members were expecting China to put its worst foot forward," said Senator Max Baucus of Montana, a strong supporter of granting China permanent trading rights. "That's not been the case so far, which is very encouraging for the vote."

The Clinton administration is pushing Congress to discontinue its annual review of China's trading rights and grant China permanent low-tariff access to the United States market, the same treatment most other trading partners receive.

The administration said the vote was crucial if United States companies were to benefit from a sweeping trade accord it negotiated as part of China's drive to join the World Trade Organization.

President Clinton has said that a no vote would be devastating for United States-China relations.

The bill that would extend permanent normal trade relations was formally introduced in the Senate Finance Committee today, where it is expected to pass easily before proceeding to a tougher test in the House, which is not expected to vote before May.

Opponents of permanent normal trade relations are ceding nothing. Several freshman members of Congress declared this week that they planned to vote against extending permanent trading rights to China.

Meanwhile, unions and consumer groups that are fighting the measure said they had scheduled a series of large public demonstrations during the Easter Congressional recess, when they plan to take aim at scores of uncommitted lawmakers in their home districts.

Still, Clinton administration officials were markedly more upbeat about the vote this week than they were earlier this month. They said their own intensive lobbying efforts combined with China's restrained response to Taiwan had helped them line up some wavering Democratic and Republican lawmakers in the House.

"I always thought they we would get this through in the end, but I'm more optimistic now than I was a few weeks ago," said Secretary of Agriculture Dan Glickman.