South China Morning Post

Saturday July 19 1997

AGENCE FRANCE-PRESSE in Washington Attacking US President Bill Clinton for "appeasing" Beijing, Republican leaders have unveiled legislation targeting China's military, missile sales and human rights abuses.

Their 11-point package would tighten a ban on prison-made goods, increase funding for Radio Free Asia, and require the CIA and FBI to report to the US Congress on Chinese intelligence activities in America.

It would also revoke Most Favoured Nation (MFN) trade privileges from firms owned by the People's Liberation Army, urge the administration to oppose Chinese borrowing from the World Bank and other lending agencies, and require it to develop a missile defence programme for Taiwan.

The White House had no immediate reaction on Thursday to the package of proposals.

Representative Floyd Spence, chairman of the House National Security Committee, said: "China has repeatedly demonstrated no reluctance to act contrary to American national interests."

Senator Connie Mack, chairman of the Senate Republican Conference, said Mr Clinton's China policy "is one of appeasement".

The new legislation follows a congressional vote last month backing Mr Clinton's decision to renew China's MFN trade privileges unconditionally for another year.

The vote in the lower House reflected a widespread sense that revoking MFN would inflict disproportionate damage on US-Chinese relations, inviting retaliation from Beijing and seriously hurting Hong Kong and Taiwan.

The new measures, which would require broad support from legislators and the Clinton administration, are designed to register dipleasure with China in a more targeted manner.

Representative Chris Smith, a co-sponsor of the package and outspoken China critic, said: "Many people didn't believe in expressing our displeasure through MFN."

The sale by a Chinese company of 60 C-802 cruise missiles to Iran has emerged this year as a source of deep concern among legislators, who say they pose a direct threat to American ships and 15,000 servicemen in the Gulf.

One provision introduced would formally find, as the administration has declined to do, that delivery of those missiles violated a 1992 non-proliferation law and warranted sanctions.

Others would bar officials involved in forced abortions from entering the United States and urge the World Trade Organisation to admit Taiwan ahead of China.