WASHINGTON, March 18, 1997 (Reuter) - Amid a growing controversy over alleged attempts by China to funnel money into U.S. election campaigns, a coalition of American conservatives launched an effort Tuesday to deny Beijing normal trading privileges.

"This Republican Congress should not extend Most Favord Nation (MFN) status to China for yet another year," Terence Jeffrey, editor of the conservative national weekly Human Events, said at a news conference.

"Instead, it should focus on the unavoidable business of investigating whether President Clinton kowtowed for cash before Chinese Communists and compromised the security of our country," he said.

Allegations of possible Chinese efforts to funnel money illegally into 1996 congressional election campaigns has focused national attention on the financing scandal dogging the White House and provided fuel for groups opposed to normal U.S. trade relations with China.

"Clearly the persecution of Christians and abuse of pregnant women and Tibetans have given us the high moral ground, and what the campaign finance scandals have given us is the high political ground," said conservative columnist Pat Buchanan, who is helping to lead the charge against China's MFN status.

Clinton must decide by early June whether to renew the coveted MFN trade status, which allows goods to enter the country with low tariffs, for China for another year. Congress then has to decide whether to accept or reject that decision.

During last year's debate, a group of lawmakers expressed concern about the effect the annual ritual was having on U.S. business relations with China and began a move to make Beijing's MFN status permanent.

But a number of lawmakers are concerned by Beijing's human rights record, nuclear technology and missile sales and the $40 billion U.S. trade deficit with China, as well as the campaign finance scandal. Buchanan said he believes anti-MFN forces are building momentum to convince the Republican-controlled Congress to revoke China's MFN.

"I didn't have that feeling last year," he said. "I get a real sense of passion and fire."

Joining Buchanan and Jeffrey to launch the anti-MFN effort were Gary Bauer, president of the Family Research Council, a conservative religious group;

Fred Barnes, a columnist with the conservative Weekly Standard magazine and Rep. Jerry Solomon, a New York Republican who heads the House Rules Committee.