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APPENDIX

2

JUL 2 6 1989

Dear Mr. Levine:

In response to your letter dated June 23, the Administration shares your concern for the Chinese citizens currently in this country. In his statement on June 5, the President ordered the sympathetic review of requests by Chinese students in the 0.8. to extend their stay here. The Attorney General on June 6 took action to implement the President's order.

The Attorney General's June 6 directive provides for the delayed enforcement of departure which you referred to in your letter. However, the directive also allows PRC nationals who are lawful nonimmigrants to preserve their right to remain in the United States and their eligibility for adjustment of status by asking the Immigration and Naturalization Șervice (INS) to extend the period of their authorized stay in the United States. If they find themselves in need of financial support, these PRC nationals can also request permission to work in the United States. The INS believes its program is flexible enough that most PRC nationals should be able to remain in the United States without losing their lawful noninmigrant status.

The INS has instructed its field offices that, in most circumstances, an extension of a PRC national's noninmigrant status would be pieferable to a deferral of the alien's enforced departure after the alien's authorized stay has expired. Maintaining a PRC national's lawful non immigrant status preserves the alien's eligibility for adjustment of status.

The Honorable
Mel Levine,

House of Representatives.

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In addition, the INS has instructed its district and regional service center directors to authorize the expedited processing of requests from PRC nationals for extensions or changes of nonimnigrant status. The INS has instructed its field offices that the situation in the PRC may be considered to be "extraordinary circumstances" that warrant extending the stay of H-1 temporary workers and intracompany transferees for one year beyond the five year maximum stay for a total of six years. Regulations also permit students who have completed their studies to extend their student status in order to obtain practical training in their fields of study. Requests from PRC students for permission to accept off-campus employment are to be given every consideration as qualifying in that regard. In a further effort to soften the impact of the upheaval in the PRC, the INS has suspended its restriction against off-campus employment for PRC students who are still in their first year of study.

The Department believes that these various options which INS has made available to Chinese citizens in this country will work to ensure that all Chinese students in this country who wish to stay here are able to do so.

Sincerely,

7
Janet G. Mullins
Assistant Secretary
Legislative Affairs

Lactosure:

torrespondence returned.

APPENDIX 3

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DONEC ho asi

LTTERIE

Jo the fighting, has stopped, thy words spoken throughout like other men who have fa. I wis. the party has had a lifetime of a decade of reform. In that thered sons, mine bas rerupted by power to lont experience.

time, so much wag accom- tuned to me countless times care what means we drept "Warn Americans not to be plished--in the darkness of the giftoflife.”

to achieve thel et Thus fooled. Warn them not to one night, tainted by Blood The son was 7 at the start sacribbes must be made event judge by what will be said Later, from a car stalled in of the Cultural Revolution human and what will be seen. Those traffic on 57th Street, my when the father had been Only today can truly

ep men are masters at orches eyes were drawn to a child suddenly imprisoned in his preciate an old Chinese tal

own office. For the next sev- Once a sage passed by a
en years, the man didn't cemetery where an old wome
know why he had been an was wailing. "What trage
branded a clasa enemy or dy has befallen you?" the
how long his sentence. He
had no idea of what was hap- "In these parts," she an-
pening in China or to those swered, there lives a man-
he cherished.

eating tiger. Two months
Many a long night, he ago, it devoured my eldest. A
contemplated suicide. Only month ago, my second son.
one certainty prevented him. This week my last song,
At dawn-summer, spring, -"Why did you not free from
winter and fall-he could these hills?"
peer through a crack in the "Because more ferocious
boarded window daily and see than man-eating tigers is cor-
a tiny vermilion kite in the rupt government
sky. Sometimes it hovered at
eye level. Sometimes it soared Lord, a prominent Chinese
into the heavens. Sometimes American writer, is the au-

it was barely visible. That fa- thor of the best-selling novel Braving bayonets: Protesters try to pull a soldier from his unit miliar sight never failed to in- "Spring Moon."

sage asked.

>

DAVID BERKWITZ NEWSWEEK

28 NEWSWEEK: JUNE 12. 1989

APPENDIX 4

CHINA SANCTIONS: POSSIBLE ECONOMIC EFFECTS

Human rights abuses in China have evoked criticism from most Western governments and have led to calls in some countries for economic sanctions against China. The United States and other countries and multilateral institutions reacted to the June 3, 1989 massacre in Tiananmen Square almost immediately with statements of condemnation and, in some cases, with steps to impose economic sanctions against the Chinese government."

This report describes sanctions that have been adopted by the Bush Administration and other Western governments and additional sanctions that have been proposed by Members of Congress. It discusses the extent of China's economic relations with the United States and others and analyzes the feasibility of imposing economie costs on China by curtailing or ending important aspects of those economic relations. Specifically it examines the effects of changes in: U.S. import policy, including most-favored-nation treatment and textiles imports; export credits and other financial assistance programs; export controls; military sales; and the policies of multilateral development banks.

The report analyzes the effects of both unilateral U.S. sanctions and multilateral sanctions in which other Western industrial countries participate. It attempts to determine who would bear the costs of the proposed sanctions and what the advantages and disadvantages of alternative U.S. sanctions would be. Analysis of several of the proposed sanctions export controls, arms sales, U.S. participation in multilateral development lending, and bilateral financial assistance e'iggests strongly that the extent of costs imposed on China would depend heavily on the degree of multilateral cooperation. In other words, U.S. unilateral sanctions might simply divert commercial ties from the United States to other countries and impose only modest costs on China. Thus, the extent of multilateral cooperation, especially among the Western industrial countries, appears crucial.

U.S. SANCTIONS

In the aftermath of the June 3, 1989 massacre in Beijing, the Bush Administration took steps to signal its disapproval of the actions of the

'For a detailed discussion of the crisis in China and a continuing update on Administration and congressional action, see U.S. Library of Congress. Congressional Research Service. China in Crisis: Public Dissent and the Power to Struggle, by Kerry Dumbaugh. CRS Issue Brief 89100.

CRS-2

Chinese government. On June 5, 1989, the Administration announced a ban on government-to-government sales and commercial exports of weapons and the suspension of high level military exchanges. On June 20, 1989, in response to "the wave of violence and reprisals by the Chinese authorities against those who have called for democracy," all participation in high level exchanges between government officials was suspended, including a visit by Secretary of Commerce Robert Mossbacher in July 1989. In addition, the Administration announced that it would seek to postpone consideration of loan applications by the People's Republic of China (PRC) to international development institutions.?

On June 21, 1989, the Chinese government began executing individuals accused of committing crimes during the pro-democracy demonstrations. In response, Secretary of State Baker announced that "we deeply regret the fact that executions have gone forward notwithstanding appeals from the U.S., the Federal Republic of Germany, and perhaps other states.": However, Secretary Baker said that "the United States is not contemplating any additional sanctions at this time." The Bush Administration opposes congressional action to impose additional penalties on China and, in a June 26, 1989 speech at the Asia Society in New York, Secretary of State Baker warned that the "hasty dismantling of a constructive U.S.-Chinese relationship built up so carefully over two decades would serve neither our interests nor those of the Chinese people. **

CONGRESSIONAL ACTION

For some observers, the Bush Administration's response has not gone far enough. Some Members of Congress have proposed legislation to curtail other aspects of U.S. commercial relations with China. The proposed legislation is aimed at important aspects of U.S. trade policy toward China, which, since the late 1970s, has facilitated a significant expansion of U.S. trade with, and investment in, China.

2Daily Report for Executives. Bush Imposes Sanctions on China, Halts Military, Civilian Arms Sales. June 6, 1989, p. A-18; Friedman, Thomas L. U.S. Suspends High-Level Links to China as Crackdown Goes On. New York Times. June 21, 1989. p. Al.

Daily Report for Executives. U.S. Opposes Loans to China; Baker Foresees No More Sanctions. June 22, 1989. p. A-15.

'Ibid.

Department of State. Address by James A. Baker, III on "A New Pacific Partnership: Framework for the Future," June 26, 1989; Oberdorfer, Don. Baker Issues Warning on Sanctions. Washington Post. June 27, 1989. p.

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