Y 4.F76/1:H88/56 HUMAN RIGHTS AND POLITICAL DEVELOPMENTS IN CHINA HEARINGS BEFORE THE SUBCOMMITTEES ON HUMAN RIGHTS AND INTERNATIONAL ORGANIZATIONS, ON ASIAN AND PACIFIC AFFAIRS, AND ON INTERNATIONAL ECONOMIC POLICY AND TRADE OF THE COMMITTEE ON FOREIGN AFFAIRS ONE HUNDRED FIRST CONGRESS FIRST SESSION JULY 13 AND 19, 1989 Printed for the use of the Committee on Foreign Affairs COMMITTEE ON FOREIGN AFFAIRS DANTE B. FASCELL, Florida, Chairman LEE H. HAMILTON, Indiana GEO. W. CROCKETT, JR., Michigan PETER H. KOSTMAYER, Pennsylvania EDWARD F. FEIGHAN, Ohio TED WEISS, New York GARY L. ACKERMAN, New York MORRIS K. UDALL, Arizona JAMES MCCLURE CLARKE, North Carolina JAIME B. FUSTER, Puerto Rico WAYNE OWENS, Utah HARRY JOHNSTON, Florida ELIOT L. ENGEL, New York ENI F.H. FALEOMAVAEGA, American DOUGLAS H. BOSCO, California WILLIAM S. BROOMFIELD, Michigan BENJAMIN A. GILMAN, New York ROBERT J. LAGOMARSINO, California JIM LEACH, Iowa TOBY ROTH, Wiscc.sin OLYMPIA J. SNOWE, Maine DOUG BEREUTER, Nebraska CHRISTOPHER H. SMITH, New Jersey MICHAEL DEWINE, Ohio DAN BURTON, Indiana JAN MEYERS, Kansas JOHN MILLER, Washington DONALD E. "BUZ" LUKENS, Ohio BEN BLAZ, Guam ELTON GALLEGLY, California AMO HOUGHTON, New York JOHN J. BRADY, Jr., Chief of Staff SUBCOMMITTEE ON HUMAN RIGHTS AND INTERNATIONAL ORGANIZATIONS JAMES MCCORMICK, Minority Staff Consultant SUBCOMMITTEE ON INTERNATIONAL ECONOMIC POLICY AND TRADE CONTENTS Richard L. Williams, Acting Deputy Assistant Secretary of State, Bureau of East Asian and Pacific Affairs. Carl W. Ford, Jr., Principal Deputy Assistant Secretary, International Security Affairs, U.S. Department of Defense.. Hon. Joan McIntee, Acting Under Secretary for Export Administration, Hon. William F. Ryan, president and chairman, Export-Import Bank of Hon. Fred M. Zeder, president and CEO, Overseas Private Investment Nancy Frame, Deputy Director, United States Trade and Development Wednesday, July 19, 1989: Michael Oksenberg, Center for Chinese Studies, University of Michigan.... Frank J. Gaffney, Jr., director, Center for Security Policy Ye Ning, student, Washington College of Law, American University. Richard E. Gillespie, vice president, United States-China Business Coun- Peter V. Handal, president, Victor B. Handal & Bro., Inc., on behalf of the American Association of Exporters and Importers. Howard Lewis, III, vice president, International Economic Affairs, Na- MATERIAL SUBMITTED FOR THE RECORD Textile Bilateral Agreement with China.... 36 Amount of loans (value) and purpose are in the World Bank and the Asian Development Bank in China that have been suspended with United States Transfer of unused Chinese textile quotas to other countries MFN status in China............. United States loans to China........................... APPENDIXES 5. Letter from William F. Ryan, acting president and chairman, Export- Import Bank of the United States to subcommittee chairman Solarz clarifying how Eximbank is impacted by section 2(b)(1)(B) of the Export- 6. Statement by the American Electronics Association and Electronic Indus- 318 (III) HUMAN RIGHTS AND POLITICAL DEVELOPMENTS IN CHINA United States-China Relations: Where Do We Go From Here? THURSDAY JULY 13, 1989 HOUSE OF REPRESENTATIVES, COMMITTEE ON FOREIGN AFFAIRS, SUBCOMMITTEES ON HUMAN RIGHTS AND INTERNATIONAL ORGANIZATIONS, ON ASIAN AND PACIFIC AFFAIRS, AND ON INTERNATIONAL ECONOMIC POLICY AND TRADE, Washington, DC.. The subcommittees met at 10:25 a.m., in room 2154, Rayburn House Office Building, Hon. Stephen J. Solarz (chairman of the Subcommittee on Asian and Pacific Affairs) presiding. Mr. SOLARZ. The subcommittee will come to order. Today the Subcommittee on Human Rights and International Organizations, the Subcommittee on Asian and Pacific Affairs, and the Subcommittee on International Economic Policy and Trade meet to assess the changes which have taken place in United States policy toward China in light of the brutal suppression of the democracy's movement in that country and to examine whether additional steps are needed. The issue before us today is not whether the United States can continue to do business as usual with the government in Beijing. That has already been decided. We cannot. In the days since the Tiananmen massacre, the Bush Administration first suspended the transfer of defense articles to China and halted all visits between U.S. and Chinese military leaders. Later the President announced the suspension of all high-level government contacts and that the U.S. will take steps to postpone consideration of loan applications to China by international financial institutions. The House of Representatives has also spoken. Two weeks ago, by a vote of 418-zero, the House voted to continue by statute the suspensions of OPIC, the transfer of defense articles, including satellites, and the non-liberalization of export controls. In addition, the House suspended trade and development program funds for China, suspended licenses for crime control and detection equipment and eliminated certain gray areas in the transfer of nuclear-related technology. The House gave the President the authority to waive these suspensions if there has been a significant improvement in the political and human rights situation in China or if the national security interests compel it. (1) |