Text: Baucus' Remarks to Senate Finance Committee Hearing on China
(Warns against linking PNTR, Taiwan Security Enhancement Act)

Any attempt by the Senate to try to attach the Taiwan Security Enhancement Act to the debate on Permanent Normal Trade Relations (PNTR) with China "would be a tremendous mistake," says Senator Max Baucus (Democrat of Montana).

Speaking at a Senate Finance Committee hearing March 23 on trade with China and its implications for U.S. national interests, Baucus said: "The Taiwan Security Enhancement Act does not give the President or the Pentagon any authority or capability that they do not now have."

The senator noted that the Commander in Chief of U.S. Pacific Forces has said that he sees no need for this legislation. "It would add to the level of tension and rhetoric across the Taiwan Strait and hamper our efforts to pass PNTR for China. Above all, I believe it would diminish the likelihood of a peaceful resolution between China and Taiwan," Baucus said.

"I share the concern that proponents of this bill have with maintaining the security and stability of Taiwan. But, as a good friend and long-time supporter of Taiwan, I believe this is the wrong approach at the wrong time," the senator said.

"In the wake of Taiwan's recent elections, restraint and caution must remain the watchwords for the day, both on our part and for China and Taiwan," Baucus said.

According to Baucus, the issue that Congress must focus on is "whether we will grant Permanent Normal Trade Relations status to China so that American farmers, workers, and businesses can take advantage of these new opportunities in the Chinese market.

"If we don't grant China PNTR status, we will not be able to benefit from most of China's trade concessions [to the World Trade Organization]. The result would be that our Japanese and European competitors get full access to China's markets, while Americans would be left outside," he said.

Following is the text of Baucus' statement:

(begin text)

Senator Max Baucus

Senate Finance Committee

Hearing on Trade with China and its Implications for U.S. National Interests

March 23, 2000

I appreciate Chairman Roth's calling this hearing to discuss some of the non-trade aspects of our relations with China and the complex triangular relationship among Washington, Beijing, and Taiwan. Before I comment on that, I want to make sure that everyone understands why we are here.

The issue that will come before the Senate and before this committee is not whether China will be allowed to join the WTO. That will happen sometime this year. The issue is not whether we approve of China's human rights abuses, or its missile proliferation policies, or its approach to Taiwan.

The issue that Congress will determine is whether we will grant permanent Normal Trade Relations status to China so that American farmers, workers, and businesses can take advantage of these new opportunities in the Chinese market.

If we don't grant China PNTR status, we will not be able to benefit from most of China's trade concessions. The result would be that our Japanese and European competitors get full access to China's markets, while Americans would be left outside.

As I speak to groups in Washington and around the country, I have been surprised by how few people understand this. Many continue to believe that the issue is whether the United States will allow China to join the WTO. The issue is about benefits we receive. Full stop.

That said, let me talk about the situation across the Taiwan Strait.

I am particularly concerned about a growing number of press reports indicating that this Senate may consider the Taiwan Security Enhancement Act, or try to attach it to the debate over PNTR. That would be a tremendous mistake.

On February 21, Beijing issued a very troubling White Paper that linked time and the possible use of force for reunification. This was a big step backwards. That action, combined with out-going Taiwan President Lee Teng-hui's talk about state-to-state relations and Chen Shui-bian's victory last weekend in the Presidential election, adds to the uncertainty and danger.

I am pleased that the Clinton Administration immediately dispatched senior envoys to Beijing and Taipei to stress that the United States continues to favor a peaceful resolution across the Taiwan Strait, to caution both sides against taking any precipitous action, and to encourage renewal of the cross Strait dialogue.

But I am quite concerned that, because of the White Paper and the Taiwan Presidential elections, there may be increased interest in the Taiwan Security Enhancement Act.

I share the concern that proponents of this bill have with maintaining the security and stability of Taiwan. But, as a good friend and long-time supporter of Taiwan, I believe this is the wrong approach at the wrong time. I said that last summer when I testified before the Senate Foreign Relations Committee. And I am even more worried today about the likely results if this becomes law.

In the wake of Taiwan's recent elections, restraint and caution must remain the watchwords for the day, both on our part and for China and Taiwan. I am encouraged that, so far, Taipei and Beijing are addressing their concerns through constructive means.

But a change in leadership in Taiwan does not, and should not, constitute a change in US policy toward the region. The Taiwan Relations Act has guided us well through the better part of two decades. It has enjoyed the support of Republican and Democratic administrations. I see no need for an immediate change. And there is certainly no need to bring such legislation into the debate over a landmark trade deal for the United States.

Our message to Beijing and Taipei has always been that they must negotiate together to resolve their differences; settlement must be found by peaceful means; and there should be no unilateral steps taken to change the situation. What is needed now is dialogue across the Taiwan Strait -- dialogue without Taiwan attempting to change the framework unilaterally, dialogue without the PRC's belligerent threats to taking military action, and dialogue without the United States passing provocative and unnecessary legislation.

The Taiwan Security Enhancement Act does not give the President or the Pentagon any authority or capability that they do not now have. The Commander in Chief of our Pacific Forces has said that he sees no need for this legislation. It would add to the level of tension and rhetoric across the Taiwan Strait and hamper our efforts to pass PNTR for China. Above all, I believe it would diminish the likelihood of a peaceful resolution between China and Taiwan.

We are a Pacific power. We fought three wars in Asia in the last 60 years. We are not, and cannot, walk away from this problem across the Strait. But this legislation is not the answer. And injecting it into the debate over permanent Normal Trade Relations with China would be inappropriate.

(end text)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: usinfo.state.gov)


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