International Information Programs


Washington File

11 September 2000

Thompson Says He Supports PNTR, But Pushes Amendment

In a September 11 speech to fellow lawmakers, Senator Fred Thompson (Republican of Tennessee) said it was "inconceivable" that they would not address "what China is doing to endanger our country" while "we discuss trade issues and a new relationship with China."

Thompson, who said he supports legislation granting China Permanent Normal Trade Relations (PNTR) status, urged his colleagues to support his amendment to that bill.

The Tennessee legislator said he introduced Amendment 4132 to H.R. 4444, the China PNTR bill, because he had been unable to bring his China Non-Proliferation Act before the Senate any other way.

"I support PNTR," Thompson said.

But, he added, the United States cannot ignore China's proliferation activities because "if we ever signal to the world that we are more concerned with the trade dollar than we are with our own national security, we will not remain a superpower for very long."

The amendment, Thompson explained, "provides for an annual report to Congress and to the American people as to the proliferation activities" of China, Russia, and North Korea. The three countries "have already been identified as key suppliers," he added.

"I know people in this body want to pass PNTR," Thompson said. "They do not want any complications."

But, he asked, should the Senate's primary question be "whether or not the House would ratify what we do? Since when does the Senate vote on an item simply because they are afraid of what the House of Representatives might or might not do?"

House Members, Thompson noted, "included provisions in their bill regarding prison labor, import surges, religious freedom, increases in funding for Radio Free Asia. All of that was in their bill."

"Are we going to tell the world that nuclear proliferation is not as much a concern as is funding for Radio Free Asia?" he asked.

Thompson reminded senators that on "the eve of the Senate's consideration of PNTR for China, and after the House had already voted, it was revealed that China was assisting Libyan experts with that country's missile program, illegally diverting U.S. supercomputers for the use of the PRC's nuclear weapons program, and helping to build a second M-11 missile plant in Pakistan."

The United States, Thompson said, is making "a gamble" that "by gradually lowering these barriers to trade, by gradually opening up society, this trade will lead to a gradual opening up of society ... that we will wake up one day and China will be a democratic society. And in the meantime, we will maintain their friendship so that the world will not be a more dangerous place but a less dangerous place."

On the other hand, he said, the Chinese leadership is taking a gamble that "they can open up economic trade somewhat, and they can adopt a more capitalistic society and still maintain dictatorial control from the top, and that it will not get away from them."

But while taking that gamble, Thompson said, the United States "should be very mindful of the dangers that are presented to this country down the road from China and others."

"While we are willing to take this chance and we go down the road to trade with China, they are engaging in activities that pose a mortal danger to the welfare of this country," Thompson said. "That is the subject of the amendment that I have just offered."

Following is a transcript of Thompson's remarks from the September 11 Congressional Record:

To Authorize Extension of Nondiscriminatory Treatment
To the People's Republic of China
(Senate - September 11, 2000)

Mr. Thompson: Mr. President, it has been said that the vote on permanent normal trade relations with China is one of the most significant pieces of legislation this body will have voted on in a long time. That very well may be true.

For a number of reasons, I think most of the Members of this body are firmly committed to the concept of free trade. It has done the United States very well. We all know we are in the midst of a technological revolution that is increasing our productivity in this country and is giving us advantages we have never known before in the international marketplace. But it is not a zero sum game either; it has been beneficial for the whole world.

I sign on to the concept that free trade leads to free markets and that free markets can lead to freer societies. The new trade arrangement we will be entering into with the People's Republic of China is also unique in many respects. As we know, they have 1.2 billion-plus people in China. It is a tremendous market upon which everyone now is focused. While our trade with China only constitutes about 2 percent of our international trade at this point, there are those who believe that can be increased substantially.

Usually we are trading with people who share our ideals and who share our values. This is not always true as far as the People's Republic of China is concerned. We have just been reminded again by our own State Department that the religious persecution that has been going on in China for some time actually is not only not showing any improvement; it seems to be deteriorating. Yet there are many here who argue--most of the people in this Chamber, I assume--that PNTR represents something so attractive to this country that we must adopt it, that it is a good deal.

That argument is powerfully set forth, even though the PRC has not kept agreements in times past. Even its foremost advocates would have to acknowledge that its record on compliance with agreements in times past has been spotty at best. When it comes to intellectual property, for example, it has been a haven of piracy. They have been major exporters of pirated goods from this country.

One must also wonder whether or not the Chinese can really comply with the commitments they have made in light of the economic conditions in their country. They are experiencing slower growth rates. They are experiencing greater unemployment. We are seeing indications of rioting in various parts of China because of unemployment and because of some of the things we have seen happen in Russia and other countries. When they begin to privatize a little bit, some of the governmental officials seem to wind up with the goods and the property, and the average people see that and don't like it. It causes instability and in some cases rioting. That is prevalent in China right now. If they lower the barriers in ways they are talking about, it will only increase that instability. Obviously, it will have to be done gradually and over a very long period of time.

That is why it is wise for us not to over hype the benefits we may get out of this action. We do about 2 percent of our trade with China now. Most people think the maximum probably is going to be up to 2.5 percent of our trade. So it is important to our country, but it is not of monumental importance, in my opinion, especially in the short run, in light of all these immediate difficulties they are going to have in implementing what they say they are going to implement.

We should be realistic, too, especially in light of the fact that we are going to be giving up many of the unilateral actions we could take under present circumstances. When we go into a WTO context, we will be having to depend upon that body, that organization, and the international community, as it were, in order to seek compliance. Many writers have pointed out this is going to be very difficult because China is not a transparent society. How do we prove unfair trade practices or violations of WTO if there are no records that are decipherable with which to prove it?

So there are many difficulties with the implementation of this agreement which might result in greater riches to this country and doing something about the $68, $69 million trade imbalance we have with China right now.

So it is a gamble. It is a gamble on our part that by gradually lowering these barriers to trade, by gradually opening up society, this trade will lead to a gradual opening up of society with the Internet and what not, additional travel and additional exchange programs and additional trade; that we will wake up one day and China will be a democratic society. And in the meantime, we will maintain their friendship so that the world will not be a more dangerous place but a less dangerous place.

That is the gamble we are making because clearly if this is carried out the way that people on both sides hope it will be, China will become even more powerful economically with all those great numbers of people, and therefore they will become much more powerful militarily. You only have to read a little bit of what is coming out of China these days by their intelligentsia concerning military plans and their view of the United States and the fact that many in their country see conflict as inevitable, and that they are laying the firm economic groundwork so that they can have a growing and more powerful military in the future. That should be of great concern to us. We are limited as to what we can do about that.

So we take this gamble, before that comes into fruition--if that is their path--that they can open up that society somewhat and lead to a more open society, a democratic society. On the other hand, the Chinese are taking a gamble in that they can open up economic trade somewhat, and they can adopt a more capitalistic society and still maintain dictatorial control from the top, and that it will not get away from them. Our people say that once that starts happening, once we get in there, there will be no stopping it; democracy is right down the road.

The Chinese don't see it that way. They are gambling. I think it is a gamble worth taking. I think it is a gamble worth taking because of our leadership and free markets and free economies and democratic society in this country. I think we should go down that road and we should take that chance. And I am not sure we have much of an option in that regard. But while we take that chance, we should be very mindful of the dangers that are presented to this country down the road from China and others. And we should be especially mindful of one particular category of Chinese conduct right now of all the categories that concern us, including human rights, religious freedom, and all the rest.

The one particular category that poses a mortal threat to the welfare of this Nation has to do with the proliferation of weapons of mass destruction. The fact is that while we are willing to take this chance and we go down the road to trade with China, they are engaging in activities that pose a mortal danger to the welfare of this country. That is the subject of the amendment that I have just offered.

The China nonproliferation amendment seeks to do something about this. I have sought to have a separate vote on this amendment because I don't consider it to be a trade-related amendment. I have sought, for about a month now, to have a debate in the context of our relationship with China but not to have it as an amendment to PNTR. I have been thwarted in that effort. I only have two choices--either relenting altogether or doing what I said I would do; that is, filing it as an amendment to PNTR. Well, that choice is obvious. I have made that choice today because of the importance that I attach to it.

Mr. President, the world is a more dangerous place today because of a growing number of so-called rogue nations such as North Korea, Iran, and Libya, who have obtained and are in the process of obtaining additional weapons of mass destruction and the missile means by which to deliver them. Now, Congress has been informed of this on numerous occasions. It doesn't get a lot of attention but the information has been consistent. Two years ago, the bipartisan Rumsfeld Commission concluded that rogue states such as North Korea and Iran could develop an intercontinental ballistic missile within 5 years of deciding to do so. It is pretty clear that they have decided to do so.

Shortly thereafter, North Korea surprised our intelligence agencies by successfully launching a three-stage rocket over Japan, essentially confirming what the Rumsfeld Commission had told us. Last September, the National Intelligence Estimate, released a report that `During the next 15 years, the United States most likely will face ICBM threats from Russia, China, and North Korea, probably from Iran, and possibly from Iraq.' It went ahead to point out that as soon as economic sanctions were lifted against Iraq, they will probably be back in business. Saddam will be reinstituting his ability to wreak havoc in various parts of the world along with the rest. We have received other intelligence reports. Much of it is classified, so I invite my colleagues to avail themselves of these reports, which are even more troubling than what has been made public.

Earlier this year, Robert Walpole, National Intelligence Officer for Strategic and Nuclear Programs, testified that the threats to our Nation's security are real and increasing. Mr. President, it is clear that these rogue nations may have ICBMs much sooner than previously thought, and that they will be more sophisticated and dangerous. And we have taken note in this Congress--finally, last year--by passing the National Missile Defense Act. That is the primary reason that we need a national missile defense system in this country. We belatedly recognized that because of this threat I speak of from the rogue nations.

But that is only half of the story. Equally alarming is the fact that Congress has also been repeatedly informed that these rogue nations are being supplied by major nations with whom the United States is entering into increased cooperative arrangements. Last month, the Director of the CIA provided to Congress the intelligence community's biannual report on the proliferation of weapons of mass destruction. We get these reports sent to Congress twice a year.

Basically, they have always been in recent history, the same. This report identified China, Russia, and North Korea as key players in nuclear, biological, and chemical weapons technology. According to this report, the Chinese activity has actually increased in support of Pakistan's activities. And China has also `provided missile-related items, raw materials, and/or assistance to several countries of proliferation concern--such as Iran, North Korea, Libya.' China, of course, has a long history of proliferating chemical weapons technologies to Iran--nuclear, chemical, and biological.

The DCI's report also describes Russia's efforts to proliferate ballistic missile-related goods and technical know-how to countries such as Iran, India, and Libya. Russia is also identified as a key supplier of nuclear technology to Iran and to India. They also have provided a considerable biological and chemical expertise and technology to Iran.

North Korea, of course, was identified as a key supplier. This is an interesting country because they have a nation full of people who are apparently starving to death. Yet they not only have managed to become a threat themselves, they have become the clearinghouse for that part of the world. They have become a vendor of weapons of mass destruction. They get help from the big powers, and then with regard to the other smaller powers in that part of the world they begin to assist them. The report identified North Korea as a supplier of ballistic missile equipment, missile components, and material expertise to countries in the Middle East, south Asia, and North Africa, just as North Korea is doing.

This latest CIA report is consistent with past reports. We have seen it throughout the 1990s. China is supplying Pakistan with everything from soup to nuts for their mass destruction capabilities, and assistance to North Korea's weapons of mass destruction and missile programs. Just this summer, it was reported that China was helping Pakistan build a second missile factory, transferring missile equipment to Libya, assisted Iran with its missile program, and diverted a U.S. supercomputer for use to its own nuclear programs. All of this occurred in violation of a variety of international treaties, agreements, and U.S. laws.

The bottom line is that these activities by China, Russia, and North Korea pose a serious threat to the United States. That threat is growing. This is at a time when we are granting permanent normal trade relations to China. This is at a time when we are sending over $1 billion a year to Russia and providing other assistance to North Korea.

It is inconceivable to me that while we discuss trade issues and a new relationship with China, we will not address what China is doing to endanger our country. It is just that simple. That is what this amendment does.

I know people in this body want to pass PNTR. They do not want any complications. They want to get it done, wrapped up; the President wants his legacy, and we want to please our friends in the business community; and we all know trade is a good thing, and so forth. But it is inconceivable to me that we can address these trade-related issues and embrace our new trading partner--China--in a new regime without also addressing and doing something about the fact that they are making this world, and particularly the United States, a more dangerous place to live. The Federal Government's first responsibility is national security.

In July of 1999, the bipartisan Commission to Assess the Organization of the Federal Government to Combat the Proliferation of Weapons of Mass Destruction--commonly known as the Deutch Commission--concluded that `the U.S. Government is not effectively organized to combat proliferation,' despite the fact that `Weapons of mass destruction pose a grave threat to United States citizens and military forces, to our allies, and to our vital interests in many regions of the world.'

It couldn't be any plainer than that, from one of our bipartisan commissions of experts that look at this and try to come to us and warn of what is happening.

Therefore, Senator Torricelli and I have introduced the China Nonproliferation Act. Now we have introduced it as an amendment to PNTR. This amendment provides for an annual report to Congress and to the American people as to the proliferation activities of these three nations because they are the ones on which the CIA is required to report now anyway because they have already been identified as key suppliers--the three nations I have mentioned: China, Russia, and North Korea.

It authorizes the President, if he makes the determination based on the credible evidence he has before him, to impose some non-trade-related sanctions on these Chinese companies that are selling these weapons of mass destruction. It authorizes the President to take various actions. There is a list of them.

One of the things it authorizes him to do is to cut these companies out of our capital markets in this Nation. China raises billions of dollars in our capital markets on the New York Stock Exchange to go back and spend on its own military. Most people do not know that, I assume. I am not here suggesting we stop that, unless the President determines that they or their companies are engaging in activities, which are controlled by them, that are dangerous to this Nation.

Is this not the minimum we can do in this legislation? There is other legislation on the books, certainly. But this legislation, by a more extensive report, requires the President to come to Congress, basically--it does not force the President to take any action, but if he doesn't take action against these companies that are found to be proliferating, he has to tell Congress why.

In this legislation, if 20 percent in Congress decide they don't accept the President's conclusion, they can introduce a resolution of disapproval and get a vote on certain sanctions against these proliferating entities. The President, of course, can veto that. It would be tremendously difficult for Congress to force anything through. But it would be a very good debate, and in egregious circumstances that we have seen in times past, I think Congress actually could get some responses through.

The legislation also provides for increased transparency. When the President determines that these companies are proliferating and selling weapons of mass destruction, the legislation provides that the President has to inform Wall Street, and the Securities and Exchange Commission has to come up with rules and regulations that will inform investors they are investing with a company that our country and our President has determined to be a seller of mass destruction. They can still do that, if they want to. But they ought to know about it. It is amazing that this law is not already on the books.

Lastly, it provides for a Presidential waiver based on national security if the President decides, for his good reasons, that is appropriate. The bottom line is that with all of this concern, talk, and hullabaloo about what this legislation does and doesn't do, until the President makes a determination that these companies are engaging in activities that are a threat to this Nation, if our President does that, do we not want to take action?

We made changes to this legislation. The critics came out of the woodwork. No one wants anything that will complicate our trade bill with China these days, it seems. I am afraid some of the pro-trade people have their blinders on. I agree with them on how important free trade is and how important this bill is, and so forth. But we have an additional obligation which I tried to suggest to my friends. We have an additional obligation not just to put money in our pockets in trade today but to look down the road for our kids and grandkids to see if our trading partners are doing something that will endanger their welfare.

We have listened to our critics. We have made changes. We have tried to make sure our response was reasonable and measured.

Instead of singling out China, we added the other two countries.

Instead of having mandatory sanctions tying the President's hands, we gave the President additional flexibility where he must find that there is cause for a determination to be made against these companies.

The bill now contains a blanket provision that protects the agricultural community from adverse impact.

The bill's penalties only apply to key supplier countries and not to U.S. companies and will not affect U.S. workers.

We made changes in the congressional review procedure so one person couldn't tie up the whole body. It has to be one-fifth of the Members of either House to sign a joint resolution of disapproval. It is a measured response to a very serious problem.

Our critics have been numerous, persistent, and vociferous. They claim that the world will come to an end basically if, while we are passing PNTR, we irritate the Chinese by informing them there will be consequences to their irresponsible behavior. I don't think the world will come to an end if we do that. I think the world will be a more dangerous place if we don't do that.

Let's take a look at some of the things that have been said: Existing laws are sufficient, that we already have the authority on the book. If that is true, why do we see an increasing problem? All we need to do is look at the latest report from the Director of the Central Intelligence. Behavior has worsened in the past year. On the eve of considering PNTR, the behavior has worsened. What will it be after we approve PNTR?

On the eve of the Senate's consideration of PNTR for China, and after the House had already voted, it was revealed that China was assisting Libyan experts with that country's missile program, illegally diverting U.S. supercomputers for the use of the PRC's nuclear weapons program, and helping to build a second M-11 missile plant in Pakistan. And Iran test fired a Shahab-3 missile capable of striking Israel, capable of striking American troops, capable of striking Saudi Arabia or American bases located within the border of our NATO ally, Turkey. This missile was developed and built with significant assistance from the People's Republic of China, and the classified reports of Chinese proliferation are even more disturbing.

If everything is so hunky-dory, why is this happening? Why does this continue to happen? I don't think the critics are that concerned that we are duplicating existing law or it might be useless. I think they are concerned that it might be useful and that it will substantially get the attention of the Chinese. That is exactly what I intend to do.

Some say: We don't want to upset them while we are entering into this new trade relationship. I say that is exactly the time when we should upset them, if, in fact, they are making this a more dangerous world and posing a threat to the United States of America.

Some say: Let us continue with our diplomacy; we can talk to them and we can work things out. Where is the evidence of this? All I see is evidence of three delegations of senior administration officials going to Beijing, hat in hand, asking them to stop the proliferation activities, and each was sent back to Washington empty-handed and told pointblank, according to the newspaper accounts and according to the quotation of those who were on the delegation, that as long as we persisted in a national missile defense system and as long as we persisted in supporting Taiwan, they were going to persist in their proliferation activities.

Basically, we can like it or lump it. Last Friday, I was interested to see three different delegations, including our Secretary of Defense, our Secretary of State--not minor; first in the administration--perceive this problem. They just don't want to do anything to acknowledge the shortcomings of this administration in having dealt with this problem or failing to deal with it.

Last Friday, the President got a face-to-face meeting with Jiang Zemin. I was interested in the subject of proliferation, and their activities with Pakistan, totally throwing that place out of balance. It is a tinderbox waiting to explode. Most accounts have Pakistan far and away leading India now in terms of their abilities. That is a dangerous situation. . . .

I can't be bothered with you, son. We will continue our activities while we expect you to approve PNTR--no questions asked and no amendments added.

We, in the United States, ought to be embarrassed and ashamed at that turn of events.

Some say the unilateral sanctions can never be effected. I prefer bilateral sanctions, but we have apparently lost the ability to do much bilaterally these days. We can't even get a resolution through the United Nations condemning China for its obvious human rights violations. Our bill recognizes the value of this multilateral approach. It would be preferable. But over the years we have seen, though, that sometimes we need to act ourselves.

The major threat to these missiles and weapons of mass destruction is not Belgium, or any of our allies; it is the United States of America. We can't wait until we get everybody together on the same page which, as I said, is more and more difficult to act. In times past, we have seen that U.S. economic pressure in the late 1980s and early 1990s led China's accession to the Nuclear Non-Proliferation Treaty in 1992. In 1991, the Bush administration applied sanctions against the PRC for missile technology transfers to Pakistan. And on and on. Even the Clinton administration took measures that led to the imposition of sanctions on the PRC for M-11 missiles on one occasion, M-11 missile equipment to Pakistan in violation of the Missile Technology Control Regime.

Anyway, they backed down and Mr. Berger acknowledged that sometimes these unilateral actions can be beneficial. Some say the dialog will assist, and perhaps it will, but only in conjunction with firm action.

The leaders of PRC are not irrational people. They only can go as far as they can. We have, obviously, allowed them to do what they are doing. When we take actions detrimental to them, they will respond to that, as they have in times past.

We need this amendment more than we did even a few days ago. The President recently decided not to move forward on a national missile defense. As I said earlier, national missile defense, of course, is in primary response to these threats of rogue nations. According to our estimates, they will have the ability to be a threat to us in 2005. By the President's actions, now we will be unguarded for at least a year, and maybe 2 or 3.

Doesn't it make sense to take this opportunity to at least have the threat of some sanctions for their activities during that period of time? Of course, China and Russia are vociferously opposing a national missile defense. I find that ironic: The same countries supplying these rogue nations with technology and missile equipment to build missiles of mass destruction are the ones that are doing the complaining.

I talked about the provision concerning transparency and giving the President, if he finds that it is justified, the authority to do something about their access to our capital markets. To date, over a dozen Chinese firms have raised billions of dollars in the U.S. capital markets.

The Deutch Commission again stated:

    The Commission is concerned that known proliferators may be raising funds in the United States capital markets.

The Cox Commission review of the U.S. national security concerns with China also conclude:

    [I]ncreasingly, the PRC is using U.S. capital markets as a source of central government funding for military and commercial development and as a means of cloaking technology acquisition by its front companies.

As we stand idly by.

In conclusion, I understand there are many who are saying: Thompson, we think you are trying to do a good thing here. Yes, we really do need to address this. Yes, we let it go unattended for too long. But, as an amendment to PNTR, if you add it to PNTR it will have to go back to the House and, goodness, we don't know what will happen over there if it goes back to the House.

The idea is that, I guess, what, 40 people would change their votes? With the Democratic Party thinking that they are very close to taking over the House of Representatives, and with the labor organizations having lined up support for Vice President Gore for President, the thinking is going to be that the labor unions are going to press 40 Members to change their votes so going into the election they will have a vote on each side of this issue? I think that is absurd on its face. If we agree to this amendment, the House will ratify it within 24 hours.

Besides, doesn't that beg the question? Should our primary question be whether or not the House would ratify what we do? Since when does the Senate vote on an item simply because they are afraid of what the House of Representatives might or might not do?

House Members included provisions in their bill regarding prison labor, import surges, religious freedom, increases in funding for Radio Free Asia. All of that was in their bill. And we are saying we can't add nuclear proliferation to that list of items? Are we going to tell the world that nuclear proliferation is not as much a concern as is funding for Radio Free Asia?

I think we should ask what we would be signaling to the world if, at a time when we say we need a national missile defense system, we act as though we are not concerned about nuclear proliferation at all. What signals are we sending to our allies, such as those in Taiwan? If we don't have the wherewithal to defend ourselves, how can they ever depend upon us to have the fortitude to defend them, if it really comes down to it?

What does it say about ourselves in dealing with a country that threatens Los Angeles? Since the last MFN vote--even besides and in addition to the increasing religious clampdown that we are seeing over there--they have sent missiles across the Taiwan Strait and they have unashamedly stolen nuclear secrets. They continue their proliferation activities. They tell our delegations, and even our President, that they are not going to be responsive at all to our concerns. They are not going to deny at all what they are doing. They are just going to tell us they are going to keep on doing it.

And sending major delegations to Belgrade and praising Milosevic and saying the United States of America is making the world a more dangerous place because of what we did in Yugoslavia? All of that has happened since the last time we approved PNTR.

What have we done in return? The President goes over and chastises our allies in Taiwan. He adopts the four `noes' the Chinese wanted him to. We grant concessions on WTO; We grant concessions on export control; We give China and Russia a veto on our national missile defense system; and we turn a blind eye to the proliferation activities they continue.

We must ask ourselves, Is this the road to peace? Is this the road to peace? The strategic ambiguity may have worked for a little while in an isolated place, but it is getting to a place now where the Chinese do not know where we are coming from, where we will draw the line, or if we will not draw the line. I don't know, and I daresay the American citizens don't know. But there have been a couple of other wars that some historians say, because of this ambiguous kind of posture, became more likely. It has been more likely to get us into wars than to keep us out of wars. Leaving the impression that we will not act when, in fact, we might is just the kind of thing that is going to cause us to get into trouble.

I finish by saying I support PNTR. There is no reason why we cannot trade, even with those who are engaging in some of the activities I have described. But we cannot do so while turning a blind eye to all of these reports of all of this dangerous activity, all of this continued activity by these countries. Because if we ever signal to the world that we are more concerned with the trade dollar than we are with our own national security, we will not remain a superpower for very long. Therefore I urge adoption of this amendment.

I yield the floor.

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


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