*EPF102 04/03/00
Text: Clinton Cites Support for China Permanent Normal Trade Status
(White House touts support of governors and high-tech CEOs) (3390)

The White House released April 3 excerpts from a letter signed by more than 40 state governors calling for permanent Normal Trade Relations (NTR) status for China.

The excerpts were released along with excerpts from a letter to be sent to U.S. lawmakers by the chief executive officers of many American high-tech firms that stand to benefit from greater access to China's market.

The statement was released to coincide with a major speech by President Clinton on the "New Economy" in San Jose, California, where the Silicon Valley has spawned much of the new wealth fueling America's economic growth.

"More than 40 Governors from across the U.S. and its territories sent a letter to Senators and Members of Congress expressing how important they believe passage of China PNTR is to maintaining economic growth and prosperity for families in their states and territories," the White House said.

Demonstrating what the White House termed "the broad support for China PNTR," nearly 200 high-technology CEOs wrote to Senators and Representatives "urging a favorable vote this year in order to maintain economic growth in the new industries of the future," the White House said.

Following is the text of the White House statement:

(begin text)

President Clinton Announces Broad New National Support
for Congressional Action Granting China
Permanent Normal Trade Relations Status

April 3, 2000

In an address to the Democratic Leadership Council in San Jose, California today, President Clinton will again push for a congressional vote this year granting China Permanent Normal Trade Relations (PNTR) status. The President will announce broad new national support from the nation's Governors and high technology leaders for China's entry into the World Trade Organization. These announcements will come during a speech on the new economy. The President will note three key challenges to be met in order to maintain our prosperity: maintaining fiscal responsibility; continuing to open new markets to American goods; and continuing to make investments to help Americans get the tools they need to succeed in the new economy.

More Than 40 Governors Announce Strong New Support For China PNTR Vote This Year: Today, more than 40 Governors from across the U.S. and its territories sent a letter to Senators and Members of Congress expressing how important they believe passage of China PNTR is to maintaining economic growth and prosperity for families in their states and territories.

Excerpts From The Governors' Letter

-- "We are writing about an issue critical to every state, commonwealth, and territory of the United States. We hope that, later this year, you and your colleagues in the U.S. Senate and House of Representatives will have an opportunity to vote on Permanent Normal Trade Relations (PNTR) for China."

-- "As governors who are working hard to improve living standards for all Americans, we urge your support of PNTR status for China. China is by far the world's largest and most important emerging market. The commitments China made during WTO negotiations with the United States promise to open new markets and create tremendous opportunities for American companies and farmers, as well as more high-wage jobs for American workers."

"We believe China's entry into the WTO would be extremely positive for the United States. The opening of China's markets will create numerous opportunities for our nation. Yet, if we do not hold up our end of the bargain by approving PNTR for China, other countries will reap the benefits of the agreement, leaving the United States sitting on the sidelines. We strongly urge you to vote in favor of PNTR status for China."

Nearly 200 High Tech CEO's Announce Broad New Support For China PNTR Vote This Year: In another letter demonstrating the broad support for China PNTR, nearly 200 high technology CEO's on the front lines of the new economy wrote to Senators and Members of Congress urging a favorable vote this year in order to maintain economic growth in the new industries of the future.

Excerpts From High Tech CEO's Letter

"We are writing to urge your strong support for extending permanent Normal Trade Relations (PNTR) status to China. PNTR is an absolute priority for high-tech companies, and we consider it the most critical vote you will make in support of our high technology industries this year."

-- "United States negotiators achieved an historic WTO accession package with China. Its provisions will greatly benefit our firms, our employees, and our industry more broadly. Since only China made any trade concessions, it is a completely one-sided deal."

-- "Failure to establish PNTR with China would give our formidable European and Asian competitors a huge advantage in China and threaten America's position as the global leader in the development and deployment of cutting-edge technologies."

-- "This is the most important vote you will cast for the U.S. high-technology industry this year. We ask for your support on PNTR with China."

The Importance Of The US/China WTO Accession Agreement: A Strong Deal In The Best Interests Of America

China's entry into the WTO will dramatically cut import barriers currently imposed on American products and services. This agreement locks in and expands our access to a market of over one billion people. China's economy is already among the world's largest and over the past 20 years has expanded at a phenomenal annual rate of nearly 10 percent. During this period, U.S. exports to China have grown from negligible levels to over $14 billion each year.

China Made Unilateral Concessions. We Would Simply Maintain The Market Access Policies We Already Apply To China By Granting It Permanent Normal Trade Relations. China made significant, one-way market-opening concessions across virtually every economic sector, including increasing access to its markets for agriculture, services, technology, telecommunications, and manufactured goods. China also agreed to eliminate "unseen" barriers, such as exclusive rights to import and distribute goods.

The Agreement Strengthens Our Ability To Ensure Fair Trade And To Protect U.S. Agricultural And Manufacturing Base From Import Surges, Unfair Pricing, And Abusive Investment Practices Such As Offsets Or Forced Technology Transfer. Prior to the negotiations, Democrats and Republicans in Congress raised legitimate concerns about the importance of safeguards against unfair competition. As a result, no agreement on WTO accession has ever contained stronger measures to strengthen guarantees of fair trade and to address practices that distort trade and investment.

Refusal To Pass PNTR Would Put American Farmers, Manufacturing, Workers At A Disadvantage. The United States must grant China permanent NTR or risk losing the full market access benefits of the agreement we negotiated, rights to enforce China's commitments through WTO dispute settlement, and special import protections. If Congress were to refuse to allow the United States to grant China permanent NTR, our Asian and European competitors would reap these benefits but American farmers and businesses could well be left behind.

China's Accession Will Help Promote Reform In China And Create A Safer World. The agreement will encourage Chinese leaders to move in the direction of meeting the demands of the Chinese people for openness, accountability, and reform by deepening market reforms, accelerating the removal of government from the lives of China's people, and deepening respect for the rule of law in China.

April 3, 2000

Dear Congressman/Senator:

We are writing to urge your strong support for extending permanent Normal Trade Relations (PNTR) status to China. PNTR is an absolute priority for high-tech companies, and we consider it the most critical vote you will make in support of our high technology industries this year.

The high-tech sector is a strong and important contributor to the U.S. economy. It is the largest manufacturing sector in the United States, and has been responsible for nearly half of U.S. domestic growth since 1994. It is the leading R&D sector in the U.S. economy, has provided its workers with salaries 77% higher than average, and is the top manufacturing exporter.

United States negotiators achieved an historic WTO accession package with China. Its provisions will greatly benefit our firms, our employees, and our industry more broadly. Since only China made any trade concessions, it is a completely one-sided deal. Among other things, China has agreed to eliminate tariffs on most information technology products, open its distribution and after-market service sectors, and eliminate market barriers such as mandatory technology transfer, local content, R&D, and export requirements.

PNTR is an imperative for several key reasons. First, China is a huge, critical and fast growing market for high-tech products and services, ranging from e-commerce and internet services to products such as semiconductors, computers, peripherals, software, telecommunications, and semiconductor and other manufacturing and measurement equipment. The fruits of those many years of tough negotiating are at risk if Congress does not establish PNTR with China, since failure to do so would allow China to discriminate against American products and services. We need to bring China under international trade rules in order to secure these benefits and strengthen the position of American high-tech companies in Chinese markets. This will, in turn, increase U.S. jobs and reduce our trade deficit.

Second, China is becoming a major competitor in international markets. It is critical that China compete by the international rules established by the WTO, and that the United States have the ability to bring China to the WTO dispute settlement process, if necessary, to ensure fair competition.

Third, we need PNTR in order to ensure that our companies can fully engage on the ground in China, thereby exposing the Chinese to our American business practices, values and perspectives. PNTR will also facilitate the development and spread of information technologies, including the Internet, ensuring that American firms will be in a position to help shape the continued evolution of China's economic and social environment.

Finally, the health and competitiveness of our sector significantly impacts the national economic security of the United States. Failure to establish PNTR with China would give our formidable European and Asian competitors a huge advantage in China and threaten America's position as the global leader in the development and deployment of cutting-edge technologies.

This is the most important vote you will cast for the U.S. high-technology industry this year. We ask for your support on PNTR with China.

Sincerely,

Eric A. Benhamou
Chairman and Chief Executive Officer
3COM Corporation

Ronnie Tate
Owner and President
A.T.C. Computer Services

Eric W. Kooiman
Owner
Absolute Computing

Mary L. Munger
President and Chief Executive Officer
AC Data Systems, Inc.

Luc D'Arcy Collins
President
ACADZ Inc.

Michael Shepherd
President
Accurate Gas Control Systems, Inc.

Frank Williams
President and Chief Executive Officer
Action Instruments

William J. Cadogan
Chairman, President and Chief Executive Officer
ADC Telecommunications, Inc.

W.J. Sanders III
Chief Executive Officer
Advanced Micro Devices, Inc.

Mark McNulty
Chief Executive Officer
Advanti.com

Daniel H. Chang
President and Chief Executive Officer
AEM, Inc.

Edward W. Barnholt
President and Chief Executive Officer
Agilent Technologies

Kevin Chung
President and Chief Executive Officer
AI Technology, Inc.

Jim Smith
Chief Executive Officer
AIL Systems

Robert Tetu
President
Akrion L.L.C.

Krish Prabhu
President and Chief Executive Officer
Alcatel USA, Inc.

Robert G. Paul
President and Chief Executive Officer
Allen Telecom Inc.

Andre Weiglein
President
Allied Electronic Recovery

Tom Leonard
Vice Chairman and Chief Executive Officer
Alpha Industries, Inc.

Peter Polgar
President and Chief Executive Officer
Ameramp

Ed St. Amour
President
American Computer Hardware Corporation

Con Brosnan
President and Chief Executive Officer
American Technology Corporation

Jong S. Whang
President and Chief Executive Officer
Amtech Systems, Inc.

Ray Stata
Chairman of the Board
Analog Devices, Inc.

Mark R. Evans
President
Anritsu Company

Tom Edman
President and Chief Executive Officer
Applied Films Corporation

James C. Morgan
Chairman and Chief Executive Officer
Applied Materials, Inc.

Richard S. Post
Chief Executive Officer
Applied Science and Technology, Inc.

William Y. Sinclair
President
Aries Electronics Inc.

Joseph M. O'Donnell
Chairman and Chief Executive Officer
Artesyn Technologies, Inc.

Michael Thompson
President and Chief Executive Officer
AutoSimulations

Stan Binder
Chief Executive Officer
Barringer Technologies, Inc.

Russ Bennett
President
Bennett Office Technologies

Dave Hunter
Chief Executive Officer
BI Incorporated

Paul van der Wansem
Chief Executive Officer
BTU International, Inc.

Brian Hull
President
California Instruments Corporation

Paul K. DeSchamp
Vice President
Capitol Computers

Carol-Ann O'Mack
President and Chief Executive Officer
Carlyle, Inc.

Phillip Rogers
President
Cashco Inc.

Roger Carolin
Chief Executive Officer
CFM Technologies, Inc.

Lloyd Wilcox
President
Chess, Inc.

Dennis McKenna
President and Chief Executive Officer
ChipPAC

Tom Cornwell
Partner
Chubb Group of Insurance Companies

James Brown
President & General Manager
Cohu Inc. Electronics Division

Michael Capellas
President and Chief Executive Officer
Compaq Computer Corporation

Rafael Arboleda
President
Compulink Electronics, Inc.

Wesley E. Schissler
President
Computer Career Centers

Eddy Espinosa
President
Computer Consultants Enterprise Inc. of US

Ralph Tremonti
Vice President Sales & Marketing
Computer Parts Unlimited

Fred Kornberg
President
Comtech Telecommunications

Brad Radichel
President
Condux International, Inc.

Dwight W. Decker
Chairman and Chief Executive Officer
Conexant Systems, Inc.

K.N. Chui
President
Corad Technology, Inc.

Arthur Buckland
Chairman and Chief Executive Officer
CP Clare Corporation

Dan L. Kinney
President and Chief Executive Officer
CPDI

Joseph Walker
Chairman, President and Chief Executive Officer
CTS Corporation

Henry W. Zdan, Jr.
President
DataServ Corporation

Nigel Hook
President and Chief Executive Officer
Dataskill

Richard Hyde
President
Datron World Communications

Erik van der Kaay
President and Chief Executive Officer
Datum, Inc.

Michael Dell
Chairman and Chief Executive Officer
Dell Computer Corporation

Charles D. Kissner
Chairman and Chief Executive Officer
Digital Microwave

Philip R. Black
Co-Chief Executive Officer
Dot Hill

Gary E. Anderson
President
Dow Corning Corporation

Thomas M. Tetrault
President
Dr. Tom's Computers Inc.

William McHale, Jr.
Chief Executive Officer
DSET Corporation

John Murphy
President
DSTechnology

Bob Brilon
President
DuraSwitch Electronic Switch Corporation

P. Jerry Coder
Chief Executive Officer
EKC Technology, Inc.

Hiroo Kirpalani
President
Electro Surface Technologies Inc.

Gordon Bernhard
President
Elpac Electronics

Mark J. Stevenson
Executive Chairman
E-M Solutions

David Purcell
Chairman, President and Chief Executive Officer
Encad

Ed Keible
President and Chief Executive Officer
Endgate Corporation

Brooks H. Lambert
President
Enhance Cable Technology

Stan Geyer
President and Chief Executive Officer
Entegris, Inc.

Per-Arne Sandstrom
President and Chief Executive Officer
Ericsson, Inc.

Istvan Pal
Owner
ESI Computer Services

Stephen E. Cooper
Chairman, President and Chief Executive Officer
Etec Systems, Inc.

R. Brad Lawrence
Executive Vice President and Chief Operating Officer
Flow International Corporation

John Rhe, Ph.D.
President
Forest Junior College

Kathleen Hodge
President
FTI, Inc.

Jeffrey Weitven
President and Chief Executive Officer
Gateway, Inc.

Thomas B. Testa
General Manager
General Chemical Corporation

George Burns
Chief Executive Officer
Giga-Tronics

David Ness
President
Hardy Instruments

Philip W. Farmer
Chairman and Chief Executive Officer
Harris Corporation

Carleton Fiorina
President and Chief Executive Officer
Hewlett-Packard Company

Philip R. Blaustein
President
Hologenix, Inc.

Louis V. Gerstner, Jr.
Chairman and Chief Executive Officer
IBM Corporation

Michael Berry
President
IES Technical Sales

Jeff Bloomer
Chief Executive Officer
IFR Systems Inc.

Peter Zahn
Chief Executive Officer
Innocore

Scott Meader
Chief Executive Officer
Innovapp

Don C. Janess
President
Instrumentation Technology Systems

Andrew S. Grove
Chairman
Intel Corporation

Donald A. Kutz
President and Chief Executive Officer
Intelligent Technologies

Michael Thoben
President and Chief Executive Officer
Interlink Electronics Corporation

Thomas Hierl
Chief Executive Officer
International Quantum Expitaxy, Inc.

Thomas Li
President and Chief Executive Officer
Intertop Corporation

Llewelyn E. Jones
President
Jathco

Terry M. Flanagan
President and Chief Executive Officer
JNI Corporation

Merle Browning
Owner
Kingwood Computer Center

Charles A. Kolbe
President
Kolbe Computer Associates, Inc.

Robert Coackley
President and Chief Executive Officer
Larscom Incorporated

Al Zollar
President and Chief Executive Officer
Lotus Development Corporation

Wilfred J. Corrigan
Chairman and Chief Executive Officer
LSI Logic

Richard A. McGinn
Chairman and Chief Executive Officer
Lucent Technologies

Harold V. Anagnos
Corporate Leader and Chief Executive Officer
Lumex, Inc.

Jerome Potash
Chief Executive Officer
Magnetic Technologies L.L.C.

Alex Pinchev
President and Chief Executive Officer
MainControl, Inc.

Stefano Mangano
President
Matheson Tri-Gas

Brenda Stallings
President
Matrix Integration

Steve McGrath
President
McGrath & Associates

Michael Korybalski
Chairman and Chief Executive Officer
Mechanical Dynamics, Inc.

Richard O. Martin, Ph.D.
President
Medtronic Physio-Control, Corporation

Chuck Wheatley
Chief Executive Officer
Micro Interconnect Inc.

David G. Wallace
Chairman and Chief Executive Officer
Micro Optics Design Corporation

Alan P. Hald
Cofounder
MicroAge

Rex King
President and Chief Executive Officer
MicroAge #367

Steven R. Appleton
Chairman, President and Chief Executive Officer
Micron Technology, Inc.

Steve Ballmer
Chief Executive Officer
Microsoft Corporation

Efren Yero
President
Microvision Technology Corporation

James W. Romlein
President
MIS Labs

Chuck Jones
President and Chief Executive Officer
Mobile Wireless Technologies LLC

Christopher Galvin
Chief Executive Officer
Motorola

Lars Nyberg
Chairman and Chief Executive Officer
NCR Corporation

James Soloman
Chief Executive Officer
Network Alternatives Inc.

Frank Carlucci
Chairman
Nortel Networks

Ursula Baukol
President
Nu-Technologies Corporation

Willard W. Hunter
Chief Executive Officer
Optem

Charles J. Abbe
President and Chief Executive Officer
Optical Coating Laboratories

Roy E. Hacker
President
Optimum Optical Systems, Inc.

Dave Burr
President
Pacific Coast Cabeling

R. Douglass Kahn
President and Chief Executive Officer
PanAmSat Corporation

Mike Pascoe
President and Chief Executive Officer
PariGain Technologies, Inc.

John L. Dwight, Jr.
Chairman and Chief Executive Officer
PCD, Inc.

Jeffrey P. Moonan
Senior Vice President, Administration and General Counsel
Photronics, Inc.

Jim Pentecost
President
Power & Telephone Supply Company

Chris F. Seyer
President
Power Conversion Products, LLC

Donald Chandler
Chief Executive Officer
Precision Filters, Inc.

Robert Kleist
President and Chief Executive Officer
Printronix, Inc.

Peret Pulizzi
President and Chief Executive Officer
Pulizzi Engineering, Inc.

Dr. Irwin Jacobs
Chairman and Chief Executive Officer
Qualcomm

Frank Wilde
Chief Executive Officer
Ravisent Technologies

Cliff Warrenm
Chairman, President and Chief Executive Officer
Raytek Corporation

Dan Burnham
President and Chief Executive Officer
Raytheon Company

Don H. Davis, Jr.
Chairman and Chief Executive Officer
Rockwell

W.E. Boomer
President and Chief Executive Officer
Rogers Corporation

Aurthur Coviello, Jr.
President and Chief Executive Officer
RSA Security, Inc.

John P. Vache
President
Ryan Instruments L.P.

Giacomo Forno
Chief Executive Officer
SAES Pure Gas Inc.

Scott F. Smelser
President
Safety Valve Systems

Joseph J. Lazzara
President and Chief Executive Officer
Scientific Technologies Inc.

Bill Styslinger
Chairman, President and Chief Executive Officer
SeaChange International, Inc.

Robert Bishop
President and Chief Executive Officer
SGI

Rob Stump
Chief Executive Officer
Sierra Instruments, Inc.

Robert Webber
President and Chief Executive Officer
Silicon Film Technologies Inc.

Joel C. Pelinger
President
Solar Systems

Mike Clay
President and Chief Executive Officer
Sortex

Brian Schulinger
Executive Vice President
SPEC IT Solutions, Inc.

Douglas Jackson
President
Spectron Glass & Electronics, Inc.

John Ticer
President and Chief Executive Officer
Stac

Michael A. Ellison
Chief Executive Officer
Stellar Incorporated

Thomas P. O'Neill
Vice President
Stellar Software, Inc.

David E. Weiss
Chairman, President and Chief Executive Officer
StorageTek

Scott McNealy
Chairman and Chief Executive Officer
Sun Microsystems, Inc.

Murphy R. Adeleke
Chief Executive Officer/CTO
Supertree Corporation

John Chen
President, Chairman and Chief Executive Officer
Sybase, Inc.

John W. Thompson
President, Chairman and Chief Executive Officer
Symantec Corporation

John Koehler
President and Chief Executive Officer
Tachyon Inc.

L.T. Hickey, Jr.
President and Chief Executive Officer
Techneglas, Inc.

Paul Beck
Chief Executive Officer
Tecknit

Jon A. Dickson
President
Teco Pneumatic, Inc.

Brent Krick
President
Teleparts International Inc.

Mike Moore
Chief Executive Officer
Telesciences, Inc.

George Chamillard
President and Chief Executive Officer
Teradyne, Inc.

Jeffrey Wessel
Chief Executive Officer
Teson Quartz Group

Thomas J. Engibous
Chairman, President and Chief Executive Officer
Texas Instruments

Lewis Campbell
Chairman and Chief Executive Officer
Textron Inc.

Thomas Crafton
President
Thermcraft, Inc.

Dudley Lehmer
Chief Executive Officer
Total Seminars, LLC

Michael Jalbert
President and Chief Executive Officer
Transcrypt International

George Wernette
President
Tri Tool, Inc.

Steven W. Berglund
President and Chief Executive Officer
Trimble Navigation, LTD.

Joseph T. Gorman
Chairman and Chief Executive Officer
TRW Inc.

Alv Silverberg
President
Uniden America Corporation

Lawrence A. Weinbach
Chairman, President and Chief Executive Officer
Unisys Corporation

Randall Whitfield
President and Chief Executive Officer
VIA Medical Corporation

Dr. Felix Zandman
Chief Executive Officer
Vishay Intertechnology, Inc.

Ronald Hood
President and Chief Executive Officer
Wems, Inc.

Hal Krisbergh
Chief Executive Officer
Worldgate Communications, Inc.

Leland Thomas
President
WPC & Weldacoy Products

Casey Crandall
President and Chief Executive Officer
Wright Capacitors

G. Richard Thoman
President and Chief Executive Officer
Xerox Corporation

Willem P. Roelandts
President and Chief Executive Officer
Xilinx, Inc.

Jon A. McAlear
President and Chief Executive Officer
Zellweger Analytics, Inc.

(end text)

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