AMERICAN Chamber of Commerce chiefs who returned from an exploratory trip to Washington at the weekend say there are clear indications that the US will go for a once-and-for-all resolution of the yearly question of China's Most Favoured Nation trade status.
But they warn that China could blast this goodwill by failing to demonstrate progress in the four key areas of concern: human rights, arms proliferation, market access and the ballooning bilateral trade deficit.
AmCham chairman Lyn Edinger said: ''Even the Congress leaders we met who are sympathetic to an extension of MFN continue to be worried and concerned that bad news in the area of human rights and arms proliferation could complicate moves to settle MFN foronce and for all.
''This spring should produce a resolution of the MFN issue if at all possible, but there are concerns that the Chinese response in some of these areas will not be enough to accomplish that.'' Of the four problem areas, Mr Edinger reckons arms proliferation is likely to prove the biggest sticking point.
''This is an issue that could prove to be the undoing of progress made in all other areas. I would strongly urge the China Government to hear us on this point,'' he said.
Mr Edinger and AmCham president Frank Martin said they felt a sense of exhaustion on Capitol Hill with the whole China issue, and a will to see the MFN question cleared up.