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US warning to China over trade benefits

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Michael Chugani

AMERICAN Secretary of State Mr Warren Christopher has said that President Mr Bill Clinton will only renew China's Most Favoured Nation (MFN) trade benefits subject to human rights and other conditions.

This is the clearest indication yet by a top Clinton administration official that China cannot expect an unconditional extension of its MFN trade status, which comes up for renewal this summer.

Mr Christopher's warning came two days after Mr Clinton made clear in a speech on world trade that he expected Beijing to make progress on human rights and democracy, in return for Chinese access to the lucrative markets of the United States.

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Speaking on NBC's Meet the Press, Mr Christopher said Mr Clinton ''will be embracing a renewal of MFN treatment only if we see real progress towards democracy in China''.

Expanding on the President's speech, Mr Christopher said: ''President Clinton's position is that we should renew it subject to conditions much like those that were proposed last year.'' Congress last year passed a bill imposing human rights, fair trade and arms control conditions on the renewal of China's MFN status, but then-president Mr George Bush successfully vetoed the legislation.

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Mr Christopher said China's human rights record was ''poor'', its treatment of Tibet was ''improper'', and its trade policies were ''abusive''.

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