UNITED States President Bill Clinton last night confirmed on television that he planned to renew Most Favoured Nation (MFN) trading status for China this year but that next year's renewal would depend on progress on human rights.
Speaking at a White House meeting, broadcast on CBS television, Mr Clinton said: ''I think it is a done deal for the next year . . . I basically have decided to extend Most Favoured Nation status for a year because I want to support modernisation in China and it's a great opportunity for America there.
''But I want to make it clear to them that there has to be some progress on human rights and the use of prison labour . . . I think they will appreciate the gesture I'm making but I hope they understand that the United States just can't turn its back on the abuse of lots of people.'' According to the White House, an executive order will be issued during the next few days, giving the detail of the conditions to be met during this year.
Mr Clinton's recommendations have still to be approved by Congress, but political analysts believe members are unlikely to press for tougher changes.
Congresswoman Nancy Pelosi has drawn up a bill listing conditions that could resurface if Mr Clinton's package were seen to be too weak.
Although the confirmation of a year's breathing space has been cautiously welcomed by businessmen, many fear a severe backlash from Beijing, which still opposes the imposition of conditions on its trading status.
