U.S. and Hong Kong (1985-1997)

THE WHITE HOUSE

Office of the Press Secretary

For Immediate Release
May 19, 1997

REMARKS BY THE PRESIDENT TO THE YOUNG PRESIDENTS ORGANIZATIONS

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But as we have had controversies and differences with China over the years, this decision itself has become more controversial, because there are those in both parties in the Congress who believe that if we hold our trade relationship hostage to China because of our differences on human rights, our weapons technology, or the future of Hong Kong, we will have more influence since we buy about 30 percent of China's exports every year -- sometimes we buy even more.

But I believe if we were to revoke normal trade status it would cut off our contact with the Chinese people and undermine our influence with the Chinese government. This is a big issue this year because, as many of you know, under the agreement signed more than a decade ago between Great Britain and China, Hong Kong is reverting to China shortly.

I think it's interesting that Hong Kong, which has the world's most open trading system, has vociferously argued to the United States that we should extend Most Favored Nation status. Even those people in Hong Kong that have been most passionately identified with the cause of freedom and human rights and have been most in conflict with the Chinese have argued that we have to maintain an open trading relationship with them so that we can continue to work with them. I might also say that if we were to revoke their normal trading status it would close one of the world's most rapidly growing, emerging markets, one that already supports 170,000 American jobs and doubtless will support more in the years ahead.

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