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[House Document 107-21]
[From the U.S. Government Publishing Office]

107th Congress, 1st Session - - - - - - - - - - - House Document 107-21 

 
JUSTIFICATION FOR TERMINATION OF THE SUSPENSION ON THE OBLIGATION OF 
  FUNDS FOR NEW ACTIVITIES OF THE TRADE AND DEVELOPMENT AGENCY WITH 
  RESPECT TO THE PEOPLE'S REPUBLIC OF CHINA

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 HIS REPORT TO TERMINATE THE SUSPENSION ON THE OBLIGATION OF FUNDS FOR 
ANY NEW ACTIVITIES OF THE TRADE AND DEVELOPMENT AGENCY WITH RESPECT TO 
                     THE PEOPLE'S REPUBLIC OF CHINA

January 20, 2001.--Referred to the Committee on International Relations 
                       and ordered to be printed
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
89-011                     WASHINGTON : 2001

                                           The White House,
                                      Washington, January 13, 2001.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: I hereby transmit a report including my 
reasons for determining, pursuant to the authority vested in me 
by section 902 of the Foreign Relations Authorization Act, 
Fiscal Years 1990 and 1991 (Public Law 101-246), that it is in 
the national interest of the United States to terminate the 
suspension on the obligation of funds for any new activities of 
the Trade and Development Agency with respect to the People's 
Republic of China.
            Sincerely,
                                                William J. Clinton.
 Justification for Termination of the Suspension on the Obligation of 
   Funds for New Activities of the Trade and Development Agency With 
               Respect to the People's Republic of China

    The termination of the suspension on the obligation of 
funds for new activities by the Trade and Development Agency 
(TDA) with respect to the PRC is in the U.S. national interest 
because it would:
    Support creation of higher paying, export-based jobs 
through improvement in the ability of U.S. exporters, including 
small and medium-sized entrepreneurs, to compete in the China 
market: The EU, Japan, and our other major commercial 
competitors have extensive programs similar to TDA, which they 
use effectively in support of their companies' efforts in 
China. Our reactivation of TDA for China will help improve 
competitiveness for our companies, a key objective with China's 
expected accession to the World Trade Organization. This 
benefit would be of significance to the growing number of 
small- and medium-sized U.S. firms that look to commercial 
opportunities in China. Reactivating TDA for China will also 
reduce our growing trade deficit with the PRC. Prior to its 
suspension in 1989, TDA had obligated about $24 million for 
projects in China. To date, over $1.4 billion in U.S. exports 
have been documented as associated with those projects.
    Support our strategy of comprehensive engagement with 
China: TDA activities in China--which will concentrate 
initially on the areas of energy and the environment--would 
reflect our humanitarian concern for the basic human needs of 
the Chinese people, who suffer from some of the worst pollution 
in the world. This benefit would also increase our ability to 
address global environmental problems that can affect the 
health and well-being of Americans given China's position as 
one of the largest emitters of greenhouse gases. TDA activities 
in other areas, such as air traffic control, can improve air 
safety for Chinese travelers and the half million Americans who 
visit China each year. Reactivation of TDA would be consistent 
with the improvement of relations resulting from the exchange 
of state visits between Presidents Clinton and Jiang. TDA 
activities will assist our efforts to engage China on important 
U.S. foreign policy interests, including human rights.

                                  
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