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-JULY, 1998-
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07/22/1998 Beijing's Disgraced Communist Party Chief Charged in Corruption Scandal
07/22/1998 House approves China's trade status
07/18/1998 Death toll surpasses 1,000 in Asian, Pacific flooding
07/17/1998 Chinese group calls for prisoners' release
07/17/1998 Quake jolts Taiwan, kills 4 people
07/16/1998 China: Satellite deal didn't benefit arms
07/14/1998 Children in flooded Jiujiang, China, float on a makeshift raft
07/14/1998 China frees democracy advocate
07/13/1998 Did the Summit Matter?
07/13/1998 The New Order
07/13/1998 Road Show: Behind-the-scenes With Clinton's Entourage
07/13/1998 Dalai Lama Q&A: The Dalai Lama on Jiang, Clinton and Tibet
07/13/1998 Arafat meets with China's Zemin
07/11/1998 Senate reiterates policy on Taiwan
07/10/1998 Senate reiterates policy on Taiwan
07/07/1998 Editorial -- Chinese checkers
Critics are too hard on Clinton's accomplishments
07/06/1998 Millions battle deadly China floods
07/06/1998 Stumping on the Bund
Clinton goes into full man-of-the-people mode in China's showcase city
07/06/1998 A Word with the Students
President Clinton gets some tough questions at Peking University
07/06/1998 On Message, off target
'Two Chinas' or not 'two Chinas': But what was the question?
07/06/1998 Happy Economy Day
Clinton brings his messages to the Chinese and American people one day at a time
07/06/1998 'Avoid Our Mistakes'
 Clinton pushes the threat of global warming in Guilin
07/06/1998 The Best Laid Plans...
Clinton needed good planning and good fortune to pull off the summit. He got both--mostly
07/05/1998 Substance, hard work follow China trip
07/04/1998 Clinton Is back From China Trip
07/04/1998 Clinton sees improved ties with China
07/03/1998 Chinese protest working conditions
07/03/1998 Clinton talks freedom as China trip ends
07/03/1998 Clinton sees 'remarkable transformation'
07/03/1998 Clinton defends avoidance of dissidents
07/03/1998 A look back at nine days in China
07/03/1998 Visit draws mixed reactions in Asia
07/02/1998 Clinton remarks in environmental discussion; 45 min.
07/02/1998 Transcript of Clinton Press Conference July 2 in Hong Kong
07/02/1998 Clinton confident about Asian economy
07/02/1998 Clinton urges environmental protection
07/02/1998 Clinton has large entourage in tow
07/02/1998 Bomb exploded on eve of Clinton's trip
07/01/1998 Remember Tiananmen Square. I do
07/01/1998 Clinton to get back to the issues in Hong Kong
07/01/1998 Transcript of White House briefing; 40 min.
07/01/1998 White House Fact Sheet on Achievements of China Summit
07/01/1998 Clinton remarks to leaders of Shanghai Business Community; 23 min.
07/01/1998 Transcript of Clinton interview by CCTV
07/01/1998 Clinton calls on China to open markets
07/01/1998 White House notebook: Clinton in China
07/01/1998 Transcript of White House Press Briefing by McCurry, Steinberg
07/01/1998 Text of Clinton Letter on Mongolia
07/01/1998 Clinton delivers environment warning

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Beijing's Disgraced Communist Party Chief Charged in Corruption Scandal

BY DAN ERCK

BEIJING, China-- The Chinese government sent a strong message Thursday that it's serious about stamping out corruption when it charged Chen Xitong, Beijing city's once-powerful Communist Party boss, with corruption and dereliction of duty for his role in the country's largest graft scandal. "That it's gone this far--that Chen will go to trial--is important. It shows that the government is making a real effort to go after corrupt officials," says TIME's Beijing correspondent Mia Turner.

There is, of course, the prickly issue of how the government will handle the trial. Chen, who has been confined to house arrest since 1995, is likely to accuse other high-ranking officials of taking bribes. And that worries Beijing, which has taken steps in recent months to open court proceedings to the public and must now decide whether to show this live as well. "But the government wants to show the public that it's secure enough to let this go on. People are fed up, and the government knows it has to do something," says Turner. So it looks like Chen, who hasn't been seen in public in nearly three years, will make a dramatic entrance back into civic life. It's a safe bet, though, that the upcoming trial isn't what he had in mind for a coming-out party.

From Time Magazine

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House approves China's trade status

07/22/98- Updated 05:49 PM ET

WASHINGTON - The House took issue with the administration's China policies Wednesday but as in years past sided with the president's decision to maintain normal trade relations with the Beijing government.

By a 264-166 margin, the House voted not to overturn President Clinton's announcement last month that he was extending for another year China's access to the same low tariffs that almost all other American trade partners enjoy.

Congress has never succeeded in rejecting the annual decision, made by every president since 1980, to extend normal trade status to China. But this year anti-China sentiments have been particularly strong because of allegations that China tried to buy influence in American elections and swiped American missile technology.

Supporters of a measure to renew full-fledged trade relations, known as most-favored-nation status, with China said revoking such a privilege to protest issues unrelated to trade would be unrealistic and unwise.

"To use the MFN debate as an ersatz emissary of U.S.-China relations is to employ a machete when we need a scalpel," Sen. Joseph Lieberman, D-Conn., said Tuesday, referring to the legislation up for a possible vote Wednesday in the House.

But opponents called President Clinton's China policy shameless and immoral.

"Let's not allow ourselves to be fooled again, fooled into thinking that the same failed policy of economic engagement would be different this time around," Rep. Lynn Woolsey, D-Calif., said at a news conference with other lawmakers who oppose the legislation.

"A good vote for the American people is a 'no' vote on MFN tomorrow," Rep. Frank Wolf, R-Va., said.

Most major U.S. trading partners have permanent most-favored-nation status, which means normal trade relations at the lowest possible tariffs. China's status has to be renewed each year under a 1974 law aimed at communist regimes with poor emigration records.

Wolf admitted there is no chance China's status will be revoked. But he insisted the vote should send a message that the United States wants to engage China but is concerned about its human rights and religious freedoms and the issue of nuclear weapons proliferation.

"We are not going to take away MFN. The Senate would never go along with it and the president would not sign it. We know that," said Wolf. "But this is an opportunity for every member of the House to vote their conscience."

Another opponent, Rep. Dana Rohrabacher, R-Calif., said the administration's policy on China is "shameless" and "immoral" and has not "worked to our benefit and it hasn't worked to our ideals."

But Lieberman said denying normal trading relations to protest nontrade issues is "penny-wise and dollar-foolish, unrealistic and unwise."

"MFN is helping to drive China's transformation toward a more democratically oriented, internationally responsible free-market society," said Lieberman.

"We achieve much of our human rights agenda with China through trade," he added. "We promote greater freedom of choice, better working conditions, easier access to information, higher wages and a greater acceptance of the rule of law in China."

The United States has a $50 billion trade deficit with China. U.S. exports to China are mostly high-technology goods, including aircraft. Imports from China include low-technology products such as toys and apparel.

By The Associated Press

From USA Today

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Death toll surpasses 1,000 in Asian, Pacific flooding

China, Bangladesh, New Zealand brace for more

BEIJING (CNN) -- Summer flooding in Asia and the South Pacific has killed more than 1,000 people, left tens of thousands homeless, and has devastated crops -- and officials say flooding isn't over.

Officials in China on Saturday said at least 1,000 people nationwide had died of flood-related deaths since the season began in May. The death toll was sharply up from the last official report a day earlier, when it stood at 760. Some 140 million people are said to be affected by the flooding.

In Bangladesh, officials said at least 38 people were dead, and that 3 million people had been affected by the flooding, which began there about a week ago.

In New Zealand, officials reported no casualties from the country's worst flooding in 100 years. But, swollen waterways are expected to remain at high levels for about two weeks. Some 40 air force personnel were being brought in to help the people of Huntly, the hardest-hit town.

Damages top $10 billion in China

China's Ministry of Civil Affairs has sent $12 million in relief money and several thousand tents to the 13 flood-ridden provinces and regions. But the aid money doesn't come close to covering damage estimates.

Officials say the flood damage is about $10.3 billion. More than 2.9 million homes and 22 million acres of farmland have been destroyed.

The floods also sparked a brief scare over China's $29 billion Three Gorges dam as project officials braced for a massive crest of water rushing down the Yangtze River.

Many Chinese are without shelter or enough food

Officials have trumpeted the dam, to be completed in 2009, as a final remedy for the river's floods that have claimed millions of lives this century alone.

The crest passed safely on Friday.

Flood waters remain so high in southern Jiangxi province that boats are needed for travel, said International Red Cross workers who assessed the damaged area.

In one area, relief workers found families living atop dikes in shelters made from straw and plastic bags. Crops, ready for harvest, were inundated.

The Red Cross is making an international appeal for money, medicine, food and water purification supplies.

Everything washed away

"Many people have got literally nothing left, their homes have been washed away, they have no food left, they have absolutely no belongings and they basically have got nothing to eat," said Helge Kvam, of the International Red Cross, who arrived in Beijing from southern China on Friday.

The worst-hit areas were the eastern provinces of Fujian, Anhui, Jiangxi, Zhejiang, central Hubei and Hunan provinces, southern Guangdong and Guangxi provinces, and the southwestern province of Sichuan.

The rain is expected to ease somewhat in waterlogged southern China, but the rains are heading north, where they could threaten autumn grain crops.

Seasonal floods hit China every year, but this year the rains started earlier and were heavier than normal. In Fujian, some waterways are at levels not seen for 150 years, the Red Cross said.

Flooding frustrations down under

In New Zealand, residents along the nation's longest river are waiting for round two in their battle against the rising Waikato.

Officials were forced to reduce water levels at Lake Taupo, the river's head, and they know that means more water will come their way.

"We thought we were going to have high river levels for about four to five days, but because of this it is now likely that it will remain high for at least two weeks," said Warwick Bennett, chief executive of the Waikato District Council.

It was Bennett who called in the armed forces for help and to boost the morale of a weary citizenship.

Local farmers want officials to declare a civil emergency, which would allow for more central coordination of flood-fighting efforts.

Civil defense officer Bob Priest said it looked unlikely that an emergency would be declared.

There were no damage estimates available for the region.

Underwater towns in Bangladesh

In Bangladesh, about 120 miles (190 km) north of the capital Dhaka, nearly half the town of Gaibandha is under knee-high water.

An official with the local government told The Associated Press that at least 10,000 people -- one-tenth of the population -- had fled their homes for shelters in school buildings on high ground.

Other residents were using boats to commute to work, said Ahmed Ali, a local businessman.

Twenty-seven of the nation's 64 districts have been flooded by the rain-swollen Brahmaputra, Ganges and Meghna rivers -- the three largest rivers in the nation of 120 million. Together, the rivers feed hundreds of smaller rivers and streams.

The government's Relief Ministry said a shortage of boats was hampering deliveries of rice, bread and medicines to flood victims. In some areas, villagers are cutting down banana trees to make rafts, according to news reports.

Thousands fleeing India's northeast

In India, thousands of people are fleeing the northeastern state of Tripura following six days of heavy rains, officials said Friday.

"Altogether, 950 families have been accommodated in relief camps," Principal Secretary of Tripura Sudhir Sharma told Reuters by telephone.

"From Wednesday onwards they have been shifted. The situation is improving but it has not improved completely," he said.

Some wooden bridges had been washed away and the national highway linking the state with the rest of India was submerged, police said.

The Associated Press and Reuters contributed to this report.

From CNN

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Chinese group calls for prisoners' release

07/17/98- Updated 02:14 PM ET

BEIJING - One hundred Chinese dissidents have asked the government to release five democracy campaigners detained for organizing an illegal opposition political party, a rights group said.

Addressed to President Jiang Zemin and Premier Zhu Rongji, the petition said the detentions contradicted government pledges to improve human rights and sign the United Nations Covenant on Civil and Political Rights.

''We call on the central government to immediately redress these wrongful violations of human rights,'' said the petition, released Thursday by the Hong Kong-based Information Center of Human Rights and Democratic Movement in China.

Police rounded up nine organizers of the China Democracy Party on July 10, and on Wednesday seized a tenth member who had been on the run. He and four others remain in custody, but five of those detained have since been released.

The crackdown marks the most concerted police action against a dissident group in several years.

Three of those under arrest announced the formation of the China Democracy Party on June 25, the day President Clinton began his nine-day China visit. But authorities, intolerant of challenges to the ruling Communist Party's monopoly on power, refused to register the party, as required by law.

Also Friday, authorities released a laid-off Chinese textile worker they had detained for three days, apparently for organizing a discussion group on China's domestic problems, the Information Center said.

Feng Jianru was taken from his home in the southern city of Xiangtan on Tuesday, three days after he and 13 others met for the discussion, the rights group said. The organization did not say what police questioned Feng about.

Mounting layoffs from state industries and repeated outbursts of worker unrest present one of the most worrisome challenges to the ruling Communist Party. Chinese leaders are emphasizing the need for stability as they engineer market-style reforms.

By The Associated Press

From USA Today

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Quake jolts Taiwan, kills 4 people

07/17/98- Updated 10:41 AM ET

TAIPEI, Taiwan - A powerful earthquake jarred Taiwan Friday, collapsing bridges and triggering rock slides on a southern mountain. At least four people died and 19 were injured, officials said.

The quake, with a preliminary magnitude of 6.2, was centered about eight miles west of the popular tourist spot of Alishan, but set off tremors throughout the island and the coast of mainland China. The mountain is about 180 miles south of Taipei, the capital.

Four employees at a hotel in the town of Rweili on the scenic mountain were injured and the building itself suffered serious cracks, said Mo Hwei-tsu, head of the Taiwan Rescue Center. Previous reports that the hotel collapsed, trapping 10 people inside, were incorrect, he said.

Police were checking a report that 10 people were trapped in a teahouse near the hotel, the TVBS network reported.

Falling rocks killed three people and a fourth died when a landslide buried the exit of a tunnel, Mo said.

Policeman Tseng Ta-lin said mountain roads were blocked and bridges had collapsed. State radio said parts of a railroad also caved in and several cars were damaged by falling power poles.

Officials said the quake has caused the worst damage in southern Taiwan since a 1964 tremor that killed 106 people.

By The Associated Press

From USA Today

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China: Satellite deal didn't benefit arms

07/16/98- Updated 01:49 AM ET

BEIJING - Warning that American rumor-mongers were out to wreck warming Chinese-U.S. ties, China on Wednesday denied a Senate leader's allegations it used U.S. satellite technology to boost military power.

"We have reiterated many times that the Chinese side would not and could not acquire American military technology in the course of supplying launching services for U.S. satellites," said Chinese Foreign Ministry spokesman Tang Guoqiang.

"The American side is clear about this," Tang added in a statement.

Tang was responding to renewed assertions Tuesday from Senate Majority Leader Trent Lott that China used sensitive technology from U.S. satellite exports to enhance its military capability.

Although Tang did not name Lott, he noted "a few people in America, in disregarding the facts, make stories out of nothing, creating rumors and trouble. The aim is to obstruct and damage the improvement and development of China-U.S. relations."

"Their attempts are bound to fail," Tang added.

Controversy over whether China got sensitive technology by launching U.S.-made satellites and whether President Clinton allowed the exports in return for campaign donations persist despite Clinton's widely praised visit to Beijing last month.

In a sign of the cooperation Clinton's nine-day China tour furthered, high-ranking Chinese and U.S. military officers ended two days of talks today on avoiding conflicts at sea.

Tang characterized China-U.S. cooperation on satellite launches as normal, commercial activity that "accords with the interests of both sides."

Lott characterized his comments as "an interim report" from a Senate inquiry into Clinton's decision to let two U.S. aerospace companies, Loral Space and Communications and Hughes Electronics Corp., export satellites for launch atop Chinese rockets.

"Senate investigators have found that sensitive technology related to satellite exports has been transferred to China ... in violation of stated U.S. policy," Lott said. "China has received military benefit from U.S. satellite exports."

Lott offered no specifics and his remarks drew criticism from the opposition Democrats and polite skepticism from at least one senior Republican colleague. Clinton spokesman Mike McCurry dismissed Lott's charges as "not a serious statement."

By The Associated Press

From USA Today

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Children in flooded Jiujiang, China, float on a makeshift raft

New Zealand ranchers take to Jet Skis

(CNN) -- Hundreds of people have been killed, thousands made homeless and millions more affected by widespread flooding that has hit China, Bangladesh, India, Uzbekistan and New Zealand in recent weeks.

At least 811 people died and another 102 were still missing after record summer flooding, made worse by the El Nino weather phenomenon, put ten provinces under water.

The disaster has devastated local industries, cut power and transportation, savaged cropland and forced tens of millions of people to flee their homes, according to Chinese news agency reports.

Most of the deaths were reported from the provinces of Guangdong, Sichuan, Fujian, Hubei, Guangxi, Zhejiang, Anhui and Jiangxi.

Red Cross medical teams were disinfecting water supplies and distributing food and medicine to survivors.

From CNN

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China frees democracy advocate

07/14/98- Updated 11:26 AM ET

BEIJING - A Chinese democracy advocate detained with eight others for setting up a political party has been freed and is urging the release of his fellow activists, a human rights group said today.

Police escorted Cheng Fan from the eastern city of Hangzhou to his home in Wenzhou, 150 miles to the south, and then released him Monday night, the Hong Kong-based Information Center of Human Rights and Democratic Movement reported.

Four of the nine organizers of the China Democracy Party who were rounded up Friday remain in custody. Three of them have been formally arrested.

President Clinton, through his spokesman, expressed disappointment Monday with the latest tightening of controls on dissidents but said he still believes China will gradually open up.

Chinese Foreign Ministry spokesman Tang Guoqiang defended the detentions today, saying that most dissidents "are criminals" and that their cases are always handled according to law.

"Nobody is entitled to interfere," he told reporters. "China is opposed to any acts aiming at interfering in China's internal affairs by using human rights."

The day Clinton arrived in China last month, Wang and others announced they were setting up the China Democracy Party to oppose the ruling Communist Party's political monopoly.

Authorities would not let them register the group, as required by law. Friday's roundup came a week after Clinton ended his China visit.

By The Associated Press

From USA Today

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Did the Summit Matter?

Clinton's nine-day trip through China produced no breakthroughs, but his debate with Jiang and his folksy public relations made them both look good

By BRUCE W. NELAN

Tourist-in-chief Bill Clinton hit five Chinese cities in nine days and obviously had a wonderful time. He put in a bit of work, debating issues with President Jiang Zemin, delivering a major speech, engaging in wonky chatfests with "ordinary" Chinese citizens, and he seemed to enjoy those too. Much of the time, though, Clinton and his family were touring, gazing at the fabulous terra-cotta army of Xian, the Great Wall, the neon-lit Shanghai Bund at night, the ethereal karst mountains of Guilin and the towering tangle of Hong Kong's skyscrapers. It was a lot more fun than hanging around Washington not answering questions about Monica Lewinsky. As White House spokesman Michael McCurry put it, referring to last week's grand jury headliner, Linda Tripp: "The President has been concentrating on one trip, and it's China, not Linda."

This journey around the summit represented a huge investment of time and attention: 11 days (counting travel time) out of the President's jammed schedule, participation of several Cabinet Secretaries, 225 staff members, hundreds of military and security personnel, all pursued by more than 400 journalists. So what did this multitude accomplish, and did it matter?

There were no dramatic breakthroughs, and it isn't easy to think of any that could have been expected. None of the big and explosive issues that divide China and the U.S., like human rights or Taiwan or the $50 billion trade imbalance in China's favor, were resolved. Jiang scored his major points as soon as Clinton stepped off Air Force One in Beijing, because he was the first U.S. President to come calling since the Tiananmen massacre of 1989. For his part, Clinton was trying to demonstrate that his policy choice--engagement--pays more dividends than confrontation. Clinton was jubilant that he was able to broadcast live on Chinese television and radio, and his aides argue this could signal the opening of a new era of freer debate in China. For both sides, then, symbolism was paramount, and they made the most of it.

Jiang is staking his leadership on building a strong relationship with the U.S. He insists the two countries should have good relations in spite of their differences, a neat trick to pull off when the disagreements are so deep. But Jiang has told Secretary of State Madeleine Albright that former leader Deng Xiaoping, just before he died, personally handed him the mandate to improve ties with the U.S. So Jiang wanted Clinton to have a successful summit. If he needed any reinforcement in that, he got it when National Security Adviser Sandy Berger flew to Beijing in early June. Berger explained to Jiang that a really boffo performance was called for now that the atmosphere in the U.S. had been poisoned by charges about illegal Chinese campaign contributions and leaking satellite secrets.

Even so, the trip began badly, overshadowed by China's denial of visas to reporters from Radio Free Asia and the sweeping up of dissidents in Xian. Then Clinton flew to Beijing and, for the world to see, reviewed a military honor guard in the infamous Tiananmen Square. That's when a grateful Jiang turned things around. An hour or so before he and Clinton were to begin their image-setting joint press conference, a Chinese official walked up to McCurry and asked to talk about the arrangements. It's important to get them right, he said, "because, as you know, the press conference will be telecast live."

No, the press secretary did not know that and did not expect it. The Americans had been putting most of their pressure on getting live coverage for Clinton's scheduled speech at Peking University. As the press conference began, Clinton proceeded politely but clearly to detail the disagreements on Tiananmen, Tibet and human rights. Jiang surprised everyone by firing back at Clinton, turning the conference into China's media event of the year. After it was over, Clinton asked his chief of staff, Erskine Bowles, "What do you think?" Bowles beamed and replied, "That's why you ran for President."

Jiang invited the Clintons to an out-of the-ordinary private dinner in Zhongnanhai, the leadership compound adjoining the Forbidden City. He led the First Family over to an easel and unveiled what appeared to be a 3-ft. by 2-ft. blowup photo of the Clintons at the 1992 Democratic Convention. Up close, it turned out to be a silk embroidery--containing, Jiang said, 2.5 million stitches. The two leaders then sat down to discuss world trouble spots, Russia, the Asian financial crisis. This relaxed trading of views, U.S. officials stress, is a long way from the early, stiff meeting in Seattle in 1993, when "Jiang just sat there and read 40 minutes of notes."

The working summit in Beijing lasted only a few hours over three days, and its substantive achievements were thin. China agreed to "actively study" joining the control regime that limits the spread of missiles of more than short range. Joining would have been better, since Beijing has been pussyfooting around this control measure for years. But China has also agreed not to supply missiles to Pakistan, so this would be a plus for regional stability. That is, if Beijing lives up to its pledges, since U.S. intelligence reports indicate China has been helping Pakistan with both nuclear and missile technology.

China and the U.S. also promised to stop targeting strategic nuclear missiles at each other. The step is militarily meaningless because the missiles can be retargeted in minutes, but it is symbolic. Jiang oversold it, saying, "This demonstrates to the entire world that China and the U.S. are partners, not adversaries."

Clinton believed that he was succeeding even after he left the capital. He made two more appearances on radio and television to talk about human rights, democracy, freedom. He staged impromptu mini-town meetings with Chinese businessmen, villagers and students about the environment, housing and the rule of law. It was almost like a domestic campaign swing, and Clinton grinned and loved it. There was a sense, aides said, that the atmosphere for free debate was loosening up. Jiang, says a U.S. official, "was prepared to encourage some slight opening of forbidden subjects. He may be looking for a degree of liberalization."

This trickle-down theory of free speech is probably premature. Letting Clinton have his say via live broadcast was unprecedented in China, but all his sensitive comments on the taboo subjects were left out of newspaper accounts and the regular television news programs. Meanwhile, the security services continued to grab any dissidents who threatened to give the government an argument. If a thaw is coming, it isn't visible yet.

The success by acclamation of the summit, says a senior White House official, "legitimizes the President's leadership on the China issue. We have demonstrated that engagement is a way to get results." Clinton set out, his aides say, to "de-demonize" China. In the process, Clinton did a peerless public relations job for Jiang's authoritarian state, effusively praising his intellect, energy and imagination.

By embracing China and its future so publicly, Clinton sent shudders through other countries in the region. Japan was worried, Taiwan was dismayed and India was furious. Nor was Clinton's audience of critics back home fully convinced. "There's no question he has given [Beijing] a public relations coup," says Representative Nancy Pelosi, a California Democrat. "How the regime responds will determine the ultimate success of the summit." The Chinese, says James Lilley, a former ambassador to Beijing, made Clinton look good, "and they made Jiang Zemin look as though he could handle the Americans."

White House officials are now offering a theory of summits that was heard occasionally during the cold war era. Such meetings are necessary, they say, because lower-level bureaucrats won't get things done unless they see their bosses agreeing on them. But infrequent summits come freighted with unrealistic expectations. Therefore, summits should be held regularly. "We want them to become routine," says McCurry, "so that they lay the groundwork for getting business done, not the place where the business is done." If Clinton follows through, he may be able to fit in another glorious summer holiday in China next year.

--Reported by Jay Branegan with Clinton, Jaime A. FlorCruz/ Beijing and Douglas Waller /Washington

CHINA REPORT CARD

SUBSTANTIVE AGREEMENTS
Meager: There were no breakthroughs, and all the big problems between the U.S. and China remain

DOMESTIC POLITICS
High Marks: Both Presidents scored solidly with their most important audiences--those at home

STRATEGIC PARTNERSHIP
Emerging: Clinton's fulsome embrace makes it clear that a new player is joining the Asian balance

CHANGING CHINA
Uncertain: If the much mentioned genie of freedom is out of the bottle, he is still invisible

OVERALL GRADE
Incomplete: The White House says the idea now is to make such summits frequent and routine

TIME/CNN POLL

--How much did Clinton's trip to China accomplish?

A great deal/a fair amount-- 46%
Not much/nothing-- 41%

--Was what Clinton said to the Chinese on human rights strong enough or not strong enough?

Strong enough-- 38%
Not strong enough-- 36%

--Do you think China is changing for the better, for the worse, or staying the same?

Better-- 30%
Worse-- 8%
Same-- 51%

From a telephone poll of 1,024 adult Americans taken on June 30 and July 1 for TIME/CNN by Yankelovich Partners Inc.

Sampling error +/- 3.1. "Not sures" omitted.

From CNN

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THE NEW ORDER:

If Bill Clinton's China visit heralds a new, closer Sino-U.S. relationship, then the big loser appears to be Japan. Why is America neglecting its staunchest and richest ally in Asia?
Embracing Jiang and scolding Japan, Clinton signals a shift in America's most important Asian partnership. Is this any way to treat Tokyo?

BY TERRY McCARTHY

--Shanghai
What was behind U.S. President Bill Clinton's smile, the student in the T shirt and the wire-framed glasses at Peking University wanted to know? Did he bring with him some hidden agenda to contain China's growing power? No, Clinton replied with a smile. His mission was to engage China, not to contain it. "My words mean exactly what they say."

As Clinton flew back to the U.S. after nine busy days in China, his words were being pored over by China's neighbors. They were anxious to know whether there was indeed some hidden agenda behind that smile, and whether the U.S. was taking the first steps toward a new strategic order in the region. It used to be simple: in Asia, the U.S. had an alliance with Japan and a problem with China. Now that all of Asia has a problem with Japan and the U.S. is talking to China--live on Chinese television--nobody knows where to look.

The U.S. and China have become such fast friends they even agreed to cease pointing nuclear missiles at each other. India and Taiwan are aghast, and Japan is racked with spasms of insecurity after having to endure criticism of its economic ineptitude from the President of the United States--its most important ally, as U.S. ambassadors to Japan routinely put it, "bar none"--standing comfortably beside the head of Asia's biggest communist regime.

But if the warm atmospherics in Beijing made the rest of Asia nervous, it's hard to point to much specific that transpired. There were no substantial agreements, no obvious breakthroughs. The U.S. President ranged through China like a moving target, hitting out at China's human rights abuses here, patting China on the back for its economic responsibility there, pronouncing China's "three no's" on Taiwan (no Taiwan independence, no two Chinas and no representation for Taiwan in international organizations) and then denying it added up to any change in U.S. policy. It was a summit of high-flying rhetoric and below-the-radar micro-deals on training lawyers and sending Peace Corps teachers to Sichuan province.

And yet there is a lingering sense that something has shifted in Asia. When Clinton told a discussion group in Shanghai, "Everyone understands that there is a new China emerging in the world that is more prosperous, more open and more dynamic," it was generally understood he was not simply making an observation but something tantamount to a policy statement. The game has changed, a new player has come to the table. "This summit represents a shift," says Andy Xie, chief economist for Morgan Stanley in Hong Kong. "China's economy is much smaller than Japan's, but Americans are drawn to China in a way they are not drawn to Japan. That's why the Sino-U.S. relationship appears so much bigger than China's economy would suggest."

Fears that the U.S. is tiring of dealing with Tokyo are clearly making the Japanese nervous. Last week they watched U.S. Treasury Secretary Robert Rubin visiting various Asian capitals offering the idiosyncratic advice that they behave more like China (the one-party state with a non-convertible currency and the smoking remains of a huge centrally planned economy) than Japan (the democratic, capitalist ally whose economy is nine times the size of China's and home to 47,000 U.S. troops). In a brooding commentary, the Nihon Keizai Shimbun speculated on a transformation in U.S. attitudes from "Japan bashing" through "Japan passing" to the ultimate shame of "Japan nothing." Japanese analysts are keeping obsessive count of the details: while Clinton spent nine days in China, he has never spent more than three in Japan, according to Masaru Ikei, professor of international politics at Keio University. The day after the Jiang Zemin-Clinton press conference, Prime Minister Ryutaro Hashimoto snapped to reporters: "They don't have to tell us [what to do] at the U.S.-China summit."

The Chinese, for their part, seem to be quietly enjoying Japan's dark night of the soul. "There is no question the Chinese are trying to get us on their side to bash Japan," says James Lilley, former U.S. ambassador to China. Their ultimate goal, he says, is to undermine the U.S.-Japan security treaty, which Beijing regards as a de facto containment device, whatever Clinton might say to the contrary.

The summit exceeded all expectations for drama. If big-picture strategic issues were hanging in the balance, on a personal level the stakes were high as well. Both Clinton and Jiang potentially had a lot to lose domestically if they did not play their hands just right. The trade-off seemed clear: Tiananmen for Taiwan. But how these two incendiary issues were to be handled was uncertain, with both presidents keeping their cards close to their chests up to the last minute.

The break came at 10:30 a.m. on June 27, while Clinton was meeting with Jiang in Beijing. The trip had not been going well, marred by bad publicity over detained dissidents and U.S. journalists who had been denied visas. Clinton had just been photographed on the infamous Tiananmen Square for all the world to see, and in 75 minutes he would face an unforgiving media in the joint press conference. White House spokesman Michael McCurry was approached by a Chinese counterpart, who said matter-of-factly: "We should talk about the arrangements for the press conference... As you know, it will be telecast live."

Well, no, neither McCurry nor anyone else in the U.S. delegation did know it was going to be shown live. The best they had hoped for was that Clinton's speech at Peking University two days later would be broadcast as it took place. McCurry immediately slipped a note to Clinton, who went out in front of the cameras to deliver his forceful Tiananmen statement. Jiang then stunned everyone by turning the event into a genuine debate over some of the most taboo issues in China: human rights, Tibet and the Dalai Lama, alleged Chinese funding for the Democratic Party. (The apparent payback would come three days later in a roundtable discussion with community leaders in Shanghai, when Clinton would slip in the statement on the "three no's" for Taiwan in response to an unrelated question.) When the press conference was over, Clinton was ushered into a back room, where he asked chief of staff Erskine Bowles the ritual question: "What do you think?" A beaming Bowles replied: "That's why you ran for president."

In fact, this was the culmination of what Anthony Lake, then National Security Adviser, had started two years earlier when he came to Beijing for closed-door talks with Chinese leaders to unfreeze relations. It was candidate Clinton, after all, who had derided the "butchers of Beijing" in his 1992 campaign. Lake's bridge-building became even more urgent when the U.S. was forced to send two aircraft carriers to the Taiwan Strait in the spring of 1996 in response to Chinese missile tests. A shooting match with China was the last thing Clinton wanted for his second term as President.

By coming to China in defiance of critics back home and effectively expunging the legacy of Tiananmen, Clinton had delivered big-time to his hosts. So what was Jiang bringing to the party? His personal stature, both on the domestic and international stages, grew enormously by taking on Clinton in a live debate. But did the summit herald a new era of political opening for all of China? It's too soon to tell, according to many China scholars. "If from here on the Chinese utilize the trend of political openness and let it take its course, this could be significant," says Byron Weng, professor of government and public administration at Hong Kong's Chinese University. "But that judgment will have to wait." By week's end, even Clinton's aides were toning down their initial euphoria that the President's words were likely to hasten the development of free speech in China. "We shouldn't overestimate our own influence here," said a senior official. "This trip is but a grain of sand on the shore of Chinese history. They've been a civilization for 4,000 years. We've been here a week."

As the summit whirlwind fades into memory, the U.S. has some tough choices ahead. Now that relations with Beijing are on a sounder footing, Washington has to shore up its damaged ties with Tokyo and do what it can to help prevent a potentially devastating Japanese economic collapse. "Whether you like Japan or you hate it, it's a free market economy that has a far greater impact on the world scene than China at this point," says Kent Harrington, a former cia officer for East Asia. Even as the geopolitical plates start to shift in Asia, the U.S. isn't about to abandon its alliance with Japan, not least because there is a huge gap between China's rhetoric of partnership and the reality on the ground--witness Beijing's resistance to opening its economy enough to earn membership in the World Trade Organization, or its reluctance to be fully open about weapons exports.

Still, the sense of uneasiness in Japan and elsewhere in the region is palpable. Perhaps by coming to China and talking up the new Sino-U.S. strategic partnership, Clinton is putting his finger on something that has been dawning gradually on Asia for some time: after the U.S., China is the only other candidate for world power status in the coming century. And yet, nobody can predict with any certainty how China will develop politically--not even the Chinese themselves. In a thoughtful moment Clinton himself raised the question of how the Chinese people, as a great power, would choose "to define their greatness," and then, of necessity, left the question hanging. As for Japan, if it ever had a chance, its moment seems to have passed. "The Japanese only have themselves to blame for not carrying the burden of leadership," says Chinese University's Weng. "For 20 years they had the opportunity, and they didn't grab it. China, by contrast, has always been predisposed to being a leader in East Asia, not just economically, but politically as well."

To soothe some egos, U.S. Secretary of State Madeleine Albright was dispatched to Japan even as Air Force One was crossing the dateline to ensure Clinton was back in the U.S. in time for Independence Day. Clinton's smile didn't fade during the trip, and his masterful performance on tour in China left little space for his domestic critics to attack him. If the summit achieved anything, it was to end the debate over engaging or containing China. The question now--for the U.S., for China, for Asia as a whole--is: engagement for what?

With reporting by Jay Branegan with Clinton, Jaime A. FlorCruz and Mia Turner/Beijing, Hiroko Tashiro/Tokyo and Douglas Waller/Washington

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ROAD SHOW: Behind-the-scenes with Clinton's entourage

Close Encounters  On Clinton's China tour, everything went according to the script.
Well ... almost everything

BY JAY BRANEGAN With Clinton

The high points of Bill Clinton's China tour may have taken place in front of the cameras--the Clinton-Jiang Zemin press conference, for instance, or Clinton's Q&A with Peking University students. But as with any traveling carnival (the U.S. entourage numbered more than 1,000), some of the scenes behind the scenes were also notable. A few of the U.S. delegation's adventures in the Middle Kingdom:

Dissidents were not the only ones to feel the heavy hand of China's Public Security Bureau along Clinton's itinerary. Journalists--particularly radio and TV reporters--were occasionally pushed around when they tried to interview ordinary citizens. Even members of the presidential delegation were regarded with suspicion. In Xian, security officers blocked two White House valets from loading the First Family's garment bags onto Air Force One for the flight to Beijing. Press secretary Michael McCurry blamed the incident on an "overeager" Chinese official who had "some concern about their ethnicity." Both staffers were Asian-American.

McCurry himself ran afoul of Chinese security. On Clinton's last day in Beijing, the spokesman decided to sneak out for some shopping. By the time he headed back toward the U.S. embassy, however, a security cordon had sealed off the neighborhood in preparation for the departure of the presidential motorcade. Cajoling words and frantic badge-waving could not get McCurry's car past the checkpoint, although he himself was finally allowed through. A resourceful aide quickly hailed a pedicab, and the two set off on a 20-minute race through the streets and back alleys of the Chinese capital. The furious pedaling got them to the embassy just in time. Said McCurry later: "I felt like an imperial potentate."

Clinton traveled like a potentate throughout the trip. At each major stop, the President descended from Air Force One to a waiting armored limousine, one of three flown in on U.S. military cargo planes (each vehicle is nearly as heavy as a tank, and about as strong). Clinton uses the same limos in the U.S., but there he transfers to a helicopter for all but short local journeys. Beijing balked at allowing the Clinton entourage to zip around the country in a fleet of choppers. China did allow the Americans to bring in one helicopter, which stood by for emergencies.

On every presidential trip abroad, White House staff members try to fit so-called "shop ops" in between photo ops and other official events. In China, Clinton's entourage snapped up the usual rugs, freshwater pearls, jade, silk, model terra cotta warriors and paintings by peasants. But the hottest item, much in demand among the Americans' children back home, were Beanie Babies--small stuffed toys prized by collectors. McCurry said he managed to track down the shark and monkey Beanies, but came up empty-handed in his quest for the tiger and the spider.

Phoenix Television, the Hong Kong-based Mandarin-language cable TV station co-owned by Rupert Murdoch, pulled off a coup last week when its star anchorwoman, Yang Lan, an attractive Shanghainese, was singled out by Clinton to ask one of only four questions allowed at his press conference with Jiang. "Phoenix TV simply got lucky again," the stylish Yang said later, recalling how another of the station's willowy reporters, fellow anchorwoman Sally Wu, was singled out by incoming Premier Zhu Rongji to ask a question at a press conference in April. Yang's luck ran out a day later, however, when she buttonholed a Chinese man walking behind Clinton during the President's visit to the Great Wall. shimin (city resident) read the caption beside the bucktoothed man, who revealed that Clinton had said "the Great Wall was 'amazing.'" Unfortunately the city the man, Li Zhaoxing, resides in is Washington, D.C.--where he is China's ambassador to the U.S.

Cynics might dismiss Clinton's efforts to mingle with ordinary Chinese as mere show, but the President had good reason to value their company. Ready to welcome him home in Washington were the same critics and scandals he left behind, as well as news programs that were no longer obliged to lead with statesmanlike images of the President in an exotic land. Toward the journey's end, McCurry could quip in response to a question about the grand jury testimony of Monica Lewinsky confidante Linda Tripp: "The President has been concentrating on one trip--and it's China, not Linda." Unhappily for him, those days are now but a memory.

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DALAI LAMA Q&A: The Dalai Lama on Jiang, Clinton and Tibet

"The important thing is to build up trust"

The Dalai Lama was touring the remote Himalayan region of Ladakh in India when the future of Tibet came up for discussion at the Clinton-Jiang press conference. Shortly before addressing thousands of devotees who had collected at a village close to the Tibet border last week, the exiled leader met TIME correspondent Maseeh Rahman and gave his reaction to the Beijing summit.

TIME: President Clinton commended you as "an honest man" to President Jiang Zemin last week. Did the Clinton visit help make any progress on Tibet?

Dalai Lama: In the long run, his comments will certainly have a very good impact on the minds of many Chinese. But it's too early to assess the immediate impact. What's clear is that President Clinton made a great effort to put across his views.

TIME: Do you think he was over-cautious? He did not take along his special coordinator on Tibet for fear of annoying the Chinese.

Dalai Lama: That's a matter of diplomatic procedure. Much more important is that there were talks, face-to-face, on Tibet. I was also impressed that President Clinton made his comments live on Chinese television. This goes to the credit of Jiang Zemin--the Chinese government could have stopped it easily. It shows there's a desire for greater openness. This may not have a direct bearing on Tibet. But the problem in Tibet is the result of the Chinese presence there--it's not like in Cambodia, where there's a civil war. Therefore, Tibet's future is linked to developments on the mainland. With more democracy and freedom of the press in China, we will find it easier to reach a mutually acceptable solution. What's clear is that China is changing. President Clinton's visit has certainly contributed to this process of change.

TIME: Clinton said that if you and Jiang were to meet, you would like each other.

Dalai Lama: [Laughs] Whenever I meet someone, I'm happy. I've met many Chinese leaders, including Chairman Mao, in the early '50s, and our meetings were always pleasant. And also very useful. It was only in the late '50s that the attitude of local Chinese authorities [in Tibet] became negative and aggressive.

TIME: Jiang has introduced a new condition before he meets you--he wants you to recognize Taiwan as a province of China.

Dalai Lama: When I was in Taiwan a year ago, I stated clearly that I'm not seeking independence but genuine autonomy for Tibet. I also said with reference to the demand for Taiwan's independence that in the modern world the concept of complete independence does not have much relevance. Both for its economy and defense, Taiwan needs to have very close links with mainland China. But what's important is that they should protect their liberty and democracy.

TIME: Beijing is obviously unhappy that you opened a representative office in Taipei last year.

Dalai Lama: The Chinese did indicate their displeasure to us. Though I have another invitation to visit Taiwan, I've postponed it indefinitely, as I give a lot of importance to developing an understanding with Beijing.

TIME: Jiang also said he expects a "positive" change in your attitude. What is he trying to say?

Dalai Lama: It won't be right or useful to comment directly on these remarks. We already have some contact through private channels, and that exchange is more helpful.

TIME: You've clarified repeatedly that you only want autonomy for Tibet, but the Chinese are still suspicious of your motives. What more can you do to allay their fears?

Dalai Lama: More contact and talk, without any publicity. And eventually, if the possibility arises, I would like to undertake a purely spiritual pilgrimage to some of the holy places on mainland China. And while I'm there, the opportunity may arise for me to meet the press and intellectuals, and possibly some Chinese leaders. The important thing is to build up trust. And that's happening.

TIME: Some analysts believe Beijing is not sincere about a solution and is waiting for the Dalai Lama to pass away before it fully assimilates Tibet into China.

Dalai Lama: There's also the other opinion, that the chance of finding a solution is there as long as the Dalai Lama is there. The resentment in Tibet against the Chinese is very strong. Just now there is someone who can influence or represent the Tibetan people. Once he's not there, the problem could become radical. Then how to deal with it? The Tibetan issue is not the Dalai Lama's issue. The Tibetan issue is 6 million people's issue. So long as the Tibetans are there, so long as the resentment is there, this problem will remain.

From Time Magazine

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Arafat meets China's Zemin

BEIJING - Yasser Arafat received a red-carpet welcome Monday and a pledge of support for efforts to revive the Mideast peace process from Chinese President Jiang Zemin.
In their meeting, Jiang said China would "continue to support the efforts of Palestinian people to regain their legitimate rights, including the establishment of an independent state," the official Xinhua News Agency reported.

China "greatly appreciates Palestine's principled stance for a solution through peaceful negotiations," Xinhua said.

Jiang also said China wanted to accelerate trade with the Palestinians. The two leaders spoke in the Great Hall of the People after a ceremony in Tiananmen Square.

Arafat's Palestinian National Authority hopes China will use its U.N. Security Council seat to influence the peace process, the official China Daily newspaper on Monday quoted Arafat as saying in an interview.

Although not a mediator in the process, China is "deeply concerned" over the current Mideast stalemate and wants to see signed agreements implemented, the newspaper said.

China has long been a strong supporter of the Palestinian cause but over the past decade has developed good diplomatic relations and strong economic ties with Israel.

By The Associated Press

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Senate reiterates policy on Taiwan

WASHINGTON - A resolution originally intended to repudiate President Clinton's statements on Taiwan was adopted 92-0 by the Senate on Friday. Democrats insisted it merely restated a policy embraced by the administration.

The resolution, by Senate Majority Leader Trent Lott, R-Miss., was approved without debate. Lott earlier said the measure was needed to "repair the damage that has been done" by Clinton's remarks about reunification of the island with the Chinese mainland. The resolution expresses an expectation that "the future of Taiwan will be determined by peaceful means" and repeats a U.S. pledge to help Taiwan "maintain a sufficient self-defense capability."

That merely restates terms of the 1979 Taiwan Relations Act. The resolution was written to counter comments by Clinton in Shanghai laying out what Beijing calls the "three noes" policy: no support for an independent Taiwan, no recognition for a separate Taiwanese government, no backing of Taiwan's entry into international organizations.

Furthermore, in an exchange with students in Beijing, Clinton said that when the United States and China formulated the "one-China policy ... we also reached agreement that the unification would occur by peaceful means." China specialists - and Taiwanese officials - were quick to note that "unification" was never part of that U.S. policy, and that the 1979 Taiwan Relations Act only asserts that the "future relationship" between Taiwan and the mainland should be "determined by peaceful means."

Republican Senate leaders rushed the resolution to the floor, but the fact that not a single Democrat voted against it blunted any impact the measure might have.

The Democratic endorsement was "to make sure it has no significance," Sen. Joseph Biden of Delaware, senior Democrat on the Senate Foreign Relations Committee, said in an interview. He said he had "no problems at all with the president's comments."

The administration has said Clinton meant no change in policy by his remarks on Taiwan. Lott said the Senate vote "sends a powerful signal that the Senate is not accepting President Clinton's new policy."

He suggested the Senate would follow up the gesture with hearings "to try to understand the administration's new policy on Taiwan."

Sen. Robert Torricelli, D-N.J., a sponsor of Lott's resolution, said Clinton's comment's "might be open to misinterpretation."

"I don't think the president meant a change in policy, but this is an important clarification," Torricelli said in an interview. "This is a message that those in Beijing shouldn't misinterpret the president's comments as a change in policy," Torricelli said.

By The Associated Press

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Senate reiterates policy on Taiwan

07/10/98- Updated 01:11 PM ET

WASHINGTON - A resolution originally intended to repudiate President Clinton's statements on Taiwan was adopted 92-0 by the Senate on Friday. Democrats insisted it merely restated a policy embraced by the administration.

The resolution, by Senate Majority Leader Trent Lott, R-Miss., was approved without debate.

Lott earlier said the measure was needed to "repair the damage that has been done" by Clinton's remarks about reunification of the island with the Chinese mainland.

The resolution expresses an expectation that "the future of Taiwan will be determined by peaceful means" and repeats a U.S. pledge to help Taiwan "maintain a sufficient self-defense capability." That merely restates terms of the 1979 Taiwan Relations Act.

The resolution was written to counter comments by Clinton in Shanghai laying out what Beijing calls the "three noes" policy: no support for an independent Taiwan, no recognition for a separate Taiwanese government, no backing of Taiwan's entry into international organizations.

Furthermore, in an exchange with students in Beijing, Clinton said that when the United States and China formulated the "one-China policy ... we also reached agreement that the unification would occur by peaceful means."

China specialists - and Taiwanese officials - were quick to note that "unification" was never part of that U.S. policy, and that the 1979 Taiwan Relations Act only asserts that the "future relationship" between Taiwan and the mainland should be "determined by peaceful means."

Republican Senate leaders rushed the resolution to the floor, but the fact that not a single Democrat voted against it blunted any impact the measure might have.

The Democratic endorsement was "to make sure it has no significance," Sen. Joseph Biden of Delaware, senior Democrat on the Senate Foreign Relations Committee, said in an interview.

He said he had "no problems at all with the president's comments."

The administration has said Clinton meant no change in policy by his remarks on Taiwan. Lott said the Senate vote "sends a powerful signal that the Senate is not accepting President Clinton's new policy."

He suggested the Senate would follow up the gesture with hearings "to try to understand the administration's new policy on Taiwan."

Sen. Robert Torricelli, D-N.J., a sponsor of Lott's resolution, said Clinton's comment's "might be open to misinterpretation."

"I don't think the president meant a change in policy, but this is an important clarification," Torricelli said in an interview.

"This is a message that those in Beijing shouldn't misinterpret the president's comments as a change in policy," Torricelli said.

By The Associated Press

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Editorial -- Chinese checkers
Critics are too hard on Clinton's accomplishments

Now that President Clinton has returned from China, his critics are forced to explain away why his trip was not as successful as it appeared to be. In the face of positive reviews for a grand show, the negative-minded can always see substance lagging behind extravaganza.

Mr. Clinton, critics said, was not harsh enough with the Chinese on human rights. Even if they allowed that he did strike the right note, the Chinese government still regards itself as the warden and its citizens remain the prisoners. It is all very well for the president of the United States to take issue with the Chinese system, but he is the only one able to do so.

Moreover, what substantial agreements came out of this visit? An agreement by both countries not to target nuclear missiles at each other appeared dramatic, but this was nothing more than happy illusion. Even if verification had been part of the deal, it would take no more than a matter of minutes to reprogram targets.

To be sure, the Chinese did agree to control exports of materials that could possibly be used for weapons of mass destruction and to allow inspections to ensure that highly sensitive U.S. technology was not being misused. While Mr. Clinton said at his final press conference in Hong Kong that there had been "substantial progress" on proliferation issues, "modest" might be a more apt description.

On the economic front, Mr. Clinton was candid that he did not make as much progress as he had hoped. China refused to reduce its trade barriers, and so the $49.7 million trade deficit remains a problem both practical and political. As economic advantage is one of the great justifications for close ties with China, a lack of progress in this area is perhaps the most serious failure of Mr. Clinton's trip.

But the critics' litany of shortcomings, right as far as it goes, does not go nearly far enough in describing what Mr. Clinton achieved. Ever since Tiananmen Square, Sino-U.S. relations have been strained if not antagonistic at times. Without flinching from calling the 1989 crackdown on students "wrong," Mr. Clinton nevertheless put the relationship back on a decent footing.

He did this not just by coming as a friend, but also by presuming to speak as true friends speak -- by mixing praise with frankness. In the process, he seemed to establish a genuine rapport with Chinese President Jiang Zemin.

What he won for his efforts was an unprecedented opportunity to appear live to Chinese TV and debate issues -- human rights, Tibet -- which were officially taboo. It was only a morsel of free speech, but it is bound to make ordinary people think and savor the banquet that democracy might bring.

It is the fact of this diplomatic tour de force that has the critics scurrying for cover. The truth is that the Communist Party was not going to suddenly embrace democracy. But Chinese society is changing, and Mr. Clinton has positioned the United States perfectly to anticipate and encourage liberalization. The greater substance of the president's trip may be realized in the future.

From USA Today

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Millions battle deadly China floods

Hundreds killed as rainy season comes early

(CNN) -- As the rain-swollen Yangtze River cut a treacherous swath through central China, millions of people on Monday strengthened dikes and repaired breached banks. More than 400 people have been killed in recent weeks in flooding caused by heavier and earlier than usual seasonal rains.

The Yangtze was above flood-warning levels along its middle reaches for 600 miles (1,000 km), government-run media reported.

In some areas, the river rose at the rate of two feet (60 cm) a day, giving residents only enough time to escape with the clothes on their backs.

Reservoirs are filled to overflowing. Summer crops have been destroyed. Food and drinking water are becoming scarce.

More thunderstorms and torrential rains are predicted over the next few days and, with China's traditional flooding season in July and August still far from over, the worst could be yet to come.

Stranded

Villagers in Hunan province say it's the worst flooding in memory.

In Anhui province, about 370,000 people were stranded as of Sunday in flooding on the Yangtze, Huai and other rivers.

Just upstream in Jiangxi province, rain-swollen rivers and lakes broke all high-water marks.

Flooding swept away homes and submerged farmland, the Xinhua News Agency reported.

The state-run China Central Television showed footage of bulldozers and people piling sand and sandbags at building entrances and roadways in cities along the Yangtze.

At risk

In Jiangxi, the Yangtze swelled its banks near Jiujiang city, placing half the city's 4.4 million people at risk, city officials said.

Although 270,000 acres (110,000 hectares) of farmland, several major rail lines and 82 enterprises are also threatened, no casualties have been reported, they added.

Chinese Premier Zhu Rongji and Vice Premier Wen Jiabao braved rain and mud to comfort flood victims in one swamped village near Jiujiang Saturday, Xinhua reported.

Zhu reportedly ordered officials to make sure the villagers had places to stay, food, clothes and medicine.

The leaders also monitored efforts to shore up crumbling embankments by some of the 3 million people mobilized to fight floods in Jiangxi, Xinhua said.

Nearly a million officials, soldiers and ordinary citizens were combating flooding in neighboring Anhui, Xinhua said in a separate report.

In southern Guangdong province, the North and West rivers overran their banks and swamped surrounding areas for four days before being contained over the weekend, China Daily said.

In the north, Beijing has been hit by four severe downpours in the past nine days. One driver drowned when he drove into a suburban underpass inundated with rain water, Xinhua said.

The Associated Press contributed to this report.

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CLINTON IN CHINA: SHANGHAI

Stumping on the Bund
Clinton goes into full man-of-the-people mode in China's showcase city

JULY 6, 1998 VOL. 152 NO. 1

BY TIM MORRISON

Leaving China's capital of Beijing for its financial and cosmopolitan center of Shanghai, President Clinton also seemed to leave behind the political side of his message for a more popular one. He spent his day here meeting with local community leaders and appearing on a radio call-in show.

"There was basically very little policy and a lot of gladhanding," said TIME correspondent Jay Branegan of Clinton's activities. The radio show, the first unscripted appearance by a foreign head of state, was flooded with callers asking about everything from China's entry into the World Trade Organization to how the President keeps fit. "He really seemed to enjoy himself," said Branegan. "The people-to-people things really seem to be Clinton's bag. Like what we say in America, he feels your pain."

Clinton certainly knows how to make a big impression. His off-the-cuff talk was not only unprecedented for foreign leaders but extremely rare for Chinese politicians. Mayors and governors had appeared on the show before, but national leaders were unheard of--or from.

Chinese who had expected the President to bully and harp upon the issues of human rights, Tiananmen, and Tibet during his visit have been pleasantly surprised: Clinton has so far been subtle, sensitive and well-prepared, and his radio debut was no different, although instances of substance took a back seat. According to Branegan, "What you're seeing here is Clinton bringing real American-style campaigning to China."

One aspect of American-style campaigning Clinton probably didn't mind leaving at home was dealing with the continuous scandals which have shadowed his term. It was not until five days into the trip that a reporter asked White House spokesman Mike McCurry about Monica Lewinsky.

This isn't to say that people don't know about the scandals; there are several books out in China which deal with the President's peccadilloes. "No one has really come out and asked him anything about it in public," says TIME Beijing bureau chief Jaime Florcruz of the Chinese response. "People kind of feel it's his business." On this, the Chinese people and their government are in complete accord: in the days before Clinton's arrival, copies of one of the more scurrilous books were removed from stores by Beijing authorities.

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CLINTON IN CHINA: BEIJING

A Word with the Students
President Clinton gets some tough questions at Peking University

JULY 6, 1998 VOL. 152 NO. 1

BY TIM MORRISON

People who live in glass houses shouldn't throw stones -- especially when they're standing in someone else's house. That was the message Bill Clinton got from students at Beijing's Peking University on Monday.

Responding to Clinton's themes for the trip -- the benefits of human rights and freedoms, his policy of "constructive engagement" with China -- the students asked him probing questions on U.S. policy and the shortcomings of democracy.

"Many students may agree with Clinton's criticisms," says TIME Beijing bureau chief Jaime Florcruz, "but they don't like to be lectured." No kidding. As one student asked, "Do you think that in the U.S. today, there are also some problems in the area of democracy, freedom and human rights, and what has your government done in improving the situation?" Regarding U.S. policy on Taiwan, which China considers a renegade province, another asked bluntly how Clinton would feel if China started sending missiles to Hawaii. All of this was greeted with applause.

A visiting graduate scholar told TIME that she hadn't expected so many challenges, but the opinions behind them were less than surprising. "Remember that these kids know a lot -- from TV, from the Internet," says Florcruz. Even students who greatly admire the American political system are far from convinced that the U.S. should be acting the part of role model. And when Clinton talked about his efforts to "free" poverty-stricken Americans from the drugs and crime that plague their neighborhoods, he only reinforced the idea in many Chinese minds that lawlessness is a natural complement to American-style democracy. Regardless, the President was received warmly by the crowd of 800 inside the hall, and enthusiastically by the 2,000 more who climbed trees, statues and buildings to greet him outside.

Interestingly, both Peking University and the U.S. government refuted suggestions that the students may have been planted or fed questions to ask the President. Admission to the auditorium was decided by lottery, and the U.S. Embassy says it is satisfied that the questions reflected the students' true opinions.

True opinions? Questioning received wisdom? Chalk up another foray into China's brave new world of public debate. This one, too, was broadcast live on nationwide television. No matter where Clinton decides to cast his stones, the Chinese monolith is looking a lot more transparent.

From Time Magazine

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CLINTON IN CHINA: SHANGHAI

On Message, off target
'Two Chinas' or not 'two Chinas': But what was the question?

JULY 6, 1998 VOL. 152 NO. 1

BY TIM MORRISON

Whether he's being challenged by students in Beijing on America's problems with race and poverty, or offering fitness secrets on Shanghai talk radio, Clinton has impressed many Chinese with his sincerity and subtlety. "He's pretty good at relating to people on an everyday level," said TIME Correspondent Jay Branegan.

Well, all good things have to end sometime. Clinton's enunciation Tuesday of the U.S. position on Taiwan, the first time he personally had advocated the "one-China" policy, was clearly choreographed, and not very well.

The meeting with Shanghai representatives and community leaders that was the context for Clinton's statement, had originally included Edward Zeng, an Internet entrepreneur from Beijing. But when Zeng arrived at the Shanghai Library where the discussion took place, he couldn't find his name on any of the place cards at the table. His seat had been taken by Wu Xinbo, an assistant professor at the Center for American Studies at Shanghai's Fudan University. Zeng ended up sitting in back with the rest of the spectators until Hillary Clinton attempted to address a question to him, at which point he came forward to answer.

Following this exchange, and a flurry of notes among Clinton, National Security Adviser Sandy Berger and an aide, Clinton turned to professor Wu and asked how he, as an expert on the U.S., would define the current relationship between the two countries and how the summit could improve it. Wu replied at length on the history of Sino-U.S. relations, and the critical period at which Clinton and Jiang were having their summits, both last October in Washington and this week in China. Clinton thanked Wu for his comments and launched into a tangential statement on his chance to reiterate U.S. Taiwan policy in his meetings with President Jiang Zemin on Saturday. "We don't support independence for Taiwan," said Clinton, "or 'two Chinas' or 'one-Taiwan one-China.' And we don't believe that Taiwan should be a member in any organization for which statehood is a requirement."

Wu later stated that the original list of panelists had been cut at the last minute for space reasons. Nonetheless, said TIME Beijing bureau chief Jaime FlorCruz, "It seems pretty clear that the meeting was orchestrated by the Americans so Clinton could publicly restate the Taiwan policy." Some U.S. observers speculate that Clinton wanted to pay Jiang back for Saturday's press conference on human rights and the Dalai Lama; others say that Clinton needed a non-political forum to make a statement that would please China and not alienate Taiwan, America's ally.

Not surprisingly the statement brought a sharp response from Taiwan, which complained that the U.S. had no business negotiating its future with China. In Beijing, officials expressed hope that Clinton follow his words with action as soon as possible. Members of the Clinton entourage, meanwhile, played down the incident as being a mere reiteration of long-standing U.S. policy -- although they seemed to be the only ones to do so. "In China, when a leader says something, that means it's law," said Branegan.

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CLINTON IN CHINA: SHANGHAI

Happy Economy Day
Clinton brings his messages to the Chinese and American people one day at a time

JULY 6, 1998 VOL. 152 NO. 1

BY TIM MORRISON

Wednesday, it seems, was Promote the Economy Day. Having addressed the issues of Taiwan, Tiananmen and human rights, the Clinton juggernaut continued to spin on the President's last day in Shanghai, emphasizing China's growing role in the world economy. In the morning, Clinton addressed U.S. and Chinese business leaders on opening China's markets and the prospects for its joining the World Trade Organization. At noon, he toured the Shanghai Stock Exchange and lunched with young Shanghainese entrepreneurs. He spent the afternoon visiting a new housing development in Jinhui Gardens and speaking with residents, builders, and mortgage officials about China's bold new initiatives to promote home-ownership.

"The Chinese are witnessing theme-of-the-day politics, as invented by Ronald Reagan and perfected by Bill Clinton," said TIME White House correspondent Jay Branegan. By focusing on one issue at a time, the Clinton team can make sure the President's message on it gets the full attention of the news media. "It's done this way in the States all the time."

Indeed, Clinton's imageers have been working on perceptions of the summit since day one. "The White House strategy was clear from the beginning," said Branegan. "Clinton landed in Xian because they didn't want the first images coming out China to be him standing in Tiananmen square," site of the 1989 massacre in which hundreds of pro-democracy demonstrators lost their lives.

Clinton's strong human rights statements delivered in Beijing were also worded to offset the specter of Tiananmen. "There was a big debate on the plane from Xian about how hard to push the human rights issue," said Branegan. "The working formulation was, be clear, be judgmental -- but don't close down the trip."

Thursday is Emphasize the Importance of Environmental Cooperation Day, as Clinton travels to the picturesque southwestern city of Guilin to highlight an issue he has brought up often in his speeches. Guilin, however, is currently enduring the worst flooding of the past half-century, which threatens to throw a wrench into the President's itinerary. Clinton's advance team probably won't be able to lower the waters in time for his arrival. Most likely, they'll just spin them a little.

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CLINTON IN CHINA: GUILIN

'Avoid Our Mistakes'
Clinton pushes the threat of global warming in Guilin

JULY 6, 1998 VOL. 152 NO. 1

BY TIM MORRISON

In his last day before leaving the Chinese mainland for Hong Kong, Bill Clinton visited the southwestern city of Guilin to view one of China's most famous natural landscapes, the Li river. "No place in China is more evocative of the beauty of your country than Guilin," Clinton said. "The stunning mountains along the Li river are instantly familiar to millions and millions of Americans." It was here among the evocative beauty and stunning mountains that Clinton pressed home an issue he had been touching on constantly in his travels: the importance of China's participation in environmental controls and the fight against global warming. "Basically, you can't solve the climate change problem without China," said TIME correspondent Jay Branegan. As the largest and one of the fastest-growing countries in the world, China's impact on the environment is huge.

However, China has stuck to the argument that Western nations' pleas for environmental regulations were at best biased against poorer nations and at worst hypocritical. With much of the developing world, China has claimed that the West was trying to stunt the growth of other nations by imposing environmental laws, laws which did not exist when they were going through their own stages of development.

To downplay that fear, Clinton stuck to the flip side of that argument in his speech--that China can learn from the U.S. what not to do. "I believe that China has a unique opportunity--because you're developing rapidly, but later in time than other countries--to avoid some of the terrible mistakes we made," Clinton said in Guilin Thursday.

There is some evidence that his words aren't falling on dead ears. China has already started trying to improve its air quality, banning the use of leaded fuels in its most polluted cities. "Washington senses a change in tone by the Chinese," said Branegan. "Before they feared that environmental controls would limit growth. Now, they seem more receptive to some of Clinton's ideas." The American President is pushing to use this thaw to maximum advantage. He has reiterated the importance of the environment several times on this trip, even deviating from his prepared notes in his speech at Beijing's Peking University to talk about implications for the students, whom he called "China's leaders of the future." Clinton primed the pump for the future with the announcement of $50 million in loans from the U.S. Export-Import bank to start environmentally focused joint ventures in China.

Guilin, as one of China's most breathtaking regions, was a perfect spot to highlight environmental awareness. But Clinton's timing was even better: the week of his arrival in China, Guilin was devastated by the worst floods in the past 50 years, a phenomenon often caused by erosion and deforestation upstream. Perhaps a slightly less dramatic example would have been preferable, though: The President's advance team spent part of their visit trapped in their hotel by the rising waters.

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CLINTON IN CHINA: HONG KONG

The Best Laid Plans...
Clinton needed good planning and good fortune to pull off the summit. He got both--mostly

JULY 6, 1998 VOL. 152 NO. 1

BY TIM MORRISON

Things didn't go well at the beginning of President Clinton's trip to China. Even before his departure, relations between the two powers were strained as authorities in the People's Republic seemed to bend over backwards to make the wrong impression. Three journalists from Radio Free Asia, a quasi-official American network that China accuses of meddling in its internal affairs, were refused entry into the country. At Clinton's first stop, the ancient capital city of Xian, at least three dissidents were detained by authorities; one claimed to have received threats not to talk to foreign reporters. And to make matters worse, Beijing publicly brushed off Clinton's concerns about these violations of human rights as--you guessed it--more meddling. The smell of debacle hung thick in the air.

And then, it lifted. All the planning in the world can't compete with a little luck, and it's a show of just how good Clinton's luck became that the detentions, the censorship and the criticisms didn't prevent a largely successful if symbolic summit. Luck--or fate. Either way, it certainly wasn't part of the White House game plan to have Jiang Zemin broadcast the presidents' airing of views nationwide, marking the first time that human rights, Tiananmen, and the Dalai Lama had been seriously discussed on Chinese television. Nor was it their intention that the Chinese city of Guilin, where Clinton planned on emphasizing cooperation to fight global warming and environmental hazards, would be deluged by severe floods the week before his arrival, providing an urgent reminder of the power of the natural world.

And as if that didn't help, it seems that Clinton had all the planning in the world in his corner as well. Xian was picked as the President's first stop because it fell a safe distance from the emotional scars of Tiananmen square in Beijing; Clinton was able to successfully argue his critics (and often, his hosts) from neutral ground. At an informal Shanghai meeting, the President issued a carefully choreographed reiteration of U.S. commitment to a "one-China" policy on Taiwan--pleasing Beijing by saying it, and reassuring Taipei by doing so in a nonofficial context. Where Clinton went and what he said was carefully controlled for maximum effect, focusing on one aspect of his agenda for each day and each city: Beijing equals politics; Shanghai equals business; Guilin equals environment; and Hong Kong equals democracy.

So in the end, a combination of fate, luck, and good planning saw to it that Bill Clinton would bid farewell to China from Hong Kong, its freest city, on the eve of America's Independence Day.

"Here in Hong Kong we end the trip where I hope China's future begins," Clinton said before leaving. "A place where free expression and free markets flourish under the rule of law." Clinton spent his morning discussing markets at a breakfast organized by the American Chamber of Commerce, and later discussed freedom of expression with Martin Lee, leader of Hong Kong's Democratic Party, and 20 other recently elected members of Hong Kong's Legislative Council.

Hong Kong allowed Clinton to end the trip on a high note, surrounded by the high-tech, high-income fruits of the former British Colony's freedom. It also gave him a second chance to reiterate the themes that had bogged him down in the beginning. "Political freedom, respect for human rights and support for representative government are both morally right and ultimately the best guarantor of the stability in the world of the 21st century," he said, and charted a course of dealing "directly, forcefully, but respectfully with the Chinese about our values."

Perhaps Clinton pressed his luck. Or perhaps whatever it was that kept most of the voyage running smoothly had finally run out on him. At the end of his grand and winning odyssey, the President of the United States spent 10 long minutes stuck in an elevator in the Hong Kong Convention Center--the result of a power surge caused by a bolt of lightning.

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Substance, hard work follow China trip

President Clinton's nine-day visit to China was seen by most people at home as a public relations success.

But now that the cheering has stopped and the cameras have been put away, analysts say, the hard diplomatic work begins to get China to:
Limit its nuclear capability.
Cut its huge trade surplus with the United States.
Reduce its military threat to the stability of Southeast Asia.
Improve its human rights record and protect its environment as industrial development booms.
Move its monolithic government more toward democracy. ''China is a rising power, and we are at a sensitive and delicate juncture in our relationship,'' says Maria Chang, a political scientist at the University of Nevada at Reno. ''We must walk a very fine line, but we must continue to be engaged.''

During the trip, Clinton again showed that he is a master at public presentation. Beyond the photo opportunities, analysts say, Clinton should be given credit for speaking out firmly on behalf of human rights and environmental protection, brokering trade deals for U.S. companies and getting Beijing to stop aiming nuclear missiles at the United States. But analysts wonder whether he has the resolve to stick to the less glitzy aspects of the job now that he's back home facing a recalcitrant Republican Congress and the Monica Lewinsky inquiry.

''People think it's good that we reached out and talked'' to China, says Everett Ladd of the Roper Center for Public Opinion Research. ''But the fact remains that China is still a very despotic country, and things won't change quickly. We have to keep at it.''

The TV and newspaper pictures of Clinton leaning casually on the Great Wall, debating human rights with the Chinese president, meeting with adoring schoolchildren, listening to the concerns of Chinese dissidents and exchanging toasts in Hong Kong looked terrific to an American public focused more on summer vacations than foreign affairs.

 Even Clinton's opponents at home couldn't argue much with the example of a U.S. president preaching the benefits of democracy on the soil of the world's last remaining communist giant.

As a result, analysts expect Clinton's job-approval and foreign policy ratings to jump in the near term. ''Rarely, if ever, have we had a president so well-equipped with political tools and so assiduous in using them,'' Ladd says.

But there are many who say the president's trip, for all its glitter and glow, will offer only some immediate gratification and produce few lasting effects.

As George Bush found out the hard way after the Persian Gulf War, foreign policy victories have very short shelf lives. Once an overseas crisis ends, Americans want to know what presidents are going to do to make things better at home. No one has learned that lesson as well as Clinton.

Rather than use his weekly radio address Saturday to sum up his visit to China, Clinton touted new federal measures to protect the domestic food supply. On Tuesday he will issue an executive order to broaden access to health care for federal employees.

Wednesday he will host another town meeting on race, and Thursday he will go to Atlanta to launch an anti-drug campaign and raise money for Democrats. These are the kinds of domestic initiatives that have helped keep his poll ratings high.

And what about China? That's now in the hands of Clinton's foreign policy bureaucrats and diplomats working mostly behind the scenes. In a White House that still operates like a political campaign, Clinton aides are downplaying the hard work ahead and trumpeting the immediate success of the trip as seen on television.

They figure that the president succeeded simply by avoiding the disaster many opponents predicted the China visit would be. Some said Clinton shouldn't have gone to China given its dismal human rights record, its rapid military buildup, its threats to neighbors and accusations that its government tried to influence U.S. elections. Clinton, in a Hong Kong news conference that closed the trip on Friday, maintained that he had accomplished his major goal: showing the American public that the United States should engage with China to encourage its slow evolution toward its own form of democracy.

''I don't think anyone who was on this trip could fail to appreciate the remarkable transformation under way in China, as well as the distance still to be traveled,'' Clinton said.

That hasn't quieted House Republicans who say the president avoided serious discussion of nuclear proliferation and other critical issues.

They note that China did not agree to formally join the Missile Technology Control Regime, which bans the sale of virtually all missiles that can carry nuclear warheads. A. James Gregor, a China scholar at the University of California at Berkeley, says Clinton also papered over the worries many of China's neighbors have about its growing military might.

Clinton's failure to take a strong stand on the future independence of Taiwan was a mistake, Gregor says. ''The administration hasn't addressed these things directly, and it ought to.''

Clinton, in his closing news conference, declared that he was convinced that the Chinese government is committed to and capable of moving toward greater freedom for its people. If China sticks to its old ways, those words could come back to haunt him.

By Richard Benedetto and Bill Nichols, USA TODAY

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Clinton Is Back From China Trip

Praises Jiang Zemin as visionary

By Terence Hunt, AP White House Correspondent

HONG KONG (AP) - President Clinton bid farewell to China on the eve of America's Independence Day, saying he believes democracy will come to the communist giant. He praised President Jiang Zemin as a visionary - "the right leadership at the right time."

Clinton said Jiang and Premier Zhu Rongji - who is dismantling massive state-run industries - should "ride the wave of change and take China fully into the 21st century and basically dismantle the resistance to it."

The president's nine-day China journey was the first by an American president since the 1989 Tiananmen Square crackdown. At a concluding news conference, he said there had been a remarkable transformation in the world's most populous nation but there was "distance still to be traveled."

After stops in five cities and plenty of shopping opportunities, the cargo holds of Air Force One and the accompanying press charter were bulging with silks, oriental art, vases and rugs. The trip was good business for China - even if Clinton said he was disappointed by the lack of progress toward lowering China's trade barriers to American imports.

The president and his family arrived at Andrews Air Force Base, Md., outside Washington, early Saturday following a refueling stop in Alaska.

In a minor mishap - perhaps a presidential first - before he left Hong Kong, Clinton and his wife Hillary were stuck on an elevator for 10 minutes after a lightning bolt caused a power surge that knocked out a computer at the convention center. Finally, the elevator doors were pried open and they walked out, cracking jokes about the delay, an aide said.

Concluding his trip to a country that his national security adviser had said was ruled by an authoritarian government, Clinton said, "I believe there can be and I believe there will be" democracy in China. Asked if it might happen in his lifetime, the president said, "I certainly hope so."

Asked when, Clinton said, "That's like saying ... do I believe a woman will be elected president of the United States? I do. Do I think it will be a good thing? I do. Do I know when it will happen? I don't."

Clinton spoke warmly about Jiang, the onetime electrical engineer who climbed the ranks from relative obscurity in Shanghai to be chosen as Deng Xiaoping's successor. Clinton said Jiang, once regarded as a transitional figure, probably will lead China for many years.

"He's a man of extraordinary intellect, very high energy, a lot of vigor for his age or indeed for any age," Clinton said. Further, he said Jiang has imagination and vision and that his partner, Zhu, is "very able."

"So I believe that there's a very good chance that China has the right leadership at the right time and that they understand the daunting, massive nature of the challenges they face," Clinton said.

Just before takeoff from Hong Kong, Clinton was asked whether there might be more frequent meetings between American and Chinese leaders, replying, "If it moves right, it'll go that way." Clinton said that if it doesn't happen during his term, "then under another president."

After causing anxiety in Taiwan and sparking criticism at home with a personal statement about U.S. policy toward Taipei, Clinton said he had not altered America's position.

But he acknowledged that his statement - declaring the United States does not support independence for Taiwan - was "obviously something that the Chinese government agrees with." Critics said the statement weakened Taiwan's hand in negotiations with Beijing, which regards Taiwan as a renegade province.

Clinton said his travels from the largest cities to small villages showed him the different faces of China - a nation moving into the world of cellular phones and the Internet.

"Clearly, China is changing," the president said, "but there remain powerful forces resisting change, as evidenced by continuing governmental restrictions on free speech, assembly and freedom of worship."

He said his uncensored appearances on Chinese television were a sign of confidence by Jiang.

While some critics had urged him not to come to China, Clinton said he still believes that the best approach for handling differences is by "dealing directly, forcefully, but respectfully, with the Chinese about our values."

In a rarity for presidential news conferences, every question Friday dealt with foreign policy - mostly about China but also Northern Ireland, Kosovo and Japan.

Clinton said he felt "personally horrible" about the burning of churches in Northern Ireland, comparing them to the church burnings in the southern United States.

He also said he has been kept updated on the violence in Kosovo and that "the situation is serious." Ultimately the problem must be resolved by dialogue and negotiation, Clinton said. "We have not, nor should we, rule out any options. And I hope that is still the position of our European allies," he said.

Earlier in the day, he warned there was only so much the United States could do to help Asia through its financial crisis. "There is a very limited time period in which we can absorb all the exports to try to do our part to keep the Asian economy going," the president told business leaders.

After avoiding public appearances with Chinese dissidents throughout his trip, Clinton sought to assure them he would press China's government to set all imprisoned dissidents free. "The United States is on your side," he said.

Clinton's remarks came a few hours after he met with pro-democracy Hong Kong lawmaker Martin Lee, who said he wanted Clinton's visit to yield "concrete results" on political reform in China.

The president defended his decision not to meet with dissidents, saying he felt he could be more effective in the long term if he raised human rights concerns directly with the government, "starting with the president."

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Clinton sees improved ties with China

07/04/98- Updated 11:25 AM ET

WASHINGTON - After setting low expectations for his China trip, President Clinton returned home Saturday satisfied that once-sour relations with the world's most populace country at least are getting better, not worse.

Air Force One brought Clinton and his family back to Washington before dawn on Independence Day. And the president was quick to declare that while his nine-day visit put U.S. ties with China on more solid footing, there still are powerful forces in the communist government resisting change.

U.S. officials as well as independent China watchers expressed caution about overstating the results of the presidential sojourn and were reluctant to predict what happens next. It's too soon to tell, the experts agree.

Using a football analogy, they talked about moving the ball forward, not scoring touchdowns.

"I don't think it would be wise to say this opens up a whole new era in China," said Susan Shirk, deputy assistant secretary of state for East Asian and Pacific Affairs.

But she and other administration officials said it was significant that Clinton was accorded unprecedented and uncensored media exposure as he spoke about usually taboo issues such as human rights and Tiananmen Square.

Harry Harding, dean of the Elliott School of International Affairs at George Washington University, said, "The accomplishments were more atmospheric than substantive, and atmospheric accomplishments can be ephemeral."

U.S. and Chinese officials worked hard to create a summit that allowed both leaders to claim success before their domestic audiences.

Indeed, Clinton and President Jiang Zemin both asserted success. In their showcase agreement, the two leaders announced they would not aim nuclear missiles at each other's country.

It was hailed as a big symbolic step - competing with the powerful symbolism of Clinton reviewing military troops in Tiananmen Square in a ceremony evoking the horror of the 1989 massacre of pro-democracy advocates who had rallied in the plaza.

Critics at home grudgingly said Clinton hit some of the right themes and sounded good, but they scoffed there were no major breakthroughs.

"I think any change in opinions about China will be short-lived," said Sen. Tim Hutchinson, R-Ark., sponsor of measures to deny travel visas to Chinese officials involved in religious persecution or forced-abortion policies. "So long as the Chinese government refuses to apologize for Tiananmen and other human rights abuses, it will be very difficult to dispel the image that Americans have of this oppressive regime. I don't think there's any long-term benefit."

Rep. Nancy Pelosi, D-Calif., another tough critic, said the media coverage of the journey "demonstrates just how low the expectations were for this trip.

"So far all we have seen is rhetoric, not results," Pelosi said, adding that Clinton "may have redeemed his visit but he certainly hasn't redeemed his policy."

China hoped the summit would move relations with the United States beyond Tiananmen, but Beijing's insistence on staging the welcoming ceremony there recalled the painful past.

There were other discordant notes. Police detained at least seven dissidents during Clinton's stay, and the government refused visas for three Radio Free Asia reporters. Clinton registered his objections but didn't make a big fuss.

"He chose to carry a small stick and talk eloquently, which I guess is his usual combination, and it seemed to work well for him," said Andrew J. Nathan of Columbia University's East Asian Institute.

Even now, there is still a deep measure of distrust and differing national interests between Washington and Beijing about trade, human rights, free expression, religious tolerance, democracy, Tibet and other issues.

"In general, post-Tiananmen, one can say that the Chinese president - whoever he is - gains when the big honcho of the U.S. of A. comes across the water to pay his respects almost regardless of what happens," Nathan said, "while the American president keeps paying a political price for having to manage the China relationship almost regardless of how well he manages it in the details."

Nathan said the summit's underlying purpose was to change that formula and to allow both leaders to gain points from the relationship. "So, both were winners."

Analysts said China looks at summits in terms of building trust through broad principles and agreements that guide a relationship. The United States, by contrast, looks for concrete progress on substantive issues.

Clinton offered a long list of areas of progress: stability in Asia, protecting the environment, controlling the proliferation of weapons of mass destruction, fighting crime and drugs, science and technology cooperation and rule of law issues. He said they failed to make significant progress on trade.

"Much as Americans love sudden and tempestuous changes of view, they're not going to find gratification in the aftermath of the Clinton mission," said Robert A. Kapp, president of the U.S.-China Business Council. "What will come out over time, though, is whether the images of China beamed back to the United States - of a huge and varied nation undergoing a massive economic and social transformation - will take root in American consciousness of China. Here, it's too soon to tell, but I have a hunch there will be some short- and medium-term fallout."

By The Associated Press

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Chinese protest working conditions

07/03/98- Updated 02:51 AM ET

HONG KONG - Demonstrators marched through Hong Kong on Thursday, burning a U.S. flag before President Clinton's arrival and protesting labor conditions in mainland China.
About a dozen members of the April 5 Action Group burned a small American flag near the U.S. Consulate and called for U.S. companies to improve working conditions in their factories in China.

''We criticize Bill Clinton for talking about human rights and doing nothing about it,'' said Leung Kwok-hung, leader of the group.

Marching from Hong Kong's central business district, the group carried flags saying: ''Stop U.S. businesses in China from creating a workshop of sweat and blood.''

Earlier, 20 other labor activists protested outside the consulate to deliver an open letter criticizing working conditions of U.S. multinational companies in China.

''Workers' rights are people's rights,'' they chanted.

Han Dongfang, leader of the group, handed the letter to an official from the U.S. Consulate and said Clinton ''did not see the real working conditions'' of workers in factories manufacturing U.S. goods.

A report released in Washington in March said conditions for thousands of workers in mainland factories, often owned by middlemen who sell to major labels, were getting dramatically worse.

By The Associated Press

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Clinton talks freedom as China trip ends

07/03/98- Updated 01:31 AM ET

HONG KONG -

One year after China took command of Hong Kong, President Clinton spoke up for freedom and human rights Friday and said this once-booming port city can help "lead Asia out of turbulent times" in financial markets.

On the final day of his nine-day journey, Clinton addressed community and business leaders on the theme of "building stability in Asia for the 21st century."

The White House billed it as the second most important address of his trip, after his Beijing University speech on human rights and the steps China should take in the 21st century.

Ending his trip on the themes that opened it, Clinton said, "Political freedom, respect for human rights and support for representative government are both morally right and ultimately the best guarantor of the stability in the world of the 21st century."

Clinton's address carried a political and economic message of cooperation and trust. "Americans can remember three wars we have fought in Asia," he said.

"We must make it our mission to avoid another." Scolding India and Pakistan for their nuclear tests, he said the two South Asian nations "bucked the tide of history."

With Asia's economy in a tailspin, Clinton said that "too many booming economies, too many new skyscrapers now vacant and in default were built on shaky foundations of cronyism, corruption and overextended credit, undermining the confidence of investors with sudden swift and severe consequences."

He said that Hong Kong, grappling with its own economic woes, "can help Asia out of turbulent times as it contributes to China's astonishing transformation, by providing investment capital and expertise and privatizing state enterprises and sharing legal and regulatory experiences."

Clinton said the future of Hong Kong under China should be one of more democracy, not less, with no intrusions on freedom here. "All this must continue," he said. "I look forward to the day when all of the people of Hong Kong realize the rights and responsibilities of full democracy."

He said some leaders worry that loud voices of dissent "can pull a nation apart," but said he fundamentally disagrees. He said no set of leaders has the wisdom to make all the decisions without hearing opposing views. "Ideas are creating wealth in this economy," the president said.

The president and his family arrived here late Thursday on Air Force One in a flurry of excitement. The president's aircraft was the first passenger plane to land at the city's new $20 billion Chek Lap Kok International Airport. Hours earlier, Chinese President Jiang Zemin dedicated the airport and left; his was the first plane to take off.

Clinton pointedly called Hong Kong "a world symbol of trade, enterprise, freedom and global interdependence."

In a show of support for Hong Kong's pro-democracy politicians, Clinton meets Friday with opposition leader Martin Lee and others among the 20 legislators who won recent elections. The president, though, had no plans to meet an additional 40 legislators who were not selected by a direct vote of the people.

Clinton met over dinner Thursday night with Tung Chee-hwa, Hong Kong's chief executive who was installed by the Beijing regime. In a dinner toast, Clinton looked back over his trip and said he was "profoundly appreciative" to Jiang for helping make his trip to China "a remarkably successful attempt to continue to build our partnership for the future."

And in a message sure to resound in Hong Kong, Clinton said he was encouraged by signs "that we can build together a future that is more stable, more prosperous and free."

Tung, in turn, assured Clinton that Jiang had reaffirmed his commitment to maintain autonomy for Hong Kong, one year after the former British colony returned to Chinese rule after 156 years.

"The central government leaders are determined to ensure the implementation of the basic law," Tung said, referring to the rules under which Hong Kong is administered.

Fears that Beijing would crack down on demonstrators and push political opponents to the margin after the July 1, 1997, transition have so far proved unfounded.

Instead, Asia's sagging economy has eclipsed political concerns.

Tourism is down 20% while unemployment is at a 15-year high. Sharing the woes felt across Asia, Hong Kong's housing values and stock market have declined.

Clinton said that "this present financial crisis, too, will pass, if we work together with discipline and vision to lift the fortunes of our neighbors."

He is the first U.S. president to visit Hong Kong, although he and his wife Hillary visited before they moved to the White House.

White House press secretary Mike McCurry said Clinton would use the occasion of the trip to urge Hong Kong's leaders to increase the rights of voting and universal suffrage that are used for electing members of the legislative council and the position of chief executive itself.

The United States has expressed those views, but officials said Clinton would add his voice to encourage the leadership to deepen the support for democracy in Hong Kong.

The president arrived here after a leisurely boat trip down the Li River in Guilin, among storybook limestone mountains that have inspired artists for generations. He urged China not to sacrifice its already heavily polluted environment for the sake of economic growth.

As Clinton left mainland China, police freed the last of seven dissidents rounded up in connection with his visit. A human rights group said police in eastern Hangzhou released Zhu Yufu after holding him for 48 hours.

By The Associated Press

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Clinton sees 'remarkable transformation'

07/03/98- Updated 04:46 PM ET

HONG KONG - President Clinton bid farewell to China on the eve of America's Independence Day, saying he believes democracy will come to the communist giant. He praised President Jiang Zemin as a visionary - "the right leadership at the right time."

Clinton said Jiang and Premier Zhu Rongji - who is dismantling massive state-run industries - should "ride the wave of change and take China fully into the 21st century and basically dismantle the resistance to it."

The president's nine-day China journey was the first by an American president since the 1989 Tiananmen Square crackdown. At a concluding news conference, he said there had been a remarkable transformation in the world's most populous nation but there was "distance still to be traveled."

After stops in five cities and plenty of shopping opportunities, the cargo holds of Air Force One and the accompanying press charter were bulging with silks, oriental art, vases and rugs. The trip was good business for China - even if Clinton said he was disappointed by the lack of progress toward lowering China's trade barriers to American imports.

The president and his family are arriving back home before dawn on July Fourth.

In a minor mishap - perhaps a presidential first - before he left Hong Kong, Clinton and his wife Hillary were stuck on an elevator for 10 minutes after a lightning bolt caused a power surge that knocked out a computer at the convention center. Finally, the elevator doors were pried open and they walked out, cracking jokes about the delay, an aide said.

Concluding his trip to a country that his national security adviser had said was ruled by an authoritarian government, Clinton said, "I believe there can be and I believe there will be" democracy in China. Asked if it might happen in his lifetime, the president said, "I certainly hope so."

Asked when, Clinton said, "That's like saying ... do I believe a woman will be elected president of the United States? I do. Do I think it will be a good thing? I do. Do I know when it will happen? I don't."

Clinton spoke warmly about Jiang, the onetime electrical engineer who climbed the ranks from relative obscurity in Shanghai to be chosen as Deng Xiaoping's successor. Clinton said Jiang, once regarded as a transitional figure, probably will lead China for many years.

"He's a man of extraordinary intellect, very high energy, a lot of vigor for his age or indeed for any age," Clinton said. Further, he said Jiang has imagination and vision and that his partner, Zhu, is "very able."

"So I believe that there's a very good chance that China has the right leadership at the right time and that they understand the daunting, massive nature of the challenges they face," Clinton said.

After causing anxiety in Taiwan and sparking criticism at home with a personal statement about U.S. policy toward Tapei, Clinton said he had not altered America's position.

But he acknowledged that his statement - declaring the United States does not support independence for Taiwan - was "obviously something that the Chinese government agrees with." Critics said the statement weakened Taiwan's hand in negotiations with Beijing, which regards Taiwan as a renegade province.

Clinton said his travels from the largest cities to small villages showed him the different faces of China - a nation moving into the world of cellular phones and the Internet.

"Clearly, China is changing," the president said, "but there remain powerful forces resisting change, as evidenced by continuing governmental restrictions on free speech, assembly and freedom of worship."

He said his uncensored appearances on Chinese television were a sign of confidence by Jiang.

While some critics had urged him not to come to China, Clinton said he still believes that the best approach for handling differences is by "dealing directly, forcefully, but respectfully, with the Chinese about our values."

In a rarity for presidential news conferences, every question Friday dealt with foreign policy - mostly about China but also Northern Ireland, Kosovo and Japan.

Clinton said he felt "personally horrible" about the burning of churches in Northern Ireland, comparing them to the church burnings in the southern United States.

He also said he has been kept updated on the violence in Kosovo and that "the situation is serious."

Ultimately the problem must be resolved by dialogue and negotiation, Clinton said. "We have not, nor should we, rule out any options. And I hope that is still the position of our European allies," he said.

Earlier in the day, he warned there was only so much the United States could do to help Asia through its financial crisis. "There is a very limited time period in which we can absorb all the exports to try to do our part to keep the Asian economy going," the president told business leaders.

After avoiding public appearances with Chinese dissidents throughout his trip, Clinton sought to assure them he would press China's government to set all imprisoned dissidents free. "The United States is on your side," he said.

Clinton's remarks came a few hours after he met with pro-democracy Hong Kong lawmaker Martin Lee, who said he wanted Clinton's visit to yield "concrete results" on political reform in China.

The president defended his decision not to meet with dissidents, saying he felt he could be more effective in the long term if he raised human rights concerns directly with the government, "starting with the president."

By The Associated Press

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Clinton defends avoidance of dissidents

07/03/98- Updated 05:20 PM ET

HONG KONG - President Clinton defended his avoiding of political dissidents during his trip to China, saying he believed he did more to advance their cause by pressing China's communist leaders directly.

"The United States is on your side and we did our best," Clinton said Friday when asked at a departing news conference whether he had a message for the dissidents.

Clinton said he hoped his visit would prompt leaders to release imprisoned dissidents, including some still in jail for their role in the Tiananmen Square protests of 1989.

"I felt that by going directly to engage the Chinese, starting with the president, and especially taking advantage of the opportunity to have this free and open debate before all the Chinese people, I could do more in the short and in the long run to advance the cause of human rights," Clinton said.

He did meet earlier Friday with Martin Lee and several other pro-democracy lawmakers among the 20 legislators who won recent elections in Hong Kong.

Lee told reporters Clinton's trip had been successful in bringing a new openness in China. But he said he wanted to see more solid steps toward reform both in Hong Kong and on the mainland.

"The door in China has been opened a bit," Lee said. "We in Hong Kong want to see the door open wider. ... We hope to see concrete results of Mr. Clinton's visit - a faster pace of reform in terms of human rights, the rule of law and democracy."

Clinton's decision not to meet with dissidents or pro-democracy activists other than those who are elected officials, particularly when he was in Beijing, drew condemnation from congressional critics and human rights activists in the United States.

"I have continued to raise individual cases, and will continue to do so with the Chinese government and with the president," Clinton said.

"We believe that this strategy is the one most likely to advance the cause of free speech and free association and free expression of religious conviction as well."

Clinton and Lee, who last met in April 1997 in Washington, talked for about 20 minutes. After that session, Clinton met with some of Hong Kong's elected leaders, who said he spent most of the time simply listening to them.

The group included pro-democracy politicians recently voted into the legislature in the first elections since the territory returned to Chinese rule a year ago. Only a third of the legislature was elected by direct popular vote.

Those meeting with Clinton included both critics and backers of Beijing who won election by popular vote in the May 24 election.

Lee and other Democrats say Hong Kong's 6.5 million people have retained most of their freedoms since China regained sovereignty. However, the powerful Hong Kong economy has been dragged into recession by Asia's economic troubles.

Lee said he told Clinton, "If Hong Kong can keep basic values of freedom and democracy, it would be a tremendous help to (the) entire region."

Emily Lau of the Frontier movement said she told Clinton the full legislature and Hong Kong's chief executive must be directly elected.

Tsang Yok-sing, chairman of the pro-China Democratic Alliance for the Betterment of Hong Kong, called the meeting "a clear breakthrough," and said it had "good implications for Hong Kong."

Clinton said he hoped China would reassess its position of some of those still in jail.

"Let me just mention, for example, there probably are 150 people who are still incarcerated as a result of the events in Tiananmen Square who were convicted of nonviolent offenses," he said.

"There are also several people still incarcerated for a crime that is no longer a crime. ... And I suggested that they look at that. So in all that, I would - I will continue to be active."

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A look back at nine days in China

07/03/98- Updated 04:56 PM ET

President Clinton strode a red carpet at Tiananmen Square, then called the murderous 1989 crackdown tragic and wrong. He asked Americans to remember their own flawed history and "respect the enormous challenges China has faced in trying to move forward."

Chinese President Jiang Zemin's rebuttal on Tiananmen was unapologetic: Without the People's Liberation Army's "resolute measures," China would not enjoy stability now.

Clinton totes home a souvenir terra cotta warrior head and historic snapshots of himself appearing uncensored on Chinese talk radio and with Jiang on state TV. But there are no photos of the president with Chinese dissidents or human rights activists. Did his nine days in China - no matter how warm the handshakes, how awesome the sights - salve nine years of American hurt over Tiananmen or pry loose 49 years of communist repression?

Rep. Nancy Pelosi, D-Calif., sniffed that any buzz about Clinton making a breakthrough on human rights "demonstrates just how low the expectations were for this trip."

Clinton countered that democracy activists in Hong Kong said the mere fact that his exchange with Jiang was broadcast across China "might have a bigger impact over the long run on the human rights picture than anything else that happened here."

Other highlights of Clinton's China scrapbook:

FREE EXPRESSION:

Clinton called it the biggest surprise of his trip - the wide and uncensored broadcast on government-controlled media of his news conference with Jiang, his speech at Peking University and a full hour of call-in chat on Shanghai People's Radio. "I did not anticipate being able to have that sort of open, sweeping communication with the Chinese people," Clinton beamed.

David Brown, senior associate at the Asia Pacific Policy Center in Washington, said the press conference was more remarkable to the Chinese, only the second time one of their leaders allowed himself to be publicly questioned.

CHINESE DISSIDENTS:

Clinton, out of concern for their safety he said, turned his back on dissidents' pleas for an audience even as Chinese police tightened their grip. Secretary of State Madeleine Albright argued that Clinton talked to dissidents through his televised speeches and interviews. Seven were arrested - and later freed - during Clinton's tour to keep them from making noise. "In China, we have our laws," said Jiang.

Clinton said he understood China's desire for stability but asked Jiang, without gaining any commitment, to release political prisoners. "He didn't exert any pressure on Jiang," sighed dissident Bao Ge.

WEAPONS TECHNOLOGY:

Clinton won a symbolic agreement for China and the United States to no longer aim nuclear missiles at each other, though they can be retargeted in a matter of minutes. Clinton called the pact a symbol of growing U.S.-China friendship and said "it should make other countries in the Asia Pacific region relax a little."

He acknowledged defeat in not getting a Chinese commitment to join the worldwide system that prevents the exportation of dangerous missile technology, especially to unstable Third World nations.

RELIGIOUS FREEDOM:

Clinton worshipped at one of Beijing's eight government-sanctioned Protestant churches, calling Chinese and Americans "brothers and sisters as children of God." Hillary Rodham Clinton and Albright gave their stamp of approval at a newly restored synagogue in Shanghai. Clinton and Jiang agreed to encourage exchanges among government officials and religious leaders.

TRADE:

Administration negotiators tried for months but failed to make headway on easing trade barriers that limit U.S. access to China's markets and add to the $50-billion-and-growing annual trade deficit. Without market-access agreements, the United States will not permit China's membership in the World Trade Organization.

TAIWAN:

Jiang called the Taiwan question "most important ... in the interest of a smooth growth of China-U.S. relations." Clinton stunned Taiwan by publicly endorsing China's opposition to Taiwan independence.

U.S. diplomats had long made clear the administration does not support Taiwan's membership in organizations such as the United Nations and World Health Organization, which require statehood, but Clinton's pronouncement, standing at Jiang's side, was a public message that "should have been delivered in Taipei, not Beijing," said Brown, of the Asia Pacific Policy Center.

DALAI LAMA:

Teased by Clinton that Tibet is a cultural treasure and the Dalai Lama a likable fellow, Jiang opened the door to talks with the exiled religious leader - as long as he publicly acknowledges Tibet is "an inalienable part of China" and Taiwan is a Chinese province. Official China had previously taken a position of hostility toward the popular Dalai Lama.

RELATIONS WITH JIANG

Clinton's visit, the first by an American president since George Bush in February 1989, appeared to finally repair the breakdown in presidential-level relations after Tiananmen Square. Clinton and Jiang, who had met seven times since 1993, took giddy turns with a baton directing the People's Liberation Army band at a state dinner, easily indulged each other's input at their 70-minute press conference and agreed to hold regular summits. "Our friendship may never be perfect," Clinton said. "But I hope it will last forever."

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Visit draws mixed reactions in Asia

07/03/98- Updated 05:00 PM ET

NEW DELHI, India - President Clinton's visit to China highlighted touchy issues across Asia - perhaps nowhere so much as in India, which bristled at statements Clinton and Chinese President Jiang Zemin made on nuclear weapons.

Tibetans were divided over whether the trip helped or hurt their cause. Japan watched everything warily. South Korea saw the summit as a promising sign for a treaty with North Korea.

India was most alarmed by Clinton and Jiang's agreement not to aim nuclear missiles at each other. "If Beijing decides not to target Washington ... India would be China's prime enemy," Indian Defense Minister George Fernandes was quoted as saying in Jane's Defense Weekly.

Clinton and Jiang also urged India and Pakistan to make "firm commitments" not to deploy nuclear weapons and to sign the Comprehensive Test Ban Treaty, immediately and unconditionally.

India's Foreign Ministry accused Clinton and Jiang of speaking with the arrogance "of a bygone era."

India has been accused of stepping up the South Asian nuclear arms race with nuclear tests in May that longtime rival Pakistan answered with tests of its own. India said it made the move because of security threats from China and Pakistan, with whom India has fought four wars.

Pakistan called on Washington and Beijing to mediate competing claims to Kashmir. India has resisted outside interference in the territorial dispute that has been at the heart of the Pakistan-India rivalry for five decades.

The summit also put the spotlight on Tibet, which China seized in 1950. The Dalai Lama, spiritual leader of Tibetans, applauded Clinton for asking China to begin a dialogue on Tibet.

But other Tibetans announced plans for a demonstration next week expressing concern that Clinton did not press for Tibet's independence.

For Taiwan, Clinton's public reiteration that Washington will not support its entry into the United Nations was seen as a setback to Taiwanese President Lee Teng-hui's drive for greater international recognition. But Taipei welcomed Clinton's pledge to continue arms sales to Taiwan.

In Japan, there was concern that China's ties with the United States were overshadowing Tokyo's close relationship with Washington.

South Korea indicated that improving U.S.-China relations could have a positive impact on the Korean Peninsula.

No peace treaty has been signed ending the 1950-53 Korean War, only an armistice. The United States fought on the South Korean side, while China intervened on behalf of North Korea. The two Koreas, the United States and China have held talks to secure a permanent peace, but the last round broke down in March in Geneva.

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Clinton Remarks in Environment Discussion

U.S. Newswire 2 Jul 15:00

Transcript of Clinton Remarks in Environment Discussion with Chinese Environmental Specialists

WASHINGTON, -- Following is a transcript of remarks made by President Clinton today in a discussion with Chinese environmental specialists:

Seven Star Park Guilin, People's Republic of China 11:00 A.M. (L)

Q: (started in progress) -- the local government to stop the logging. But the local government is so poor, they ask for compensation. And then finally, the central government agreed to give them 11 million RMB per year to stop the logging.

THE PRESIDENT: Good.

Q: So, now, well, for the time being, the monkeys are safe. This is one thing we have done. And I brought with me a picture of the monkeys and will give it to you as a gift.

THE PRESIDENT: Oh, thank you.

Q: So this is the only red-lipped primate besides human beings. And the total number of it is less than 12 --

THE PRESIDENT: My cousins. (Laughter.) How many total number?

Q: Less than 1,200.

THE PRESIDENT: You know, in our country we have exactly the same issue. We have, in the Pacific Northwest and the West -- California, Oregon, Washington -- the U.S., we have -- about 90 percent of our old-growth forest is gone. So now we have a law, a national law on endangered species, and it also protects the forest. And we still have some logging in the forest, but you can't go in and just cut all the trees down, you have to be very careful, tree by tree, as the aging process goes, because I don't know how old the trees are, but these trees in the U.S. sometimes take 200 years for full growth. When our Native tribes were there -- Native American tribes -- they would only cut the trees after seven generations of growth. And, of course, that's not enough for an industrial society. So now, we have pine forest; we just grow them faster. In 20 to 30 years they can be harvested. And we try to get people to stay away from the old growth. So, in this case, as I understand it, the provincial government has the first say, but the national government can come in and stop it.

Q: Yes. And actually, the county government, they own -- they run the state timber companies there.

THE PRESIDENT: What about tree planting projects, who does that? At what level is that done?

Q: Well, at different levels. The central government, local government, and also NGOs are all involved in this tree planting. But tree planting is so slow that all these older forests -- they may have some trees over 400 years old, and all these newly planted trees are so small, there's no comparison with the forest.

THE PRESIDENT: I agree with that. Interestingly enough, we now believe that tree planting may be most important in cities. We just had a study done in the U.S. which shows that a tree planted in a city will take in ten times as much carbon dioxide as a tree planted in the countryside. Now, you say, well, of course, because that's where the smog is. But the important thing is we did not know until this study was done that the tree could take in ten times as much and still process it. I noticed in Shanghai yesterday -- I say this because Shanghai, you know, is growing very fast and they have all these wonderful new buildings -- but I drove to one of the building complexes yesterday to meet a family in their new home and I drove past a lot of the old residential areas, and in all the old areas there were lots of trees -- not only trees down the street, but trees up against the buildings. So we're looking at whether in our country we should be supporting more of these tree planting operations in the cities because they do much more to clean the air than we had thought they did. --------- (In commenting on children's health)

THE PRESIDENT: Well, one of the things I think will really help is your government is moving to ban lead in the gasoline, going to unleaded gasoline. And that will help a great deal. And that's a very forward step. But also children's lungs, they get polluted with all the things in the atmosphere. And, you're right, that will make -- smoking will become, interestingly enough, even more dangerous, more difficult because of all the pollution in the atmosphere. So one of the things that I hope we can do in our partnership with the Chinese government is to work on the technologies that will clean up the air in ways that we have been able to do without hurting the economy. We think there are ways to do that. In fact, one of the things that I hope -- I'm glad we have one business person here because one of the things we have seen is that we have actually created a lot of new businesses for cleaning the environment, and it creates a lot of jobs, provides a lot of opportunity for people to get an education and do this work. ----------

THE PRESIDENT: I believe that China has a unique opportunity because you're developing rapidly, but later in time than other countries, to avoid some of the terrible mistakes we made. And if I could just mention, in the conservation area, our traditional energy use that causes pollution is about one-third in vehicles -- transportation -- about one-third in buildings, both housing and office buildings, and about one-third in factories and in power plants. And I think that if you -- again, in China, it's probably more in factories and power plants -- a bigger percentage -- probably now, but it will come toward these numbers. If you just taken them each in turn, in the vehicles, you have opportunities that, I think, that will come to you because of the development of fuel injection engines, which will take 80 percent of the pollution away, or natural gas-powered vehicles, which, I think, are worth looking at. In the residential areas, yesterday in Shanghai, I spoke to the American Chamber of Commerce in Shanghai, and there on a visit was the businessman who is the head of our homebuilders association in the whole U.S. Just a few weeks ago, we went to California, which has a warm climate like much of China, and we started -- we announced a low-cost housing project for people with modest incomes. And in these houses, they have solar panels that now look like ordinary shingles on the roof and can be produced and sold for very little money, but they save huge amounts of money -- energy. You know, then the power plant can be used to power the country's industry -- if you use it. They have windows which let in more light but keep out more heat and cold. Now, they cost a little more, but over a 10-year period they save huge amounts of energy. All these things could be jobs for Chinese people coming out of the state-owned enterprises. Someone could come in and start making these solar panels that go on the roof, someone should start making these windows. They have light bulbs that cost, in our country, they cost twice as much, but they last four or five times longer, and they don't emit the same amount of pollution. And then, finally, in the manufacturing industries, there are whole businesses in America -- like you said, they make money going into these plants and saying, here are 100 things you can do and you will cut your energy use by 20 percent and increase your profits by 20 percent. And in power plants, in our old power plants, as much as 70 percent of the energy that goes in them, as you know, is lost in waste heat. So now we have huge facilities in America being heated and cooled with the waste heat. I was in a cafe yesterday in Shanghai that had a picture of a famous American basketball player, Michael Jordan. Everybody knows who he is. Almost no one knows that the United Center where he plays basketball is completely heated and powered by waste heat, recovered from the normal electric generating capacity. So these are things that we would like to work with you on, because these are all mistakes Americans made that we had to go back and undo. But since China is now building new factories, building new power plants, building new homes, selling new cars -- if you can do these things in the proper way the first time, you will have undreamed of efficiencies. And it will help the economy, not hurt it. So I thank you for what you're doing.

Q: I'm from the environmental monitoring station of Guilin City. Mr. President, you are very welcome to visit Guilin. Now I'd like to introduce to you the environmental quality situation in Guilin. Since our efforts in the 1970s, the water quality of the Li River has reached a grade two level of the state, that is the drinking water level. And the urban air quality has reached a grade one level. We have two problems. One is the acid rain, because Guilin is in the acid rain area. The second problem is that in the atmosphere there's still a lot of dust and smog, so we need to work hard to improve the situation. In terms of noise, as Guilin is quite an old city and the city proper is quite small, and the roads are quite narrow, so the noise situation is not so good. And of course, today what we hear is the sound of cities, lots of noises. To improve the environment, the people in Guilin have paid a big price since the 1970s. We have closed down or suspended 27 factories polluting the country. And we have also viewed some sewage treatment plants. So now we now the poisonous elements in the Li Jiang River now cannot be monitored -- that is to say, the level has been reduced to a lower level. And also with the development of the tourism industry, more and more tourists have come to Guilin. So these tourists have consumed more energy and leave more waste than the local people do. So we are faced with a problem of the treatment of domestic sewage. And through our efforts over these years, some factories have also set a good example. For instance, Legion Beer Brewery -- they have done a good job in treating the waste water. But still some other factories still need to improve the work in this regard. So I think, Mr. President, your visit to Guilin this time has actually provided us with a good opportunity. We hope that we can enhance the cooperation with American businesses, American science community in this regard. Especially we hope that cooperation can be stepped up in the area of environmental legislation, so that we can further improve our environment, because water and the mountains of Guilin not only belong to Guilin, but also belong to the peoples around the world. So I'm really honored by your presence and arrival today in Guilin.

THE PRESIDENT: One of the things we find -- I'd like to ask Mr. Kong to talk next and then come back to Mr. Zhou, because I want to pursue this. I think it's a very good thing if one business does the right thing here, but if you don't have legislation, sometimes it can be unfair to one business, because if one business does the right thing and the others don't, then the business that's the most responsible could have a hard time making a profit. But if everyone in the province or country has to do it, then everyone is in the same footing. I would like to ask two questions. One is, if you were to adopt legislation, say, limiting the discharge of factories into the water and requiring that it be treated, would it be done at the provincial level or the national level? And two, are there funds available from the national government to help communities like Guilin finance sewage treatment centers for the tourists or for the people who live here? Because 20 years ago in the United States, this was a horrible problem. And I grew up in a little town -- a town not so little, about 35,000 -- that had three lakes. And the lake with the largest number of people living on it and the largest number of tourists was totally polluted. But we could not afford to fix it. But the national government said -- they gave us over time about 65 percent of the cost of it, and we came up with the rest, and we cleaned up the lake. So now the children can swim there. People don't get sick if they ingest the water. But we had to have some help. Where would the laws come from -- provincial or national level? And is there now a fund which helps you with the sewage treatment?

Q: Well, we have national legislation for the limit on the discharge. We actually already have six laws in this regard. The first is the general law; that is the environmental protection law. And we also have water pollution control act, noise control act, marine environment law, and the wildlife protection act, and also air quality protection law. So these laws actually are enacted by the national People's Congress. As for the provincial level, we also have our legislations. Actually, these legislation are specific in accordance with the local conditions. As for the fairness, all the factories are treated as equals. No matter what factory it is, as long as its discharge exceeds the limit imposed by the state, then that factory must be dealt with and penalized. As for the funding, the central government has given us a lot of help in this regard, because in the past the Li Jiang River once was turned into a seriously polluted river with two colors; one is green, the other is red -- very serious pollution. And since the treatment of the water pollution started the central government has allocated several hundred millions of RMB. And as for other sources of funding, they mainly come from the taxation or the charges levied from the factories. And actually these fees collected are also returned to the factories to help them to deal with the environmental problem. So actually these are the sources of funding.

Q: There is national legislation and the provincial legislation. But basically the provincial legislation is based on the administration and the national legislation.

THE PRESIDENT: It can be more stringent.

Q: Can be more stringent. It only can be more stringent.

THE PRESIDENT: But not weaker? That's good, yes.

Q: But funds from the central government, basically the investment for the environment basically is the responsibility for the local government, including fees. The central government gave them a little money. It basically is not a common case. The reason is that -- so in this case the central government gave them some money. But basically it was provided by themselves, locally.

THE PRESIDENT: You actually -- you're a lawyer and you helped to write these laws, right? (Laughter.) So what do you think the next step should be? What is the next most important thing to be done?

Q: I think the central government should provide some additional funding to local government, is my personal will. And -- (inaudible) -- people they share the same idea. But we have some different ideas from the economic people, from -- (inaudible) -- people. So we still have different views and positions on this issue.

THE PRESIDENT: Let me say, in our country there is still a big fight over every new step, because there are always people who are afraid that if we take a new step it will hurt the economy. But in the end -- he talked about the tourists --if you want the tourists to come to Guilin, you have to have a clean environment. If you want a stronger economy, you have to produce healthy children. So at some point we have to see these things together.

Q: The problem right now is the fee or the penalty is too light.

THE PRESIDENT: Too light.

Q: So a lot of our experts suggest to raise the penalty for the polluters.

The President: I think the big problem is there is no community involvement. I went to -- I stayed for over two years; I know in the U.S. the enforcement of environmental law is very important, and U.S. EPA and the local government and NGOs. But there are so few NGOs in China -- -- enforcement of the environmental law, just the government's behavior, not the individual. It's a big problem. So how we can supervise or monitor this process? If a company discharged some polluted water in the night, who will know? It's a great problem. I think the enforcement of environmental law by -- (inaudible) -- involvement is most important in China.

THE PRESIDENT: Do you believe -- let me ask you this - do you believe that most ordinary Chinese people believe that the environmental standards should be raised, that they basically support a strong environmental policy?

Q: I think this public awareness is still not so strong, so public should be educated, make them know they have a right to that.

THE PRESIDENT: That goes back to what Mr. Liang says about educating the public. Mr. Kong, why did you clean up your factory if you didn't have to do it?

MR. KONG: Well, as an entrepreneur, I'd like to say something of my views. While the motive of business is to earn money, make profit, there's no doubt about it, but the modern entrepreneurs must have two responsibilities. One is to create wealth; the second is to adopt advanced technology to protect the environment and ecology. So look back at our experience. We are actually a beer brewer and we use the water Li Jiang River and I think this is the best -- one of the best beers in China. And I believe a lot of American tourists have already tasted that. In the beginning period, the purification process was not very good, our discharge did not reach the level. But at that time, although we made a lot of money, we felt quite guilty because we thought we were kind of destroying the environment. And last year we persuaded our shareholders not to get their dividends, but to just retain the dividends in the company until we set up a discharge treatment plant. And actually after the water is purified and the sewage is processed, the discharge actually can reach or even exceed the state level. So after that we feel quite happy because we really feel that God has blessed us because we are living in such a beautiful environment. So I think everybody, every citizen in Guilin has the responsibility to protect our environment and the beautiful waters and the mountains. And I believe that only with the environment here being protected can hundreds of millions of tourists come here. But I think the tourists should also come to realize that we local people have also paid a big price for that -- to protect the environment. On the other hand, I think there's a problem that has not been resolved yet. As Mr. President, you mentioned that environmental protection actually requires the efforts of everybody, every enterprise, every plant. Only in this way can the planet, can the Earth be really preserved well. So we think we really should enhance the public awareness of protecting the environment. If everybody could do a good job in this regard then there will be no problem in the environmental protection. And also in this regard, I think to protect the environment will require a lot of funding and also a lot of risk-taking courage. For instance, my company, we have invested more than 10 million RMB-yuan in environmental projects, but we have not actually gotten any return from that. So we have to explain to our shareholders why we have done this. And I think in other regard we think that government should also provide some incentives to those factories that have taken these environmental protection measures. For instance, the Guilin government has already subsidized 2 million RMB-yuan to us. So I think, apart from the responsibilities of the general public and also the enterprise, the government should also take some responsibility in this regard.

THE PRESIDENT: I know we have to go out to the program, but I wanted to give every one of you a chance to say -- is there any specific think that you believe that I could do, or the United States could do in partnership with China that would be most helpful to you in what you're trying to achieve? If you were to ask us to go back and work with the Chinese government on one thing that we could do, or with our business people on one thing to be helpful, what would it be?

Q: I would like to make a short comment on communications between the two countries. I think before, the communications between the two countries was limited to government circle. So I think today's roundtable is a significant start in history. We have NGOs invited to attend this important event. You know, NGOs in China is so young and so few. This is a big problem. I wish the U.S. to produce 90 minute TV series which is sponsored by U.S. EPA and the U.S. Information Agency about U.S. environmental movement. So I think the most important thing is -- (inaudible) -- and development of -- (inaudible) -- in U.S.

THE PRESIDENT: So you think, for example, if we could arrange to have some of our leaders of our environmental groups come here and meet with citizens like you, you think that would be helpful.

Q: Yes, sure, so we can widen the NGOs channel to communication on environmental issue. And what we can do -- my organization is the media business and the grass-roots environmental -- we can provide some opportunity, like we can do something. We have a TV program, weekly TV program on China National Television, for over two years. It's broadcast at 1630 Friday, repeated at lunchtime Saturday. It's a countrywide TV program. We independently produce it for over two years. So we will broadcast in the TV series about environmental protection in the U.S. What we want to do is tell Chinese people, don't copy the mistake made by U.S. For example, we focused on some environmental-friendly lifestyle. We tell the Chinese people, don't follow some wrong thing, like too many air conditioners and too many private cars, too many one-time use products.

THE PRESIDENT: One-time use, yes. Yes, I agree with that.

Q: And by this we educate -- sustainable consumption. So I think this by we not only benefit to Chinese, but also benefit to Americans. If we run more communication projects between the two countries, we will encourage, induce the Americans to pay more attention to advocating sustainable consumption, which will help your sustainable production and the sustainable development. We are seeking a training center, an NGO training center. Maybe we can authorize something like a training program for enforcement of environmental law. We'll tell the citizens how to sue a company, polluter, and even how to sue the government if they cannot enforce the environmental law. So we can give them more information. I think they are not the resources available in the U.S. to Chinese. And, of course, we can keep this TV series to keep the Chinese people know by media what America is doing, what we should do. And anyway, I think the communication of the NGOs -- why the NGOs channel is very important. And furthermore, I think that the U.S. comparing with European country and Japan, the U.S. is far behind in providing assistance to China. I think now talking is more than action. I know in China the environmental issue draws more and more attention from Chinese people -- no matter government or NGOs. So I believe that there will be big environmental movement in China in the near future. If Americans don't want to give up this good opportunity, economically, politically, and environmentally, you have to take action now.

THE PRESIDENT: I agree with that. (Applause.) Give that speech to the Congress. Unfortunately, all the people here from my Congress agree with you, but we believe that the U.S. Congress does not give enough aid in these areas. And I think it is a huge mistake, and I'm always trying to get more. So I will take what you said and publish it widely when we get home. You raised another issue that I think is important. We have this rule of law project with China, and my wife met with some people earlier in the week about this. But what happens when you have these environmental laws and the government has to enforce them is you will always have some honest disputes. And so there has to be some way of resolving them. When our environmental agencies impose regulations, if the companies think they're wrong or unfair or they made a mistake or they think they have a cheaper way to do the same thing, well, they have a way to go into the courts and we examine that. So there has to be -- I agree with you, that will be a part of it. What else? Anybody else want to say what you think of that? Yes, Mr. Zhou.

Q: I have a specific suggestion. I assume maybe you can support us to raise the alliance for an energy efficiency challenge and encourage some big leading American company to be the co-initiator with such voluntary activities to protect environment and to do energy efficiency in China. Thank you. ---------

Q: When we try to protect the animals, the monkeys in the province, those people are really poor. And so we have experienced when these people say, you people in Beijing, you live in the houses with heating, electricity, gas, and lighting, and everything. Why should we change? We are moving into your houses and you people come here and live in this forest and see whether you can stop the logging and have a decent life. So I think is basically the rich countries and the poor countries are facing the same problems. But we are facing the problem of we want to develop the economy, but we have so many difficulties here.

THE PRESIDENT: It's an honest problem, too. And in the rural areas in all developed countries, people tend to be poorer. And they have to make their living, they believe, from natural resources. I told you, we had the same problem with the old-growth forests, and we had never handled this very well. So, in 1993 and '94, the Congress adopted a plan that I asked them to adopt to provide extra funds to these communities which were making the money from the logging to try to change the basis of their economy. To be honest, no one knew whether we could do it or not. We didn't know. We thought we could, but we didn't know. But I can tell you now, five years later, the unemployment rate in all those communities is now lower than it was before we started to protect the trees. So over a five-year period, we were able to do this. And I think it requires a lot of effort and some money and a lot of thought and very good, vigorous local leaders -- you have to have local leaders who have confidence and then people who can change, you know. But I think this can be done.

MS. LIAO: If I could just site a specific interest and topic, my organization is women NGOs and the full-time staff are women. We focus on sustainable consumption and the children's education. We public children's environmental guide. We got grant from U.S. EPA to publish 10,000 volumes of this book. Of course, we need more support to donate to every child in China. Every child in China got this book.

THE PRESIDENT: Really?

MS. LIAO: Yes. And by my -- my organization views the women is a very important force in environmental movement because women, sooner or later, a mother, they care for the children's future. So whenever we tell women you have to do something or you choose -- (inaudible) -- they say, oh, terrible, terrible, what we can do, we have to protect the children. So this way, we have many volunteers at my organization of women. And we hold an annual forum on women journalism and the environment. Almost every media organization attended this forum, which was very helpful. We think that, also, women are consumer decision-makers. Women choose environmental-friendly lifestyle, like reduce, recycle -- and reuse. So I would like to, by this chance, I would like to express that hope that we'll promote more cooperation between two countries and women and the environment.

THE PRESIDENT: Thank you. I agree with that. But interestingly enough, as a result of what you're saying -- and that goes back to what Mr. Liang was saying -- I think the more awareness the children have about this, and the more this is taught in school, the better. Because in our country now, I believe that the children are the strongest environmentalists. You know, when I visit a community in America, suppose I -- next week I have to go to Atlanta, Georgia, when I get back -- very often a group of children will meet me at the airport, and they will bring me letters that the children have written. Sometimes they're six years old, these children. Very young. And I always look over these letters to see what they're writing me about. They ask me questions, and sometimes they're, how do you like being President, or something. But there are more letters from children age 12 and under on the environment than any other subject now, for the last several years. So when the children begin to ask their parents about this, when they begin to talk about this at dinner, when it becomes a concern for the children, and then when the mothers are concerned about their health, I think it can change a country. No American official can talk to any group of schoolchildren for 10 minutes without being asked about the environment. It's an amazing thing. The children are sort of out there. Well, I suppose we better go do the program, but this is very helpful. And we have taken careful note of what you have all said, and we will try to follow up. And I admire you all very much, and I thank you for what you're doing. It will help not only the Chinese people, but all the rest of us as well. Thank you. (Applause.)

END 11:45 A.M. (L) -0- /U.S. Newswire 202-347-2770/ 07/02 15:03

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Transcript of Clinton Press Conference July 2 in Hong Kong

July 2 U.S. Newswire 3 Jul 11:50

Following is the transcript of a press conference by President Clinton on July 2 in Hong Kong:

PRESS CONFERENCE BY THE PRESIDENT

Grand Ballroom Grand Hyatt Hong Kong Special Administrative Region 5:23 P.M. (L)

THE PRESIDENT: Good afternoon. I know most of the American journalists here are looking forward, as I am, to returning home for the 4th of July. But I didn't want to leave China without first reflecting on the trip and giving you a chance to ask some questions. Let me begin, however, by thanking the people who came with me who worked so hard on this trip -- Secretary Albright, Secretary Rubin, Charlene Barshefsky, Secretary Daley, Secretary Glickman, Janet Yellen, Mark Gearan. I'd like to say a special word of thanks to all the members of the White House staff who worked so hard to prepare me for this trip, along with the Cabinet Secretaries. I want to thank the congressional delegation, Senator Akaka, Senator Rockefeller, Senator Baucus, Congressman Hamilton, Congressman Dingell and Congressman Markey; and also the staff of the embassy and the consulates. Over the past week, we have seen the glory of China's past in Xian, the vibrancy of its present in Beijing, the promise of its future in Shanghai and Hong Kong. I don't think anyone who was on this trip could fail to appreciate the remarkable transformation that is underway in China, as well as the distance still to be traveled. I visited a village that chooses its own leaders in free elections. I saw cell phones and computers, carrying ideas, information, and images around the world. I had the opportunity to talk directly to the Chinese people through national television about why we value human rights and individual freedom so highly. I joined more than 2,000 people in worship in a Beijing church. I spoke to the next generation of China's leaders at Beijing University; to people working for change in law, academia, business, and the arts; to average Chinese during a radio call-in show. I saw the explosion of skyscrapers in one of the world's most modern stock exchanges in Shanghai. I met with environmentalists in Guilin to talk about the challenge China faces in developing its economy while improving its environment. And here in Hong Kong we end the trip where I hope China's future begins, a place where free expression and free markets flourish under the rule of law. Clearly, China is changing, but there remain powerful forces resisting change, as evidenced by continuing governmental restrictions on free speech, assembly, and freedom of worship. One of the questions I have tried to frame on this trip for the future is how do we deal with these issues in a way most likely to promote progress. The answer I think is clear: dealing directly, forcefully, but respectfully, with the Chinese about our values. Over the past week, I have engaged not only the leadership, but the Chinese people, about our experience and about the fact that democracy is a universal aspiration; about my conviction that in the 21st century democracy also will be the right course practically as well as morally, yielding more stability and more progress. At the same time, expanding our areas of cooperation with China advances our interests -- stability in Asia, nonproliferation, the rule of law, science and technology, fighting international crime and drugs, and protecting the environment. The relationship between our two countries is terribly important. The hard work we've accomplished has put that relationship on a much more positive and productive footing. That is good for America, good for China, good for Asia, good for the world. Now I look forward to returning home and pressing for progress on a number of fronts: passing a balanced budget that makes the investments in education and research we need for the 21st century; expanding health care and providing a Patient's Bill of Rights; pursuing campaign finance reform; protecting our children from the dangers of tobacco. Now, I'd be happy to take your questions, and I'd like to begin with Mr. Bazinet.

Q: Mr. President, from your staff to President Jiang Zemin, this trip has been hailed as a success -- we leaving here with one symbolic agreement. I wonder if you could explain to us what exactly or how exactly you will show your critics back in Congress that you did meet your expectations on this trip. Thank you.

THE PRESIDENT: Well, on the substance, I think we have reinforced our common commitment to regional security, which is terribly important here in the progress I believe can be made in the next several months, in the next couple of years in Korea, and the job we have to do in South Asia with India and Pakistan. We made substantial progress in nonproliferation, not only in detargeting, but in other areas as well. We got a significant commitment from the Chinese to take another step toward full participation in the Missile Technology Control Regime. We had an agreement on the rule of law which I believe practically -- these rule of law issues I think will practically do an enormous amount to change the lives of ordinary Chinese citizens, not only in regularizing commercial dealings, but in helping them with other daily problems that impinge on freedom if they're not fairly and fully resolved. I'm pleased by the science and technology initiative that we signed, which has already produced significant benefits for both our people. I'm very pleased that we now have a Peace Corps agreement with China. And I think we have really broken some ground in cooperation on the environment. And again I say that I think China and the United States will both have heavy responsibilities to our own people and to the rest of the world in this area. I believe that the fact that we debated openly these matters at the press conference of our disagreements is quite important, as well. And I might say that a lot of the democracy advocates from Hong Kong said that they felt that in some ways the fact that we had this public discussion, the President of China and I, in the press conference might have a bigger impact over the long run on the human rights picture than anything else that happened here. I have acknowledged in candor that we have not made as much progress on some of the trade issues as I had hoped, but I also now have a much clearer understanding of the Chinese perspective. I think they want to be in the WTO; I think they want to assume the responsibilities of opening their markets and taking down barriers and allowing more investment. But I think, understandably, since they are also committed to privatizing state-owned industries, they have big chunks of unemployment for which they have to create big chunks of employment. And they want to have a timing for WTO membership that will permit them to continue to absorb into the work force people that are displaced from the state industries. So I have an idea now about how we may be able to go back home, put our heads together and come up with another proposal or two that will enable us to push forward our trade agenda with the Chinese. So, in all those areas, I think that we made substantial, substantive progress. Mr. Hunt.

Q: Mr. President, have you and President Jiang Zemin achieved a constructive strategic partnership that you've talked about? What do you mean by that term, and how can you have that kind of a relationship with a country that you say unfairly restricts American businesses?

THE PRESIDENT: For one thing, I don't think it's the only country in the world where we don't have complete fair access to the markets. We still have trade differences with Japan, which is a very close ally of ours, and a number of other countries. So we don't have -- we can have a strategic partnership with a country with whom we do not have a perfect relationship. I think that -- first of all, let me remind you about what our interests are. We have profound interest in a stable Asia that is progressing. We have a profound interest in a partnership with the world's largest country in areas where we can't solve problems without that kind of partnership -- and I cite India, the Indian subcontinent, the Asian financial crisis, and the environmental challenges we face as examples of that. So I think that our interests are clear and I think we're well on the way toward expanding areas of cooperation and defining and honestly and openly dealing with areas of differences that are the essential elements of that kind of partnership. Mr. McQuillan.

Q: Mr. President, during your news conference with President Jiang, he mentioned that you raised campaign fundraising with him. And I wonder if you could share with us just what ideas you expressed to him. And also, since he said that the Chinese conducted an investigation and that they found the charges were totally absurd, did you suggest that he might want to cooperate with Justice Department and also congressional investigations?

THE PRESIDENT: Let me say, he was interested in a very -- in what I might call a narrow question here, but a very important one, and in my mind, the most important one of all. The question here, the question that was raised that was most troubling was whether people at high levels in the government of China had either sanctioned or participated in the channeling of funds in violation of American law not only into the presidential campaign but into a number of congressional campaigns. That charge has been made. He said they looked into that, and he was, obviously, certain, and I do believe him that he had not ordered or authorized or approved such a thing, and that he could find no evidence that anybody in governmental authority had done that. He said that he could not speak to whether any people pursuing their own business interests had done that. He didn't say that it happened or he knew that it happened. I want to make it clear -- he just said that his concern was on the governmental side. And I told him that that was the thing that we had to have an answer to and that I appreciated that, and that if he were -- if the government of China were contacted by any people doing their appropriate work I would appreciate their telling them whatever they could tell them to help them to resolve that to their satisfaction, because I do think that is the really important issue. Mr. Pelley.

Q: Thank you, Mr. President. Many democracy advocates were encouraged by your trip to China and, in fact, Val Tong (phonetic) granted an interview to test the limits of Chinese tolerance. But, sir, why did you find it impossible to meet with the democracy advocate in Beijing, where it would have had the most impact? And would you feel compelled to intervene personally if Val Tong (phonetic) is arrested after you leave?

THE PRESIDENT: Well, I have continued -- first, let me answer the second question first. I have continued to raise individual cases and will continue to do so with the Chinese government and with the President. I would very much like to see China reassess its position on categories of arrestees as well. And let me just mention, for example, they're probably 150 people who are still incarcerated as a result of events in Tiananmen Square who were convicted of non-violent offenses. There are also several people still incarcerated for a crime that is no longer a crime -- that the Chinese themselves have said we no longer want to, in effect, pursue people who have committed certain offenses against the state under which were basically a rubric for political dissidents. I suggested that they look at that. So in all that, I will continue to be active. On your first question, I did my best to meet with people who represented all elements of Chinese society and to do whatever I could to encourage democratic change. The decisions I made on this trip -- as I remind you, the first trip by an American President in a decade -- about with whom to meet and how to handle it were basically designed -- were based on my best judgment about what would be most effective in expanding human rights. And we'll have to -- I think, at this moment, it looks like the decisions I made were correct, and we'll have to see over the course of time whether that is accurate or not. Mr. Blitzer.

Q: Mr. President, in the days leading up to your visit there was very dramatic testimony in the U.S. Congress about forced abortions -- allegations, reports that there were forced abortions still continuing in China. Did you specifically raise the issue of forced abortions with President Jiang Zemin? And if you did, what did he say to you about this allegation?

THE PRESIDENT: Well, they all say the same thing. They say that is not Chinese policy, that it violates Chinese policy. My view is that if these reports are accurate there may be insufficient monitoring of what's being done beyond the capital and beyond the place where the orders are being handed out to the place where the policy is being implemented. And so I hope by our presence here and our concern about this, which, I might add was -- this issue was first raised most forcefully a couple of years ago by the First Lady when she came to Beijing to speak at the Women's Conference. I'm very hopeful that we will see some progress on this and that those who are making such reports will be able to tell us over the coming weeks and months that there has been some real progress.

Q: But did you raise it with President Jiang?

THE PRESIDENT: We talked about it briefly. But they all say the same thing, Mr. Blitzer. They all say that this is not policy; that they've tried to make it clear -- and I have tried to make it clear that it's something that we feel very, very strongly about. But, as I said, I believe that if, in fact, the policy is being implemented in a way that is different from what is the stated policy in Beijing, we may get some reports of improvements in the weeks and months ahead and I hope we will. Mr. Donaldson.

Q: Mr. President, while you've been in China the ethnic cleansing in Kosovo appears to be continuing. You and the Secretary of State have both talked very firmly to President Milosevic about stopping and it is not stopping. Is there a point at which you're going to move, or is, in fact, this a bluff which he's successfully calling?

THE PRESIDENT: No, I don't think that's accurate. But the situation -- let me say, first of all, I still believe the situation is serious. I still believe as a practical matter the only way it will ultimately be resolved is if the parties get together and resolve it through some negotiation and dialogue. I think that Belgrade is primarily responsible here. But I think that others, when they're having a good day or a good week on the military front, may also be reluctant to actually engage in dialogue. So I think this is something that all parties are going to have to deal with. Now, I have, since I have been on this trip, checked in almost daily on the Kosovo situation and continue to support strongly with our allies continuing NATO planning and a clear and unambiguous statement that we have not, nor should we, rule out any options. And I hope that is still the position of our European allies.

Q: While NATO is planning, people are dying every day.

THE PRESIDENT: They are, Mr. Donaldson, but there is -- the conflict is going on; both sides are involved in it. There is some uncertainty about who is willing and who is not willing to even negotiate about it. And we're working on it as best we can. Mr. Bloom.

Q: Mr. President, if this trip is followed in the days or weeks to come by the piecemeal release of few Chinese dissidents, would you consider that a success? And why not set a deadline for China to release all of its political prisoners? And, if I may, sir, you spoke a minute ago about the powerful forces resisting change in China. Do you believe there could every be democracy here?

THE PRESIDENT: Oh, yes. The answer to the second question is yes. I believe there can be and I believe there will be. And what I would like to see is the present government, headed by this President and this Premier, who are clearly committed to reform, ride the wave of change and take China fully into the 21st century and basically dismantle the resistance to it. I believe there -- not only do I believe there can be, I believe there will be. Now, I believe that, again, on your first question, I think I have to do what I think is most effective. And obviously, I hope there will be further releases. As I said, I would like to see not only targeted, selected high-profile individual releases, which are very important, but I think that the next big step would be for China to look at whether there could be some expedited process to review the sentences of whole categories of people, because that would tend to show a change in policy rather than just the product of negotiation with the Americans. In all fairness, while I very much value the role that I and our country have been able to play here, the best thing for China will be when no outside country is needed to advance the cause of human rights and democracy.

Q: Mr. President, the U.S. policy pushed for a negotiated reconciliation between the People's Republic and Taiwan. But some in Taiwan believe that by endorsing the three no's, your administration has taken away some of the bargaining power that they would need in a negotiation. Did that concern you? Can you tell us why you thought it was important to publicly articulate the three no's policy, when people in Taiwan were saying this would make it more difficult? And also, if you'll forgive me, just a quick two-parter -- as you look back at the ups and downs of your China policy over the past six years, have you ever had occasion to regret the very tough and sometimes personal words you had on the subject for George Bush in 1992?

THE PRESIDENT: Let me answer the Taiwan question first. First, I think there may be difference of opinion in Taiwan. Yesterday, the Taiwanese leader, Me. Lee, said that the United States had kept its commitments not to damage Taiwan or its interests in any way here. I publicly stated that because I was asked questions in public about Taiwan, and I thought it was an appropriate thing to do under the circumstances. But I did not announce any change in policy. In fact, the question of independence from Taiwan, for example, has been American policy for a very long time and has been a policy that has been embraced by the government in Taiwan, itself. So I believe that I did the right thing there to simply clarify to both sides that there had been no change in our policy. The substance of the policy is obviously something that the Chinese government agrees with. I think what the Taiwan government wants to hear is that we favor the cross-strait dialogue and we think it has to be done peacefully and in an orderly fashion. That is, I believe, still the intention and the commitment of the Chinese government. So I didn't intend, and I don't believe I did, change the substance of our position in any way by anything that I said. I certainly didn't try to do that.

Q: And about what you said --

THE PRESIDENT: Oh, I'm sorry. I forgot. Well, let me go back and try to retrace the steps there. I think that at the time -- you may have a better record of exactly what was said and what wasn't -- I felt very strongly that the United States should be clear and unambiguous in our condemnation about what happened nine years ago, at the time. And then we needed to have a clear road going forward which would attempt to -- not to isolate the Chinese, but would attempt to be very strong about how we felt about what happened and would, in essence, broaden the nature of our policy. What I felt was that in genuine concern to maintain a constructive relationship with China, for security reasons and for economic reasons, that we didn't have high enough visibility for the human rights issue. I believed that then; I still believe that. I think any President would say that once you've served in this job you understand a little bit more the nuances of all policies than you do before you get it. But I believe, on balance, that we have a stronger human rights component to our engagement strategy than was the case before, and I think that is quite important. Mr. Maer.

Q: Mr. President, during your trip, at least in the first cities you visited, we saw a sort of passion release program of human rights dissidents. And, of course, thousands of others are still in prison in labor camps. Since you did not meet with them, sir, what would your message be to those who wanted to meet with you? And to follow up on your response to an earlier question, why is that you feel that it would not help their cause to have sat down and met with some of them?

THE PRESIDENT: Because I believe over the long run what you want is a change in the policy and the attitude of the Chinese government on whole -- not just on this, that, or the other specific imprisoned dissident or threatened dissident -- although those things are very important. I don't want to minimize that. I'm glad Wei Jingsheng is out of jail. I'm glad the bishop is out of jail. I'm glad Wang Dan is out of jail. I think these things are important. But what I am trying to do is to argue to the Chinese government that not because we're pressuring them publicly, but because it is the right thing to do -- the right thing to do -- that the whole policy should be changed. And after all, our relationships have been characterized, I think, by significant misunderstanding, including the misunderstanding of the Chinese of our motive in raising these issues. And so I felt that by going directly to engage the Chinese, starting with the President, and especially taking advantage of the opportunity to have this free and open debate before all the Chinese people, I could do more in the short and in the long run to advance the cause of human rights.

Q: The other part of the question is, is there some message to these individuals that you'd like to send them?

THE PRESIDENT: My message is that the United States is on your side and we did our best. We're on the side of free speech. We're on the side of not putting people who dissent in prison. We're on the side of letting people who only dissented and exercised their free speech out of prison, and that we believe that this new, heretofore, unprecedented open debate about this matter will lead to advances. We think that it's going to take a lot of discipline and a lot of effort, but we believe that this strategy is the one most likely to advance the cause of free speech and free association and free expression of religious conviction, as well.

Q: A question from the Irish Times. I understand, Mr. President, that you have been following events in Northern Ireland very closely during your trip and that you telephoned party leaders from Air Force One yesterday and you spoke to them about the prospect of serious violence this weekend -- Could I ask you, what would you say to those on the opposite side of the dispute at this time, and also, about the burning of ten Catholic church in Northern Ireland? And could I ask you, too, is there any prospect of you visiting Ireland this year now that the Northern Ireland elections are behind us?

THE PRESIDENT: Well, yes, I did call Mr. Trimble and Mr. Hume to congratulate them on the respective performances of their parties, and the leadership position that -- this was right before the elections -- I mean, the election for leadership -- but that we had assumed Mr. Trimble would be elected and that either Mr. Hume or the nominee of his party, which turned out to be Mr. Mallon, would be selected as the First Deputy. And I wanted to talk to them about what the United States could do to continue to support this process and, in particular, whether there was anything that could be done to diffuse the tension surrounding the marching season and, especially, the Drumcree March. And we had very good, long talks. They said they needed to get the leadership elections out of the way. They wanted to consult with Prime Minister Blair, who had been up there, and with Prime Minister Ahern, and that we would agree to be in, more or less, daily contact in the days running up to the marching date in the hope that that could be done. I think it's very important that the people of Ireland give this new assembly a chance to work -- people of Northern Ireland. And I think it would be tragic indeed if either side felt so aggrieved by the ultimate resolution of the marching issue that they lost the bigger picture in the moment. I think that is something that must not happen. Obviously, I feel personally horrible about what has happened to the churches. In our country, we had this round of church burnings in the last few years and during the civil rights days, we had a number of bombings of black churches, which really reflected the darkest impulses of some of our people at their worst moments. And I would just plead to whoever was responsible for this for whatever reason, you need to take the churches off the list, and you need take violence off the list.

Q: Mr. President, this morning you mentioned the new package of Japanese banking reforms and said you welcomed them. Do you believe that those reforms and other domestic financial measures will be sufficient to stem the slide of the yen and prevent the Japanese economy from going deeper into recession, perhaps spreading fear in China and elsewhere in the region and to the United States?

THE PRESIDENT: Well, the Japanese economy has been at a period of slow to no growth for a period of years now. And of you look at the dislocation here in Hong Kong, for example, you see what regional ramifications it has if Japan slows down; and you have the problems in Indonesia and Korea and Thailand and elsewhere. I will reiterate, I think that the Chinese have done a good thing by maintaining the stability of their currency and not engaging in competitive devaluations. I hope they will continue to do that. But I don't think anyone seriously believes that the financial situation in Asia can get better and that, therefore, we can resume global growth in a way that won't have a destructive impact on the United States and other countries unless Japan can grow again. We all have a vested interest in that, as well as our best wishes for the people of Japan. Now, I'm encouraged by the fact that the Prime Minister announced this program and announced it several days before he had originally intended to. And I think what the markets are waiting for now is some action and a sense that if it turns out that the implementation of this program is not enough, that more will be done. It is not rational, in my view, to believe that the Japanese economy is met to contract further. This is an enormously powerful, free country, full of brilliant people and successful businesses and staggering potential. And this is almost like a historical anomaly. Now, we know generally what the elements of the problem are. But what I hope very much is that as soon as these elections are over, there will be a strong sense of determination and confidence not only on the part of the Japanese government, but the Japanese people, and that the rest of us will do whatever it is we have to do to support their doing whatever they have to do to get this turned around. But we have a huge stake in getting Japanese growth going and I think that it can be done because of the fundamental strengths of the Japanese people and their economy. But I think that it's going to take some real concerted action. And if the first steps don't work, then you have to just keep doing more. You just have to keep working through this until it's turned around. It's not a situation like the Depression in the United States in the '30s, which took, literally, years and years and years to work out of because we had fallen so much below anything that they're facing now. And we didn't have anything like the sophisticated understanding or the sophisticated economy or capacity in the '30s that they have now. So I think we can get through this in a reasonable amount of time, but the rest of us, including the United States and China, need to have both good wishes and determination for Japan and just understand, however, that there's a limit to what we can do until they do the things that they have to do. But I think after this election, we may see a little more moment there.

Q: Mr. President, you spent considerable time with President Jiang Zemin this week both in public and in private. I wonder if you could give us your assessment of him not only as a strategic partner, but as a leader and as an agent for change in China.

THE PRESIDENT: Well, first of all, I have a very high regard for his abilities. I remember not so many years ago, the conventional wisdom was that he might be a transitional figure. And after I met with him the first time I felt very strongly that his chances of becoming the leader of China for a sustained period were quite good because he's a man of extraordinary intellect, very high energy, a lot of vigor for his age, or indeed for any age. And I think he has a quality that is profoundly important at this moment in our history when there's so much change going on. He has a good imagination. He has vision; he can visualize; he can imagine a future that is different from the present. And he has, I think, a very able partner in Premier Zhu Rongji, who has enormous technical competence and almost legendary distaste for stalling and bureaucracy and just staying in the same path the way -- if it's not working. So my view is that the potential we have for a strategic partnership is quite strong. However, I think that like everyone else, he has constituencies with which he must work. And I hope that more of them are now more convinced that we can build a good, positive partnership as a result of this trip. I hope more of them understand that America wishes China well; that we are not bent on containing China, and that our human rights policy is not an excuse for some larger strategic motive. It's what we really believe. We believe it's morally right and we believe it's best for them, as a practical matter, over the long run. So I believe that there's a very good chance that China has the right leadership at the right time, and that they understand the daunting, massive nature of the challenges they face. They want us to understand that there is much more personal freedom now, in a practical sense, for most Chinese than there was when President Nixon came here or 10 years ago. But I think they understand that this is an unfolding process and they have to keep going. And I hope that we can be a positive force there. Yes, go ahead.

Q: Following up on that, do you consider that the three televised appearances were in part a personal expression of gratitude from President Jiang to you?

THE PRESIDENT: I don't know about that. I think that it might have been -- I think it was a personal expression of confidence in the goodwill that we have established to build the right kind of relationship. But, more importantly, I think it was a personal expression of confidence that he could stand there and answer questions before the people of China that might come not only from Chinese press, but from ours as well. So I wouldn't say gratitude; I think confidence is the right answer. But I can tell you everyplace I went after that -- you know, when I came down to Shanghai or when I flew over to Hong Kong, lots of lots of people I met with mentioned it to me, that it really meant something, that it changed the whole texture of what had happened. And I think that we did the right thing. And I'm certain that he did the right thing.

Q: Ambassador Sasser said earlier this week that he believes that communism in China will end. You just said now that democracy will come to China. What is the time frame for that? Will it happen in your lifetime?

THE PRESIDENT: I certainly hope so. (Laughter.) That's like saying -- I don't mean to trivialize the question, but let me give you -- do I believe a woman will be elected President of the United States? I do. Do I think it will be a good thing? I do. Do I know when it will happen? I don't. Who will make the decision? The American people. As I said, I believe that leaders of vision and imagination and courage will find a way to put China on the right side of history and keep it there. And I believe that even as -- when people are going through changes, they may not believe that this is as morally right as we do. But I think they will also be able to see that it is in their interest to do this, that their country will be stronger, that when people have -- if you look at just the last 50 years of history in China, and if you look at the swings back and forth, when Mao Tse Tung was alive and you were letting a thousand flowers bloom, and all of a sudden there was a reaction -- you know -- and there was the Cultural Revolution and then there was the reaction, nd we liked the reaction of that. Then there was Tiananmen Square. If you want to avoid these wild swings where society is like a pressure cooker that blows the top off, then there has to be some institutional way in which people, who have honest grievances -- even if they're not right -- not all the critics will always be right all the time, just like the government, the official won't always be right all the time -- but if there is a normalized way in which people can express their dissent, that gives you a process that then has the integrity to carry you on more of a straight line to the future, instead of swinging back and forth all the time. It is -- the very ability to speak your mind, even if you think you can't prevail, is in itself empowering. And so, one of the things that I hope is that -- the Chinese leaders, I've always been impressed, have an enormous sense of history and they're always looking for parallels and for differences. It's a wise thing. Our people need to understand more of our own history and how it may or may not relate to the moment and to the future. And if you think about -- one of the things that, if I were trying to manage this huge transition -- and I'll just give you, parenthetically, one thing, -- the Mayor of Shanghai told me that in just the last couple of years 1.2 million people had been displaced from state industries in Shanghai and over one million had already found other jobs. That's just in one area of the country. If you're trying to manage that sort of transition, one of the things that I would be looking for is how I could keep this thing going down the track in the right direction and not have wild swings and not be confronted with a situation which would then be unmanageable. So that's what I hope has happened and where I hope we'll go. Mr. Knoller, I'll take your question and then I'll go -- you guys may want to shop some more. (Laughter.)

Q: Mr. President, if constructive engagement is the right policy in your view for dealing with China, why isn't it an appropriate policy for dealing with other countries -- say, Cuba?

THE PRESIDENT: That's not the question I thought you were going to ask -- (laughter) -- I mean, the example I thought you were going to give. I think each of these has to be taken on its own facts. In the case of Cuba, we actually have tried -- I would remind you -- we have tried in good faith on more than one occasion to engage Cuba in a way that would develop the kind of reciprocal movement that we see in China. Under the Cuban Democracy Act, which was passed by the Congress in 1992 and signed by President Bush, but which I strongly supported during the election season, we were given a clear road map of balanced actions that we could take and that Cuba could take. And we were, I thought, making progress with that map until the people, including American citizens, were unlawfully shot out of the sky and killed. That led to the passage of the Helms-Burton law. And even after that, after the Pope went to Cuba, I took some further actions, just about everything I'm empowered to take under the Helms-Burton law, to again increase people-to-people contacts in Cuba, to empower the church more with our support as an instrument of civil society, and to send a signal that I did not want the United States to be estranged from the people of Cuba forever. I do believe that we have some more options and I think Cuba is a case where, because it's close to home and because of the position we occupy in the region, our policy has a greater chance of success. But even there, you see, whatever policy you pursue you have to be prepared to have a little patience and work with it and hope that it will work out in the long run. But nothing would please me more than to get some clear signal that Cuba was willing to be more open and more free and more democratic and work toward a common future, and join the whole rest of the hemisphere. You know, in our hemisphere every country but Cuba is a democracy, and I would like the see -- nothing would please me more than to see some rapprochement between the people of our two countries, especially because of the strong Cuban-American population in our nation. Thank you very much.

END -0- /U.S. Newswire 202-347-2770/ 07/03 11:57

From US Newswire

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Clinton confident about Asian economy

07/02/98- Updated 01:32 PM ET

HONG KONG, China -

Praising China's capitalist center of trade and enterprise, President Clinton expressed confidence Thursday that Asia will overcome its economic troubles caused by weak currencies.

"This present financial crisis, too, will pass if we work together with discipline and vision to lift the fortunes of our neighbors," the president declared after arriving in this high-rise business haven.

He was the first U.S. president to visit Hong Kong while in office and Air Force One was the first passenger plane to land at the city's new Chek Lap Kok International Airport. Chinese President Jiang Zemin had dedicated the airport earlier and his was the first plane to take off.

Clinton, whose nine-day tour of China ends Friday, declared his trip an eye-opening experience that has convinced him the United States and China are headed toward a successful diplomatic partnership.

"All this was encouraging and made me believe that we can build together a future that is more stable, more prosperous and free," he said at a dinner hosted by Hong Kong's chief executive.

In a separate meeting with Tung Chee-hwa at Government House, Clinton told him: "We are poised now to do some important things together."

Tung, in turn, assured Clinton that Jiang had reaffirmed his commitment to maintain autonomy for Hong Kong, one year after the former British colony returned to Chinese rule after 156 years.

"The central government leaders are determined to ensure the implementation of the basic law," Tung said at the dinner, referring to the rules under which Hong Kong is currently administered.

"We are confident that China will be more open, more prosperous and will play an increasingly important role in world affairs," he added.

China has repeatedly vowed to maintain autonomy for the bustling city, whose skyscrapers are monuments to Western-style capitalism.

Fears that Beijing would crack down on demonstrators and push political opponents to the margin after the July 1, 1997, transition from British to Chinese rule have so far proven unfounded. Instead, the Asia financial crisis is the former colony's most prevailing concern.

Clinton, in a show of support for Hong Kong's pro-democracy leaders, is scheduled to meet Friday with Martin Lee, the de-facto opposition leader who was among 20 legislators who won recent elections.

The president, though, had no plans to meet another 40 legislators who were not selected by a direct vote of the people.

His meetings with democratic leaders, including Lee, are private and will be closed to photographers - a restriction critics consider a bow to Beijing's sensitivity over Clinton's visit.

But the White House insisted the president's "normal practice" is to exclude the press from meetings with opposition leaders when he travels abroad. "These are private meetings," said Jim Steinberg, Clinton's deputy national security adviser.

As Clinton left mainland China, police freed the last of seven dissidents rounded up in connection with his visit. A human rights group said police in eastern Hangzhou city released Zhu Yufu after holding him for 48 hours.

By The Associated Press

From USA Today

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Clinton urges environmental protection

07/02/98- Updated 11:30 AM ET

GUILIN, China -

Stopping in a place the Chinese consider one of the most beautiful on Earth, President Clinton urged China Thursday to begin cleaning up its massive pollution problems.

As he winds up his historic visit to China, Clinton took in the breathtaking sights of the stark limestone mountains that shroud the Li River running that runs through the heart of this village. And Clinton saw some examples of Chinese environmental reforms, including clean-water and reforestation projects.

But Clinton also offered future U.S. cooperation as he urged China to continue to face up to a problem that has major repercussions for its future. Respiratory illnesses are the leading cause of death in China, and China contains five of the 10 most polluted cities in the world.

"I believe that China has a unique opportunity because you're developing rapidly, but later than other countries, to avoid some of the terrible mistakes we have made," Clinton told a roundtable of said during a round-table meeting with local environmentalists.

Later Thursday, Clinton will travel to Hong Kong. He'll spend just over a day there before ending the first trip to China by a U.S. president since 1989.

In an interview Wednesday with Chinese state television, CCTV, he again hailed China's "genuine movement toward openness and freedom."

The White House had pushed for the CCTV interview because as it allowed Clinton a fourth occasion to speak uncensored to the Chinese people.

CCTV aired a portion of the interview Wednesday evening and planned to run the rest Thursday, after Chinese and U.S. officials agreed on a translation. The interview was conducted in English.
Clinton repeated most of the major themes of his visit in the 20-minute session with two CCTV anchors.

The session took place on the 26th floor of Shanghai's stock exchange, where Clinton was cheered by young traders when he visited Wednesday morning.

Asked whether anything he had seen during his nine-day, five-city visit to China had surprised him, Clinton said Chinese President Jiang Zemin's decision to allow their joint news conference on Saturday to be televised live was unexpected.

"I did not anticipate being able to have that sort of open, sweeping communication with the Chinese people," Clinton said. "I think the press conference President Jiang and I had will be viewed as historic for a long time to come."

Clinton's speech Monday at Beijing University also was carried live on state television and radio, and he took part in a popular radio call-in show on Tuesday.

After his visit to the Shanghai stock exchange, which opened in 1990, Clinton had lunch Wednesday with a group of young entrepreneurs. He told them that it would be difficult for China to survive the closings of state-owned enterprises unless "people like you are providing jobs."

Clinton then visited with Yu Jinyuan, a resident of Jin Hui Gardens. Several families have become first-time homeowners at the four- and six-story garden apartments and no longer rely on state-owned apartments.

Clinton began his day with a speech to U.S. business officials in Shanghai. He praised the "ingenuity and energy" of a Chinese economic system that is rapidly moving toward capitalism.

By Bill Nichols, USA TODAY

From USA Today

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Clinton has large entourage in tow

07/02/98- Updated 07:52 AM ET

SHANGHAI, China -

This was a novel sight for the usually unpopular White House press corps: As reporters left Beijing Monday night, the staff of the Shangri-La Hotel stood in the driveway and applauded.

The tribute seemed an act of friendship. But others in China may be clapping when President Clinton's enormous entourage leaves this country Friday night, allowing at least five Chinese cities to get back to normal.

For all the accomplishments of this first visit to China by a U.S. president since 1989, China has had to accustom itself to a truly gigantic White House traveling circus. Aides say the party numbers well more than 1,000 people. With all the gear, they fill a half-dozen aircraft, including Air Force One, the president's jet.

Combined with the efforts of the Chinese government to clean up for Clinton's nine-day trip, which ends Friday in Hong Kong, it's hard to blame some of the Chinese people for saying "Enough already."

"So much inconvenience. Why is he coming anyway?" said Zhang Long, 31, a security guard in Xian, China's ancient capital and Clinton's first stop.

In Xian, stores and schools closed early before Clinton's arrival last week. Curfews had been put into place twice before Clinton's visit in Xian's Old City to clean up streets. Video parlors were shut down so Clinton wouldn't see pirated U.S. videos being sold. Locals said a steamroller was brought in to crush more than 30,000 pirated video discs.

"There's no need to impose this curfew. We are not at war with somebody," Long said. "When I'm off work, I can't even go home."

But it is the size of Clinton's traveling party that has at times seemed to overwhelm even the world's most populous country.

Here in Shanghai, the hotel where the first family stayed had only six elevators for 37 floors. Given the size of the White House party, it often took 15 to 20 minutes to get an elevator.

Aides are very skittish about telling the exact number of the White House entourage, particularly because some members of Congress already are complaining about how effectively tax dollars are being used. Some estimate this trip cost taxpayers $40 million.

White House spokesman Mike McCurry says the delegation was always meant to be large because of the wide range of issues under discussion with the Chinese. "By design, we included a large number of Cabinet and sub-Cabinet officials because of all the work going on behind the scenes," he said.

The lowdown:
Clinton aides say 200 to 300 administration personnel are on the trip, a number that includes first lady Hillary Rodham Clinton, Chelsea Clinton, five Cabinet secretaries, White House chief of staff Erskine Bowles and a 30- to 40-member entourage for each Cabinet member.

For the White House alone, the trip roster includes 35 members of the official delegation and 35 support staffers, including stenographers and press office personnel.

The media account for another 375 to 400 people, each member of the press paying about $15,000 apiece to fly on the media charter, stay in hotels and use the temporary offices set up as filing centers, which become a home away from home for journalists perpetually on deadline. The government does not subsidize the cost of the trip for journalists.

White House aides say this press corps is the largest of any Clinton foreign trip. And that number doesn't even include the correspondents and crews that are based in China all the time.

Six members of Congress, all Democrats, are on the trip. That's three senators: Max Baucus of Montana, Jay Rockefeller of West Virginia and Daniel Akaka of Hawaii; and three House members: John Dingell of Michigan, Lee Hamilton of Indiana and Edward Markey of Massachusetts.

Asked why the delegation consisted of Democrats, McCurry said that was because "Republicans have been expressing themselves very vigorously," meaning many Republicans on Capitol Hill have criticized Clinton's China policy or urged him not to take the trip.

The rest of the U.S. traveling show is harder to pin down because it's made up of military personnel and Secret Service agents who don't like to reveal their numbers.

McCurry acknowledges that there may be people who shouldn't have come or who haven't carried their weight. But he says that the manifest was actually winnowed down by deputy White House chief of staff John Podesta, and that such an important, complicated trip needed the best the government had to offer.

"This is not just the president coming over to meet with (Chinese President) Jiang Zemin," McCurry said.

"This is the United States government . . . and we brought a lot of our government with us."

By Bill Nichols, USA TODAY

From USA Today

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Bomb exploded on eve of Clinton's trip

07/02/98- Updated 07:45 AM ET

BEIJING -

A bomb exploded in Tibet's capital on the eve of President Clinton's visit to China, blowing out windows in buildings near the police headquarters, a monitoring group reported today. Unconfirmed reports put the number of injured at three or four.

The bombing was the first in the Chinese-ruled Himalayan region in 18 months, and may signal renewed separatist attacks by militant Tibetans despite appeals for nonviolence by the Dalai Lama, Tibet's exiled leader.

The explosion occurred June 24 near the Public Security Bureau building in Lhasa, the London-based Tibet Information Network said in a statement sent by e-mail to the AP office in Beijing.

After the blast, police closed streets in the northern Lhasa neighborhood until the next morning, the group said. It was not known who was responsible, and casualty and damage reports were impossible to confirm, the monitoring group said.

Lhasa police spokesman Dan Zeng and a government spokesman who gave his name as Mr. Wang said they were not clear about what happened and refused to provide information. A worker at the Silver Bridge Hotel near the site said there was an "incident" on June 24 but could not provide details.

It could not be determined whether the bombing was timed to coincide with Clinton's trip.

Clinton had promised to press Chinese leaders on Tibet, and in discussions Saturday with President Jiang Zemin urged China to reopen negotiations with the Dalai Lama. Jiang told reporters the Dalai Lama must first recognize Beijing as Tibet's sovereign.

Foreign Ministry spokesman Tang Guoqiang reiterated Jiang's conditions today, apparently rejecting a statement by the Dalai Lama's spokesman in India on Monday saying the Tibetans were ready for talks.

The Dalai Lama has condemned violent tactics to protest Chinese rule and has said he seeks autonomy for Tibet, not independence.

Chinese soldiers seized Tibet in 1950, the year after the Communists took power in China. After an abortive uprising in 1959, the Dalai Lama led more than 100,000 Tibetans into exile.

By The Associated Press

From USA Today

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Remember Tiananmen Square. I do

Yes, pursue ties with China -- but don't forget its brutal ways

By Richard Zhang

Time flies. Memories fade. Possibly, many of us are forgetting what happened nine years ago in Tiananmen Square in the heart of Beijing, China. But for me, the blood, the yelling and the gunfire keep on flashing back in my memory. I was there.

In 1989, I was a student leader in the Tiananmen Square protests in favor of democracy that so outraged the Chinese government. I witnessed my friends die at the hands of the military; I consider myself lucky to have escaped alive.

Nine years is such a long time. I have tried to forget, tried to look forward to tomorrow and tried to think positively. Yes, there are encouraging changes in China. Millions of Chinese have risen from poverty, and the Chinese people are enjoying more freedom compared to a decade ago. China is growing quickly and is becoming a major player in the world. President Clinton's visit to China is a worthwhile attempt to repair the relationship between two countries.

However, the great number of changes that are still needed keep me from forgetting my memories of the brutality of nine years ago.

The government with which President Clinton is dealing is the same government that ordered the killing nine years ago.

This government still lives by the philosophy that power comes from gun barrels.

This government still locks up thousands of brave Chinese who have fought long and hard for freedom and democracy. 

In fact, today the Chinese government is proud of -- and even celebrates -- the stability achieved by the massacre at Tiananmen. 

The enforced silence of the Chinese people after the Tiananmen massacre is not the definition of stability. This type of stability is illusory. The Chinese people's thirst for democracy has not been quenched. 

It is indeed ironic that the Chinese government should tout "stability" as its foremost goal, for it is the Communist government in China that has repeatedly drenched its people in disaster, upheaval and all measures of instability over the past 50 years. 

Yes, we are facing a new century. But before we step forward, there is a choice for the American people: 

Shall we engage with a strong China that remains a bloody dictatorship -- or with a strong China undergirded with freedom and democracy? The United States must use its influence to pursue the latter goal. 

Richard Zhang lives in Shadyside, Pittsburgh, PA. He came to the United States in the early 1990s and completed a master's degree. He is seeking political asylum.

From The Pittsburgh Post- Gazette

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Clinton to get back to the issues in Hong Kong

By Stephen Weeks

HONG KONG, July 1 (Reuters) -  Fresh from a day of playing tourist, U.S. President Bill Clinton gets back to the hard issues of human rights and business after arriving in Hong Kong on Thursday for the last leg of nine-day state visit to China.

Jetting in from China's scenic Guilin region, Clinton was to land at Hong Kong's new US$20 billion airport at Chek Lap Kok, the first foreign head of state to use the showcase facility.

Security, already heavy for the visit, was being tightened after police on Tuesday night ran off three men near the venue where Clinton will meet U.S. business leaders.

One tripped as police gave chase and spilled a bag of weapons. He scooped up two handguns and ran on, leaving a bullet behind.

The incident took place at the Convention and Exhibition Centre, where China's President Jiang Zemin was to join a gala dinner on Wednesday to celebrate the first anniversary of Britain's return of its colony to China.

Clinton was scheduled to meet Beijing-appointed Hong Kong leader Tung Chee-hwa on Thursday to discuss Asia's economic crisis, which has hit Hong Kong full-force in recent months.

Diplomats said Clinton would also review developments in Hong Kong since Britain yielded the territory of 6.6 million people on the south China coast to China last July 1.

He was expected to raise a number of concerns with Tung, such as possible erosion of the rule of law, a planned sedition law and rampant compact disc piracy in the territory.

"We certainly hope no pattern is being formed ... by several recent, highly publicized court cases which created uncertainty about whether the law is being applied equally to all," U.S. Consul General Richard Boucher said in a recent speech.

Clinton was expected to raise concern over a planned sedition law, seen by pro-democracy activists as the most serious threat to freedom of expression since the change to Chinese rule.

"We share the concern expressed by Hong Kong journalists and others that the new law should not limit freedom of expression," Boucher said, noting Washington would monitor the coming debate on the sedition law closely.

But diplomats said Clinton would also praise Hong Kong at the end of his China trip as a showcase for what the mainland could achieve if it pursued its economic reforms, and accepted the need for political reforms and democracy as well.

Since its return to Chinese rule, Hong Kong has staged the first multi-party elections in China and let protests go ahead condemning a 1989 army massacre of pro-democracy activists near Beijing's Tiananmen Square -- the first such protest in China.

In another example of differences between mainland China and Hong Kong, a protester burned a picture of Jiang in front of police in a Hong Kong street on Tuesday, an act which would be unthinkable in mainland China.

One difficult task in organizing the Clinton visit was arranging a meeting with Hong Kong pro-democracy leader Martin Lee, but Lee was expected to get the private meeting he demanded.

Lee, an outspoken critic of Tung and the Beijing leadership, led Hong Kong's pro-democracy camp to a stunning comeback win in legislative elections in May.

But pro-democracy politicians, ousted from the legislature after China regain sovereignty last year, secured only 20 seats in the 60-seat chamber because of a stacked electoral system.

Diplomats said Clinton was wary at first of meeting alone with Lee and appearing to support his claims of being the only truly elected leader in Hong Kong, a dig at Beijing-appointed Tung.

But it became clear Clinton would be hammered in the media if he dodged a private meeting with the popular pro-democracy leader, who will press his case for full direct elections in Hong Kong.

From Reuters

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Transcript of White House Press Briefing by McCurry, Steinberg

WASHINGTON, July 1 -- Following is a transcript of a White House press briefing held today by Press Secretary Mike McCurry and Deputy National Security Adviser Jim Steinberg:

       Portman Ritz-Carlton Hotel
      Shanghai, People's Republic of China
      1 July 1998 17:48

 MR. MCCURRY: Good afternoon, ladies and gentlemen.  I'll do one or two program notes and some future travel that I need to get on the record so that your news organizations can sign up for future travel, and then I will turn the podium over to someone more learned than I.  First, the President was delighted to have another opportunity to address the people of China through Central China Television.  We were able to arrange an interview with the President that was conducted at the Stock Exchange earlier today.
  The President did an interview that last about 20, 25 minutes.  My understanding is that it is going to be promoted tonight on the evening primetime broadcast of Central China Television, CCTV, because they are dealing with a lot of news from Hong Kong and President Jiang Zemin's visit.  It then will air, if possible, in its entirety, at least most of it, tomorrow, and on CCTV-4 will be replayed in its entirety tomorrow.  My understanding is that CCTV is making the feed of that interview available to you and they will do what is customary in the States; they'll allow you to use up to two minutes of it at your discretion for your own broadcast purposes, and they're also making a transcript of it available.

Q: Is it in English?

MR. MCCURRY: The President conducted the interview in English and the translation, the interpretation of the interview, was gone over by U.S. and CCTV interpreters and they agreed on a joint interpretation so there wouldn't be any question about the quality or the veracity of the interpretation.

Q: Did he make any news, Mike?

MR. MCCURRY: That's for you to judge, not for me to judge.  But the answer is no.  (Laughter.)  I'll describe it for you.  I think -- Bill, you were -- where is Nichols? You were in on it; so Bill, in the pool report, you'll get his assessment of it.  But it was another opportunity for the President in a very direct, but I think a very sensitive way to make the argument for freedom and democracy in a way that he thought would most resonate with the Chinese people.  And he was very pleased to have the opportunity to do that and pleased to do it in a format that will clearly reach scores of millions of people here in China.  All right, I'm going to run through a bunch of travel dates.  I don't have a clue what we're doing on any of these trips, but I'll give you what I'm told I must read here.  The President will travel to Little Rock, Arkansas, July 17th through 19th.  He'll spend private time with family and friends.  There may be a local political fundraiser down there; no official events planned.  He departs from Little Rock for New Orleans.  He will be in New Orleans, Louisiana, July 19th through 20th, arriving the evening of the 19th.  He will address the American Federation of Teachers Convention on the morning of the 20th and may have some other events as well.  The President of the United States of America will travel to Norfolk, Virginia, July 25th for the dedication of the USS Truman.  He will then depart from Norfolk for Aspen, Colorado.  The President will go to Aspen, Colorado July 25th and 26th, arriving in the afternoon of the 25th, and will participate in a DNC dinner.  He will stay overnight in Aspen, attend a brunch and depart Aspen to Albuquerque, New Mexico, Albuquerque, New Mexico, nearby Sam Donaldson's God's country, July 26th through 27th.  The President will arrive the evening of the 26th.  He will RON in Albuquerque on the 26th, participate in the Social Security Conference.  This is the regional fora about long-term entitlement reform that the Concord Coalition and the AARP are doing together.  The next session is in Albuquerque on July 27th.  He'll do some political chores down there, as well; wouldn't miss that opportunity.  The President of the United States will go to the Hamptons July 31st to August 2nd, for a DNC dinner and DNC reception and a Saxophone Club reception; returning to D.C.  The money people go to the Hamptons during the summer months, so the political people go...

Q: ...says it's a long dinner, two days.

MR. MCCURRY: It's a long dinner.  (Laughter.)  It's a rough crowd.

Q: Why is he traveling so much?

MR. MCCURRY: Why is he traveling so much?  Because he enjoys getting out of the rather sulphurous atmosphere of Washington during the summertime.

Q: Guess who will be testifying then.

MR. MCCURRY: The Deputy National Security Advisor to the President of the United States, Mr. James Steinberg.

Q: Is this the end of your briefing or will you be back afterwards?

MR. MCCURRY: I don't know, what do you plan for me?  I'll come back after Jim's done.  I don't want to hold Jim up any longer.  Jim Steinberg would like to tell you a little bit about the President's trip tomorrow to Guilin.  And then he is available for other subjects, too.  You can set up Hong Kong if you want to.  Whatever.  But that and other subjects.  It's a delight to have him here.

MR. STEINBERG: It's a pleasure as always. Well, speaking of sulphurous atmospheres, tomorrow the President is going to highlight our efforts in working with China on issues of energy and the environment.  I think all of you will have noticed over the course of the last five or six days that even though tomorrow is a focused effort on the environment, that this is an issue which is very much on the President's mind.  I think one of the clearest and most powerful indications of that was his remarks at Beida, where he told the audience that he was going off script because he wanted to talk a little bit more about the environment, about the challenges that China faces, and about the opportunities that it presents for cooperation between the United States and China.  And again, you will have heard this morning the President in talking about economic issues, about the importance of the environment and his conviction, one, that it is a very serious problem for China; this is a country that has five of the 10 most polluted cities in the world, that has very serious air pollution problems, very serious problems with water, both in terms of water scarcity and water pollution, and these are problems which not only affect the health of the people of China, where respiratory disease is the largest cause of death, but also has implications for the global environment, not least of which is on the issue of climate change and greenhouse gases.  And the President, I think, is very much aware, as are the Chinese, that the Chinese must be a part of any solution to global environmental problems.  While the United States is currently the largest emitter of greenhouse gases, in the next 20 years China will become the largest emitter.  And so if we're going to have any kind of solution to issues like global climate change, China needs to be a part of that.  So we will go to Guilin tomorrow, which is at the heart of one of the most beautiful parts of China, the Li River, which I have not yet seen but am looking forward to.  And we will have a chance, the President will have a chance, to meet with a number of environmental experts, both Chinese national experts and some local individuals involved in the environment.  And I'll say a word in a minute about those individuals who will be there.  He will, as I say, meet with these individual experts to learn more about the issues that China is facing, and then he will give remarks, talking about our own approach and our efforts with the Chinese.  As part of that, the President will announce several of the projects that we are engaged in with China, including working with them to provide assistance to their nationwide air quality monitoring network, which for those of you who have been with us will know, is a quite important issue; and also the $50 million Ex-Im loan for clean energy projects, a contract to develop coal-bed methane resources, and an oil and gas industry forum to promote cooperation between our two countries.  We'll also launch a series of exchanges between our experts on global climate change working within the framework of the Vice President's energy and environment forum to try to make progress on the climate change issues.  I think that it's fair to say that while the challenges that China is facing are enormous, that there has been a real sea change in attitudes here.  I think that if you have heard Mayor Xu over the last couple of days and heard from the Chinese themselves, that there is a growing awareness of the fact that the environmental problems require attention.  Just recently Beijing has banned leaded gasoline, for example.  Their efforts to upgrade home cooking and home heating issues where there's a lot of soft coal being used; and one of the most prominent features of the nightly news on television stations throughout China are reports on air quality.  One of the things that's important about that is that it is citizens themselves are now becoming empowered and active on environmental issues.  And there is a growing number of environmental NGOs in China, many of whom are working with NGOs in the United States to try to develop effective strategies of involving citizens.  And so, in many ways, this environment discussion tomorrow will connect up to a lot of other themes that you've heard about civil society and about the growing role of citizens in affecting their lives.  Let me just briefly describe a couple of the individuals.  There will be a group of both, as I say, national experts and some local officials.  And there may be some additional ones to the ones that I'm going to describe to you, but I have at least some of the individuals here.  We'll put out the names tomorrow if you need specifics, but let me just briefly touch on so you get a sense of the kinds of individuals.  Ling Con Jie, who founded Friends of Nature, which is one of the first and best known environmental groups in China.  He's a retired university professor and environmental activist.  Zhang Hong Jun, who's an environmental lawyer who is now working for the National People's Congress on environmental issues and environmental legislation.  Liao Xiaoyi, who is the founder of the Global Village Cultural Center.  She's a woman who has focused on a number of the issues involved with women in the environment.  She has recently traveled to the United States to film a documentary on environmental issues.  Dr. Ding Zongyi, who is an expert of the effect of pollution on Children's health.  Dr. Ding is the chairman of the Chinese Medical Society.  Zhou Dadi is an expert on energy efficiency and is a member of the Intergovernmental Panel on Climate Change, which is the international group of scientists who basically came up with a consensus conclusion that human activities were a factor in global warming.  And, finally, at least one of the local individuals will be there is a gentleman named Kong Fanjian, who is the founder and president of the Guilan Liquan brewery, which has its own positive environmental implications.  (Laughter.)  But one of the things he is most noted for is in his own industrial techniques and the equipment the he uses, he pays particular attention to the environmental side effects, for example, in terms of waste water and the like.  So the President will be briefed by these individuals and he'll give remarks and talk about the challenges before us.  I think that, as I say, it really is a reflection of the growing sense of citizens being able to be active here, a theme that you've heard through a variety of issues, whether it's consumer issues, whether it's legal issues; the sense in which there is beginning to be a grass-roots throughout China which can be a very important factor for change.  Just to briefly preview going into Hong Kong, which I gather you'll all arrive in extremely late tomorrow evening, we will have a chance both to meet with the government, the executive branch officials, C.H. Tung and Ansin Chan, the senior civil servant, to discuss the efforts there, one year after the reversion; and also, the following day, to meet with the democratically-elected leaders and some of the other elements of civil society in Hong Kong to show the fact that the United States continues to be active and involved and concerned about preserving Hong Kong's autonomy and strengthening democracy there.  So let me stop with that and take your questions.

Q: Why is the meeting with the democratically-elected leaders of Hong Kong closed to our cameras?

MR. STEINBERG: Normally when we meet with officials like that, it's kind of standard.  For example, we met with Gerhard Schroeder, the opposition candidate in Germany, recently.  That's the normal practice; these are private meetings.  Most of our private meetings with the officials are closed to your cameras.  I don't think that's particularly unusual.

Q: Any chance of getting some brief excerpts tonight?

MR. STEINBERG: We're going to work on that.  I don't know whether we... it depends a little on getting things finalized.  But I understand the deadline issue and if we can do it; my guess is tonight is going to be very difficult, but it may be possible for first thing in the morning.  I understand the difficulties.  And I'm not ruling it out.  We will make best efforts; that's all I can say.

Q: Are you planning to meet Dai Qing or any of the other environmentalists who are considered sort of dissidents?

MR. STEINBERG: Well, I think you'll see that this is a very active and outspoken group.  We are not meeting with Dai Qing on this, although it's interesting, we just heard from Dai Qing just the other day, who made a remarkably warm and positive statement, I wrote it down, but I can't seem to find it here, about the President's remarks in Beijing, and how she said her heart was warmed by what she heard and saw.  And so I think this is somebody, again, we have a broad range of people here and we can't get everybody into this, but we're certainly in contact with her.

Q: But, Jim, there have been times when the President has met with opposition leaders in which you've allowed a camera to record that event.  With Martin Lee and others who were involved in the democratic movement in Hong Kong so sensitive to this...

MR. STEINBERG: There will be a photograph.  We almost never do anything more than a photograph.  I've been with a number of meetings with Martin Lee with other U.S. officials.  This is more or less our standard practice.  This is a chance to have the President talk to Martin Lee.  We don't usually have these meetings before cameras.

Q: Are you going to meet all the 20 members of the democratically elected legislature or are you selecting...

MR. STEINBERG: It's not all the 20, but there are a number of them.  And there will also be members of sort of part of the broader civil society, like some legal officials and the like to give sort of a cross-section of those democratic forces in Hong Kong.

Q: On the Hong Kong meeting, are you meeting only with people who are elected through the direct elections and excluding any of the 40 legislators who were chosen through...

MR. STEINBERG: We are not meeting with any of the 40 legislators who were chosen either by the special assembly or by the functional groups.  But there will be other, non-elected individuals in the second meeting.  There is a separate meeting with Martin Lee, followed by a broader meeting with a broader group which has other individuals in society.  But none of them are of the 40 that were not directly elected.

Q: On the environment, the U.S. has said it won't sign the Kyoto Protocol unless it gets developing countries, like China, to make commitments as well.  In the events it seems that the only thing that's emerging are expert level meetings.  Is that enough?  What's the state of play and movement towards getting China to make commitments for things like the Kyoto protocol?

MR. STEINBERG: Just a minor initial correction.  What we said is we will not submit the treaty for ratification.  We've not said we wouldn't sign it, but we would not submit the treaty for ratification unless there was meaningful participation by developing countries.  This is clearly a process and we are engaging now with China because, as I said and the President has said a number of times in this trip, given China's role and the impact of emissions from China, there cannot be a solution to the global climate change program without a very active involvement with China.  There are lots of different ways that that meaningful participation can be achieved.  We have not said that we expect developing countries to have the same kinds of limits that developed countries have taken on.  But, clearly, if there isn't some kind of way in which countries like China take measure that will affect their global greenhouse emissions we cannot solve this problem.  And so one of the things, for example, these clean energy projects are things that will have an impact on reducing China's emissions.  We need to have, clearly, a package of activities from China and other developing countries, it's not just China, that will really have an impact.  And we're not rigid in terms of the specific mechanism, but it clearly has to be something that we can conclude will really begin to address the program.  That's what we're working on.  We're clearly not there yet, but we need to do more and this is an important step.

Q: ...issue of an eventual commitment with the Chinese government and how did they respond?  What's your read of their response?

MR. STEINBERG: Again, I mean, what he said is that we don't seek to have identical commitments or necessarily the same kind of commitments.  But we do need to have meaningful steps so that if you look at the global greenhouse gas emissions that there is an effect on global warming.  And we're prepared to engage in a dialogue with them in terms of how they would take on those things, whether it's a collection of different kinds of steps or one overall step, I think it's too soon to judge.  But he very much engaged in this discussion with President Jiang and with Premier Zhu Rongje and it's been very much at the top of his mind throughout this trip.

Q: The question was asked yesterday, but I think Mike McCurry was confused.

MR. STEINBERG: It's not possible.  (Laughter.)

Q: All right.  The question is about whether the President has any plans to meet with Mr. Wang Dao-han, Jiang Zemin's mentor, and also China's top man for conducting cross- strait talks with Taiwan, in light of the President's interest in encouraging China to resume the dialogue with Taiwan?

MR. STEINBERG: I would not anticipate the President would meet with Mr. Wang.  He's clearly an important element of a process which we're very supportive of and that's something that we obviously stay in touch with individuals who are involved in that process.  But I would not anticipate the President would meet with him.

Q: Another question.  In the past, you have been involved in conducting what you call unofficial conversations with Taiwan's NSC director, Mr. Ding Mou-shih.

MR. STEINBERG: I don't know what could possibly have given you that impression.

Q: Well, are you going to do it the same after this summit, because of the concern that Taiwan has expressed over the President's statement of the so-called three no policy, one China policy?

MR. STEINBERG: We have a variety of unofficial contacts with the officials in Taiwan and I expect we will continue to do so.  We have a very transparent relationship with them and we think it's very important that they are very familiar with what we're doing, what our plans, what our objectives are.  and in a variety of ways we will have opportunities to make that clear to them, including through AIT, which is obviously an important channel for us.

Q: If the policy is transparent, why can't you say whether you will be doing it?

MR. STEINBERG: Because I have no particular plans at the moment, but we have a variety of contacts, and we will continue to have them.

Q: On the CCTV interview again, could you just tell us a little bit about how that interview came about, who requested it?

MR. STEINBERG: Can I defer that to Mike, because I have sort of a secondhand knowledge of it, but I'll just... that will sow confusion if I try to answer the question.

Q: Jim, do you have any better sense tonight as to what happened in Iraq with the Iraqi surface-to-air battery painting up the British planes?

MR. STEINBERG: David, I heard Secretary Cohen's, I don't know whether it was a press conference or just a statement, earlier today, and I think he pretty much accurately reflected what we know, which is to say that the Tornados were illuminated; operating under our standing rules of engagement, we responded to that.  We do not have any particular reason to believe that this is more than an isolated incident, but why this particular radar illuminated the aircraft at this time I just can't speculate on because we don't have a basis with which to do it.  But we have not seen other instances of it. There are no other, and just as the Secretary said, we're not seeing SAM sites being moved or other kinds of activities that have been associated in the past when there have been greater periods of tension.  So I think it's pure speculation at this point to try to guess what the basis for the decision to illuminate.  But the Tornados were painted and we responded.

Q: What's the final authoritative and true version of when the President was informed about this?

MR. STEINBERG: I know the President was informed yesterday.  I believe it was in the early evening.  I don't have the exact time.

Q: Back to Taiwan, in one of the three communiqués, I think the U.S. commits itself to reducing arms sales to Taiwan.  As a result of this, and I think Beijing has for some time protested that the U.S. hasn't, in fact, done this, is there an intention now for the U.S. to begin reducing arms sales to Taiwan?

MR. STEINBERG: I wouldn't put it in those terms.  I would say that we will continue to sell arms to Taiwan consistent with our law and with the three communiqués.  Our arms sales are exclusively defense and for the legitimate defensive needs of Taiwan.  And that is something that we will continue to do.

Q: Have the Chinese lived up to the second part of that communiqué, which is that they have to adopt a peaceful perspective on unifying with Taiwan?

MR. STEINBERG: The Chinese say that their goal is peaceful reunification.  We have obviously indicated that we would like them to renounce the use of force, which they have not done.  So in terms of the positive side of what they claim their policy to be, they would be consistent with the communiqués, but again, what we would like to see is a renunciation of force and a commitment to subscribe exclusively to peaceful means.

Q: If they renunciate force would we stop ourselves?

MR. STEINBERG: I'm just not going to speculate on that.  I think that we continue to sell arms consistent with what we believe are the legitimate defensive needs of Taiwan, consistent with the three communiqués and our law.

Q: ...China renouncing the use of force... did the President ever get to talk about that to President Jiang during their meeting?

MR. STEINBERG: The President talked in great detail about these issues and reiterated our longstanding positions.  He didn't say anything different.

Q: ...reiterate that point?

MR. STEINBERG: Absolutely.

Q: To follow up on that, what do you mean then that you will reduce arms sales to Taiwan?  On the one hand, you say you're going to continue the sales because they're only defensive; on the other hand, you have this commitment to reduce arms.  How do you square the two?

MR. STEINBERG: We look at the overall situation and we look at the communiqués in the context of what the situation is and what the legitimate defensive needs of Taiwan are.  We're convinced that those are consistent with the communiqués.  And it's a judgment call that we have to make, but it's our judgment that that is consistent with our obligations.

Q: So then do you ever see the United States in fact reducing arms sales to Taiwan?

MR. STEINBERG: I think what we're focused on, which is the first step of this process, is we'd like to see reduced tensions between the two.  I think we're obviously encouraged by signs that there is a greater resumption of cross-strait contacts, and I think that that will be the place in which the impact will be felt first.

Q: Is there anything more in the CCTV interview about Taiwan tonight?  And if so...

MR. MCCURRY: No.

Q: Jim, one last one on informing the President.  Does the President feel he was informed satisfactorily promptly on this matter, eight hours after the fact?

MR. MCCURRY: The President was fully satisfied with the performance of the National Security Advisor and the Deputy National Security Advisor.  Given the nature of the incident, the first question the President would want an answer to is what do we know about the reasons for the incident.  And they were quite unclear for some time after the incident.

Q: Linda Tripp is testifying before the Washington grand jury.  Has the President expressed any concern or worry about that?

MR. MCCURRY: The President has been concentrated on one trip, and it's China, not Linda.  (Laughter.)

Q: Oooh!

Q: I'd like a follow-up.  Let me just ask a follow-up.

MR. MCCURRY: I'll come back to you, Sam.

Q: On Taiwan, did he ever mention, of this issue of the many Chinese who are smuggled into the U.S. to seek political asylum on the basis of...

MR. MCCURRY: I think that Mr. Steinberg addressed most of those issues.  I'm here to kind of clean up on anything else we have.

Q: Yes, I had a question about the CCTV interview.

MR. MCCURRY: Yes.  Prior to departing for China, you'll recall the President did a roundtable with a number of Chinese journalists.  It was our sense that because of editing pressures, that interview didn't get as full coverage as it might have on China television, and we had expressed that to the Chinese side.  They initiated a request to us two days ago through our embassy here, indicating that they would like another opportunity to interview the President, and they would like to do it in a format that would allow his conversation to be carried unedited at least on one of the CCTV channels and mostly in its entirety, subject to the restrictions of the program Focal, which is a short primetime news program on CCTV-1.  Consistent with what the President has been doing on this trip, reaching out to the Chinese people and making the case for our view of the synergy that exists between political freedom, freedom of expression, and economic modernization, it was an opportunity to carry that message further, and we were delighted to accept the opportunity.

Q: If I could just follow up, considering the translation problems and the transmission problem with the Beida speech...

MR. MCCURRY: That's why we did it in English.

Q: Is the embassy aware of whether a full transcript, properly translated, has been made available to the Chinese?

MR. MCCURRY: You may have missed me say that one of the things that CCTV agreed to was to go over the interpretation that will be used of the audio version, and I think on one of the two channels, I'm not sure which, they will use Chinese characters.  And the interpretation of the President's remarks has been done in a way that's satisfactory to our side and has been reviewed by a U.S. government interpreter.  By the way, I looked into the other issue.  The question of whether or not the interpretation of the President's Beijing University remarks was a good and accurate one, that's a source of a great deal of strong counter-arguments on the part of those who heard the translation and listened to it carefully.  All up and down our interpretive services and language division folks who have looked at it, they are confident that the interpretation was a good one.

Q: Mike, but was it an empathetic interpretation?

MR. MCCURRY: I don't speak Chinese, so I have no way of knowing.

Q: What did they say about that?

MR. MCCURRY: They thought it was an excellent translation.  There were technical problems involved with it, so you couldn't hear it a some point, but that's not the same as having any problem with the translation itself.

Q: Did you insist that it run unedited and in its entirety?

MR. MCCURRY: We wanted... we indicated that was our desire.  Now, the problem is the interview ran, it was clocked initially to fit a segment that they've got on CCTV-1 during a program called Focal, or that's what the English edition is.  The President ran a little bit over and I understand they're going to try to get the whole thing on, even though it falls... it will go somewhat longer than what the normal time clock is for that particular program.  On one of the other channels, it will run in its entirety.

Q: Has the President made the decision of whether to voluntarily answer a request to testify?

MR. MCCURRY: Sam, there's nothing new for me to report on that subject.

Q: Can you tell us a little bit about the private activities of the President?  For instance, last night, the Mayor hosted a dinner.  We didn't know about it.  I learned about this reading the local newspaper.

MR. MCCURRY: Well, you should have checked the pool report.  The pool that was representing the people in this room who was with the President reported on the dinner to the satisfaction of the pool last night.  And we have had some, what we call off-the-record events that those in the room that are familiar with OTRs, know what that's all about and they can help you if you don't understand that concept.  But the President will do an OTR tonight and I think most of you know what it is.  I'm not going to talk about it here on the record.

Q: Will the President be making any kind of statement about the importance of democracy in Hong Kong, and if so, what can we expect to hear him say?

MR. MCCURRY: He will talk about the transition one year after the fact, the importance we attach to freedom of expression and the ability to express ones political beliefs, and the nature of the transformation that's occurred one year later.  He'll do that, I believe, and he's got at least one public setting where he's got a chance to do that.

Q: He won't have a chance to hear him use the democracy?

MR. MCCURRY: I'm not going... I don't know what word he will use, but I wouldn't, until I look at the speech and take a look at what he's going to say, I don't want to speculate.

Q: On the issue of the meeting with Martin Lee, I can understand why there's not going to be any open coverage of the whole meeting, but what about just a photo-op at the top of the meeting?

MR. MCCURRY: I'll look into it, but I think Mr. Steinberg answered that as well as that can be answered at this point.

Q: Local people are complaining that the American Consulate General shut down their visa service for a whole week just because the President is here, because of short of hand.  Do you care to comment on that or take this question?

MR. MCCURRY: Well, having succeeded Mr. Boucher at the State Department as spokesman, I'm fully aware of the capacity of our Counsel General to address questions from the press, so I'll defer that to him.

Q: Mike, can I get at the issue which sort of underlies the photo-op, which is, it seems as if the administration...

MR. MCCURRY: I understand the issue that underlies it and I can't help you and there's no point in us arguing about it here.

Q: Mike, I'm not arguing about it.  I'm saying...

MR. MCCURRY: Just ask your question.

Q: Thank you.  Is there an attempt by the United States not to offend the Chinese government by downplaying this visit with Martin Lee?

MR. MCCURRY: That's been asked and answered.  Mr. Steinberg said that when we meet with opposition figures, we very rarely do photo opportunities.  We reserve photo opportunities by and large for meetings with heads of state; heads of government, as you know.  When we meet below that level, we very rarely do photo opportunities.  I think everyone here knows that.  That's our practice at the White House.  That's certainly our practice when we're overseas.  He cited a recent experience in Germany, and I don't have anything beyond that to add what Mr. Steinberg has already said.

Q: Mike, I'm not asking about the photo op.  I'm saying is there an attempt by the United States not to offend the Chinese government sensibilities when you go to Hong Kong?

MR. MCCURRY: There's an offense -- there's a desire by the United States to conduct our diplomatic work here consistent with what our goals and objectives are diplomatically and consistent with protocol.

Q: Just to look ahead a little bit, his domestic travel schedule seems to be sending the message that he doesn't think much is going to get accomplished in Congress this year, and he might as well go and raise a bunch of money and take it to the voters in November.

MR. MCCURRY: Well, I gave you a couple of dates, mostly for convenience purposes and planning purposes and to make things easier for you during the summer when a lot of you want to plan vacation.  I did you the courtesy of giving you some travel dates.  I don't think I'd read a lot more into that.  Obviously, from the schedule I just gave you, he's in Washington many more days than he's out of town.

Q: Mike, can you tell us again when you think that this CCTV interview will air and when we'll see a transcript of it?

MR. MCCURRY: We think that we're going to be able to get the feed available to you sometime in the next several hours.  It will be available; the transcript we hope will be available in and around that same time.  They're negotiating right now any embargo that they'd like to have on it, but I think since they want to promote it on their show tonight and defer the full interview until tomorrow that we sort of said should make it available for broadcast now.  And Nichols was there, so if you want to get a better...

Q: But it's your understanding that it will air tomorrow?

MR. MCCURRY: It's our understanding that they're airing it tomorrow because they're loaded up with President Jiang Zemin's visit to Hong Kong today.  And obviously we'd rather have as much time as possible available for President Clinton's remarks.

Q: Mike, the First Lady has done a number of events with the Secretary of State.  Is that a deliberate show of women in power doing something here or...

MR. MCCURRY: No, it's a happy coincidence that the First Lady, who's actively involved in so many issues can be joined with the Secretary of State who happens to be of the same gender.

Q: You folks have asked the Chinese government to try and take some steps to remedy the Asian financial crisis.  They're lowering interest rates today in Beijing; is this part of a coordinated effort to move in that direction?

MR. MCCURRY: I think just as we would make decisions on monetary policy based on structures that exist to make those decisions with our own economy, decision-making on sensitive financial matters like that by the People's Republic are surely theirs alone to make.

Q: -- you aware of --

MR. MCCURRY: I know a little bit about it and I know enough to know that they would be acting based on their own independent decision-making.

Q: Does the United States have a position on whether the schedule for increasing the directly-elected proportion -- is correct -- because Lee says it should be moved ahead -- and also election of the administrative chief should be --

MR. MCCURRY: If I recall correctly, I'd have to --I want to go back and check and see precisely what we've said about that in the past.  My recollection is that we said it's important for them to adhere to the schedule that they have articulated if, in fact, not moving on an accelerated basis to increase the role that individuals play in making decisions about their own elected leadership.

Q: Can you just put out the guidance on that?

MR. MCCURRY: Yes, I can go -- we can get whatever I've said about that.

Q: Has there been any contact between Jiang Zemin and the President, for instance, over Hong Kong in the last day or so or in any other matters since you guys left Beijing?

MR. MCCURRY: I'm not aware that they've had any direct contacts since they had dinner Sunday night.  We've been, obviously, numerous contacts and follow-ups on all the wealth of things that we've done here.  We've got as part of this summit beyond just the meetings for U.S. officials at a variety of levels from cabinet level on down.  And a lot of that is work that follows up what the two presidents worked on and expands and amplifies on things said in motion at the highest level.

Q: The President didn't call to congratulate him on the Hong Kong --

MR. MCCURRY: I'm not aware of that, although I think they did spend some time on Hong Kong in their sessions.

Q: Mike, you said that part of what the President would do in Hong Kong is to speak about the assessment and how well things have gone.  In light of the U.S.-Hong Kong Relations Act --

MR. MCCURRY: We'll be talking about that in Hong Kong.

Q: Has the Chinese government asked Mr. Clinton not to meet Martin Lee?

MR. MCCURRY: I'm not aware of any such requests, and obviously we are meeting him.

 END

From US Newswire

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White House Fact Sheet on Achievements of China Summit

Following is a fact sheet on Achievements of the U.S.-China Summit, released today by the White House: FACT SHEET ACHIEVEMENTS OF U.S.-CHINA SUMMIT

The agreements reached between the United States and China as part of President Clinton's visit build on the achievements of the October 1997 summit between Presidents Clinton and Jiang Zemin, deepen cooperation between the two countries on a broad range of issues and contribute toward a more stable, secure, open and prosperous world.

NONPROLIFERATION AND SECURITY: The United States and China confirm their common goal to halt the spread of weapons of mass destruction.

HUMAN RIGHTS: The United States and China affirm their commitment to the promotion and protection of human rights and fundamental freedoms. While the two countries have differences on human rights, they agree that candid dialogue is an important element for resolving those differences. The United States welcomes China's announcement that it will sign in the fall the International Covenant on Civil and Political Rights and that it Cultural Rights to the National People's Congress for ratification.

ECONOMIC AND COMMERCIAL: The United States and China will promote economic stability and growth in East Asia, enhance economic and technical cooperation, and deepen commercial ties.

ENERGY AND ENVIRONMENT: The United States and China established a number of programs to address environmental degradation, cleaner uses of energy, and climate change.

SCIENCE AND TECHNOLOGY: The United States and China will expand cooperation in the areas of health sciences and natural resource management. These efforts also support the work of the U.S.-China Environment and Development Forum.

COOPERATION IN THE FIELD OF LAW: The United States and China will cooperated on a broad range of programs designed to strengthen the rule of law and legal cooperation, as agreed between Presidents Clinton and Jiang in October 1997.

LAW ENFORCEMENT: The United States and China will implement agreements to combat international crime and narcotics. Fighting Crime. The United States and China concluded a memorandum of understanding establishing a law enforcement joint liaison group. The first meeting of the Joint Liaison Group on Law Enforcement Cooperation was held on May 1998, bringing together the major law enforcement agencies on each side to develop closer working relationships in order to combat narcotics trafficking, alien smuggling, counterfeiting, and organized crime.

PEOPLE-TO-PEOPLE-EXCHANGES: The United States and China will implement cultural and educational programs to increase interaction between our two societies. Peace Corps. The United States and China agreed to sign a country agreement on the operations of the U.S. Peace Corps in China.

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Clinton Remarks to Leaders of Shanghai Business Community

Following is a transcript of remarks by President Clinton to U.S. business leaders and leaders of the Shanghai Business Community:

Atrium of Portman Ritz Carlton Shanghai, People's Republic of China 9:37 A.M. (L)

PRESIDENT CLINTON: Thank you very much. Ladies and gentlemen, thank you for your warm welcome and let me begin by thanking Charles Wu for inviting me here today. I am honored to be joined not only by Secretary Daley, but by Secretary Albright and Ambassador Barshefsky, from whom you have already heard, and the distinguished congressional delegation and our fine ambassador, Jim Sasser. It is fitting that the American Chamber of Commerce here in Shanghai is the fastest growing one in Asia. Over the past 24 hours or so, I've had the chance to see examples of the kind of ingenuity and energy of those who live and work here -- from the magnificent examples of architecture and culture to the people. Yesterday, I hosted a discussion with a range of Chinese leaders in academia, in law, in the media, in culture and nongovernmental organizations, all working to create a more responsive, open, decentralized society. And also yesterday some of you may have heard the radio call-in show that I had, where the mayor joined me. It was very much like call-in shows in America. People were concerned about quite immediate issues by and large. My favorite caller said he did not want to talk to the President, he wanted to talk to the Mayor about traffic issues. (Laughter.) One of the greatest American politicians in the last 50 years, the late Speaker Tip O'Neill, once told all of our Democrats in the House that all politics was local. That's the most extreme expression I've seen in a long time and I liked it very much. Later today I will have the opportunity to speak with several new entrepreneurs and to families who have recently moved into their own home for the first time. All of this to me has been very, very encouraging. Many of you have helped to nurture Shanghai's success and in so doing have helped to nurture China's ongoing evolution to a more open, stable, and prosperous society. Your presence in Shanghai is vitally important for the future of China and the United States and the larger world. China has, of course, been one of our largest trading partners. They bring more jobs, better pay, more growth, greater prosperity back home to the American people. In the 21st century more than ever our ability to compete in foreign markets will be a critical source of our strengthen and prosperity at home. We have, after all, in the United States just 4 percent of the world's population, but we produce 20 percent of its wealth. Clearly we must do something with the other 96 percent of the people on this small planet in order to maintain our standard of living and our ability to stand up for our values around the world. We especially must reach out to the developing world, whose economies are projected to grow at three times the rate of the developed economies over the next 20 years, including, of course, the largest country -- China. America, as Secretary Daley has said, has been very blessed these last five and a half years. I am grateful to have had the chance to serve, and I'm very grateful for the support I have received from the members of Congress here in this audience and, even more importantly, for the work the American people have done to bring our country back, bring our country together, and move our country forward. But it is very important to note that a big part of all those numbers that Secretary Daley read off was the expanding, vigorous American presence in foreign markets. About 30 percent of the growth that produced those 16 million new jobs and the revenues necessary to balance the budget for the first time since 1969 and run a surplus came from expanded trade. And it is a cause we must keep at. I also want to say that in addition to the positive impacts you have on the United States, your work here has a very positive impact in China. China's 20-year track record of unprecedented growth has been fueled in part by foreign products, know-how, investment, trade, and energy. These ties also have more subtle and perhaps more profound, long-lasting effects. They strengthen the rule of law, openness, and accountability. They expose China to fair labor practices and stronger environmental standards. They spread powerful agents of change: fax machines and photocopiers, computers and modems. Over time, the more China enters the world community and the global economy, the more the world will strengthen freedom and openness in China. You are in the vanguard, therefore, of an historic process. Our commercial relationship has also helped to strengthen, and in turn has been strengthened by, expanding diplomatic cooperation between our nations. I will do everything I can to encourage stronger trade ties between the United States and China. Just before my departure, the House Ways and Means Committee voted overwhelmingly in favor of normal trade treatment for China -- MFN. I hope the rest of Congress soon will follow suit. Failure to renew that would sever our economic ties, denying us the benefits of China's growth, endangering our strategic partnership, turning our back on the world's largest nation at a time when cooperation for peace and stability is more important and more productive than ever. China and, indeed, Shanghai face major challenges in advancing economic progress beyond the present point. We all know that -- more restructuring of state-owned enterprises, developing a transparent legal and regulatory system, preserving the environment as the economy grows, building a strong financial system, opening markets, playing a responsible role in sustaining the international financial system. The United States is prepared to work with China in meeting these challenges because the success of China will affect not only the Chinese people and Chinese prosperity but America's well-being and global stability as well. First, restructuring state enterprises is critical to building a modern economy, but it also is disrupting settled patterns of life and work, cracking the Iron Rice Bowl. In the short term, dismantling state enterprises puts people out of jobs -- lots of them -- and into competition for employment for private jobs. Those who lack the right education skills and support risk being left behind here, as they do, I might add, in the United States and other countries undergoing changes because of the global economy in the Information Age. China will have to devise new systems of training workers and providing social benefits and social security. We have asked our Council of Economic Advisers, the Treasury, Commerce, and Labor Departments to share their expertise and experiences with Chinese to help them navigate this transition. Second, China is working to put in place a more transparent and predictable legal and regulatory system, with enforceable rights, clear procedures, and strong efforts to combat corruption. I am pleased that American businesses have pledged financial support for the rule of law initiative President Jiang and I have launched. It is terribly important. It will improve legal education and judicial training in China, streamline the regulatory system, and improve legal aid for the poor. Just as important, it can be the basis for strengthening the protection of personal rights and constraining arbitrary government. We've also initiated a dialogue between our labor ministers that will address worker rights. I challenge you to set a good example here to show that respect for core labor standards goes hand in hand with good and successful business practices. Third, as we go forward we must ensure that economic development does not lead to environmental catastrophe. Respiratory illness from air pollution is now China's number one health problem. Every major body of water is polluted. The water table is dropping all over the country. China is about to assume the unfortunate distinction of replacing the United States as the largest emitter of greenhouse gases that are dangerously warming our planet. Increasingly, pollution at home -- whether in China or the United States or elsewhere -- becomes a worldwide environmental problem, as well as a health, environmental, and economic problem for people in their home countries. Climate change is a real and growing issue. The five hottest years recorded on the planet since 1400 have all occurred in the 1990s. If present trends continue, 1998 will be the hottest year ever recorded. Now, unfortunately, it is still the dominant opinion in virtually all developing countries -- and I might add, in many sectors of the United States, including among many in the Congress -- that there is an iron, unbreakable link between economic growth and industrial age energy practices. If that is the link, we can hardly expect decisionmakers in countries with a lot of poor people trying to come to grips with the enormous changes of the global economy, to do anything other than either deny the environmental problems or say that their children will have to fix them. Happily, it is not true. It is simply not true. We have example after example after example of countries whose economies are doing well as they adopt more sensible environmental and energy practices, and companies in the United States who are making a significant share of their profits through conservation and the implementation of new technologies -- everything from simple initiatives, like using more natural gas, using better lighting and insulation material, use of waste heat from power generation facilities to provide heating, cooling, and lighting, and about to be widely available, fuel injection engines which will cut pollution from automobiles by 80 percent. All these things are available. Shanghai could be the center of an energy revolution in China which would actually lead to faster economic growth, less resources invested in cleaning up the mess later, and less resources invested in taking care of sick people who won't get sick if more is done to preserve the environment. But we have to do something to break the idea in people's minds that the only way to grow the economy of a developing country is to adopt industrial age energy use patterns. It is not true; it is a huge problem. It is still a problem in the United States, and I ask you to lead the way. All the evidence is, if you look at the record of our country going back to 1970, every time the United States has adopted higher environmental standards, businesses have created new technologies to meet them, and we have actually had faster economic growth with better and better paying jobs as a result. This is something we will have to do together. I am pleased that the Energy and Environment Initiative we launched last October has begun already to yield concrete clean energy and clean air projects, which I'll have an opportunity to talk about more tomorrow in Guilin. But I wanted to take this opportunity to ask all of you to try to change the thinking because I have no right as President of the United States to ask China to slow its economic growth. I don't have a right to do that. But as a citizen of the world and the leader of my country, I have a responsibility to ask us all to work together for a planet that our grandchildren can still enjoy living on. And so do you. (Applause.) Fourth, you know better than I that China faces significant challenges in strengthening its financial and its banking systems. America learned some hard lessons from our savings and loan crisis in the 1980s. The Asian financial crisis today demonstrates the havoc a weak and inadequately supervised banking system can create. We want to help China avoid similar errors by improving regulations, opening to foreign competition, training bank supervisors and employees, and in the process, I might add, developing the capacity to fund more private entrepreneurs in small businesses. Fifth, as you are well aware, China's economy still is burdened with complicated and overlapping barriers. More open markets are important to the United States, which buys today about a third of China's exports, and in turn should have a fair shot at China's markets. It is important to China as it builds an economy that must compete globally. In America, as in China, rapid change and the disruptions it brings make it tempting to turn inward and to slow down. But for China, as for America, the promise for the future lies in helping our citizens to master the challenges of the global economy, not to deny them or run away from them. President Jiang and I agree on the importance of China's entry into the World Trade Organization. But that can only happen on strong terms, the same terms that other nations of the world abide by to benefit from WTO membership. Of course, there will have to be an individual agreement that recognizes the transitions China must undertake, but the terms have to be clear and unambiguous. I'm disappointed that we didn't make more progress on this issue, but we'll keep working at it until we reach a commercial viable agreement. I also want to emphasize something I'm sure every member of Congress here would agree with, which is that we cannot build support for permanent MFN for China in the Congress on the basis of anything less. Finally, China must help to meet the challenge of an international financial system with no respect for borders. I must say that I appreciate the very constructive role China has played in promoting financial stability in the region, through direct assistance, multilateral cooperation, participation in the international financial institutions. Premier Zhu and President Jiang told me China is determined to play its part in avoiding another round of competitive devaluations, which I believe would also be damaging to China, as well as to the region. Both our countries have important responsibilities to counter the threat to the international financial system, and I am confident that working together, we can do so. Of course, we have work to do to meet all these challenges, but you can help, as I'm sure you know -- explaining to Chinese colleagues the important and tangible benefits in the Information Age of increasing individual freedom, and limiting arbitrary governmental decisions. It isn't simply a philosophical matter that no one has a monopoly on the truth. If you look at what is driving the Information Age, it is ideas. The Chairman of the Federal Reserve, Alan Greenspan, was having a conversation with me several weeks ago and he told me something that I didn't know -- he usually tells me something I don't know when I visit with him -- (laughter) -- but he said that, actually, economists had measured the physical size of national output and compared changes in GNP or GDP with changes in physical size. He says that in the last 15 years, while America's income has gone way up, the bulk of what we've produced has hardly increased at all. Why? Because wealth is being generated by ideas. That will become increasingly true everywhere. In that kind of world we must all value the ability of people to think and speak and explore and debate -- not only because it is, we believe in America, morally right, but because it is the only thing in the end that will actually work to maximize the potential of the people of China, And they deserve a chance, after so much struggle and so much hard work, to live up to their potential and to see their nation live up to its potential. (Applause.) I also believe it is important to explain to American colleagues and friends back home the importance of our engagement with China. There are some people who actually question whether I ought to have come on this trip and who had, I thought, prescriptive advice, which would have completely undermined the effectiveness of the trip. It is important for Americans to remember, as we go around the world telling people that no one has a monopoly on the truth, that we don't either. (Applause.) And that we live in a world where the unique position of the United States as the world's remaining military superpower, with all of our economic strength, is such that we can maximize our influence only by reaching out a hand of cooperation as well as standing strong when the moment requires it. We have to make most of our progress with most people by working with them, and that requires us to seek to understand and communicate and reciprocate and to live by the values we espouse. So I hope you will do both these things. I hope you will bring energy and commitment to these tasks. I hope you will be immensely successful at what we call your day job as well, because we have a lot to do to help America and China reach their full potential in the 21st century. But a great deal is riding on our success, and I believe we will succeed. Thank you. Thank you very much. (Applause.)

END

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Clinton Interview by CCTV U.S. Newswire

Following is a transcript of an interview with President Clinton today with CCTV:

Shanghai Stock Exchange Shanghai, People's Republic of China

Q: Mr. President, we are very honored to have this opportunity to talk to you, now that your trip in China is almost halfway. And I guess you have gained a clearer picture of today's China and what it is all about. So we noticed that when you visit China you chose Xian as the first stop. Can you tell us why you decided to visit Xian first, in your first trip ever to China?

THE PRESIDENT: I wanted to start with a place that embodied the history of China, the culture of China, the permanent character, if you will, for the Chinese people. And I did it for personal reasons, because I think it's always helpful for me to understand where people are and where they're going if you understand where they come from. But I also did it because I knew the American people would see this. And one big goal of this trip for me was to have the American people learn more about China and the Chinese people learn more about America. So that's why I went to Xian first.

Q: Now, Mr. President, speaking of Xian, I remember at your speech at the Xian Airport you quoted Li Shi, which is an ancient Chinese philosophy book. Now, in your opinion, based on the several days of observation you've had in China, do you think there's still a difference between Eastern and Western philosophy? And, if so, how can these two philosophies cohabitate with each other in the world today?

THE PRESIDENT: Oh, I think there are some differences. Western philosophy is probably somewhat more explicitly individualistic. And much Western philosophy is rooted either in the religious tradition of Judaism and Christianity, or in kind of the materialist tradition. But, still, I think at bottom, the best of Western and Eastern philosophy attempt to get at the truth of human life and human nature, and attempt to find a way for people to live more fully up to that human truth. And so I think if you strip it away, we have a lot to learn from Eastern philosophy and perhaps China can learn some things from Western philosophy, because they help us to look at the world in a different way and acquire a fuller view of what the truth is.

Q: And you do mention that it's a very good way to learn the history and culture of a nation in order to understand more about the nation. So, Mr. President, in your memory can you recall the first time you ever learned or heard about China? I mean, for instance, is it by a book or a movie or some other means?

THE PRESIDENT: Oh, no, no, I remember -- it's when I was a young boy and I was reading -- my mother and father, they got me a set of encyclopedias when I was a boy, where you go, it's world topics A through Z -- no computers, you know?

Q: And China is C. (Laughter.)

THE PRESIDENT: And I remember looking at the maps of the world and reading about China. I was probably, I don't know, eight or nine years old. And I was fascinated by what I read. I always wanted to come here from that time on.

Q: Now, Mr. President, now that you're in China -- this is your seventh day in China, and during the last seven days you've talked to people from all walks of life; you've discussed issues on a wide range with many various people. Is the China in your impression now different from when your mother first gave you that map when you were eight or nine years old?

THE PRESIDENT: Oh, yes.

Q: And what's the most impressive difference?

THE PRESIDENT: Well, for one thing, at that time I had very little understanding. It's still the most populous country in the world, but I think one is immediately struck by the dramatic economic growth and by the opening of China to the rest of the world, in terms of learning -- the quest for information. You know, I went to that Internet Cafe this morning and watching the Chinese young people get on the Internet and go all over the world looking for information -- this is I think a very important development. I also believe there is a genuine increase in people's control over their own lives. Incomes are going up, people have more choices in education, more choice in jobs, the freedom to travel. The state-run industries are going down in relative importance and cooperatives and private businesses are coming up. And there's more say at the grass-roots level now over who the local leaders are and what their policies are. So I think there's a genuine movement toward openness and freedom in China, which obviously as an American, and as an American President, I hope will continue and increase and which I believe is right -- morally right, but I also think it's good for China.

Q: Do you have any surprises? Except for this.

THE PRESIDENT: Well, I don't know about surprises. I think I was -- I was a little surprised -- yes, I have two. First, I did not expect when I came here that my entire press conference with President Jiang would be played live on television, and then my speech at Beijing University. And then, of course, yesterday I had the call-in radio show here in Shanghai. So I did not anticipate being able to have that sort of open, sweeping communication with the Chinese people. And I'm very pleased and I appreciate President Jiang's decision to let the press conference be aired and all the other decisions that were made. That I think was very good. I think it was also good for the Chinese leaders. I mean, the Mayor of Shanghai and I had a wonderful time on the radio yesterday. So I think bringing the people into the process of making these decisions and having these discussions I think is very, very important, because if you think about a lot of the problems that we face -- we could take American issues, we could take Chinese issues -- how are you going to guarantee that all these people who work for state-owned industries get good jobs? How are you going to deal with the housing problems if people no longer have a housing guarantee connected to their job, but there are vacant apartments in Shanghai but you can't seem to put the two together? How do you solve these problems? Very often there's not any simple answer. And people feel better just to know that their views are heard, their concerns are heard and that there can be a discussion where people work together toward the answers. So I think this whole democratic process, in my view, is very, very important to make society work when things are changing as quickly as they are now.

Q: Now, Mr. President, you've obviously made very in-depth observations of China today. You mentioned a lot of the problems that this society is dealing with today. For instance, state-owned enterprise reforms and so on and so forth. So whose job do you think is tougher, if you have to make a comparison, yours or President Jiang Zemin's?

THE PRESIDENT: Oh, I don't know. I think that he faces enormous challenges here at home of a scope that Americans have a hard time imagining. Probably the only element of my job which is more difficult right now is that since the Cold War is over and America has this role which is temporary -- it won't last forever -- as the only superpower in the world, I have a lot of work to do to deal with America's challenges and problems at home and then to try to get the American people to support our nation doing what we should do as a force for peace and prosperity and stability around the world. So our people have normally been rather like the Chinese people, you know -- we want to attend to our own affairs and not be so involved in the rest of the world unless we just had to be, throughout the last 200 years. But in the last 50 years we've learned that we can only succeed at home if we have positive relationships around the world -- which is the main reason I wanted to come to China.

Q: Now, allow me to follow up on that, Mr. President. You mentioned America is the only superpower left for now in the world. And America's leadership role in the world has often been talked about in domestic politics, if not sometimes in international occasions, too. Now, in your opinion, does the world today need a leader, and, if so, how should the United States assume the responsibility and why?

THE PRESIDENT: Well, I think the short answer to your question is, yes, the world needs a leader, but not in the sense of one country telling everyone else what to do. That is, let's take something that didn't happen in Asia. If you look at the problem, the civil war in Bosnia, the terrible problem in Bosnia. We had the military resources to work with NATO, our military allies in Europe, to move in and stop the war. Because we were the largest party to NATO, if we hadn't been willing to take the initiative it wouldn't have happened. On the other hand, we couldn't have done it alone. We had to have people work with us. I'll give you another example. We want to do everything we can to end the stalemate between North and South Korea. But if China had not been willing to work with us I don't think we could have started these four-party talks again or we would be very effective in urging North Korea and South Korea to talk directly. But because we can work with China, we can have more influence. Here, I come to China and I say, we want to be your friends; we share the security interest and we're working together with India and Pakistan on the nuclear tests; we're working to stop the transfer of dangerous weapons; we're working to cooperate in environmental projects; and we know we have differences and I want to tell you why I believe in religious freedom or political freedom. If you think about it, that's a leadership issue for the United States. But the success of the leadership depends upon having a partnership with China. So it's a different sort of world leadership than in the past where it's just a question of who has the biggest army gets to send a list of instructions to another country and you think it will be done. That's not the way the world works now. You have to have -- sometimes you have to stand strong for what you believe in, in terms of sending the soldiers into Bosnia or imposing economic sanctions on South Africa, as both China and the U.S. did in the time of apartheid. But most days you get more done by finding a way to engage countries and work with them and persuade them that you're doing the right thing. It's important to have allies in the world we live in -- to be more cooperation, even from a leader's point of view you have to have allies and people that will work with you.

Q: According to my understanding, Mr. President, the role of America in the world, I mean, the United States in the world, in international affairs is not, as some people believe or argue, the role of world cop according to your understanding?

THE PRESIDENT: No, we're not the world's policeman. But sometimes we have to be prepared to do things that other countries can't or won't do. For example, I think we did absolutely the right thing these last several years to insist that we keep economic sanctions on Iraq until they give up their weapons of mass destruction program. I think we did the right thing to go into Bosnia. I think we did the right thing to restore democracy in Haiti. But most times the problems cannot be solved by military means. And most times, even if we take initiative, we should be trying to create a world in the 21st century, where there is a structure where peace and prosperity and the ability to solve new problems -- like the environmental problems -- where that kind of structure works, and where you minimize weapons of mass destruction, drug trafficking, ethnic wars, like we had from Rwanda to the Middle East to Northern Ireland. And so the United States' role I think is to try to create a structure where more likely than not the right things will be done when problems arise -- not to just do it all ourselves or tell other people what to do.

Q: Okay, Mr. President, let's come back to your trip in China. Now you have already finished, let's say, already you have been in China for almost one week. What do you think are the major achievements through your trip here?

THE PRESIDENT: I think there are several. First of all, in the whole area of nonproliferation, the fact that we have agreed not to target nuclear weapons at each other is very important. It's important for, I think, three reasons. One is, it eliminates the prospect that there will ever be a mistaken launch of a nuclear weapon. Second, it's a great confidence-building measure. It's a symbol, if you will, of the growing friendship of the two countries, and it should make other countries in the Asia Pacific region relax a little. And, third, since India and Pakistan did these nuclear tests, it reaffirms that we believe that's not the right way to go. We should be moving away from nuclear weapons, not toward them. So that's the first thing. The second thing is, China has agreed to work with us to stop the transfer of technologies to countries that might misuse it, to not assist unsafeguarded nuclear facilities like Pakistan's, and to consider joining the worldwide system that prevents the exportation of dangerous technologies. So that's important. We announced more efforts on our energy and environmental initiative. This is very important, you know. You have long-related problems with the number one health problem in China because of air pollution. Your major waterways have pollution, the water table is down. We have to find a way to grow the economy and replenish the environment. So this -- I predict to you 10 years from now people will look back and say that's one of the biggest things they did, they agreed to work more there. We agreed to deepen our cooperation in science and technology where we've already achieved a lot together. So I think in all these areas this is important. There is a huge potential benefit to the Chinese people and, therefore, to the American people in the rule of law project we're doing where we're working with Chinese people to set up the right kind of legal procedures to deal with all the questions that are going to come up as you privatize the economy. For example, my wife met the other day I think in Beijing --

Q: Beijing University.

THE PRESIDENT: -- yes, and she was telling me about a case that was raised where a woman was divorced from her husband because there had been problems in the home. And they had one child, but they couldn't move out of the home, even though they had a divorce, because the house came to the husband through his job. So as you change the society there will have to be all kinds of legal changes made. And I think if we work together on that I think we can find a way to enhance freedom and stability. So all things these are important. But, finally, I think that in the end it may be that the biggest achievement was the increased understanding and the sense of a shared future. I mean, I think the press conference that President Jiang and I did will be viewed as historic for a long time to come. And the fact that he wanted to do it, he enjoyed it and it was on national television I think was very important.

Q: And I think Chinese people and American people enjoyed that.

THE PRESIDENT: I think so. So I think it's a very productive trip.

Q: Now, Mr. President, you mentioned the achievements in the last several areas -- for instance, detargeting of nuclear missiles at each other and cooperation in scientific and environmental areas, and increased understanding. In your joint statements with President Jiang Zemin you both also acknowledged that China and the United States have areas of disagreement. In one word, you have agreed to agree and you have agreed to disagree. Now, in your opinion, in the world today China is now the largest developing nation and the United States is the largest developed nation. For these two nations to have areas of agreements and disagreements, how should they develop their relationship? Is the world too small for two large nations?

THE PRESIDENT: No. No. For one thing, in every relationship, in every business partnership, in every family, in every enterprise you have agreements and disagreements. I'll bet you at your station you have agreements and disagreements. So what you have to do is you identify your agreements and then you identify your disagreements, and then you say, here's how we're going to deal with these. And you keep working to try to bridge the gap. Our major differences are in trade, over some terms of trade issues, and in the human rights area -- how we define it, how China defines it, where we should go from here. But if you back up three years ago, we've made significant progress in both those areas. And if you back up five years ago we had a lot of difference in the proliferation area, most of which have been eliminated. So there's been a lot of progress in this relationship in the last five and a half years. And I would say to the people of China and the people of the United States, the world is not too small for two big countries; it is a small world and we should all act that way. That should make us both more responsible -- with a greater sense of responsibility for our own people, for our partnership with each other and for the rest of the world, as well.

Q: Now, Mr. President, you mentioned the areas of differences between China and the United States. However, do you think that this trip to China has helped you understand why China is the way China is?

THE PRESIDENT: Oh, absolutely. There's no question about that. And I hope that this trip to China has helped the Chinese people understand why Americans are the way we are.

Q: Mr. President, we have noticed that your daughter, Chelsea, accompanied you to Beijing and to all of the China trip, and also particularly to the Beijing University when you made the speech.

THE PRESIDENT: Yes.

Q: And in your speech, high hope was placed on the young generation of both China and the United States. And we wondered whether Chelsea -- did Chelsea ever mention to you her impression of the Chinese youth in her interaction with the Chinese college students?

THE PRESIDENT: Oh, yes, she very much wanted to come here. She wanted to make this trip and her university work was concluded in time for her to be able to come. But she has very much enjoyed getting out, meeting young Chinese people and seeing what's going on. She said to me just yesterday how incredibly exciting she thought Shanghai was and how she wished she could stay here a while when we leave and go back, just to see more of it. And I think any young person in the world coming here would be excited by it, and would be excited to see how eager the young Chinese people are to build good lives for themselves, to learn more about the rest of the world. The hunger for knowledge and for the improvement of one's capacity to do things among these young people is truly amazing. The energy they generate is astonishing and it makes me feel very hopeful about the future.

Q: One last question, Mr. President. Do you think that your conversation with President Jiang, face-to-face in such a summit is easier than the hot line, which has to go over the Pacific?

THE PRESIDENT: Oh, yes, always better. I think face-to-face is always better. But I also believe that once you get to know someone and you feel comfortable with them -- you know, President Jiang and I have a very friendly relationship and it permits us to deal with all these issues so that the hot line then becomes very useful. If we were strangers, for example, the hot line would not be so helpful because it would be awkward. But when there's a problem, as there was with the nuclear tests -- and I didn't want to wait until I got to China to talk to President Jiang about how we should respond to the India and Pakistani nuclear tests, so I called him on the hot line. And because we had already met several times and we felt -- and he had had this very successful state visit to the United States, the hot line was very, very important, very helpful. So I think the telephone is important. The Internet is important. All communications can be good, but none of it can take the place of face-to-face communications.

Q: Thank you very much for giving us this opportunity to sit together with you face-to-face. Thank you very much.

THE PRESIDENT: Thank you.

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Clinton calls on China to open markets

07/01/98- Updated 07:08 AM ET

SHANGHAI, China - At a showcase of capitalism in this communist country, President Clinton called on China to open its trade markets and urged American businesses Wednesday to help the world's most populous nation battle devastating environmental pollution problems.

Addressing a breakfast of U.S. business leaders, Clinton said he could not ask China to slow its economic growth with tough environmental measures. "But as a citizen of the world and the leader of my country, I have a responsibility to ask us all to work together for a planet that our grandchildren can still enjoy living on. And so do you."

He also urged American firms operating here to set a good example on fair labor standards and business practices. He called on China to dismantle its ailing state-run industries and improve its legal and regulatory system. Pointedly, he urged "strong efforts to combat corruption."

In another direct remark, Clinton suggested that China protect personal rights and constrain "arbitrary government."

Clinton spoke with the business leaders in the atrium of a high-rise hotel before touring Shanghai's Stock Exchange, a shimmering symbol of China's march toward a market economy. In the towering steel and glass building housing the exchange, the president planned a lunch with young Chinese entrepreneurs.

"China's economy still is burdened with complicated and overlapping barriers," the president said. "More open markets are important to the United States, which buys today about a third of China's exports - and in turn should have a fair shot at China's markets. It is important to China as it builds an economy that must compete globally."

He said China must agree to "strong terms" to qualify for membership in the World Trade Organization, which sets the rules for global trade. He said he was disappointed that more progress was not made during this trip toward an agreement for China's entry into the WTO.

Rapid change and disruptions caused by economic reform "make it tempting to turn inward and to slow down," Clinton said. "But for China as for America, the promise for the future lies in helping our citizens to master the challenges of the global economy, not to run away from them."

Commerce Secretary William Daley, speaking before the president, said China's leaders, in meetings over the last week, insisted they could not open their markets because domestic industries cannot compete in the global economy.

"We believe the opposite is true," Daley said. "The more China opens its markets, the more its domestic industries will be able to compete."

Clinton said China will have to develop worker retraining and social security programs as it transforms its massive state-run industries into market-based companies. He said the United States stands ready to help with ideas.

There was a strong environmental message in Clinton's remarks, noting that China will soon surpass the United States as the largest emitter of greenhouse gases that many scientists believe are responsible for global warming.

He said 1998 promises to be the warmest year in recorded history and that environmental pollution in any nation is a global problem.

Clinton said Shanghai, a flashy center of global trade and finance, "could be the center of an energy revolution in China. "We have to do something to break the idea in people's minds that the only way to grow the economy of a developing country is to adopt industrial-age energy use patterns. It is not true, it is a huge problem, it is still a problem in the United States. I ask you to lead the way."

He also urged the business leaders to press Congress to grant permanent most-favored-nation trading benefits for China, saying the United States could not turn its back on the world's largest nation.

On Tuesday, the president was whisked around this bustling city of skyscrapers. He held a roundtable discussion with opinion leaders and took calls for an hour on a fast-paced radio call-in show on subjects ranging from education and the environment to the World Cup and how he stayed in shape. He finished the day with dinner at the Peace Hotel, an art deco building overlooking Shanghai's neon-lit waterfront, where novelist Noel Coward wrote his famous "Private Lives."

Returning to his hotel suite, Clinton was told that a U.S. F-16 fighter had fired a missile at an Iraqi radar installation after it locked on U.N. planes. By then, eight hours had elapsed since the firing. An administration official could not explain the delay.

Clinton said the government and the people of China "have been very open" during his trip and that cooperation is the best way to manage differences. "So I think the American people will see when I go home that this was a good thing that I came here."

In Beijing, the government said Clinton's visit "achieved full success." Foreign Ministry spokesman Tang Guoqiang pointed to a string of agreements between Clinton and President Jiang Zemin - from an accord not to aim missiles at each other's country to cooperation on environmental protection and legal reforms.

Unlike Clinton's trip to Africa in March, business leaders were not invited to be part of Clinton's delegation in China. Daley said that dealings with China had not been affected by investigations back home about Clinton's authorization of U.S. satellites on Chinese rockets.

At Tuesday's roundtable, Clinton dealt with one of the most sensitive issues in U.S.-Chinese relations: America's ties with Taiwan. China regards Taiwan as a renegade province and is unhappy about U.S. arms sales to the Tapei government.

Clinton carefully adhered to long-standing policy and spelled it out carefully. But in the world of diplomatic nuance, it was seen as significant that Clinton himself stated it publicly for the first time.

"We don't support independence for Taiwan, or two Chinas, or one Taiwan-one China," he said. "And we don't believe that Taiwan should be a member in any organization for which statehood is a requirement."

By The Associated Press

From USA Today

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White House notebook: Clinton in China

07/01/98- Updated 05:19 PM ET

SHANGHAI, China -

President Clinton's spokesman, at a briefing for reporters in Shanghai, dismissed with a quip the question of whether Linda Tripp's testimony in Washington before a federal grand jury investigating the Monica Lewinsky case was worrisome to the White House.

"The president has been concentrated on one trip, and it's China, not Linda," Mike McCurry said at a briefing Wednesday.

Clintons are homeless

One thing about home ownership - no need to worry about losing housing benefits when you change jobs. President Clinton was speaking, although he might have been listening.

He does not own a home, but he'll have to find one before Jan. 20, 2001, because that's the day a new occupant takes over the White House.

Clinton spoke about the importance of ownership Wednesday at a housing complex where Chinese families are buying apartments a long commute from downtown Shanghai.

He visited one, the apartment of Yu Jianyuan and her family. The complex, Jin Hui Gardens, features four- and six-story apartment buildings built and bought, she said, through the planning of the government and the developer and the diligence of the people who now live there.

Clinton spoke to apartment owners from a red-carpeted platform, in front of a bright green artificial lawn of carpeting.

He told them he bought his first small house 23 years ago because his girlfriend liked it so much, then told her she'd have to marry him, and she did.

"So I hope that your homes bring you as much joy as mine did 23 years ago," Clinton said.

He said home ownership in America "has made our country stronger, and I know greater home ownership will also strengthen China." Clinton said the United States will try to help with a cooperative effort to promote new technologies and materials for home-building and with advice on a stronger system of financing homes.

Actually, on that score, the Chinese might advise the Americans. The mortgage rate for home loans at the complex was said to be just over 4 percent, far lower than U.S. rates.

"And, of course, when people own their own homes, they are free to take new jobs without worrying about losing housing benefits," Clinton said.

Shanghai Stock Exchange

President Clinton went to the vast floor of the Shanghai Stock Exchange and came away with a Chinese trader's vest, bright red with yellow numerals 1998 on the back. He didn't put a halt to trading: The market always takes a lunch break.

The exchange, opened late in 1990, is a glistening steel-and-glass building with the broad amphitheater trading floor at its heart.

Huge computer screens display market prices on either side of the floor, and graphs show trend lines. The market was down early, edging upward at the lunch break.

Young traders, many of them women, sit in hundreds of cubicles, with computer screens and telephones. All wear red vests with their trading numbers emblazoned on the back.

They applauded when Clinton appeared on the catwalk overlooking the floor and again when he took the glass elevator down to walk the aisles among their posts. He shook traders' hands and at one point, sitting at a terminal, nodded as the trading process was explained to him.

Chelsea sightseeing with parents

Chelsea Clinton is managing to steal some private moments on the China sojourn outside sightseeing jaunts with her parents. She slipped away for shopping excursions, took a spin on a Shanghai dance floor, even climbed aboard a rickshaw for a ride in Beijing.

On summer vacation after completing her freshman year at Stanford University, the first daughter has been much more in the public eye in China than in Washington or at Stanford, where her privacy is tightly protected.

She has stuck by one or both of her parents on many of the official events, from the welcoming ceremony last Saturday at Beijing's Tiananmen Square to Hillary Rodham Clinton's visit Wednesday to the Ohel Rachel Synagogue in Shanghai. The president posed arm-in-arm with his daughter in the Forbidden City, and the whole family joined hands as they trooped over the stone pathway atop the Great Wall of China.

But Shanghai appears to be the 18-year-old's favorite.

In a Chinese television interview Wednesday, Clinton said his daughter "said to me just yesterday how incredibly exciting she thought Shanghai was, and how she wished she could stay here a when we leave and go back, just to see more of it."

By The Associated Press

From USA Today

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Transcript of White House Press Briefing by McCurry, Steinberg

1 Jul 1998 17:48

 To: National Desk

Contact: White House Press Office, 202-456-2100

WASHINGTON, July 1 -- Following is a transcript of a White House press briefing held today by Press Secretary Mike McCurry and Deputy National Security Adviser Jim Steinberg:

Portman Ritz-Carlton Hotel Shanghai, People's Republic of China

MR. MCCURRY: Good afternoon, ladies and gentlemen. I'll do one or two program notes and some future travel that I need to get on the record so that your news organizations can sign up for future travel, and then I will turn the podium over to someone more learned than I. First, the President was delighted to have another opportunity to address the people of China through Central China Television. We were able to arrange an interview with the President that was conducted at the Stock Exchange earlier today. The President did an interview that last about 20, 25 minutes. My understanding is that it is going to be promoted tonight on the evening primetime broadcast of Central China Television, CCTV, because they are dealing with a lot of news from Hong Kong and President Jiang Zemin's visit. It then will air, if possible, in its entirety, at least most of it, tomorrow, and on CCTV-4 will be replayed in its entirety tomorrow. My understanding is that CCTV is making the feed of that interview available to you and they will do what is customary in the States; they'll allow you to use up to two minutes of it at your discretion for your own broadcast purposes, and they're also making a transcript of it available.

Q: Is it in English?

MR. MCCURRY: The President conducted the interview in English and the translation, the interpretation of the interview, was gone over by U.S. and CCTV interpreters and they agreed on a joint interpretation so there wouldn't be any question about the quality or the veracity of the interpretation.

Q: Did he make any news, Mike?

MR. MCCURRY: That's for you to judge, not for me to judge. But the answer is no. (Laughter.) I'll describe it for you. I think -- Bill, you were -- where is Nichols? You were in on it; so Bill, in the pool report, you'll get his assessment of it. But it was another opportunity for the President in a very direct, but I think a very sensitive way to make the argument for freedom and democracy in a way that he thought would most resonate with the Chinese people. And he was very pleased to have the opportunity to do that and pleased to do it in a format that will clearly reach scores of millions of people here in China. All right, I'm going to run through a bunch of travel dates. I don't have a clue what we're doing on any of these trips, but I'll give you what I'm told I must read here. The President will travel to Little Rock, Arkansas, July 17th through 19th. He'll spend private time with family and friends. There may be a local political fundraiser down there; no official events planned. He departs from Little Rock for New Orleans. He will be in New Orleans, Louisiana, July 19th through 20th, arriving the evening of the 19th. He will address the American Federation of Teachers Convention on the morning of the 20th and may have some other events as well. The President of the United States of America will travel to Norfolk, Virginia, July 25th for the dedication of the USS Truman. He will then depart from Norfolk for Aspen, Colorado. The President will go to Aspen, Colorado July 25th and 26th, arriving in the afternoon of the 25th, and will participate in a DNC dinner. He will stay overnight in Aspen, attend a brunch and depart Aspen to Albuquerque, New Mexico, Albuquerque, New Mexico, nearby Sam Donaldson's God's country, July 26th through 27th. The President will arrive the evening of the 26th. He will RON in Albuquerque on the 26th, participate in the Social Security Conference. This is the regional fora about long-term entitlement reform that the Concord Coalition and the AARP are doing together. The next session is in Albuquerque on July 27th. He'll do some political chores down there, as well; wouldn't miss that opportunity. The President of the United States will go to the Hamptons July 31st to August 2nd, for a DNC dinner and DNC reception and a Saxophone Club reception; returning to D.C. The money people go to the Hamptons during the summer months, so the political people go...

Q: ...says it's a long dinner, two days.

MR. MCCURRY: It's a long dinner. (Laughter.) It's a rough crowd.

Q: Why is he traveling so much?

MR. MCCURRY: Why is he traveling so much? Because he enjoys getting out of the rather sulphurous atmosphere of Washington during the summertime.

Q: Guess who will be testifying then.

MR. MCCURRY: The Deputy National Security Advisor to the President of the United States, Mr. James Steinberg.

Q: Is this the end of your briefing or will you be back afterwards?

MR. MCCURRY: I don't know, what do you plan for me? I'll come back after Jim's done. I don't want to hold Jim up any longer. Jim Steinberg would like to tell you a little bit about the President's trip tomorrow to Guilin. And then he is available for other subjects, too. You can set up Hong Kong if you want to. Whatever. But that and other subjects. It's a delight to have him here.

MR. STEINBERG: It's a pleasure as always. Well, speaking of sulphurous atmospheres, tomorrow the President is going to highlight our efforts in working with China on issues of energy and the environment. I think all of you will have noticed over the course of the last five or six days that even though tomorrow is a focused effort on the environment, that this is an issue which is very much on the President's mind. I think one of the clearest and most powerful indications of that was his remarks at Beida, where he told the audience that he was going off script because he wanted to talk a little bit more about the environment, about the challenges that China faces, and about the opportunities that it presents for cooperation between the United States and China. And again, you will have heard this morning the President in talking about economic issues, about the importance of the environment and his conviction, one, that it is a very serious problem for China; this is a country that has five of the 10 most polluted cities in the world, that has very serious air pollution problems, very serious problems with water, both in terms of water scarcity and water pollution, and these are problems which not only affect the health of the people of China, where respiratory disease is the largest cause of death, but also has implications for the global environment, not least of which is on the issue of climate change and greenhouse gases. And the President, I think, is very much aware, as are the Chinese, that the Chinese must be a part of any solution to global environmental problems. While the United States is currently the largest emitter of greenhouse gases, in the next 20 years China will become the largest emitter. And so if we're going to have any kind of solution to issues like global climate change, China needs to be a part of that. So we will go to Guilin tomorrow, which is at the heart of one of the most beautiful parts of China, the Li River, which I have not yet seen but am looking forward to. And we will have a chance, the President will have a chance, to meet with a number of environmental experts, both Chinese national experts and some local individuals involved in the environment. And I'll say a word in a minute about those individuals who will be there. He will, as I say, meet with these individual experts to learn more about the issues that China is facing, and then he will give remarks, talking about our own approach and our efforts with the Chinese. As part of that, the President will announce several of the projects that we are engaged in with China, including working with them to provide assistance to their nationwide air quality monitoring network, which for those of you who have been with us will know, is a quite important issue; and also the $50 million Ex-Im loan for clean energy projects, a contract to develop coal-bed methane resources, and an oil and gas industry forum to promote cooperation between our two countries. We'll also launch a series of exchanges between our experts on global climate change working within the framework of the Vice President's energy and environment forum to try to make progress on the climate change issues. I think that it's fair to say that while the challenges that China is facing are enormous, that there has been a real sea change in attitudes here. I think that if you have heard Mayor Xu over the last couple of days and heard from the Chinese themselves, that there is a growing awareness of the fact that the environmental problems require attention. Just recently Beijing has banned leaded gasoline, for example. Their efforts to upgrade home cooking and home heating issues where there's a lot of soft coal being used; and one of the most prominent features of the nightly news on television stations throughout China are reports on air quality. One of the things that's important about that is that it is citizens themselves are now becoming empowered and active on environmental issues. And there is a growing number of environmental NGOs in China, many of whom are working with NGOs in the United States to try to develop effective strategies of involving citizens. And so, in many ways, this environment discussion tomorrow will connect up to a lot of other themes that you've heard about civil society and about the growing role of citizens in affecting their lives. Let me just briefly describe a couple of the individuals. There will be a group of both, as I say, national experts and some local officials. And there may be some additional ones to the ones that I'm going to describe to you, but I have at least some of the individuals here. We'll put out the names tomorrow if you need specifics, but let me just briefly touch on so you get a sense of the kinds of individuals. Ling Con Jie, who founded Friends of Nature, which is one of the first and best known environmental groups in China. He's a retired university professor and environmental activist. Zhang Hong Jun, who's an environmental lawyer who is now working for the National People's Congress on environmental issues and environmental legislation. Liao Xiaoyi, who is the founder of the Global Village Cultural Center. She's a woman who has focused on a number of the issues involved with women in the environment. She has recently traveled to the United States to film a documentary on environmental issues. Dr. Ding Zongyi, who is an expert of the effect of pollution on Children's health. Dr. Ding is the chairman of the Chinese Medical Society. Zhou Dadi is an expert on energy efficiency and is a member of the Intergovernmental Panel on Climate Change, which is the international group of scientists who basically came up with a consensus conclusion that human activities were a factor in global warming. And, finally, at least one of the local individuals will be there is a gentleman named Kong Fanjian, who is the founder and president of the Guilan Liquan brewery, which has its own positive environmental implications. (Laughter.) But one of the things he is most noted for is in his own industrial techniques and the equipment the he uses, he pays particular attention to the environmental side effects, for example, in terms of waste water and the like. So the President will be briefed by these individuals and he'll give remarks and talk about the challenges before us. I think that, as I say, it really is a reflection of the growing sense of citizens being able to be active here, a theme that you've heard through a variety of issues, whether it's consumer issues, whether it's legal issues; the sense in which there is beginning to be a grass-roots throughout China which can be a very important factor for change. Just to briefly preview going into Hong Kong, which I gather you'll all arrive in extremely late tomorrow evening, we will have a chance both to meet with the government, the executive branch officials, C.H. Tung and Ansin Chan, the senior civil servant, to discuss the efforts there, one year after the reversion; and also, the following day, to meet with the democratically-elected leaders and some of the other elements of civil society in Hong Kong to show the fact that the United States continues to be active and involved and concerned about preserving Hong Kong's autonomy and strengthening democracy there. So let me stop with that and take your questions.

Q: Why is the meeting with the democratically-elected leaders of Hong Kong closed to our cameras?

MR. STEINBERG: Normally when we meet with officials like that, it's kind of standard. For example, we met with Gerhard Schroeder, the opposition candidate in Germany, recently. That's the normal practice; these are private meetings. Most of our private meetings with the officials are closed to your cameras. I don't think that's particularly unusual.

Q: Any chance of getting some brief excerpts tonight?

MR. STEINBERG: We're going to work on that. I don't know whether we... it depends a little on getting things finalized. But I understand the deadline issue and if we can do it; my guess is tonight is going to be very difficult, but it may be possible for first thing in the morning. I understand the difficulties. And I'm not ruling it out. We will make best efforts; that's all I can say.

Q: Are you planning to meet Dai Qing or any of the other environmentalists who are considered sort of dissidents?

MR. STEINBERG: Well, I think you'll see that this is a very active and outspoken group. We are not meeting with Dai Qing on this, although it's interesting, we just heard from Dai Qing just the other day, who made a remarkably warm and positive statement, I wrote it down, but I can't seem to find it here, about the President's remarks in Beijing, and how she said her heart was warmed by what she heard and saw. And so I think this is somebody, again, we have a broad range of people here and we can't get everybody into this, but we're certainly in contact with her.

Q: But, Jim, there have been times when the President has met with opposition leaders in which you've allowed a camera to record that event. With Martin Lee and others who were involved in the democratic movement in Hong Kong so sensitive to this...

MR. STEINBERG: There will be a photograph. We almost never do anything more than a photograph. I've been with a number of meetings with Martin Lee with other U.S. officials. This is more or less our standard practice. This is a chance to have the President talk to Martin Lee. We don't usually have these meetings before cameras.

Q: Are you going to meet all the 20 members of the democratically elected legislature or are you selecting...

MR. STEINBERG: It's not all the 20, but there are a number of them. And there will also be members of sort of part of the broader civil society, like some legal officials and the like to give sort of a cross-section of those democratic forces in Hong Kong.

Q: On the Hong Kong meeting, are you meeting only with people who are elected through the direct elections and excluding any of the 40 legislators who were chosen through...

MR. STEINBERG: We are not meeting with any of the 40 legislators who were chosen either by the special assembly or by the functional groups. But there will be other, non-elected individuals in the second meeting. There is a separate meeting with Martin Lee, followed by a broader meeting with a broader group which has other individuals in society. But none of them are of the 40 that were not directly elected.

Q: On the environment, the U.S. has said it won't sign the Kyoto Protocol unless it gets developing countries, like China, to make commitments as well. In the events it seems that the only thing that's emerging are expert level meetings. Is that enough? What's the state of play and movement towards getting China to make commitments for things like the Kyoto protocol?

MR. STEINBERG: Just a minor initial correction. What we said is we will not submit the treaty for ratification. We've not said we wouldn't sign it, but we would not submit the treaty for ratification unless there was meaningful participation by developing countries. This is clearly a process and we are engaging now with China because, as I said and the President has said a number of times in this trip, given China's role and the impact of emissions from China, there cannot be a solution to the global climate change program without a very active involvement with China. There are lots of different ways that that meaningful participation can be achieved. We have not said that we expect developing countries to have the same kinds of limits that developed countries have taken on. But, clearly, if there isn't some kind of way in which countries like China take measure that will affect their global greenhouse emissions we cannot solve this problem. And so one of the things, for example, these clean energy projects are things that will have an impact on reducing China's emissions. We need to have, clearly, a package of activities from China and other developing countries, it's not just China, that will really have an impact. And we're not rigid in terms of the specific mechanism, but it clearly has to be something that we can conclude will really begin to address the program. That's what we're working on. We're clearly not there yet, but we need to do more and this is an important step.

Q: ...issue of an eventual commitment with the Chinese government and how did they respond? What's your read of their response?

MR. STEINBERG: Again, I mean, what he said is that we don't seek to have identical commitments or necessarily the same kind of commitments. But we do need to have meaningful steps so that if you look at the global greenhouse gas emissions that there is an effect on global warming. And we're prepared to engage in a dialogue with them in terms of how they would take on those things, whether it's a collection of different kinds of steps or one overall step, I think it's too soon to judge. But he very much engaged in this discussion with President Jiang and with Premier Zhu Rongje and it's been very much at the top of his mind throughout this trip.

Q: The question was asked yesterday, but I think Mike McCurry was confused.

MR. STEINBERG: It's not possible. (Laughter.)

Q: All right. The question is about whether the President has any plans to meet with Mr. Wang Dao-han, Jiang Zemin's mentor, and also China's top man for conducting cross- strait talks with Taiwan, in light of the President's interest in encouraging China to resume the dialogue with Taiwan?

MR. STEINBERG: I would not anticipate the President would meet with Mr. Wang. He's clearly an important element of a process which we're very supportive of and that's something that we obviously stay in touch with individuals who are involved in that process. But I would not anticipate the President would meet with him.

Q: Another question. In the past, you have been involved in conducting what you call unofficial conversations with Taiwan's NSC director, Mr. Ding Mou-shih.

MR. STEINBERG: I don't know what could possibly have given you that impression.

Q: Well, are you going to do it the same after this summit, because of the concern that Taiwan has expressed over the President's statement of the so-called three no policy, one China policy?

MR. STEINBERG: We have a variety of unofficial contacts with the officials in Taiwan and I expect we will continue to do so. We have a very transparent relationship with them and we think it's very important that they are very familiar with what we're doing, what our plans, what our objectives are. and in a variety of ways we will have opportunities to make that clear to them, including through AIT, which is obviously an important channel for us.

Q: If the policy is transparent, why can't you say whether you will be doing it?

MR. STEINBERG: Because I have no particular plans at the moment, but we have a variety of contacts, and we will continue to have them.

Q: On the CCTV interview again, could you just tell us a little bit about how that interview came about, who requested it?

MR. STEINBERG: Can I defer that to Mike, because I have sort of a secondhand knowledge of it, but I'll just... that will sow confusion if I try to answer the question.

Q: Jim, do you have any better sense tonight as to what happened in Iraq with the Iraqi surface-to-air battery painting up the British planes?

MR. STEINBERG: David, I heard Secretary Cohen's, I don't know whether it was a press conference or just a statement, earlier today, and I think he pretty much accurately reflected what we know, which is to say that the Tornados were illuminated; operating under our standing rules of engagement, we responded to that. We do not have any particular reason to believe that this is more than an isolated incident, but why this particular radar illuminated the aircraft at this time I just can't speculate on because we don't have a basis with which to do it. But we have not seen other instances of it. There are no other, and just as the Secretary said, we're not seeing SAM sites being moved or other kinds of activities that have been associated in the past when there have been greater periods of tension. So I think it's pure speculation at this point to try to guess what the basis for the decision to illuminate. But the Tornados were painted and we responded.

Q: What's the final authoritative and true version of when the President was informed about this?

MR. STEINBERG: I know the President was informed yesterday. I believe it was in the early evening. I don't have the exact time.

Q: Back to Taiwan, in one of the three communiqués, I think the U.S. commits itself to reducing arms sales to Taiwan. As a result of this, and I think Beijing has for some time protested that the U.S. hasn't, in fact, done this, is there an intention now for the U.S. to begin reducing arms sales to Taiwan?

MR. STEINBERG: I wouldn't put it in those terms. I would say that we will continue to sell arms to Taiwan consistent with our law and with the three communiqués. Our arms sales are exclusively defense and for the legitimate defensive needs of Taiwan. And that is something that we will continue to do.

Q: Have the Chinese lived up to the second part of that communiqué, which is that they have to adopt a peaceful perspective on unifying with Taiwan?

MR. STEINBERG: The Chinese say that their goal is peaceful reunification. We have obviously indicated that we would like them to renounce the use of force, which they have not done. So in terms of the positive side of what they claim their policy to be, they would be consistent with the communiqués, but again, what we would like to see is a renunciation of force and a commitment to subscribe exclusively to peaceful means.

Q: If they renunciate force would we stop ourselves?

MR. STEINBERG: I'm just not going to speculate on that. I think that we continue to sell arms consistent with what we believe are the legitimate defensive needs of Taiwan, consistent with the three communiqués and our law.

Q: ...China renouncing the use of force... did the President ever get to talk about that to President Jiang during their meeting?

MR. STEINBERG: The President talked in great detail about these issues and reiterated our longstanding positions. He didn't say anything different.

Q: ...reiterate that point?

MR. STEINBERG: Absolutely.

Q: To follow up on that, what do you mean then that you will reduce arms sales to Taiwan? On the one hand, you say you're going to continue the sales because they're only defensive; on the other hand, you have this commitment to reduce arms. How do you square the two?

MR. STEINBERG: We look at the overall situation and we look at the communiqués in the context of what the situation is and what the legitimate defensive needs of Taiwan are. We're convinced that those are consistent with the communiqués. And it's a judgment call that we have to make, but it's our judgment that that is consistent with our obligations.

Q: So then do you ever see the United States in fact reducing arms sales to Taiwan?

MR. STEINBERG: I think what we're focused on, which is the first step of this process, is we'd like to see reduced tensions between the two. I think we're obviously encouraged by signs that there is a greater resumption of cross-strait contacts, and I think that that will be the place in which the impact will be felt first.

Q: Is there anything more in the CCTV interview about Taiwan tonight? And if so...

MR. MCCURRY: No.

Q: Jim, one last one on informing the President. Does the President feel he was informed satisfactorily promptly on this matter, eight hours after the fact?

MR. MCCURRY: The President was fully satisfied with the performance of the National Security Advisor and the Deputy National Security Advisor. Given the nature of the incident, the first question the President would want an answer to is what do we know about the reasons for the incident. And they were quite unclear for some time after the incident.

Q: Linda Tripp is testifying before the Washington grand jury. Has the President expressed any concern or worry about that?

MR. MCCURRY: The President has been concentrated on one trip, and it's China, not Linda. (Laughter.)

Q: Oooh!

Q: I'd like a follow-up. Let me just ask a follow-up.

MR. MCCURRY: I'll come back to you, Sam.

Q: On Taiwan, did he ever mention, of this issue of the many Chinese who are smuggled into the U.S. to seek political asylum on the basis of...

MR. MCCURRY: I think that Mr. Steinberg addressed most of those issues. I'm here to kind of clean up on anything else we have.

Q: Yes, I had a question about the CCTV interview.

MR. MCCURRY: Yes. Prior to departing for China, you'll recall the President did a roundtable with a number of Chinese journalists. It was our sense that because of editing pressures, that interview didn't get as full coverage as it might have on China television, and we had expressed that to the Chinese side. They initiated a request to us two days ago through our embassy here, indicating that they would like another opportunity to interview the President, and they would like to do it in a format that would allow his conversation to be carried unedited at least on one of the CCTV channels and mostly in its entirety, subject to the restrictions of the program Focal, which is a short primetime news program on CCTV-1. Consistent with what the President has been doing on this trip, reaching out to the Chinese people and making the case for our view of the synergy that exists between political freedom, freedom of expression, and economic modernization, it was an opportunity to carry that message further, and we were delighted to accept the opportunity.

Q: If I could just follow up, considering the translation problems and the transmission problem with the Beida speech...

MR. MCCURRY: That's why we did it in English.

Q: Is the embassy aware of whether a full transcript, properly translated, has been made available to the Chinese?

MR. MCCURRY: You may have missed me say that one of the things that CCTV agreed to was to go over the interpretation that will be used of the audio version, and I think on one of the two channels, I'm not sure which, they will use Chinese characters. And the interpretation of the President's remarks has been done in a way that's satisfactory to our side and has been reviewed by a U.S. government interpreter. By the way, I looked into the other issue. The question of whether or not the interpretation of the President's Beijing University remarks was a good and accurate one, that's a source of a great deal of strong counter-arguments on the part of those who heard the translation and listened to it carefully. All up and down our interpretive services and language division folks who have looked at it, they are confident that the interpretation was a good one.

Q: Mike, but was it an empathetic interpretation?

MR. MCCURRY: I don't speak Chinese, so I have no way of knowing.

Q: What did they say about that?

MR. MCCURRY: They thought it was an excellent translation. There were technical problems involved with it, so you couldn't hear it a some point, but that's not the same as having any problem with the translation itself.

Q: Did you insist that it run unedited and in its entirety?

MR. MCCURRY: We wanted... we indicated that was our desire. Now, the problem is the interview ran, it was clocked initially to fit a segment that they've got on CCTV-1 during a program called Focal, or that's what the English edition is. The President ran a little bit over and I understand they're going to try to get the whole thing on, even though it falls... it will go somewhat longer than what the normal time clock is for that particular program. On one of the other channels, it will run in its entirety.

Q: Has the President made the decision of whether to voluntarily answer a request to testify?

MR. MCCURRY: Sam, there's nothing new for me to report on that subject.

Q: Can you tell us a little bit about the private activities of the President? For instance, last night, the Mayor hosted a dinner. We didn't know about it. I learned about this reading the local newspaper.

MR. MCCURRY: Well, you should have checked the pool report. The pool that was representing the people in this room who was with the President reported on the dinner to the satisfaction of the pool last night. And we have had some, what we call off-the-record events that those in the room that are familiar with OTRs, know what that's all about and they can help you if you don't understand that concept. But the President will do an OTR tonight and I think most of you know what it is. I'm not going to talk about it here on the record.

Q: Will the President be making any kind of statement about the importance of democracy in Hong Kong, and if so, what can we expect to hear him say?

MR. MCCURRY: He will talk about the transition one year after the fact, the importance we attach to freedom of expression and the ability to express ones political beliefs, and the nature of the transformation that's occurred one year later. He'll do that, I believe, and he's got at least one public setting where he's got a chance to do that.

Q: He won't have a chance to hear him use the democracy?

MR. MCCURRY: I'm not going... I don't know what word he will use, but I wouldn't, until I look at the speech and take a look at what he's going to say, I don't want to speculate.

Q: On the issue of the meeting with Martin Lee, I can understand why there's not going to be any open coverage of the whole meeting, but what about just a photo-op at the top of the meeting?

MR. MCCURRY: I'll look into it, but I think Mr. Steinberg answered that as well as that can be answered at this point.

Q: Local people are complaining that the American Consulate General shut down their visa service for a whole week just because the President is here, because of short of hand. Do you care to comment on that or take this question?

MR. MCCURRY: Well, having succeeded Mr. Boucher at the State Department as spokesman, I'm fully aware of the capacity of our Counsel General to address questions from the press, so I'll defer that to him.

Q: Mike, can I get at the issue which sort of underlies the photo-op, which is, it seems as if the administration...

MR. MCCURRY: I understand the issue that underlies it and I can't help you and there's no point in us arguing about it here.

Q: Mike, I'm not arguing about it. I'm saying...

MR. MCCURRY: Just ask your question.

Q: Thank you. Is there an attempt by the United States not to offend the Chinese government by downplaying this visit with Martin Lee?

MR. MCCURRY: That's been asked and answered. Mr. Steinberg said that when we meet with opposition figures, we very rarely do photo opportunities. We reserve photo opportunities by and large for meetings with heads of state; heads of government, as you know. When we meet below that level, we very rarely do photo opportunities. I think everyone here knows that. That's our practice at the White House. That's certainly our practice when we're overseas. He cited a recent experience in Germany, and I don't have anything beyond that to add what Mr. Steinberg has already said.

Q: Mike, I'm not asking about the photo op. I'm saying is there an attempt by the United States not to offend the Chinese government sensibilities when you go to Hong Kong?

MR. MCCURRY: There's an offense -- there's a desire by the United States to conduct our diplomatic work here consistent with what our goals and objectives are diplomatically and consistent with protocol.

Q: Just to look ahead a little bit, his domestic travel schedule seems to be sending the message that he doesn't think much is going to get accomplished in Congress this year, and he might as well go and raise a bunch of money and take it to the voters in November.

MR. MCCURRY: Well, I gave you a couple of dates, mostly for convenience purposes and planning purposes and to make things easier for you during the summer when a lot of you want to plan vacation. I did you the courtesy of giving you some travel dates. I don't think I'd read a lot more into that. Obviously, from the schedule I just gave you, he's in Washington many more days than he's out of town.

Q: Mike, can you tell us again when you think that this CCTV interview will air and when we'll see a transcript of it?

MR. MCCURRY: We think that we're going to be able to get the feed available to you sometime in the next several hours. It will be available; the transcript we hope will be available in and around that same time. They're negotiating right now any embargo that they'd like to have on it, but I think since they want to promote it on their show tonight and defer the full interview until tomorrow that we sort of said should make it available for broadcast now. And Nichols was there, so if you want to get a better...

Q: But it's your understanding that it will air tomorrow?

MR. MCCURRY: It's our understanding that they're airing it tomorrow because they're loaded up with President Jiang Zemin's visit to Hong Kong today. And obviously we'd rather have as much time as possible available for President Clinton's remarks.

Q: Mike, the First Lady has done a number of events with the Secretary of State. Is that a deliberate show of women in power doing something here or...

MR. MCCURRY: No, it's a happy coincidence that the First Lady, who's actively involved in so many issues can be joined with the Secretary of State who happens to be of the same gender.

Q: You folks have asked the Chinese government to try and take some steps to remedy the Asian financial crisis. They're lowering interest rates today in Beijing; is this part of a coordinated effort to move in that direction?

MR. MCCURRY: I think just as we would make decisions on monetary policy based on structures that exist to make those decisions with our own economy, decision-making on sensitive financial matters like that by the People's Republic are surely theirs alone to make.

Q: -- you aware of --

MR. MCCURRY: I know a little bit about it and I know enough to know that they would be acting based on their own independent decision-making.

Q: Does the United States have a position on whether the schedule for increasing the directly-elected proportion -- is correct -- because Lee says it should be moved ahead -- and also election of the administrative chief should be --

MR. MCCURRY: If I recall correctly, I'd have to --I want to go back and check and see precisely what we've said about that in the past. My recollection is that we said it's important for them to adhere to the schedule that they have articulated if, in fact, not moving on an accelerated basis to increase the role that individuals play in making decisions about their own elected leadership.

Q: Can you just put out the guidance on that?

MR. MCCURRY: Yes, I can go -- we can get whatever I've said about that.

Q: Has there been any contact between Jiang Zemin and the President, for instance, over Hong Kong in the last day or so or in any other matters since you guys left Beijing?

MR. MCCURRY: I'm not aware that they've had any direct contacts since they had dinner Sunday night. We've been, obviously, numerous contacts and follow-ups on all the wealth of things that we've done here. We've got as part of this summit beyond just the meetings for U.S. officials at a variety of levels from cabinet level on down. And a lot of that is work that follows up what the two presidents worked on and expands and amplifies on things said in motion at the highest level.

Q: The President didn't call to congratulate him on the Hong Kong --

MR. MCCURRY: I'm not aware of that, although I think they did spend some time on Hong Kong in their sessions.

Q: Mike, you said that part of what the President would do in Hong Kong is to speak about the assessment and how well things have gone. In light of the U.S.-Hong Kong Relations Act

MR. MCCURRY: We'll be talking about that in Hong Kong.

Q: Has the Chinese government asked Mr. Clinton not to meet Martin Lee?

MR. MCCURRY: I'm not aware of any such requests, and obviously we are meeting him.

From US Newswire

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Text of Clinton Letter on Mongolia

U.S. Newswire

1 Jul 1998 16:27

To: National Desk

Contact: White House Press Office, 202-456-2100

WASHINGTON, July 1 /U.S. Newswire/ -- The following was released today by the White House:

TEXT OF A LETTER FROM THE PRESIDENT TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT OF THE SENATE

July 1, 1998

Dear Mr. Speaker: (Dear Mr. President)

On September 4, 1996, I determined and reported to the Congress that Mongolia was "not in violation of" the freedom of emigration criteria of sections 402 and 409 of the Trade Act of 1974. This action allowed for the continuation of most-favored-nation status for Mongolia and certain other activities without the requirement of an annual waiver. As required by law, I am submitting an updated report to Congress concerning the emigration laws and policies of Mongolia. You will find that the report indicates continued Mongolian compliance with U.S. and international standards in the area of emigration.

Sincerely, WILLIAM J. CLINTON

From US Newswire

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Clinton delivers environment warning

07/01/98- Updated 05:01 PM ET

SHANGHAI, China - President Clinton is delivering an environmental warning as he leaves the gleaming skyscrapers of Shanghai for the fabled limestone mountains of Guilin: China soon will have the "unfortunate distinction" of replacing the United States as the world's No. 1 producer of greenhouse gases.

But while the problems are enormous, attitudes are changing, and Clinton pledged U.S. support for China's efforts to clean up its environment.

He said Wednesday that a major legacy of his visit will be U.S.-Chinese cooperation on the environment - something that "ten years from now people will look back and say that's one of the biggest things they did."

In a speech to American business leaders, Clinton urged China to clean up corruption, open trade markets and combat the environmental catastrophe hanging over the world's most populous country. He said it was wrong to believe - as many do - "that there is an iron, unbreakable link between economic growth and industrial-age energy practices. ... It is simply not true."

The president was accorded a third opportunity of national media exposure in a taped interview with state television CCTV. He was asked friendly questions and sidestepped on whether he or President Jiang Zemin has a tougher job.

With the end of the Cold War, Clinton said, "America has this role which is temporary - it won't last forever - as the only superpower in the world." He said the world "needs a leader but not in the sense of one country telling everyone else what to do."

Clinton's stop on Thursday in Guilin puts him amid the splendor of cloud-shrouded mountains and winding rivers that have inspired artists for thousands of years, a contrast to the high-rise modern structures of Shanghai. After floods along the Li River, the government sent in 5,000 soldiers to clean up the mud-coated banks. The troops hauled away 20 tons of drift and sludge to improve things for Clinton.

After a river boat ride, the president will fly to Hong Kong, the last stop on his nine-day visit, to demonstrate U.S. interest in preserving the autonomy of the former British colony. It was returned to China on July 1, 1997, after 156 years of British rule.

Jiang will wrap up a visit to Hong Kong - marking the first anniversary of the handover - just hours before Clinton arrives.

There will be Clinton photo opportunities with executive branch officials C.H. Tung and Ansin Chan, the senior civil servant. But Clinton's meeting with Martin Lee, Hong Kong's leading proponent of democracy, will be private - a decision seen by some as an attempt not to offend the Chinese government.

Presidential spokesman Mike McCurry said photo ops are reserved for heads of state and government.

China's devastating environmental problems have been a recurring theme on Clinton's trip, from his university speech Sunday to Wednesday's address to American businessmen.

Reciting a dreary litany, Clinton said, "Respiratory illness from air pollution is now China's No. 1 health problem. Every major body of water is polluted. The water table is dropping all over the country. China is about to assume the unfortunate distinction of replacing the United States as the largest emitter of greenhouse gases that are dangerously warming our plant."

If that weren't enough, five of the 10 most polluted cities in the world are in China.

In Guilin, Clinton was launching a series of exchanges between U.S. and Chinese experts on global climate change. Also being spotlighted was U.S. assistance for a nationwide air quality monitoring network in China and a $50 million Export-Import Bank loan for clean energy projects.

China has pledged a $54 billion investment in the environment between 1996 and 2000 and is seeking foreign technology and investment to combat the problem.

Beijing, along with other major cities, has banned leaded gas, tightened emissions tests and ordered that all new cars beginning next year be fitted with catalytic converters.

The president, at breakfast with U.S. business leaders in Shanghai, expressed disappointment that he and Jiang failed to reach agreement on lowering trade barriers and other economic reforms, conditions that must be met before China gains entry into the World Trade Organization.

"But we'll keep working at it until we reach a commercially viable agreement," he added.

U.S. Trade Representative Charlene Barshefsky told the group that America's trade deficit with China could climb to $60 billion in 1998, up $10 billion from the previous year.

China contends the trade imbalance is only $16.4 billion, excluding among other things trade through Hong Kong, but Beijing agrees its surplus is growing.

Clinton said he couldn't ask China to slow its economic growth with strict anti-pollution measures.

"But as a citizen of the world and the leader of my country, I have a responsibility to ask us all to work together for a planet that our grandchildren can still enjoy living on. And so do you."

Afterward, Clinton toured the Shanghai Stock Exchange during a lunchtime pause in trading. Instead of stock prices, the computerized board glowed with a red and yellow presidential welcome.

Clinton and his family concluded the day with a leisurely boat trip down the city's main river, the Huangpu. On one bank were the European style waterfront buildings from Shanghai's golden days in the 1920s and 1930s. On the other were the neon-lit skyscrapers of today.

By The Associated Press

From USA Today

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Copyright DateRichard R. Wertz