-Caveat Lector- We oppose Chinese accession to the World Trade Organization. We oppose the annual grant of "Most Favored Nation" (MFN) trade status to that corrupt and arrogant regime. We oppose a grant of permanent MFN to China, which the U.S. government will be obliged to give if China is accepted into the WTO (otherwise, we will be liable in the WTO for an unfair trade practice). Therefore, we urge you to lobby your congressional delegation, while they are still home on recess, to oppose Permanent MFN for China. Further, your Member should demand the public release of the report described below. Meanwhile, our friends on the Hill are searching for a copy of this apparently damning summary of the damage to the US economy if we give the transnational corporate "free trade" lobby what they want on this important issue. ***************************************** White House to Keep Report on China's WTO Membership Out of the Public Eye By Heidi Przybyla/Bloomberg U.S. Administration to Keep China-WTO Report Secret (Update1) (Adds comments from Dana Rohrabacher, paragraphs 10, 11.) Washington, Aug. 26 (Bloomberg) -- The Clinton administration will keep confidential a long-awaited report exploring what impact China's membership in the World Trade Organization would have on the U.S. economy. That decision, coupled with the administration's moves to delay the report, underscores White House concern about airing any potential criticism of its push to get China into the Geneva-based trade body, policy experts say. The report may stoke criticism, since it will conclude that at least one U.S. industry -- textiles -- would ``clearly be hurt'' by China's WTO entry, according to an internal document from the author, the independent International Trade Commission, that was obtained by Bloomberg News. ``The administration is always very cautious that any kind of skeptical or realistic policy analysis could stir up opposition in Congress and undermine negotiations with the Chinese,'' said Greg Mastel of the Center for National Policy, a Washington think tank. The administration has made WTO membership a cornerstone of its ``constructive-engagement'' policy with China, saying it would force the government to lower tariffs and investment barriers and be a boon to U.S. companies. Yet relations between the countries have been strained by NATO's bombing of the Chinese embassy in Belgrade and allegations of Chinese stealing nuclear secrets. As a result, the WTO talks have collapsed, and the administration is eager to resume them. Why Secret? The U.S. Trade Representative's office wouldn't comment on the details of the ITC report. ``It is confidential because negotiations are ongoing,'' said Amy Stilwell, a USTR spokeswoman. That position has irritated critics. ``What is the point of keeping it secret?'' said Alan Tonelson, a research fellow at the U.S. Business and Industry Council, which represents small businesses, many of which would be vulnerable to competition from inexpensive Chinese imports. Tonelson said the report -- which will be available to Congress but not the press -- should be released because China's WTO entry is ``a major public policy debate.'' The report by the ITC, an autonomous U.S. agency that measures the impact of trade on domestic industry, is due to be submitted to the administration next week. The study will probably favor China's joining the WTO, yet those who oppose the move -- ranging from textile makers to steelworkers to human rights activists -- still say it should be made public. `Amazing Contortions' Representative Dana Rohrabacher, a California Republican and longtime critic of the administration's China policies, blasted the administration for withholding the report. President Bill Clinton ``jumps through hoops, does acrobatics and amazing body contortions in order to prove to the American people that the Chinese communist regime is friendly to the U.S.,'' he said. ``Obviously, he doesn't even want Americans to know what price they'll pay for China's (WTO) entry.'' While it's not unusual for such reports to be restricted to congressional viewing, the internal ITC document, dated Jan. 27, said the USTR delayed its request for the report for almost two years, most likely out of concern it would affect the WTO talks. ``In each instance, a request (from the USTR) seemed likely, but died for reasons that are not entirely clear, but probably were due to the reluctance to request a study that might damage negotiations,'' the document said. `Commercially Viable' While U.S. Trade Representative Charlene Barshefsky and other administration officials say a ``commercially viable'' WTO agreement with China would bolster U.S. industry, the report could undermine that position. The report is independent, so it probably gives a ``more realistic'' assessment of China's WTO membership than recent private industry-funded studies, said Mastel. Some congressional staff members said they expect to be briefed on the report as early as next week. Clinton has struggled to prove to Congress and the country that constructive engagement will bring peace and prosperity to both nations. During this period of heightened tension, administration officials say they want to bind China to international trading rules and regulations as a WTO member. Chinese Premier Zhu Rongji is seeking WTO membership because it could spur his market reforms and encourage foreign investment in China, which has plunged 21 percent this year. His government, though, wants to enter the trade body as a developing nation, which would give it more time to open its markets. As a result, some critics warn that the U.S. trade deficit with China -- which swelled to a record $56.9 billion last year -- could balloon. 4 Requests That criticism has put the Clinton administration on edge and may have led to the delay in the USTR's formally requesting the ITC to begin the report. The administration didn't ask for the ITC study until last December even though the USTR's office had drafted at least four different requests since early 1997, according to the ITC document. The report, originally due in June, was then delayed two more months after relations between the U.S. and China soured over the Belgrade embassy bombing. Letters from Barshefsky to the ITC show the delays came at the request of the administration, which submitted additional information for the commission to consider. The administration is under pressure from companies like Boeing Co., Motorola Inc. and Caterpillar Inc. to get China into the WTO because they see gains for U.S industry. `Huge Mistake' Many executives said the administration made a ``huge mistake'' turning down an offer from China to join the WTO in April after the release of a congressional report accusing China of stealing nuclear secrets, said Nancy Bernkopf Tucker, a China expert at Georgetown University. Yet if the ITC report is fair, it will give a harsh assessment of potential gains for U.S. companies from China's entry, Tucker said. ``A huge number of companies that invest in China don't make money,'' she said. ``I think any projection that says this (agreement) is going to reinvigorate trade with China is wrong.'' Many executives felt the administration was ``too frightened by Congress to do the right thing,'' Tucker said. ``Anything now that would undermine accession is going to be very unpopular with the business community.'' **** NEW CITIZEN'S GUIDE TO THE WORLD TRADE ORGANIZATION! On the Internet at http://www.tradewatch.org/publications/gtwpubs.htm FOR MULTIPLE COPIES CONTACT APEX PRESS ---> [EMAIL PROTECTED] **** In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. 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