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Publications of the Center for Security Policy
No. 99-F 31

SECURITY FORUM

12 November 1999

Steve Forbes Issues Reaganesque Call to Help Free China

(Washington, D.C.): In a major foreign policy address delivered today at the
library of one former President, Steve Forbes issued a call for a new approach
toward China that was strongly reminiscent of another President -- Ronald
Reagan -- in its strategic vision, its moral compass and confidence in the
power of American ideas and leadership. In the interest of encouraging a much-
needed debate about the direction and content of U.S. policy vis a vis the PRC,
the Center urges each of Mr. Forbes' rivals for the presidency -- and
candidates for other elective offices -- to make known in detail their views on
his critique of the Clinton-Gore record and his recommendations for an
alterative approach.

'No More Business as Usual: A Vision of U.S.-China Policy in the 21st Century'
Excerpts of Remarks by
Steve Forbes
The Nixon Library, Yorbalinda, California
12 November 1999

The China Challenge
The rise of China as a new power is one of the greatest challenges we face as a
nation as we enter the 21st century. Our failure to properly handle the rise of
Germany and Japan earlier in the 20th century cost the world and us dearly. We
dare not make the same mistake with China.
* * *
Some believe that China is like Germany under the Kaiser, an incipient and
implacable enemy with whom we are destined to clash. Others are premature
optimists who see China as predestined to evolve into a democracy.

I reject both views. Nothing is foreordained in the course of human events.
The only thing we can be sure of is that China is as unpredictable as ever.
Indeed, the history of China is a succession of despotic dynasties punctuated
by volcanic eruptions and fanatical movements.
* * *
China has a hybrid economy, one that depends on a measure of free enterprise to
sustain shoddy, state-run outfits and crony capitalism. Such a system can
maintain its rule with force. But it can no longer draw strength from the
messianic fervor of Marx, Lenin and Mao.

Such ideological weakness - such intellectual rot - is an invitation for
trouble. The simultaneous emergence of the Falun Gong cult on the one hand, and
the explosive growth of Christianity on the other, are clear signs that the
Chinese people are casting about for a new belief system to fill the void left
by communism.

In short, China is an immensely important yet intensely unstable country. Its
government seeks to be a global superpower while its people seek freedom and
spiritual fulfillment. We must define U.S. policy towards China and the whole
of Asia accordingly.

A Decade of Drift and Indecision
The decade since the massacre at Tiananmen Square has been a decade of drift,
indecision and plain bad judgment. The Clinton-Gore Administration clearly does
not understand the realities inside China today. It still has no compass, no
guiding principles, no sense of direction.

President Clinton calls his China policy "constructive engagement." I call it a
study in confusion and mixed signals, often degenerating into appeasement.
In his first term, President Clinton's approach had all the predictability of a
drunk driving on the road. We told Beijing terrible things would happen if
human rights abuses persisted - and then backed down. We were ambiguous when
China began its saber rattling with Taiwan in 1996 and let the crisis reach a
dangerous level and China began test-launching missiles. Clearly, Beijing takes
our president's statements no more seriously than he does.

Then there is the espionage. Read the bipartisan report by California
Congressman Christopher Cox. The evidence is overwhelming. The Clinton-Gore
Administration's national security ineptitude allowed Beijing to steal or buy
America's most advanced thermonuclear weapons designs, state-of-the-art
ballistic missile designs, high performance American supercomputers, and
advanced satellite technology.

Then there is the subversion of our political system. The sale of political
access in Washington to agents of Chinese intelligence has encouraged the PRC
to believe they can freely ignore American principles because, after all, we
can be bought.

Then there is the systematic demobilization of our armed forces. This
Administration's budgets have seriously undercut our military preparedness in
the Far East and done precious little to build ballistic missile defenses for
us or our allies.

In short, we have had a non-policy based on non-principles, resulting in almost
eight years of amateur-hour improvisations. If the next U.S. administration
continues this drift and zigzagging, our children and grandchildren will
ultimately pay the price.

A New China Policy
It is time to set a new course for American foreign policy in Asia. We need a
principled President who will deal with China from a position of strength. We
need a President willing to say to Beijing in no uncertain terms: No more
business as usual.

o No more shutting our ears to the cries of Christians, Buddhists and others
suffering religious persecution in Chinese gulags.

o No more turning a blind eye to Chinese spies in our nuclear labs.

o No more keeping silent about Chinese slave labor camps, forced abortions and
death-factory orphanages.

o No more doing business with Chinese military-owned companies trafficking in
weapons of mass destruction.

o No more leaving our children and our allies vulnerable to Chinese nuclear
missiles.

o And no more sweetheart trade deals.

I share the American people's sense of frustration that our security and our
values are constantly being trampled by Beijing, and the Clinton-Gore
Administration does nothing. It is weak. It is reactive. It is rudderless - and
it is wrong.

The question is: Where do we go from here? How do we get from where we are
today to where we want to be?

Some believe the right course of action is to immediately revoke Most Favored
Nation trade status - a form of "shock therapy" - to force China to stop its
egregious military and human rights abuses.

And that is an entirely understandable point of view - especially given the
White House's approach of "hear no evil, see no evil, speak no evil" towards
Beijing.

Indeed, we may very well need to revoke MFN.

But first we need a real China policy, a tough China policy.

We need Beijing to understand the rules of engagement.

And we need to begin using the economic and diplomatic tools at our disposal to
effect real change in China: tough sanctions on Chinese military-owned
companies..tough sanctions on Chinese companies using slave labor.tough
sanctions on Chinese companies trafficking in weapons of mass destruction.and
continuous, high-profile condemnations of Chinese human rights abuses in every
international forum possible.

President Clinton won't do it. Vice President Gore won't do it. But I will.
As President of the United States, I will put China's leaders on notice: We
want a peaceful and constructive relationship with you. But you must understand
the rules of engagement. And if you violate them - if you continue to head down
the path towards confrontation - then I will not hesitate for one moment to
revoke Most Favored Nation trade status.

I will never sacrifice American security or values on the altar of trade.
The choice is up to you. The benefits of cooperation and friendship are
enormous. But the days of appeasement are over. Period.

It is time we put dictators and despots on notice: We will not be intimidated
and we will not be threatened. We will protect our childrendefend our
friends.advance our principlesand transcend our enemies.

My new China policy will be based upon three strategic objectives:

o First, we will protect American sovereignty and security.

o Second, we will promote individual liberty and human rights.

o Third, we will open new markets and expand existing markets, but never at the
expense of our security and principles.

U.S. Security and Sovereignty
In a Forbes Administration, American sovereignty and national security will
come first. That means defending our vital national security interests, which
include the following:

o Protecting the American homeland, borders, shores and airspace

o Protecting Americans against threats to their lives and well-being

o Preventing a major power from dominating Europe, East Asia or the Persian
Gulf

o Preventing hostile interference in the Western Hemisphere by outside powers

o Maintaining the freedom of the seas and maintaining access to vital natural
resources.

America must be absolutely committed to remain the premier military power in
the Pacific.

The Forbes Administration will rebuild - not run down - our national defenses.

We will strengthen our alliances with key countries in the region to
counterbalance the Chinese threat.

We will make it clear that we will defend Taiwan from a Chinese attack. As
President, I will sign the bipartisan "Taiwan Security Enhancement Act" offered
by Senator Jesse Helms and Senator Robert Torricelli. This will lift
restrictions on the sale of defensive weapons to Taiwan, including missile
defense systems.

We will also deploy state-of-the-art missile defense systems - such as the sea-
based Aegis system - to protect our allies and ourselves.

Indeed, we must dramatically step up our research and development to reopen the
technology gap and pull away from our adversaries.

When a Chinese general made a not-so-veiled threat to "nuke" Los Angeles over
the Taiwan crisis several years ago, he made one thing abundantly clear: We
must not allow China's growing nuclear arsenal to continue to threaten American
cities and decouple the United States from our allies.

After all, if America were to leave the Western Pacific, Japan, South Korea,
and perhaps other powers would have no choice but to rearm, and develop and
deploy nuclear weapons of their own. China must understand the security
umbrella America provides in the Pacific promotes stability and serves the long-
term interests of all powers.

At the same time, we must be on the lookout for a continuing Chinese effort to
compromise our security elsewhere in the world.

The Panama Canal is a good place to start. Having Chinese companies managing
both ends of this strategic chokepoint between the Atlantic and the Pacific is
simply unacceptable to American security. In the spirit of the Monroe Doctrine,
the Forbes Administration will prevent the hostile interference in the Western
Hemisphere by outside powers such as Communist China.

So this is the first strategic objective of the Forbes policy towards China -
protecting American sovereignty and national security.

Individual Liberty and Human Rights
The second strategic objective of my China policy will be to vigorously and
consistently champion individual liberty and human rights.

Like all people of goodwill, I hope for a future China that is free and
democratic, and I will do everything in my power to see that this vision comes
to pass. That certainly means making sure China understands the rules of
engagement. But it also means confronting Chinese human rights abuses.
* * *
Fortunately, Congress has begun to move in the right direction. For example,
China's slave labor camps operate 140 export enterprises, selling products to
over 70 countries, including the U.S. But in 1997, Congressman Chris Smith,
from my home state of New Jersey, introduced a bill to keep China's slave labor
products out of our country. I supported this bill at the time, and as
President, I will vigorously enforce it and fight slave labor practices in
China and throughout the world.

At the same time, the Forbes Administration will take the lead in forcefully
denouncing Chinese human rights abuses.

And we will stand up for the inalienable rights of all people to free speech,
free assembly and freedom of religion.

The more we expose their abuses, the more Beijing will protest with angry words
and threats. But we know one thing from our experience with the Soviets:

Pressure will yield results. The process of freedom, once begun, sustains
itself internally and spreads.

At the same time, we will seek ways to engage the Chinese people, to meet their
yearning for truth, faith, and higher ideals. For a half-century, Chinese
leaders have preached a lifeless, soulless marriage of materialism and state
control. It has created a spiritual vacuum, longing to be filled.
* * *
Now is not the time to turn our backs on the good people of China, one out of
five people living on the planet today.

Nor is this the time to maintain business as usual.

Now is the time to intensify our efforts to communicate the good news of
freedom and faith in God to a people living in great darkness.

>From my years as chairman of Radio Free Europe and Radio Liberty, I know that
the free flow of truth is deadly to dictatorial regimes.

So central to my strategy will be dramatically expanding Radio Free Asia, which
should have more frequencies, more programming and more power to send its
signals so that hundreds of millions of people can hear its broadcasts.

And in this new Information Age, we will also launch Internet Free China. We
will create news and informational web sites in Mandarin, Cantonese and other
dialects. We will use cutting edge technology to reach out to the Chinese
people, because the Internet is the new frontier of freedom and democracy in
the digital age.

My friends, freedom works. And we must never give up our efforts to communicate
the truth, particularly in China.

Open Markets
Along with protecting American sovereignty and security, and advancing
individual liberty and human rights, the Forbes Administration will pursue a
third objective: opening new markets and expanding existing markets throughout
Asia.

Again, I want China to choose a path of peace and cooperation. I want them to
open their markets and sign honest, enforceable, free trade agreements with us.
This would be a huge boon for American workers, companies and farmers.

And it is true the our ultimate hope for a fruitful, peaceful relationship with
the Middle Kingdom lies in the rise of pro-freedom, pro-free enterprise forces
within it. As we have seen in Chile, South Korea and Taiwan, economic
liberalization can bring in its wake demands for political reform.

But U.S. security and our vital national interests must always come first.
For example, China's People's Liberation Army controls some 15,000 companies
with an estimated $10 billion in worldwide sales. Many of these companies
operate here in the United States.

But if Beijing continues selling dangerous military equipment to rogue states
such as North Korea and Iran, I will apply tough sanctions on one PLA company
after another.

If the offenses don't stop, I will up the ante.

The Clinton-Gore Administration has turned a blind eye to such dangerous arms
sales; I will not. Too much is at stake.

At the same time, the Forbes Administration will also put an immediate halt to
sales of sophisticated technology to China that can clearly be used for
military purposes.

Now let me say a word here about the World Trade Organization.

The Clinton-Gore Administration wants to give China a sweetheart deal, allowing
Beijing into the WTO on concessionary terms, as though they were some third-
world nation rather than a major economic player. This is a serious mistake.
America is the world's only economic superpower, and it's ridiculous to take
such a weak position with an emerging power.

That said, I believe Taiwan should be permitted entrance into the community of
world commerce.

They have made extraordinary progress in moving towards free markets and free
elections and they should be rewarded for it.

Let me be clear: Yes to Taiwan in the WTO. No to China. Beijing hasn't earned
it, and we shouldn't give it. Period.

It is time for our government to reward freedom and democracy - not force and
demagoguery - and let us never forget it.

Benchmarks For Progress
As President I will make clear to China the rules of engagement.
I will also set clear benchmarks to gauge China's seriousness about a positive
relationship with the United States.

For example:
The People's Republic of China must resume diplomatic discussions with Taiwan
and moderate its threatening language. Taiwan is a new democracy that has
emerged from authoritarian rule. If we are true to ourselves, we must
acknowledge that Taiwan deserves the respect and support of the West in the
face of Beijing's coarse, warlike threats, and bellicose deeds - and we must
pressure Beijing to cease and desist immediately.

China must stop selling weapons of mass destruction to rogue nations. The
proliferation of weapons of mass destruction - and the means to deliver them -
is one of the greatest threats to peace and security in our time. We must do
everything in our power to halt this deadly trade.

China must drop its opposition to countries deploying ballistic missile defense
systems since they pose no threat to China. Beijing's hyperbole over American,
Japanese and Taiwanese missile defenses - and the ABM Treaty - is not helpful.
China has nothing to fear - and everything to gain - from purely defensive
technologies.

China must stop religious persecution and immediately begin releasing political
and religious prisoners, such as those identified by Freedom House. The thirst
for individual liberty, human dignity and spiritual growth is unquenchable, and
the United States will never abandon those for whom it is being denied. Indeed,
it will be the explicit policy of the Forbes Administration to champion a free
and democratic China in every manner possible.

The Road Ahead
I know my policy will sound confrontational to official Chinese ears. In truth
it is less confrontational and less dangerous than hiding our convictions and
commitments behind a fog of appeasing rhetoric.
* * *
I am advocating the peaceful application of the same universal principles that
Ronald Reagan applied to the peoples of the former Soviet Union. At the
beginning of his presidency, Reagan told the British Parliament and the world
that Soviet communism would be consigned to the ash heap of history. No one
believed him. In 1982, such a prediction sounded preposterous to the ears of
most Western intellectuals and bellicose to the Soviets. But Reagan knew that
such a thing could come to pass-and quicker than most of us thought-because a
process of change was at work within the Soviet Union.

Reagan wasn't being hostile. Far from it. His compassion and respect for the
people of Russia was so great that he believed the day would soon come when
they would throw off their shackles and be free.

Today, I hold the same hope for the people of China. I believe that in my
children's lifetime, they will see a free, democratic, peaceful and prosperous
China. Not because it is destined to happen, but because we helped make it
happen.

NOTE: The Center's publications are intended to invigorate and enrich the
debate on foreign policy and defense issues. The views expressed do not
necessarily reflect those of all members of the Center's Board of Advisors.
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