NAPSNet Daily Report
wednesday, june 28, 2000

I. United States

II. Republic of Korea III. People's Republic of China

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I. United States

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1. Chung Ju-yung's DPRK Visit

Reuters (Song Jung-a, "HYUNDAI FOUNDER VISITS N.KOREA, TO MEET KIM JONG-IL," Seoul, 6/28/00) reported that Hyundai founder Chung Ju-yung and more than 20 Hyundai officials crossed into the DPRK Wednesday to start a three-day visit expected to include talks with its leader, Kim Jong-il.

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2. ROK-Russian Relations

The Associated Press ("RUSSIAN PRESIDENT MAY VISIT SOUTH KOREA," Moscow, 6/28/00) reported that ROK Foreign Affairs and Trade Minister Lee Joung-binn arrived in Moscow on Wednesday to discuss the possibility of Russian President Vladimir Putin traveling to Seoul.

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3. Cross-Straits Relations

The Associated Press (William Foreman, "TAIWAN PRESIDENT RECOGNIZES OLD DEAL WITH CHINA ON STATUS," Taipei, 6/28/00) reported that Taiwan President Chen Shui-bian said on Tuesday that he would recognize a deal struck by Taiwan with the PRC in 1992 in which both sides agreed to disagree about how to describe Taiwan's political status. Chen's decision would effectively end the policy begun by former Taiwanese President Lee Teng-hui of insisting that both sides have equal "state-to-state" relations. Chen's administration had weekly offered new ways to describe the PRC-Taiwan relationship, but none has been accepted by the PRC. Taiwan Nationalist Party legislator Lin Chih-chia applauded Chen for accepting the 1992 consensus.

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4. Alleged PRC Proliferation

The Office of International Information Programs, US Department of State ("SENATOR THOMPSON WARNS CHINA ON ARMS PROLIFERATION," 6/26/00; and "SENATOR BIDEN ADVISES CAUTION ON NATIONAL MISSILE DEFENSE PLAN," 6/26/00) reported that US Senator Fred Thompson provided fellow senators with an overview of PRC actions that he said would threaten regional peace and US national security. Thompson especially highlighted the PRC's assistance to Pakistan in building a missile, and also said that the PRC has also supplied weapons systems Libya, Saudi Arabia, the DPRK, and Iran. He said that if the PRC is found to have continued as proliferator, "we will have responses. They will be WTO (World Trade Organization)-compliant; for the most part they will not be trade-related." US Senator Joseph Biden responded that the threat posed by the PRC's proliferation activities are real, but a solution that is not worse than the problem is difficult. He warned that trying to protect against a DPRK nuclear missile threat abetted by the PRC might create a greater threat for the US from a PRC that decides to offset the effects of NMD by building up its nuclear missile capacity. He said, "If we go forward with the national missile defense system that we are contemplating, and if we must abrogate the ABM Treaty in order to do that, I am willing to bet any Member on this floor that China goes to somewhere between 200 and 500 ICBMs within 5 years."

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5. US Computer Sales to PRC

The Office of International Information Programs, US Department of State ("PENTAGON SPOKESMAN'S REGULAR TUESDAY BRIEFING," 6/27/00) reported that US Defense Department Spokesman Kenneth Bacon said that the fastest computer the US has licensed for export to the PRC is approximately 31,000 MTOPS (Millions of Theoretical Operations per Second), and this was sold to their version of the National Oceans and Atmospheric Administration. He said, "Just to put this in context, most of the nuclear weapons in America's arsenal today could be designed with the types of computers, high-level computers, you could buy at CompUSA. And finally, just to add some context, the Chinese have worked hard to develop an indigenous computer industry to build high- performance computers. And in this day and age, that's not hard to do." He also said that more powerful computers are needed to simulate the effects of a nuclear explosion but that the hardware to make powerful computers is made and sold by many companies both inside and outside the US.

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6. Japanese Red Army Suspect

The Associated Press (Kozo Mizoguchi, "RED ARMY HIJACKING SUSPECT IN JAPAN," Tokyo, 6/28/00) reported that Japanese police reported that Yoshimi Tanaka, 51, who once belonged to the Red Army terrorist group, arrived at Tokyo's main international airport on a flight from Bangkok. Police planned to question him later about the 1970 hijacking of a Japanese jetliner. He was arrested in Cambodia in 1996 with more than US$120,000 worth of fake US$100 bills while trying to flee to Vietnam and was wanted in Japan on charges of inciting a riot and an attack on a police station.

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7. Japanese War Reparations

The Los Angeles Times (Teresa Watanabe, "U.S. STANCE ON REPARATIONS BY JAPAN ANGERS EX-POWS," 6/28/00) reported that several US veterans who were prisoners of war of Imperial Japan during World War II said that they have never received any compensation for the slave labor and other inhumane treatment that they endured. The veterans said that they are especially upset that the US government has taken sides in litigation against Japan after declining to similarly intervene in the slave labor cases involving Holocaust survivors. According to papers submitted by the US Justice Department, about US$20 million in assets seized from Japan at the end of the war along with Japan's payments to other nations under the 1951 San Francisco peace treaty represented a reparations program "never before even remotely approached in modern times. With the seizure of Japanese assets, the United States resolved its claims and the claims of its nationals against Japan and Japanese nationals." The veterans said that the only compensation they received was US$1 for each day of imprisonment, which they were told was ration money. Heimbuch, a retired Air Force major who spent two years in captivity in the Philippines and Japan, said, "It's ridiculous. It's beyond explanation." The US government's position is likely to have an impact on the more than 25 lawsuits seeking compensation for alleged slave labor from Japanese firms now pending in California state and federal courts.

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8. US Missile Defense

Reuters ("CLINTON MAY MOVE FORWARD WITH MISSILE DEFENSE-POST," Washington, 6/28/00) reported that the Washington Post reported Wednesday that US President Clinton is likely to give a "limited green light" for a national missile defense system if a flight test goes well next week. A senior administration official said, "All we're talking about is some very long-lead construction work. The issue will be open for the next president to decide either way." The Washington Post quoted national security adviser Sandy Berger as saying that it was to early to predict what Clinton's decision will be as it will depend on the upcoming test and continuing talks with Russia, the PRC, and US allies in Europe.

II. Republic of Korea

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1. DPRK Official's Visit to US

The Korea Herald (Chon Shi-yong, "N.K. HEAD OF STATE KIM YONG-NAM PLANS TO VISIT NEW YORK IN SEPT.," Seoul, 06/27/00) reported that a senior ROK official said on Monday that DPRK has informed the US that its nominal head of state, Kim Yong-nam, will visit New York to attend the UN "millennium summit" in September. "North Korean officials are now discussing Kim Yong-nam's itinerary with U.S. officials," the official said, asking to remain anonymous. He said he did not know if Kim would travel to Washington or meet US President Bill Clinton on the sidelines of the UN summit, which is scheduled for September 6-8. He said only that the two sides are discussing which US officials the DPRK leader will meet during his stay in New York. The official added that the DPRK and the ROK have not begun discussions to arrange a meeting between Kim and President Kim Dae-jung. Kim would be the highest-ranking DPRK leader to either attend a UN conference or visit the US.

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2. Reunion of Separated Families

The Korea Herald (Kim Ji-ho, "FUTURE FAMILY REUNIONS WILL TAKE PLACE AT DESIGNATED MEETING POINTS, PARK SAYS," Seoul, 06/27/00) reported that ROK Unification Minister Park Jae-kyu said on Monday that the ROK government will attempt to alter the pattern for reunions of separated family members from a limited number of exchange visits to a continuous series of meetings at designated places. In the Red Cross talks that began Tuesday, Seoul was therefore to focus on establishing meeting points and taking other steps to make the reunions regular events, he added. Throughout the talk at the DPRK's Mt. Kumgang, ROK and DPRK Red Cross officials are expected to hammer out detailed measures and procedures for the exchange visits of about 100 family members from each side around August 15, Liberation Day. "I predict the negotiators will have little difficulty in working out these preparatory measures, as the two top leaders have agreed on the main framework," Park said upon the departure of the 16-member ROK delegation. An estimated 7.6 million ROK citizens have relatives in the DPRK, and more than 660,000 of them are over 60 years old. ROK officials said that the regular meeting points could be set up either in Mt. Kumgang, the DPRK's Rajin-Sonbong special economic zone, or in Panmunjom, the ROK government's first choice. Minister Park has said that the government will include ROK prisoners of war held in the DPRK in the list of people joining the reunions after the Liberation Day event, as well as DPRK spies wanting to return home and ROK citizens abducted by DPRK agents.

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3. Inter-Korean Economic Cooperation

Joongang Ilbo (Hong Byung-gi, "INTER-KOREA TALKS RAISED TO MINISTERIAL-LEVEL," Seoul, 06/26/00) reported that the ROK government decided to raise talks regarding inter-Korea economic cooperation to the ministerial level in order to establish the specifics of economic cooperation. An alliance with Germany is being proposed in order to support the maintenance DPRK's power industry. "The two Koreas have agreed to up the inter-Korea meeting to the ministerial level; the first conference is expected to be held about August 15," stated a high-level official. He added, "The meeting on Inter-Korea economic cooperation will mostly focus on guaranteeing investments and resolving snags like double taxation. Other issues to be discussed include raising funds for connecting cross-border railroads, supplying fertilizer and food, and determining commercial and industrial standards."

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4. Chung Ju-yung's DPRK Visit

Joongang Ilbo (Suh Ik-jae, "CHUNG JU-YONG VISITS NORTH KOREA WITH CATTLE AND RICE WINE," Seoul, 06/26/00) reported that Chung Ju-yong, former honorary chairman of Hyundai Group, would visit the DPRK with cattle in tow on June 28. He was also to take 300 bottles of makkoli, traditional Korean rice wine. Hyundai Asan applied for permission to visit the DPRK from the Ministry of Unification and to take 500 cattle to replace the 350 cows that have died out of the 1,100 cattle donated in 1998. The 50 trucks needed to transport the cattle will be sold to the DPRK in the form of a deferred payment export. Additionally, Hyundai is looking into taking building materials for the Pyongyang stadium under construction. About 20 Hyundai officials were to accompany Chung. They were reportedly to meet Chairman Kim Jong-il to discuss the selection of the West Coast Industrial Park site, the creation of a light industry complex, and the restoration of the Seoul-Uijongbu railway.

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5. KEDO Meeting

Chosun Ilbo ("KEDO TO HOLD AMBASSADOR LEVEL TALKS," Seoul, 06/26/00) reported that the Korean Energy Development Organization (KEDO), an international consortium financing a US$4.6 billion nuclear power plant in the DPRK, would hold its first ambassador-level meeting since the inter-Korean summit to discuss pending issues related to the project. Topping the agenda during the meeting, which was slated for June 26 in New York, were measures to counter General Electrics' (GE) refusal to supply turbines and an assessment of labor expenses for the project. Participants in the upcoming talks include Jang Jun-sup, the leader of the light-water reactor project, Charles Kartman, US special envoy for Korean affairs and the chairman of the executive committee at KEDO and representatives from Japan and the EU.

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6. ROK-US Policy Coordination

The Korea Herald (Shin Yong-bae, "ALBRIGHT'S VISIT EXPECTED TO STEP UP COORDINATION ON NORTH KOREA POLICY," Seoul, 06/27/00) reported that after reaffirming their close cooperation on post-summit DPRK policy last Friday, the ROK and the US are expected to fine-tune their new strategies on the DPRK. The US and the ROK will make the first move to coordinate DPRK policies when their senior officials meet in Honolulu on Thursday. Japan will also join in the meeting, called the TCOG (Trilateral Coordination and Oversight Group). ROK officials said that the three nations would discuss recent developments in Northeast Asia, such as the inter-Korean summit, progress in relations between the US and the DPRK, and normalization talks between Japan and the DPRK. During their meeting, Lee and Albright agreed to continue closely cooperating on promoting their new DPRK policies, reaffirming the importance of the security alliance between the two nations. Particularly, Albright pledged US support for the implementation of the agreements reached between ROK President Kim Dae-jung and DPRK leader Kim Jong- il during the summit, including the one on the reunion of families. The two sides also attempted to prevent any possible debate over the fate of US troops in the ROK. Lee and Albright said that the stationing of US troops is needed as a "stabilizer" in Northeast Asia despite positive developments on the Korean peninsula in the wake of the summit.

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7. ROK-US Security Talks

The Korea Herald (Kang Seok-jae, "SOUTH KOREA, U.S. TO HOLD SCM SUBCOMMITTEE MEETINGS IN WASHINGTON," Seoul, 06/27/00) reported that the ROK Defense Ministry said on Monday that the ROK and the US would hold meetings of subcommittees under the Security Consultative Meeting (SCM) in Washington Wednesday on cooperation in security, logistics and the defense industry. Attending the three-day meetings would be 10 ROK military officials, including Major General Lee Won-hyung, director general of the ministry's acquisition policy bureau, the ministry said. Some 20 US military officials were also expected to participate, including Alfred Volkman, director in charge of international cooperation affairs at the Department of Defense, and Edward Ross, director in charge of Middle East, North Africa and Asia at the Defense Security Cooperation Agency. "Three of five SCM subcommittees will hold their respective meetings in Washington in order to exchange opinions on ways to expedite cooperation in those fields," said a ministry official. "At the SCC subcommittee meetings, we will ask the U.S. side to expedite the process of obtaining government approval for ROK exports of defense materials to third countries, step up its handling of export license procedures and improve the existing Foreign Military Sales (FMS) system," said the official, who asked not to be named. He said that the ROK would also ask for US support for third-country exports of T-50 supersonic advanced trainers that are being jointly developed by the Korea Aerospace Industry (KMA) and Lockheed Martin, a US defense firm. "We will sign an agreement on exchanges of scientists and engineers as part of efforts to promote the defense technology sectors of both countries," the official said.

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8. ROK Missile Development

Chosun Ilbo (Choi Byong-mook, "MINISTRY DENIES WP REPORT ON MISSILE DEVELOPMENT," Seoul, 06/26/00) reported that the ROK Ministry of Foreign Affairs and Trade (MOFAT) announced on Monday that the "Washington Post" report stating that the ROK had suspended the development of a missile with a range longer than 180km was groundless. An official said that the country was discussing weapons development within the MTCR (missile technology control regime) with the US. He added that talks had been delayed because of US conditions, but would resume shortly.

III. People's Republic of China

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1. ROK-DPRK Red Cross Meeting

Jie Fang Daily ("RED-CROSS MEETING FRUITFUL," SEOUL, 6/28/00, 1) reported that the Red-Cross delegations from the DPRK and the ROK met in the DPRK on June 27 to negotiate on issues of separated families and mutual visits of relatives. According to the report, after the meeting, the representative of the ROK Red-Cross delegation said that the meeting was held in a "good" atmosphere and "both sides believe to get achievements in this meeting is important for implementing the North-South Korea Joint Declaration." The DPRK representative also said that they must make some achievements in order to "give the Korean nation happy news".

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2. US Policy toward the DPRK

People's Daily (Ma Shikun and Zhang Yong, "US QUICKENS ADJUSTMENT OF POLICY TO DPRK," 6/24/00, P3) carried an article saying that the quickening adjustment of policy towards the DPRK was very conspicuous in recent US foreign relations. In US eyes, the article said, what mostly conforms to US strategic interests in Northeast Asia was to keep the relationship between the ROK and the DPRK neither freezing nor hot, and to maintain the Peninsula neither realizing reunification nor breaking out in a war. However, the development of the Korean situation pressed the US to hasten its adjustment of its policy towards the DPRK, the authors said. According to the authors, the purpose was to increase US influence on the Korea issue. However, the article pointed out that it was doubtful that the purpose could be reached. Recently, the article said, DPRK newspapers strongly criticized US behavior toward the spreading "Korea threat" and accused the US of increasing war risks and hampering the reunification of the DPRK and the ROK. That naturally was not a good sign for the DPRK-US relationship, the article said.

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3. DPRK Drought

People's Daily ("DPRK SUFFERS SERIOUS DROUGHT," 6/26/00, P7) reported that continuous drought and sustaining high temperature in the whole of the DPRK has heavily affected the country's agricultural production of this year. The area hit by drought is expanding, the report said.

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4. Kim Jong-il's Inspection

People's Daily (Zhang Xinghua, "KIM JONG-IL INSPECTS LOCAL SILK FACTORIES," Pyongyang, 6/26/00, P7) reported that Kim Jong-il, Secretary-general of DPRK Labor Party and National Defense Committee Chairman of the DPRK, inspected two silk factories on June 21. During the inspection, the report said, Kim expressed that the problem of clothing the population is as important as the problem of feeding the population. He demanded that the country comprehensively develop sericulture to assure the raw materials supplies for silk factories.

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5. ROK Economy

China Daily ("S. KOREA RAISES GDP TO 8.0 PER CENT," 6/24/00, P3) reported that the ROK on June 23 raised its official Gross Domestic Product growth forecast for this year to 8 percent from 6 percent, citing stronger-than-expected exports and investment. "Following an 11 percent year-on-year growth in the first half of this year, the GDP is expected to expand 6 percent year-on-year in the second half," the Ministry of Finance and Economy of ROK said. "For the whole year, the GDP growth rate will be around 8 percent," the ministry said.

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6. Anniversary of Korea War

People's Daily ("PROMOTING PEACE COURSE ON KOREAN PENINSULA," 6/26/00, P6) carried a commentary to mark the 50th anniversary of the breakout of the Korea War. The commentary said that it was not easy to start the peace course on the Korea Peninsula and that the foundation for the course is still very vulnerable. It hoped that all countries related, during the process of adjusting their policies on the Korea issue, would continue to contribute to the course of peace on the Peninsula and to work out concrete measures beneficial to reconciliation on the Peninsula. It said that the PRC welcomes the tendency toward reconciliation on the Korean Peninsula and the achievements by the DPRK-ROK summit. The PRC will continue to play a constructive role on maintaining peace and stability on Korean Peninsula, the article said.

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7. Implications of Korean Summit on Taiwan

Jie Fang Daily ("MAINLAND ADMONISHES TAIWAN TO LEARN SOMETHING FROM KOREAN SUMMIT," Beijing, 6/28/00, P7) reported that PRC Foreign Ministry Spokesman Zhu Bangzao said at a news conference held on June 27 that the cause and nature of the Taiwan issue are different from those of Korean issue in that the former was a result of civil war. The Taiwan issue is absolutely Chinese internal affairs and can only be solved within the framework of one China, Zhu said. According to the report, Zhu pointed out that at the Korean summit the leaders from both sides expressed that "the North and the South" belong to "one nation" and are "one community", and that in the spirit of this principle both sides will take efforts to seek a course of peaceful coexistence, gradually resolve all the remaining problems and finally achieve independent and peaceful reunification. This reflected the resolution and desire of the Korean people and their leaderships to pursue independent and peaceful reunification according to the principle that the Korea nation is the master over the issue of reunification. Zhu stated that if the Taiwan authority really has the "sincerity" and "initiatives" to emulate the Korean summit, it must accept definitely the "one China" principle, explicitly admit that Taiwan residents are Chinese, clearly commit to reunification, and take practical actions.

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8. The Taiwan Issue

People's Daily ("JIANG MEETS TAIWAN TRADE DELEGATION," Beijing, 6/27/00, P1) reported that PRC President Jiang Zemin met a trade delegation from the Taiwan Industrial Association on June 25. Jiang welcomed the visitors, and encouraged them to play a bigger role in promoting economic cooperation across the Taiwan Straits and peaceful reunification of the motherland. On cross-Straits relations, Jiang stressed that "peaceful reunification," and "one country, two systems" are still the basic principles for resolving the Taiwan question, and that the one-China principle is a prerequisite for reunification.

China Daily ("ARMS SALES TO TAIWAN STRONGLY OPPOSED," United Nations, 6/28/00,P1) reported that the PRC said on June 26 that it is firmly opposed to attempts by certain countries to make arms sales to Taiwan. The statement came as Shen Guofang, PRC deputy permanent representative to the UN, took the floor at the plenary meeting of the UN Disarmament Commission, which opened on June 26 and will end in two weeks. According to the report, Shen said: "certain countries, in disregard of this fact, have been selling large amounts of advanced weapons to Taiwan. This action violates the principle of respecting national sovereignty and territorial integrity as enshrined in the UN Charter." Shen said that the action goes against the spirit of confidence-building measures and "demanded the countries involved stop this wrong practice as soon as possible". The report said that the PRC believes such sales not only jeopardizes its own sovereignty and security, but also poses a threat to the peace and security in Asia and the pacific. In addition, according to the report, Shen said that international arms control and disarmament efforts have suffered serious setbacks as hegemony and power politics are still hampering the establishment of a just and rational new international political and economic order.

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9. PRC-US Relations

China Daily (Hu Qihua, "ALBRIGHT DEFINES STANCE ON TAIWAN," 6/23/00, P1) reported during a meeting with PRC President Jiang Zemin, US Secretary of State Madeleine Albright said that the US Government does not support Taiwan's independence, "one China, one Taiwan" or Taiwan's membership in international organizations open only to sovereign states. The newspaper said that Albright, the highest-ranking US official to visit the PRC since last year's NATO bombing of the PRC embassy in Belgrade, arrived in Beijing on June 22. Calling Taiwan the most important matter in Sino-US relations, Jiang urged the US to take actions to support the one-China policy and to observe the three joint communiques regarding the island's status. Albright said that the US fully understands the importance and sensitivity of the Taiwan question to the PRC and the Chinese people. She said that US policy has not changed. PRC Premier Zhu Rongji, Vice-Premier Qian Qichen and Foreign Minister Tang Jiaxuan also met with Albright, the report said. They talked about missile defense and permanent normal trade relations. The PRC reaffirmed its stance on issues such as the prevention of nuclear proliferation, the report said. Tang said that the National Missile Defense system proposed by the US would have a serious negative impact on the global strategic balance and on efforts toward international arms control. The PRC wants the US to abandon its defense system as soon as possible, Tang said.

China Daily (Jin Canrong, "NO CHANGES EXPECTED IN SINO-US TIES," 6/22/00, P4) carried an article written by Jin Canrong, a research fellow with the institute of American Studies under the Chinese Academy of Social Sciences. Jin said in the article that no matter whether Al Gore or George W. Bush becomes the new president of the US, Sino- US relations will only be affected to a limited extent. According to Jin, the two candidates are both "internationalists," who back free trade and emphasize US relations with other influential powers. Being a direct China policy maker, Gore understands the complexity of Sino-US relations, Jin said. If he is elected, Jin said, he would likely continue Clinton's policy of engagement towards the PRC. The difference may be that Gore lacks flexibility compared with Clinton, and he may implement stricter labor and environmental standards in Sino-US relations, Jin said. As for Bush, Jin said, although he sees the PRC as a strategic rival, he has clearly expressed his support for granting the PRC permanent normal trade relations status. Concerning specific policies, the US will not go too far to cause harm to Sino- US relations, Jin said.

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