UPDATE

ADMINISTRATION KEEPS AEGIS DESTROYERS OUT OF TAIWAN ARMS DEAL
The Clinton Administration has decided against selling to Taiwan the four Aegis destroyers it requested.  The Aegis destroyers, the most controversial and advanced weapons request made by the Taiwanese, are equipped with anti-missile capabilities.  Taiwan asked for the Aegis ships to counter Communist China�s recent ballistic missile buildup.  Taiwan's request for P-3 Orion airplanes and new submarines, the latter of which could improve their naval forces tremendously, was also shot down.

The Administration did approve the sale long-range radar to Taiwan, plus anti-ship missiles and new advanced mid-range air-to-air missiles (AMRAAMs).  The AMRAAMs were approved on the condition that they stay in the U.S. unless and until Communist China acquired the Russian equivalent, the AAX-12.  Such a condition is highly unusual.

Congressional reaction was mixed, but on the whole negative, to the decision to exclude the Aegis destroyers.  "There is, quite simply, no military justification to deny Taiwan these crucial defensive items,� said Senate Foreign Relations Committee Chairman Jesse Helms (Republican � North Carolina).
�These denials are driven by knee-jerk appeasement on the part of the White House and State Department."  Helms also called for passage of the Taiwan Security Enhancement Act (TSEA), which he sponsors.  The act passed the House by a veto-proof majority, but has not been voted on in the Senate.  Senate Majority Leader Trent Lott (R-Mississippi) also criticized the exclusion, but made no mention of the TSEA.

On the Democratic side, Senator Robert Torricelli (New Jersey) was not much happier.  While he said the Administration took �a balanced approach,� he was still �disappointed� the Aegis destroyers were dropped.  �The most likely threat is a missile attack across the Taiwan Straits, and Aegis is the only thing that would be helpful,� said Torricelli, who is a co-sponsor of the TSEA. Congress could still push for the declined weapons to be sold, or have them made for the U.S. Pacific Fleet so they can be dispatched to Taiwan in an emergency.


TAIWANESE INVESTORS TO BE INVESTIGATED BY COMMUNIST CHINA
The Communist Chinese government will investigate the political views of investors from Taiwan to determine their stance on independence, according to the Economic Daily News, who site unnamed sources from the PRC's Taiwan affairs office.  Communist China intends to interfere with the investments of Taiwanese who support independence.

The PRC may also nix its preferential trade and investment privileges for Taiwanese businessmen on the mainland, which could reduce Taiwan's trade surplus of over $20 billion with Communist China.

A number of  Taiwanese business leaders with commercial interests in the mainland who have advised Taiwan President-elect Chen Shui-bian were targeted by Communist China for investigation.  They include Evergreen Group Chang Rong-fa, Acer Group chairman Stan Shih, and Continental Engineering Corp president Nita Ing.  Agence France Presse, which reported the story, had no reaction from the investigated entrepreneurs.


OTHER TAIWAN NEWS
Communist China spent the week telling the world several times that it reserves the �right� to use force in reunifying Taiwan, formally called the Republic of China.  President Jiang, in Israel for a summit with Prime Minister Ehud Barak, repeated his offer for peaceful reunification under the �one country, two systems� framework that is used to govern Hong Kong and Macau.  Taiwan has repeatedly rejected the framework, which is clearly causing friction in Hong Kong as well (see above).  The outgoing President Lee Teng-Hui has instead insisted Communist China treat the ROC as an equal in negotiations and adopt a Western-style democracy before reunification takes place.  In Beijing, government officials also demanded that Taiwanese President-elect Chen Shui-bian adopt the �One China� policy, which relegates the democracy to the status of a renegade province that must come under Communist rule.  Chen vowed not to push for independence at the risk of peace, but refused to adopt Beijijng�s version of �One China� as policy.  He has proposed �One China, several interpretations,� which states that �One China� can mean different things to different governments.

Taiwan also vowed never to develop or use chemical weapons.


GEPHARDT OPPOSES COMMUNIST CHINA TRADE DEAL
House Minority Leader Richard Gephardt (Democrat � Missouri) has decided to oppose Permanent Normal Trade Relations (PNTR) for the People�s Republic of China when the House of Representatives votes on the measure next month.  Gephardt�s decision means the two highest ranking Democrats in the House will oppose PNTR.  Gephardt had previously pledged not to strong-arm Democratic House members for or against the deal.  It is widely believed, however, the Gephardt�s decision will have a large impact on a number of undecided House Democrats.  Gephardt rejected a plan that included the formation of a �congressional-executive commission� that would examine human rights and security issues on the PRC, and make recommendations for possible actions within the framework of the WTO.

Most expect the U.S. Senate will vote to approve PNTR, which is a condition of the deal that brings Communist China into the World Trade Organization.  In the House, roughly 60 Democrats publicly support the trade deal, along with about 150 Republicans.  Unless more undecided Democrats come out in favor, there will not be enough votes to pass PNTR.  At present, The PRC may not enter the WTO at all, since it has failed to reach a required trade agreement with the European Union.  According to the latest Hart-Garin poll, 65% of Americans oppose granting PNTR to Communist China.


THOUSANDS PROTEST TRADE DEAL WITH COMMUNIST CHINA
Meanwhile, nearly 15,000 Americans, mostly union members, came to Capitol Hill last Wednesday to rally against the accord between the U.S. and the PRC.  Speakers from across the ideological spectrum, from Pat Buchanan to House Democratic Whip David Bonior, addressed the crowd calling for the Congress to reject granting Communist China PNTR.  The rally was organized in part by the AFL-CIO and Teamsters President James P. Hoffa, who also addressed the crowd.

Perhaps the most moving speech came from Harry Wu, a Chinese dissident who was imprisoned in a labor camp for 19 years.  "Here I am free. In China, men and women are not free,� Wu said.  �Some people on Capitol Hill want to negotiate a deal with China. Please say no."  He was met with cheers and applause.

After the rally, the union members lobbied undecided House members and Senators, coached by Carl DiPietro, Teamsters field representative.  "Always say Communist China," he recommended.  "Remember, lobbyists get paid hundreds of thousands of dollars to do just what we are doing for free."


HONG KONG REJECTS BEIJING�S �ADVICE� ON TAIWAN COVERAGE
In Hong Kong, the pro-democracy Frontier Group protested outside government headquarters on Friday to show their anger over comments by a top Beijing official regarding freedom of the press.  Wang Fengchao, Deputy Director of the Central Government�s Liaison Office, told the local press that the freedom guaranteed in the Basic Law does not apply to Taiwan issues.  Wang told the local media they �should not treat speeches and views which advocate Taiwan's independence as normal news items, nor should they report them like normal cases of reporting the voices of different parties.�

Emily Lau, an ex-journalist and leader of the Frontier Group in Hong Kong�s legislature, slammed Wang�s remarks during the protest.  �What Mr. Wang is saying is that the media should exercise self-censorship; that they should have blacklists of people and organizations they should ban, and also we should be very careful when we cover Taiwan affairs," said Lau. "That is very, very worrying."

Local media also reacted with shock and rage.  The Hong Kong Journalists Association was �shocked and disturbed by (the) comments."  "Mr. Wang's comments violate the principle of a high degree of autonomy and as such are highly inappropriate,� the association said.  �The HKJA believes Mr. Wang's remarks are seriously damaging to press freedom."  The Association has also started a petition drive in Hong Kong to oppose restrictions on press freedom, sent a letter to Communist Prime Minister Zhu Rongji expressing their concerns, and will seek meetings with local officials to press their case.

Wang�s comments were a reaction to local coverage of Taiwan�s Vice President-elect Annette Lu, a vocal supporter of Taiwanese independence.  All Beijing-appointed officials in Hong Kong, including Tung, support reunification with Taiwan under the �one country, two systems model,� which this incident shows may be more appropriately labeled one country, one-and-a-half systems.


OTHER PROTESTS
Over 200 Falun Gong members protested the Communist government�s attempt to destroy the spiritual movement in Tiananmen Square on Thursday.  As they unfurled Falun Gong banners and called for the UN Human Rights Commission to condemn the PRC�s human rights abuses (see above), police arrested them, beating some.  The Falun Gong movement was banned after 10,000 protested government criticism of the group on April 25 of last year.  At the time the movement was believed to have over 70 million members.  Thousands have been arrested in the past year.  The Communist government has also blocked Falun Gong internet sites.  This recent protest was reported by the Information Center of Human Rights and Democratic Movement in China.


DALAI LAMA CALLS FOR TIBETAN AUTONOMY AND FREEDOM OF SPEECH
The Dalai Lama, Tibetan spiritual leader and winner of the 1989 Nobel Peace Prize, called on Communist China to grant autonomy to Tibet.  He did not ask for Tibetan independence.  He asked Beijing to stop the repression of Tibet while during his visit to Japan.  He said Communist China should allow for freedom of speech to allow the Tibetan people to know what the Communist government has done to them.

"Strict information control is very harmful. I want to make an earnest request to make information open and available and let the people judge what is right or wrong," the Dalai Lama said.

The Dalai Lama fled Tibet in 1959 with thousands of supporters after an uprising was crushed by the PRC.  He has led a nonviolent struggle against Communist Chinese rule for over forty years.  He emphasized non-violence in his remarks.  "Whether we like it or not, we have to live side by side -- the Tibetans and the Chinese," he said. "We must follow nonviolence."


SHANGHAI DISSIDENT SENTENCED TO LABOR CAMP
Dissident Yao Zhenxiang, recently released from a three-year labor camp sentence, was re-arrested in Anhui province and sentenced to two years in another labor camp.  Yao, who was charged with consorting with a prostitute, was on his way to a dissident meeting in Sha�anxi province.  Shanghai police had warned him he would be arrested, according to a statement by the Information Center for Human Rights and Democracy..

The Center also noted that Yao was held by police on April 3, on day before the Qingming Festival to sweep the graves of the dead.  Pro-democracy activists had tried to use the day to honor the victims of the 1989 Tiananmen Square massacre.  Su Bingxian, mother of a Tiananmen victim, was also arrested on April 3 and ordered out of Beijing by police until after June 4, as reported in our first update.


U.N. HUMAN RIGHTS COMMISSION BURIES RESOLUTION CONDEMING PRC
The United Nations Human Rights Commission buried a resolution condemning the human rights abuses of the Communist Chinese government.   The resolution, sponsored by the United States, fell to a PRC-sponsored no-action motion.  The vote was 22-18.  Among the supporters of the Communist Chinese motion were Russia, Cuba, India, Indonesia, and Pakistan.  Several human rights groups criticized the UN Commission�s decision.

The UN Commission rejected the advice of the Zhong Gong movement, which had asked the body to condemn Communist China for, among other things, actions taken against their spiritual movement.  Zhong Gong, which claims to have over 10 million members, released a statement saying Beijing closed over 3,000 of the group�s businesses, confiscating over $98 million and impoverishing 400,000 workers and relatives in the process.  The statement also said the PRC had detained over 600 Zhong Gong members, including a representative of the Beijing People�s Congress, the capital�s city council.  Meanwhile, Communist China claimed that the Falun Gong movement, a more widely known victim of the �anti-cult� crackdown, is under the control of �anti-China elements the United States.�


COMMUNIST CHINA HELPING LIBYA�S MISSILE PROGRAM
U.S. intelligence has discovered the Communist Chinese are providing guidance and technology to Libya to advance their long-range missile program.  Libya is very interested in the Nodong and Taepodong missiles from North Korea, a military ally of the PRC for over 50 years.  Communist China is also helping the Libyans advance their indigenous Al-Fatah missile program through the state-run China Precision Military Import-Export Company.  According to intelligence officials, PRC technicians have been helping the Libyans since June 1998, and the help has been channeled through CPMIEC since March of 1999.  Libya has routinely stated its desire to use long-range missiles to threaten NATO, including a speech by Libyan leader Moammar Gadhafi in 1990 in which he said he wanted to have missiles capable of reaching New York.


ISRAEL�S PHALCON SALE TO COMMUNIST CHINA GETTING MORE CRITICISM
As Communist Chinese President Jiang Zemin visited Israeli Prime Minister Ehud Barak this past week, the planned Israeli sale of the planes armed with Phalcon air-radar systems to Jiang�s government came under increasing criticism.  The Washington Post slammed both the Israeli and American governments for their roles in the sale in an editorial on Thursday.  The editors reminded Israel that they were rather nonplussed about U.S. arms sales to Saudi Arabia during the 1980�s, and dismissed Israeli arguments about American allies competing with them to sell the technology to the PRC: � . . . the proper response is: They shouldn�t be doing it either.�

The paper did not deem the American government faultless in the matter.  �Israel has a stronger case when it argues that President Clinton has been aware of Israel's plan to sell the planes to Beijing for several years, yet objected forcefully only now, when the presidential election and a battle with Congress over Taiwan security policy loom,� the paper noted.  �Perhaps when the Israeli sale was first considered, the Clinton administration figured it could countenance the deal because �engagement� would soon be defusing the whole issue of the U.S.-China military balance anyway. In that sense, Israel's ill-advised arms deal is one more negative consequence of the administration's equivocation about China.�

Meanwhile, the Speaker of the Israeli Parliament criticized his own government on the issue. "It is wrong that Israel bases its relationship with some of the regions of this world on arms deals and arms trade. Israel cornered itself, and Israel should take itself out of this corner," Avraham Burg told reporters.  Burg, an intra-party rival of Barak, said Israeli should honor its contract to Communist China, which covers only one plane, but should not sell any more to the PRC.


TOKYO GOVERNOR SAYS COMMUNIST CHINA IS JAPAN�S BIGGEST THREAT
Shintaro Ishihara, the governor of Tokyo, has reportedly called for the Japanese government to view China as a threat to Japan, and to implement policies to break up the People�s Republic of China into several states.  Ishihara, according to Agence France Presse, made the comments in an interview with the German magazine Der Spiegel.  The Communist Chinese took umbrage at Ishihara�s comments through the state-owned People�s Daily newspaper.

Widely known as a strong nationalist, Ishihara has long been outspoken in his support for greater world recognition for Taiwan, known as the Republic of China.  He is said to be eager to invite Lee Teng-Hui to his city after the Taiwanese President leaves office next month.  He has also sharply criticized Communist China for their treatment of Tibetans.


CORRECTION
Past updates have referred to the outgoing President of the Republic of China (Taiwan) as Lee Tung-Hui.  The correct spelling, which we have in this update, is Lee Teng-Hui: apologies for any inconvenience caused by the error.


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