| Two years ago this week, President Clinton made his famous visit to visit including his deeply disturbing visit to Tiananmen Square. It was a sad moment that is worth pausing to remember. CHINA E-LOBBY UPDATE ***DIPLOMATIC NEWS*** SECRETARY ALBRIGHT VISITS BEIJING; LITTLE PROGRESS REPORTED US Secretary of State Madeline Albright visited Beijing last week. Albright suggested, in the words of the Washington Post, that "the interlude of bitterness [following the accidental bombing of the Chinese Embassy in Belgrade last year] had given way to an era of improved relations." Secretary Albright focused on the issue of Taiwan and Washington's plan for an anti-missile defense in her discussions with leaders of the PRC. The PRC is still rejecting the idea of a summit with the Taiwanese President Chen Shui-bian. The two sides are also discussed American concerns about the PRC's sale of missiles to Pakistan. Chinese officials also remained non-committal on human rights issued raised by the Secretary. In sum, little was accomplished at the meeting. PRC TOLD NOT TO MOVE INTO BUILDING NEAR PENTAGON The United States has told the PRC's News Agency Xinhua not to move into a new building near the Pentagon in Virginia unless the State Department approves the sale. The State Department is concerned about the possibility of using the building for spying. The State Department says that the building's purchase is in violation of the 1982 Foreign Missions Act, which requires foreign governments to obtain advance approval for any real estate purchases or leases in the United States. ***MILITARY NEWS*** CHINA MODERNIZING ITS ARMY According to a Pentagon report, the PRC is modernizing its army to address threats from technologically superior adversaries. While the report suggests that it doesn't pose an immediate military threat to Taiwan, but might do so in a few years. China's critics used the report as evidence to support their argument for more weapons sales to Taiwan. (The New York Times, June 24, page A3) On a related note, the PRC launched a new two-day series of live-fire military exercises in the Taiwan straits. ***TRADE NEWS - PNTR/WTO**** SENATE SCHEDULES VOTE ON LEGISLATION ON CHINESE WEAPONS SALES Senate Majority Leader Trent Lott (R-MS) plans to schedule a vote in mid-July on legislation introduced by Sen. Fred Thompson (R-TN) to combat Chinese weapons sales overseas. The bill would require the United States to impose penalties on the PRC if it helped other nations to acquire nuclear weapons or other weapons of mass destruction. The plan will be voted on as free-standing legislation during the week of July 10 and is designed to pave the way for passage of Permanent Normal Trade Relations (PNTR). A vote is expected on PNTR shortly thereafter. Meanwhile, in the House of Representatives, Rep. Dana Rohrabacher (R-CA), an outspoken critic of the communist regime, has introduced legislation has introduced legislation that will deny the PRC trade privileges until it becomes a full-fledged member of the WTO. It is given little chance of passage. COMMUNIST CHINA IN "FINAL STAGE" OF WTO BID PRC Minister of Foreign Trade Shi Guangsheng said on Tuesday that his government has reached the "final stage" of their 14-year effort to enter the WTO. He indicated that he hopes that China will be able to enter the WTO this year. ***CHINA AND AMERICAN POLITICS*** JUSTICE OFFICAL WANTS INVESTIGATION OF GORE AND HSI LAI TEMPLE Reports surfaced late last week that an internal Justice Department report by Campaign Finance Task Force Head Robert Conrad, Jr., has recommended appointing a Special Prosecutor to investigate whether or not Vice President Al Gore Jr. knew that the now-famous Hsi Lai Temple event during the 1996 campaign was a fundraiser. Several organizers of the event have been convicted of crimes involving illegal donations from sources close to the government of Communist China. CONGRESS CONCERNED ABOUT SALE OF ISRAELI RADER TO PRC Leading members of Congress, including Rep. Sonny Callahan (R-AL) and Sen. Jesse Helms (R-NC), and President Bill Clinton have expressed deep concern about Israel's plans to sell the Phalcon Airborne Radar System to the PRC. They fear that this system could provide the PRC with a military edge over Taiwan in a future confrontation. Some members of Congress are threatening to cut US Aid to Israel over the issue. (For most recent information see, Jerusalem Post) ***HUMAN RIGHTS AND IMMIGRATION ISSUES*** CHINA ARRESTS 1200 MEMBERS OF THE FALUN GONG The Hong Kong-based Center for Human Rights and Democracy reported that members of the Falun Gong have stepped up protests following the arrest of 1200 of their members this week. Tens of thousands of members of the Falun Gong have been arrested since the PRC banned the movement 11 months ago. COMMUNIST CHINA EXECUTES 45 DRUG TRAFFICKERS THIS WEEK According to news reports, the PRC has executed 45 people accused of drug trafficking in the past week. Amnesty International and other human rights organizations have long condemed these sorts of human rights violatioms. UN REPORTS GROWING TRAFFIC OF HUMANS FOLLOWING FERRY TRAGEDY The United Nations reports that "Trafficking in people is now the fastest-growing business of organized crime, and it is being run by new, barely understood networks that have sidelined traditional criminal syndicates." This report came on the heals of the tragic death of 58 Chinese immigrants in a ferry attempting to reach Britain this week. Reliable estimates suggest that 200 million people may now be in the hands of traffickers. (The New York Times, June 25, 2000, page A10) (See also a related article on "snakeheads" or smugglers in the Washington Post) CHINESE TOWN EXPORTS ITS YOUNG MEN The New York Times reported this week on the town of Fuzhou where 80% of its young men between 20 and 40 have gone abroad to work in restaurants and construction sites in the United States. The remissions sent home by the foreign workers have made the town very prosperous. The men working abroad can earn $2000 a month instead of the $40 a month that they can earn at home in Fuzhou. (The New York Times, June 26, page A8) ***CULTURAL NEWS*** CHINESE OFFICIALS BAN NOVELS The PRC has banned the novel "Shanghai Baby" - in part due to its explicit sexuality and its author's racy public comments. However, the book's banning has increased its popularity and it has become even more popular than ever due to the official stamp of disapproval. In a related story, Chinese officials also canceled plans to translate and distribute the novel "Waiting" - which won theNational Book Award in the U.S. - by Chinese-boon �migr� Ha Jin after a literary review described the book as portraying Communist China as backwards and repressive. Where would anyone ever get such an idea? ATTEMPTS TO PRESERVE OLD WESTERN BUILDINGS IN GULANGYU Preservationists in the PRC are trying to preserve old buildings from the Nationalist period built by Western capitalists in Gulangyu off the coast of the port city of Xiamen. Ironic, eh? (Washington Post) ***TAIWAN NEWS*** CHINA IS REPORTED TO BE PRESSURING TAIWANESE BUSINESSMEN According to the New York Times, the PRC is pressuring Taiwanese businessmen who have ties to new Taiwanese President Chen Shui-bian to remain loyal to the one-china policy or risk their investments on the mainland. According to the paper, "For the first time, Beijing is scrutinizing the political beliefs of Taiwan's business leaders and warning those who stray from the official line that there is only one China. Political analysts say the crackdown could undermine the historic role of commerce as a bridge between Taiwan and China, binding the countries closer even when they diverge politically." The article, which appeared on page C1 on The New York Times on June 26 and focuses Stan Shih, founder of the computer maker Acer and several other Taiwanese businessmen. POSSIBLE SPY SCANDAL IN TAIWAN Taiwan is probing a possible spy scandal. On June 4, three days after his retirement as head of the personnel department of the Taiwan's top spy agency, Lt. Gen Pan Xixian traveled to China. Taiwanese law prevents officials with access to classified material from visiting the PRC for three years after leaving their posts. An investigation is under way and officials and legislators in both Washington and Taipei have expressed concern. ***HONG KONG NEWS*** HONG KONG BECOMING "CITY OF PROTEST" The Washington Post reports (June 28, 2000) that in its fourth year under the rule of the PRC, Hong Kong is becoming a "City of Protest." Last weekend 2000 homeowners protested government efforts to force down residential home prices. Meanwhile 1000 physicians protested government efforts to cut the budget and the salaries of new doctors, 300 more residents protested urban renewal policies, and 1200 political activists protested a decision that keeps some mainlanders from living in Hong Kong. The protests reflect "the rising anxieties of Hong Kong's middle class and mounting dissatisfaction with the performance of the territory's Beijing-appointed chief executive, Tung Chee-hwa." (Washington Post) ***TIBET NEWS*** WORLD BANK CRITICIZES ITS OWN PROJECT NEAR TIBET In a sharply-worded internal World Bank report (leaked to The New York Times) the Bank has criticized its own decision to approve a controversial $40 million anti-poverty plan. The plan calls for the relocation of 58,000 ethnic Han farmers to Qinghai province in an area that is historically part of Tibet. The plan has been widely criticized by the Western governments including the US. The report implies that the Bank had bent its own rules to accommodate Chinese leaders. (The New York Times, June 27, page A7) LEARN ABOUT TIBETAN CULTURE If you are going to be in the DC area, don't miss the largest display of Tibetan Culture in the Western world as part of the Smithsonian's annual Folk Life Festival - continuing on through July 4. The Dalai Lama will be giving a free public address on July 2. For full details see, WWW.TibetanCulture.Org. 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