DEVELOPING LASTING U.S.-CHINA RELATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83B00551R000200010026-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 20, 2016
• Document Release Date: August 21, 2007
• Sequence Number: 26
• Publication Date: June 1, 1982
• Content Type: REGULATION

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Current
Policy No. 398
U.S.-China Relations
lop%
Developing Lasting
June 1, 1982
United States Department of State
Bureau of Public Affairs
Washington, D.C.
Following is an address by Walter J.
Stoessel, Jr., Deputy Secretary of State,
before the National Council on
U.S.-China Trade, Washington, D.C.,
June 1, 1982.
It is a great pleasure to be here today. I
know that you and the other members of
the National Council on U.S.-China
Trade have been deeply involved in de-
veloping a strong, mutually beneficial
relationship between the United States
and China. I can honestly say that with-
out your constructive approach and per-
sistent efforts, we would not have come
as far as we have in our bilateral rela-
tions.
Fostering a lasting relationship be-
tween the United States and China has
been a vitally important bipartisan objec-
tive for the last four administrations. A
strong U.S.-China relationship is one of
the highest goals of President Reagan's
foreign policy.
Strong U.S.-China relations are not
only critical for our long-term security
but also contribute to Asian stability and
global harmony. The United States and
China are both great countries, strong
and vigorous, with tremendous potential
for promoting world peace and pros-
perity. As President Reagan noted in his
letter to Premier Zhao commemorating
the 10th anniversary of the Shanghai
communique, "our contacts have em-
braced almost all areas of human
endeavor."
We view China as a friendly country
with which we are not allied but with
which we share many common interests.
Strategically, we have no fundamental
conflicts of interest, and we face a com-
mon challenge from the Soviet Union. In
areas such as trade, tourism, banking,
and agriculture and in scientific, techno-
logical, and educational exchanges, a
close, cooperative relationship has re-
sulted in a productive flow of people and
ideas between our two societies. It is for
these reasons that the Reagan Admini-
stration believes it essential that we
develop a strong and lasting relation-
ship.
During the decade-long process of
normalizing our relations, a number of
principles upon which we base our China
policy have emerged. These principles,
which President Reagan has strongly en-
dorsed, include our recognition that the
Government of the People's Republic of
China is the sole legal government of
China and our acknowledgment of the
Chinese position that there is but one
China and that Taiwan is a part of
China.
They also include a firm acceptance
that the U.S.-China relationship, like all
relationships between equal, sovereign
nations, should be guided by the funda-
mental principles of respect for each
other's sovereignty and territorial in-
tegrity and noninterference in each
other's internal affairs. The relationship
should be based on a spirit of consulta-
tion, cooperation, and strong efforts to
achieve mutual understanding on the
wide range of issues of interest to both
of our countries.
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The Reagan Administration is com-
mitted to pursuing a durable relationship
with China based on these principles.
President Reagan values the relationship
highly and believes it is important to
work together to expand the benefits to
both countries. As he said in a recent
letter to Vice Chairman Deng Xiaoping,
"China and America are two great na-
tions destined to grow stronger through
cooperation, not weaker through divi-
sion."
It is because of the importance that
President Reagan places on the
U.S.-China relationship that Vice Presi-
dent Bush recently visited Beijing as the
President's personal emissary. We were
highly pleased with the outcome of the
Vice President's trip, both in terms of
the reception he received and in terms
of the clarity and quality of the high-
level communication which it produced.
We believe that both the United States
and China saw in this visit the oppor-
tunity to demonstrate the high value
each places on the relationship. We also
believe that good progress was made in
addressing the one serious issue that
threatened good relations-Taiwan arms
sales.
We are continuing our discussions
with the Chinese on this complex, his-
torical issue. We believe that so long as
both sides demonstrate the statesman-
ship, vision, and goodwill that have
characterized our relationship, we will
be able to overcome our difficulties. In-
deed, anything other than a successful
outcome would be a great misfortune for
both sides. The only beneficiary would
be our common adversaries.
Reagan Administration Initiatives
It is not my purpose to address the
Taiwan arms sale issue today. Indeed,
public attention on this issue has tended
to obscure the continuing progress
which this Administration has made in
carrying out important China policy in-
itiatives. These steps play an important
role in removing residual impediments
to a relationship based on mutual trust.
They will further strengthen the founda-
tion for a durable long-term partnership
between the United States and China.
These initiatives grew out of a
thorough review of all aspects of
U.S.-China relations conducted during
the first 5 months of the Reagan Ad-
ministration. They were launched just 1
year ago, when Secretary Haig visited
Beijing. During his meetings, the Secre-
tary reaffirmed our common strategic
perceptions and announced new steps
aimed at deepening our bilateral rela-
tionship. The subsequent implementation
of this policy focused on four main
areas-technology transfer, arms trans-
fers, legislative restrictions, and con-
sular relations. In the 11 months since
the Secretary's visit, important progress
has been made on all fronts.
We have substantially liberalized our
export control policy toward China. This
initiative has reflected not only a desire
to expand business opportunities but
also our strong national interest in con-
tributing to China's modernization. We
recognize that a secure, modernizing
China is important to the United States
from a global and strategic perspective.
We strongly believe in supporting Bei-
jing's ambitious efforts to improve the
quality of life of more than one-quarter
of the world's population.
Over the past year, there has been a
dramatic rise in approvals of export
licenses for China. Since July of 1981
through March of this year, 1,203
license applications were approved. This
represented an increase of nearly 40%
over the prior 9-month period.
A recent White House directive
reaffirmed this policy of substantial
liberalization, emphasizing that U.S. ex-
port policy "should support a secure,
friendly, and modernizing China" and
underscoring the importance of "prompt
and full implementation" of the Presi-
dent's June 4, 1981 decision. This new
directive should give additional impetus
to our efforts to expand trade relations.
I fully expect that as U.S.-China rela-
tions continue to advance, there will be
important further progress.
Another area in which we have
opened the way to future cooperation is
in arms transfer policy. During his June
1981 visit to Beijing, Secretary Haig an-
nounced that we were prepared to
cooperate with China in this area on the
same case-by-case basis governing U.S.
arms transfers to all other nations. In
December 1981, we lifted the historical
bars on munitions sales to China.
The Administration also recognized
that the increasing flow of businessmen,
tourists, and students between the
United States and China made it
imperative that we establish regular con-
sular relations. Accordingly, Secretary
Haig rapidly concluded negotiations on a
consular convention which was ratified
last fall and came into force this year.
Since the differing social systems of the
two countries at times lead us to take
differing views on some issues involving
our citizens, the convention provides im-
portant protections for Americans in
China. We intend vigorously to uphold
its provisions, not only in letter but in
spirit.
The Administration conducted a
thorough review of legislation affecting
our relationship with China. The review
identified three areas in which outdated
laws discriminated against China in
ways inconsistent with our current
strategic relationship. These were:
eligibility for foreign assistance, PL 480,
and the importation of seven previously
banned furskins.
Congressional reaction to these pro-
posals has been positive. We have no
plans to extend PL 480 and are only
contemplating limited technical assist-
ance through Chinese involvement in
established programs. However, these
are important symbolic gestures, which
we hope will contribute to a relationship
based on equality, mutual benefit, and
mutual respect.
The Growing Relationship
I would now like to share with you some
of my thoughts about the value of the
U.S.-China relationship, both past and
future. We have made tremendous
strides and will seek continued progress
in the years ahead.
To start with, the strategic benefits
that we see now-some 10 years after
the beginning of rapprochement-have
been substantial. It is an obvious but
often overlooked and vitally important
fact that the United States and China no
longer face each other as hostile adver-
saries and no longer need to deploy
forces against one another. This has
made a tremendous difference to both
nations and will continue to be of critical
importance to planners on both sides.
The relationship has been important
to our entire global strategy. U.S. and
Chinese security policies are basically
compatible. The relationship has sup-
ported our alliance structure and en-
hanced China's ability to deal with
challenges to its security. In many areas
of the world our economic assistance
and political relationships have been
mutually reinforcing.
To turn to specific areas, our consul-
tations with the Chinese on Kampuchea
have been an important complement to
our cooperation with the ASEAN
[Association of South East Asian Na-
tions] nations in attempting to turn back
Vietnamese aggression. In Afghanistan
and Southwest Asia, the United States
and China have maintained closely
parallel policies, recognizing that the en-
tire region is threatened by a southern
thrust from the Soviet Union.
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Indeed, even where we disagree, the
very fact that we can maintain a high-
quality dialogue on international issues
is an important byproduct of the rela-
tionship. In one area which we approach
in different ways-the Korean Penin-
sula-- our good relations have been an
important factor fostering regional
stability.
Bilaterally, of course, there have
been major benefits. U.S.-China trade is
of tremendous importance to our nation.
Its volume has increased dramatically,
and its potential for further expansion
remains great. We were pleased, for ex-
ample, to see Premier Zhao Ziyang re-
ceiving important American business-
men recently even at a time of difficulty
elsewhere in U.S.-China relations. The
Premier's reception of Mr. Phillips
[Christopher H. Phillips, President, Na-
tional Council of U.S.-China Trade] and
Mr. Tappan [David S. Tappan, Jr.,
President and Chief Operating Officer,
Fluor Corporation] are strong indicators
that the importance we continue to at-
tach to building a long-term commercial
relationship is reciprocated at the
highest levels in China.
It is impressive to note the levels of
cooperation that already exist between
our two countries.
? The volume and value of bilateral
trade have been increasing dramatically.
China is now our 14th largest trading
partner.
? U.S. agricultural sales to China
were around $2 billion in 1981. China
has thus become our fifth largest market
for agricultural products.
? There are currently over 8,000
Chinese students in the United States.
They are now the largest group of
students from another country to be
studying here. Hundreds of Americans
have also studied or done research in
China.
? Tourism and other travels be-
tween the two countries have grown to
massive dimensions. Tens of thousands
of Americans visit China annually.
Official delegations are already numer-
ous and are increasing.
? At last count some 80 American
companies have established permanent
offices in Beijing. Many companies with
representatives in Hong Kong or Tokyo
are also involved in frequent business
discussions with the Chinese.
? Opportunities for joint ventures
are growing. The Chinese recently
adopted a joint venture law that estab-
lishes a legal framework for such under-
takings. Under the auspices of the U.N.
Industrial Development Organization,
the Chinese have announced 130 joint
ventures open to foreign participation.
? Our two governments have begun
to explore the possibility of a bilateral
investment treaty which would further
facilitate U.S. investment in China.
? We have also been conducting dis-
cussions with the Chinese on the
possibility of an agreement for peaceful
nuclear cooperation, which would enable
us to compete commercially in the de-
velopment of China's nuclear power pro-
gram.
? Exchanges have increased sub-
stantially in the science b,nd technology
area. During 1981 dozens of delegations
were exchanged, and three new proto-
cols were signed-bringing the total
number of protocols under our bilateral
science and technology agreement to 17.
The benefits to both sides in this area,
which span a wide variety of fields rang-
ing from health to earthquake studies,
have proven to be even more impressive
than we had foreseen.
Conclusion
In conclusion, I would like to emphasize
again that the Reagan Administration
values the U.S.-China relationship very
highly. That relationship must be based
on the principles of equality and mutual
respect. We will continue to work closely
with the Chinese leadership with the ob-
jective of resolving the Taiwan arms
sales issue. We will seek to expand
cooperation with China in areas where
our interests are parallel or comple-
mentary.
American foreign policy is some-
times accused of being shortsighted and
of operating in a 4-year context. It is
clear from the record of four admini-
strations that this is not the case with
China. U.S. foreign policymakers clearly
recognize that it is not in our interest to
perpetuate the hostility that existed be-
tween the United States and China but
to look ahead to decades of close Sino-
American cooperation.
I believe that the coming years will
see the development of an even deeper
and more extensive relationship between
our two great countries. We at the State
Department would welcome your
thoughts on areas that remain to be ex-
plored and initiatives for the future.
With your help we can forge a lasting
relationship of mutual benefit to both
the United States and China that will
take us well into the 21st century. ^
Published by the United States Department
of State ? Bureau of Public Affairs
Office of Public Communication ? Editorial
Division ? Washington, D.C. ? June 1982
Editor: Colleen Sussman ? This material is in
the public domain and may be reproduced
without permission; citation of this source is
appreciated.
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