CHINA'S ACCESSION TO THE GATT AND THE SUPPLY OF TRADE-RELATED ECONOMIC DATA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T01058R000608200001-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 9
• Document Creation Date: December 22, 2016
• Document Release Date: January 6, 2011
• Sequence Number: 1
• Publication Date: December 12, 1985
• Content Type: MEMO

Sanitized Copy Approved for Release 2011/01/06: CIA-RDP85T01058R000608200001-0
-1 3-4wa
DATE
DOC N
OCR CX'S.
P&PD CY
Sanitized Copy Approved for Release 2011/01/06: CIA-RDP85T01058R000608200001-0
 Sanitized Copy Approved for Release 2011/01/06: CIA-RDP85T01058R000608200001-0
P
Central Intelligence Agency
O?P
Washington. D. C. 20505
DIRECTORATE OF INTELLIGENCE
Douglas Newkirk
Assistant United States Trade
Representative
Acting Chief, Economics Division
Office of Global Issues
SUBJECT: China's Accession to the GATT and the
Supply of Trade-Related Economic Data
The attached memorandum responds to your request for a look
at what types of information would be needed to evaluate Chinese
trade policies from the perspective of satisfying GATT tenets.
The memorandum identifies several basic information categories,
including production costs, government procurement prices, and
domestic sales prices. We believe the Chinese would be reluctant
to provide this information but could he persuaded to do so by
the benefits associated with GATT membership. Your comments may
be addressed to the Acting Chief, Economics Division, Office of
Global Issues,
25X1
25X1
Attachment:
China's Accession to the GATT and the
Supply of Trade-Related Economic Data, 25X1
GI M 85-10321 25X1
Sanitized Copy Approved for Release 2011/01/06: CIA-RDP85T01058R000608200001-0
 Sanitized Copy Approved for Release 2011/01/06: CIA-RDP85T01058R000608200001-0
SUBJECT: China's Accession to the GATT and the
Supply of Trade-Related Economic Data
OGI/ECD/DI~ I(12 Dec 85)
Distribution:
1 - Douglas Newkirk, USTR
1 - SA/DDCI
1 - ExDi r
1 - DDI
1 - DDI/PES
1 - NIO/Econ
1 - CPAS/ISS
1 - D/OGI, ADD/OGI
1 - C/OEA/CH/DEV
3 - OGI/EXS/PG
6 - CPAS/IMC/CB
1 - AC/ECD
1 - C/ECD/DI
1 - Chrono
Sanitized Copy Approved for Release 2011/01/06: CIA-RDP85T01058R000608200001-0
 Sanitized Copy Approved for Release 2011/01/06: CIA-RDP85T01058R000608200001-0
Central Intelligence Agency
China's Accession to the GATT and the
Supply of Trade-Related Economic Data
Surnmary
During the past year China has shown considerable interest in obtaining full
membership in the GATT, and has recently offered to reduce its tariffs as a
condition for its entry. Because the central cpvernment continues to have a major
impact on trade through its control of danestic prices, subsidies, and taxes, the
GATT will need to receive new information fran China on a periodic basis in order to
evaluate the role of China's tariffs and to nonitor China's compliance with the
basic tenets of the GATT. Given these circumstances, present GATT members, as a
condition for China's admission, might require China to provide international trade-
related economic data, to ensure China is not, through its centralized trading
system, taking inappropriate advantage of GATT membership. Important information to
be monitored in such a program would include:
o Government procurement prices and domestic sales prices for export goods.
o Wages and other costs of production for export goods.
o The level of direct government subs idi es anti other financial incentives to
enterprises engaging in foreign trade.
o Tariff rates and revenues for imjx rt goods.
o Doneestic sales and foreign proairenent prices for import goods.
o Shares of trade conducted by government trade corporations and financially
independent corporations, for each traded conasodity.
We anticipate that the Chinese initially will be reluctant to accept any
ccm