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...Relations with China are crucial. It is a permanent member of the UN Security Council, has nuclear weapons, and is destined to become a global economic power. It has a major impact on regional issues and on global challenges such as the environment. We have a clear national interest in seeing that China is integrated into the international system on appropriate terms, whether it is the WTO, APEC, the ASEAN Regional Forum, non-proliferation agreements, or compliance with international human rights standards. We welcome China's participation in both global and regional economic and security forums.
Nearly one and a half years ago, the President initiated our policy of comprehensive engagement. We continue, through high-level dialogue and working-level talks with China, to pursue our national interest. We have had modest success in securing China's cooperation on certain issues, including international peace-keeping, the North Korean nuclear issue, missile exports, narcotics, alien smuggling, and regional security dialogue. In recent months, however, differences over the sensitive issue of Taiwan, human rights, and trade have taken center stage. Resolving these differences is made more difficult by China's succession politics.
We are, therefore, in a difficult phase in our relationship. We must continue to pursue constructive relations with China--one of the key powers in the world, but we must also show firm resolve whenever necessary. We have maintained Tiananmen-related sanctions, have taken firm trade steps where necessary, and are pursuing human rights issues in various ways. At the same time, we seek to make progress where we can. Despite some current strains, we remain confident that, over the long run, our shared interests will clearly outweigh our differences.
A comprehensive and balanced China policy is essential to maintaining peace, stability, and economic development on both sides of the Taiwan Strait. While we recognize the Government of the People's Republic of China as the sole legal government of China, we also maintain a vigorous and expanding unofficial relationship with Taiwan, within the framework established by the Taiwan Relations Act and the three joint communiques with the P.R.C. We acknowledge the Chinese position that there is but one China and that Taiwan is a part of China. Administrations of both parties have embraced this policy, which has enabled us to develop mutually beneficial relations with both the P.R.C. and Taiwan.
The people of Taiwan also have benefited from our strong but unofficial relationship. The famous Taiwan economic "miracle" has made it the 13th- largest trading economy in the world and our second-largest export market in Asia. With our encouragement, Taiwan has taken dramatic strides toward democracy and the observance of human rights. All of these developments have provided the people of Taiwan the security to enjoy their prosperity, and recently a "cross-strait dialogue" between Taipei and Beijing has replaced the exchanges of shells that once were common in those waters.
Recognizing this, the Administration conducted the first comprehensive review of its Taiwan policy in 15 years and implemented significant adjustments in our unofficial relations with Taiwan. However, we will continue to reject proposals which would place at risk the peace and growth that Taiwan has achieved. We will not reverse the policies of six administrations of both parties. That would not be in our interest, and it would not serve the interest of the people of Taiwan.
...Our goals remain constant. The President remains as committed as ever to the cause of freedom. Consequently, we will continue to champion human and labor rights in Asia without arrogance or apology. We will do so where we have friendly relations...And we will do so where we have an interest in positive engagement on many critical world issues-- as we have in China.
Goals for the Coming Year
Mr. Chairman, the President and the Secretary of State have articulated a series of goals which the Administration will energetically and creatively pursue. In the context of the Administration's broad objectives, we will be working in the coming year on several important fronts in Asia. I will mention some of the more important ones briefly.
...We will pursue our strategy of comprehensive engagement with China. We hope we can successfully conclude important bilateral negotiations on IPR protection and market access. If not, we will have no choice but to use the provisions of our trade law. We will continue the multilateral negotiations on China's admittance to the WTO. We will continue our limited bilateral military dialogue, with a view to encouraging greater openness and transparency on the part of the Chinese military. We will continue to raise human rights issues vigorously, through bilateral visits and through multilateral channels such as the UN Human Rights Commission meeting. We will search for cooperation where we can find it on regional issues and global challenges.
We will further develop regional security dialogues in the new ASEAN Regional Forum and elsewhere. Our hope is that patient diplomacy will build consensus for a meaningful ARF work program that will encompass both confidence-building measures and cooperation in areas of mutual benefit, such as peace-keeping or disaster relief. At the same time, we will lay the groundwork for a separate sub-regional dialogue on security issues in the critical northeast Asia sector.
We also will advance our many other interests. We will strengthen ties with ASEAN, whose countries together are our fourth-largest market and a force for stability and growth in the region. We will persistently seek full cooperation in accounting for our POWs and MIAs in Vietnam, Laos, Cambodia, Russia, China, and North Korea....We will continue to support democracy, human rights, and reform throughout the region, working in part through effective non-governmental organizations such as the National Endowment for Democracy and the Asia Foundation. We will seek practical progress on law enforcement, environmental, and other global issues.
Conclusion
Broad public and congressional support is critical for our policy. A prosperous, stable, and open Asia-Pacific region is neither only a Republican nor only a Democratic cause. While we will see debate and even disagreement over the next two years, I am optimistic that our Pacific quest will enjoy bipartisan support.
Some see a Pacific community as a distant if not unrealistic vision. In fact, it is being shaped now by our actions and those of others. Clearly, building such a community will take persistence and patience. We cannot force its definition, nor should we forfeit our difference. The diversity of the Asia-Pacific region is a reality we recognize and respect. Its distinctions will be a major source for the region's future dynamism.
Nevertheless, the contours of commonality are surfacing in the Pacific. Trade is linking economies, telecommunications are transcending borders, and transportation is shrinking distance. Business people are spurring regional integration. Diplomats are strengthening regional institutions.
This is the 50th anniversary year of the end of World War II. This commemoration of past sacrifice reminds us of our responsibility to the next generation of young Americans and Asians. It provides an opportunity to rededicate ourselves to shaping a Pacific community that is richer, safer, and freer. Thank you.
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