THE WHITE. HOUSE CORRESPONDENCE TRACKING WORKSHEET ACTION ORG 90/06/29

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INCOMING THE WHITE. HOUSE CORRESPONDENCE TRACKING WORKSHEET ID# 154140 DATE RECEIVED: JUNE 29, 1990 NAME OF CORRESPONDENT: THE HONORABLE PATRICIA SAIKI SUBJECT: URGES THE PRESIDENT TO SUPPORT TAIWAN'S APPLICATION TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) ACTION DISPOSITION ROUTE TO: OFFICE/AGENCY (STAFF NAME) ACT DATE TYPE C COMPLETED CODE YY/MM/DD RESP D YY/MM/DD FREDERICK MCCURE ORG 90/06/29 REFERRAL NOTE COMMENTS: ADDITIONAL CORRESPONDENTS: 40 MEDIA:L INDIVIDUAL CODES: 1240 1230 MAIL USER CODES: (A) (B) (C) ACTION CODES: A-APPROPRIATE ACTION C-COMMENT/RECOM D-DRAFT RESPONSE F-FURNISH FACT SHEET I-INFO COPY/NO ACT NEC R-DIRECT REPLY W/COPY S-FOR-SIGNATURE X-INTERIM REPLY DISPOSITION A-ANSWERED B-NON-SPEC-REFERRAL C-COMPLETED S-SUSPENDED OUTGOING CORRESPONDENCE: TYPE RESP=INITIALS OF SIGNER CODE = A COMPLETED = DATE OF OUTGOING REFER QUESTIONS AND ROUTING UPDATES TO CENTRAL REFERENCE (ROOM 75,OEOB) EXT-2590 KEEP THIS WORKSHEET ATTACHED TO THE ORIGINAL INCOMING LETTER AT ALL TIMES AND SEND COMPLETED RECORD TO RECORDS MANAGEMENT.

PATRICIA SAIKI 1ST DISTRICT, HAWAII OFFICE ADDRESS: 1609 LONGWORTH BUILDING WASHINGTON, OC 20515 (202)225-2726 FAX (202) 225-4580 DISTRICT OFFICE: 300 ALA MOANA BOULEVARD, ROOM 4104 PRINCE KUHIO FEDERAL BUILDING HONOLULU, HI 96850 (808)541-2570 FAX (808) 541-2579 Congress of the United States house of Representatives Washington DC 20515 June 12, 1990 COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS SUBCOMMITTEES: FINANCIAL INSTITUTIONS HOUSING AND COMMUNITY DEVELOPMENT ECONOMIC STABILIZATION INTERNATIONAL DEVELOPMENT. FINANCE, TRADE AND MONETARY POLICY COMMITTEE ON MERCHANT MARINE AND FISHERIES SUBCOMMITTEES: FISHERIES AND WILDLIFE CONSERVATION AND THE ENVIRONMENT OCEANOGRAPHY SELECT COMMITTES ON AGING The Honorable George H.W. Bush The White House 1600 Pennsylvania Avenue, N.W. Washington, D.C. 20500 Dear Mr. President: We are writing to urge you to support Taiwan's application to the General Agreement on Tariffs and Trade(GATT). As our fifth largest trading partner and the thirteenth largest trading entity in the world, Taiwan deserves to be a member of this multi-national body that governs international trade agreements. Taiwan has made considerable progress in eliminating many of its foreign trade barriers, and was removed this year from the Administration's "priority watch list", established by the 1988 Trade Act. Not only has Taiwan made great strides in eliminating its trade barriers, it has made considerable progress in creating a more democratic society. Meanwhile, mainland China has been moving in the opposite direction, toward political oppression and away from free market economic principles. By urging GATT to approve Taiwan's admission before that of the PRC, the United States would send a powerful signal to China's leaders and the world that America looks favorably on governments that promote freedom and open markets. We respectfully urge you to support Taiwan's application to GATT. Sincerely, Patricia Saiki, M.C. Nancy Peloai, M.C. Barney Frank, M.C. Newt Gingrich, M.C. Chuck Douglas, M.C. Tom Lewis, M.C.

Mel Hancock Jaime B. Fuster Michael DeWine John Porter H. Martin Lancaster Norman D. Shumwa Joe Barton Larry E. Craig Herbert H. Bateman Ileana Ros-Lehtinen Dana Rohrabacher Richard K. Armey Claude Harris Tim Johnson John G. Rowland C. Christopher Cox Ron Marlenee Robert J. Lagomarsino. Frank Horton Helen Delich Bentley Steven Schiff Michael R. McNulty

Sherwood L. Boehler Thomas M.. Foglietta David Dreier Jim Courter Robert K. Dornan James H. Scheuer William E. Dannemeyer William S. Broomfield Jack Fields Eliot L. Engel Dan Burton Duncan Hunter Cardiss Collins

DEPUTY UNITED STATES TRADE REPRESENTATIVE EXECUTIVE OFFICE OF THE PRESIDENT WASHINGTON, D.C. 20506 SEP -7 1990 The Honorable Chuck Douglas U. S. House of Representatives Washington, D.C. 20515 Dear Congressman Douglas: This is in further response to your June 12 letter to the President, co-signed by 40 of your colleagues, concerning the application by Taiwan for accession to the General Agreement on Tariffs and Trade (GATT). I share your perspectives on Taiwan's growing commercial importance and the value of its recent trade liberalizing measures, and it is clear that both bilateral and multilateral U.S. trade interests would be served if Taiwan negotiated membership in the GATT. Taiwan's decision on January 1 of this year to submit a formal request for GATT contracting party status presents us with a unique opportunity to bring under GATT discipline one of the last major market-price based trading entities outside the GATT system, and to foster its future development along GATT lines. Taiwan has taken great care to avoid politicizing its approach to the GATT, particularly in its request to apply only as the Customs Territory of Taiwan, Penghu, Kinmen and Matsu, rather than under a more politically contentious title. Nevertheless, this request presents political difficulties. The GATT does not require political sovereignty for GATT participation, but the People's Republic of China strongly objects to any consideration of an independent request by Taiwan for membership in this international organization, equating this with political recognition of the Taiwan regime. As a consequence, the GATT Contracting Parties have delayed formal consideration of the request in order to reflect on Taiwan's application and on how it can be addressed in the GATT. I continue to believe that the eventual accession of Taiwan to the GATT will serve U.S. commercial and trade policy objectives, and will benefit the international trading system as a whole. We will work with other GATT contracting parties to address the problems that face eventual initiation of the GATT review of Taiwan's request, and we seek your continued support for our efforts. Sincerely, JLK:ckm Julius L. Katz