

February 5, 1996
Web posted at: 10:45 p.m. EST (0345 GMT)
From White House Correspondent Claire Shipman
WASHINGTON (CNN) -- New evidence from U.S. intelligence -- that China continues to export nuclear weapons technology to Pakistan -- is putting the squeeze on the administration's already embattled China policy. Members of Congress stand ready to push for sanctions, and the administration is seriously considering that move as well.
Rep. Nancy Pelosi has asked for hearings in the House Intelligence committee on the nuclear weapons proliferation issue. In public, the administration will only respond in standard "diplomatese."
"We will act consistent with U.S. law," said White House Press Secretary Mike McCurry. (111K AIFF sound or 111K WAV sound)
But behind the scenes, administration officials confirm they are actively considering sanctions -- frustrated at the ongoing issue, both with Pakistan and Iran. But they are still hoping to resolve the matter more diplomatically.
The Chinese vice foreign minister is in Washington for previously scheduled talks -- proliferation is at the top of the agenda, as are increasing tensions with Taiwan -- reports of military maneuvers and threats.
"We've urged both sides repeatedly ... to refrain from any actions that would increase tensions in the region," said State Department spokesman Glynn Davies. (255K AIFF sound or 255K WAV sound)
The administration has to navigate a potential minefield in the relationship between the two countries over the next six months: a United Nations human rights meeting in March, an upcoming and likely harsh review of China's performance on trade issues -- especially intellectual property rights, elections in Taiwan in March, and the review of Most Favored Nation status in June.
Critics say the administration's policy is confused, ambiguous, and its priorities are unclear.
U.S. diplomats counter that the top priority is clear -- a steady relationship with the emerging superpower -- but that the various aspects of that relationship could invite either a stick or a carrot.
If they offer any self-criticisms of policy, it's that they've realized the need to accentuate the positive instead of just providing the Chinese with a list of problems at each meeting. But U.S. officials say they are prepared for tumultuous year ahead, especially with a domestic election looming, and China policy a traditional hot-button for both parties.
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