228. Summary of Conclusions of a Policy Review Committee Meeting1



  • State
  • Richard Cooper (Under Secretary for Economic Affairs)
  • Roger Sullivan (Dep Asst Sec for EA & Pacific Affairs)
  • Jules Katz
  • OSD
  • Dr. Ellen Frost (ISA)
  • JCS
  • Lt General William Smith
  • DCI
  • Dr. Robert Bowie (Dep Dir of CIA)
  • Amb John Holdridge (Nat’l Intell Ofcr for China)
  • Treasury
  • Secretary Blumenthal
  • Anthony Solomon (Asst Sec)
  • Scott Hallford
  • Agriculture
  • Secretary Bergland
  • Tom Saylor
  • Commerce
  • Secretary Kreps
  • S. Stanley Marcus
  • Homer Moyer
  • Labor
  • Under Secretary Robert Brown
  • Brian Turner
  • OSTP
  • Ben Huberman (Asst Dir for Nat’l Security, Internat’l & Space Affairs)
  • Trade Negotiations
  • Ambassador Robert Strauss
  • John Renner
  • NSC
  • Tim Deal (Stf Mbr)
  • Mike Oksenberg (Stf Mbr)
  • White House
  • David Aaron (Dep Asst to the Pres for Nat’l Security Affairs)
[Page 833]


Secretary Blumenthal chaired the meeting, which dealt with his trip to China and with the road ahead in our economic relations with China. No substantive decisions were reached at this meeting, but a number of issues were discussed, with calls made for decision memorandum:

Schedule for Development of Economic Relations with the PRC: Blumenthal will prepare such a paper for the President within a week to ten days, outlining how he believes we should proceed in the months ahead in addressing a series of issues in proper sequence.

MFN for the PRC: Blumenthal and Vance will make recommendations on the method through which we should plan to extend MFN to the PRC. The alternatives are to seek special legislation or for the President to exercise his waiver authority under JacksonVanik. Blumenthal and Vance have been consulting on the Hill on this issue. Any recommendation on China would take into account extension of MFN for the Soviet Union and would address the sensitive issue of timing.

ExIm Bank Financing for China: ExIm Bank with Treasury should begin to consider concretely whether it wishes to extend financing to the PRC, when it would wish to do so, and for what sum it would seek authorization. Settlement of ExIm Bank claims against the PRC would be necessary for this, and at an appropriate time, this issue must be discussed with the Chinese in concrete fashion. Blumenthal has already tagged the issue.

Negotiation of a Trade Agreement: Jules Katz will proceed toward negotiating a trade agreement. Some progress was made on the Blumenthal trip, and after a round of consultations within our own government, additional negotiations will occur through the Embassy. Progress is likely to be slow, and an agreement is unlikely on the Kreps visit.

Business Facilitation: It should be possible, however, to reach agreement on aspects of a trade agreement which could be initiated on the Kreps visit, particularly on business facilitation. This issue will receive priority attention in the weeks ahead.

Kreps Visit: Preliminary planning for the Kreps visit can now get underway, including the composition of her delegation and its agenda. The science and technology realm of her agenda should be cleared with Press, and the economic with Blumenthal/Solomon. A PRC meeting will be convened on the eve of her departure, with recommendations going to the President for his approval. These recommendations could serve as basis for the President’s instructions.

Bob Strauss reported on his textile negotiations with the Chinese, which are not proceeding satisfactorily. The next round of negotiations [Page 834] has been tentatively set for March 24 in Peking, and we have stressed to the Chinese that if an agreement is not reached soon, the U.S. may have to act unilaterally.

  1. Source: Carter Library, Brzezinski Donated Material, Subject File, Box 25, Meetings, PRC 97: 3/79. Confidential. The meeting took place in the Roosevelt Room of the White House.