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   Mr. BAUCUS. Mr. President, I congratulate Ambassador Barshefsky and the administration on reaching an agreement this week with China on WTO accession. This demonstrates that a policy of ``engagement with a purpose'' works. I believe the Chinese leadership, in particular Premier Zhu Rongji and President Jiang Zemin, have shown foresight, courage, and vision in making the commitments necessary to conclude this bilateral agreement. I am also glad President Clinton worked so diligently over the last several months to finalize the arrangement.

   I believed in April that the April 8 arrangement with China was a good one. My preliminary evaluation of this week's agreement is that it goes beyond the April 8 agreement and provides further benefits to American economic interests.

   There are still several steps before China can accede to the WTO.

   China must complete other bilateral agreements, in particular with the European Union. Next, the protocol of accession must be completed. Then, the focus of attention will turn to us in the Congress.

   In order to receive the benefits we negotiated with China, the United States has to grant China permanent normal trade relations status. To do this, Congress has to amend the Jackson-Vanik amendment.

   I am confident that a majority in both Houses will vote to amend Jackson-Vanik. But it will take a lot of work. The administration, the agriculture, manufacturing, and service industries, and those of us in the Congress who have followed these negotiations and the U.S.-China relationship closely over the years, must educate and explain to our colleagues about the benefits of the agreement reached this week and the advantages to the United States of having China in the WTO.

   As we in the Congress begin to think about this issue and deliberate on it next year, I see four principal benefits to the United States.

   First, this week's agreement opens up new markets in China, with its population of 1.3 billion, for American farmers, manufacturers, and service industries. This will help sustain American economic growth.

   Second, the agreement gets China into the global trading system, which forces them to play by the rules of international trade.

   For perhaps the first time in history, China will be accountable for its behavior to the outside world. The dispute settlement system at the WTO is far from perfect, but it forces a country to explain actions that other members believe violate the global rules. And, when a violation is found, it puts pressure on that country to comply with the rules. In addition, there is a little known feature of the WTO called the Trade Policy Review Mechanism, the TPRM. Every few years, a country's entire trade system is reviewed by all other members. Again, this type of scrutiny of China is virtually unprecedented.

   Third, the agreement will help strengthen the economic reformers in China, especially Premier Zhu Rongji who has clearly been in a weakened position this year. Economic reform, moving to a market economy, transparency--that is, opening up, less secrecy--direct foreign investment, listing of companies on overseas markets--progress in all these areas is of vital importance to the United States as they relate to stability in China, as they relate to accountability, and as they relate to a growing middle class.

   Fourth, Taiwan, the 12th-largest economy in the world, has almost completed its WTO accession process. Yet it is a political reality internationally that Taiwan cannot join the WTO before China. So, with China's admission to the WTO, Taiwan will follow very quickly. All of us should welcome that.

   The Congress has been concerned about many aspects of the U.S.-China relationship: espionage allegations, nuclear proliferation, human rights, and Taiwan. These are all serious issues, and we must confront each one head on.

   But, I, and I believe most Members of Congress, are able to look at each issue on its own merits. When Congress examines closely the arrangement for Chinese accession to the WTO, I am confident that Members will conclude that extending permanent normal trade relations status to China is now in the best interest of the United States.

   I don't want to sound pollyannaish about this. Once China is a member of the WTO and the United States has granted permanent NTR status, the real work of implementation begins. We have learned over the years that implementation of trade agreements takes as much effort, or even more effort, than the negotiations themselves. The administration will have to provide us with a plan about implementation. We in the Congress will have to devote additional resources and energy to ensuring full Chinese implementation.

   Earlier this year, I introduced a bill to establish a Congressional Trade Office to provide the Congress with additional resources to do exactly that. I hope my colleagues will look at that proposal and give it their support. In addition, I will be introducing some measures to help ensure that the administration--this one as well as future administrations--never deviates

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   In conclusion, this is a good agreement. It serves American interests.

   We have a lot of work ahead of us to help implement it and to follow up next year to make sure it is implemented. It deserves our support.

   I yield the floor.

   The PRESIDING OFFICER. The Senator from Vermont.

   Mr. LEAHY. Mr. President, what is the situation? Are we still in morning business or is this a matter of some dispute?

   The PRESIDING OFFICER. Morning business has expired, but the Senator is certainly free to proceed.

   Mr. LEAHY. Once morning business has expired, do we go back on the bankruptcy bill?

   The PRESIDING OFFICER. That is the understanding, yes.

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