Greenspan expected to back China trade legislation

May 18, 2000
Web posted at: 10:17 a.m. EDT (1417 GMT)

From CNN Senior White House Correspondent John King

WASHINGTON (CNN) - Federal Reserve Chairman Alan Greenspan will attend a White House event Thursday to give his blessing to legislation granting China permanent trade relations with the United States, two senior administration officials tell CNN.

A White House announcement was expected later in the morning and the officials said the meeting was scheduled for approximately 10 a.m.

The officials said both Clinton and Greenspan would make public statements pressing Congress to pass the PNTR legislation, which is due for a critical House vote next week.

It is rare for Greenspan to make public statements on pressing legislative and policy issues, though he has in the past spoken favorably of China's entry into the World Trade Organization. The PNTR legislation would allow the United States to enjoy the reduced tariffs and other relaxed trade rules China has agreed to in order to join the WTO.

The event with Greenspan will focus on what the White House views as the economic arguments in favor of the China trade legislation; the president's more recent focus has been on making the case the legislation also is critical to U.S. national security. But the one of the officials said Greenspan's willingness to speak out, "gives us an opportunity to once again make the economic case and we believe he is someone who could prove persuasive with those still trying to make up their minds on this issue."