Two top U.S. senators on Tuesday proposed legislation to force the Bush
administration to get tough on China over its currency while another pair of
lawmakers sidelined a bill with a similar goal.
US Senator Charles
Grassley is seen in Lamoni, Iowa, February 21, 2006.
[AP] |
Senate Finance Committee Chairman Charles
Grassley, an Iowa Republican, and Sen. Max Baucus, a Montana Democrat, launched
a bill that urged Treasury to create an assistant secretary post focused on
currency issues.
It also said the administration should turn to the International Monetary
Fund and other nations on ways to punish countries with "fundamentally
misaligned" currencies that hurt the U.S. economy.
Less than two hours after Baucus and Grassley launched their bill, Sens.
Charles Schumer and Lindsey Graham said they would delay until September 29 at
the latest a vote on separate legislation to impose stiff tariffs on China for
failing to address the yuan issue.
Schumer and South Carolina Republican Sen. Graham, both fresh back from a
visit to China, told a news briefing they thought their legislation had served
its purpose and they were hopeful China was ready to act.
"We believe if we hadn't introduced this strong medicine, nothing ever would
have happened. But we also believe that now that we're on the path to progress,
we don't have to fire this so-called nuclear weapon, but can hold it in abeyance
as we carefully watch and wait and expect continued progress." said Schumer, a
New York Democrat.
CRUCIAL JUNCTURE
This is a sensitive time for U.S.-China relations. Chinese President Hu
Jintao visits Washington on April 20 amid a heated atmosphere surrounding the
record U.S. trade gap with China in a congressional election year.
Further complicating the issue is China's role as a major source of the
billions of dollars the United States must borrow each day to keep up with daily
business like national defense.