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Sydney Morning Herald / By GAY ALCORN, Herald Correspondent in Washington

A day after a White House power rally of presidents and former presidents urged that China be embraced into the world trading system, Harry Wu held up a Nike shoe and said: "Don't lie to me."

Mr Wu, a Chinese human rights activist who survived 19 years in a prison labour camp, shook with anger at political and business arguments that a crucial congressional trade vote this month was about more than making money.

The vote on granting China permanent normal trading relations, which means ending an annual review of its human rights record before getting favourable access to US markets, has emerged as the most crucial foreign policy decision this year.

With Democratic support wavering, President Bill Clinton is reportedly considering an address to the nation this week.

Former president Mr Jimmy Carter, a champion of human rights, told the White House gathering that a refusal by Congress would be a serious impediment to further democracy, freedom and human rights in China.

"I just hope these people will be honest," Mr Wu said at the release a report claiming Chinese workers in factories making American goods were indentured servants, were paid less than subsistence wages, slept in cramped dormitories, and got one day off a month. In many cases, they were paid less than workers in state-owned factories.

"They're concerned about business rights, not human rights. It's fine ... [but] don't lie to the American people," Mr Wu said.

In a deal late last year, China agreed to open a wide range of markets from agriculture to telecommunications, in exchange for permanent low tariff access to the US. The deal was part of China's negotiations to enter the World Trade Organisation, and the Clinton Administration and business leaders say China would buy goods elsewhere if the US refuses to forgo annual reviews.

The issue has moved beyond trade to include the symbolism of what opponents say is rewarding China for its human rights abuses, and whether Washington's foreign policy rhetoric about human rights was taking second place to business demands for access to 1.2 billion Chinese consumers.

A State Department report this year said China's human rights record deteriorated in 1999.

Mr Wu and fellow dissident Mr Wei Jingsheng said the report prepared by the National Labour Committee for Human Rights showed claims that engagement with China was improving worker conditions were false.

The report, Made In China, investigated 16 companies including Nike, the world's largest retailer, Wal-Mart, and Timberland.

At a Qin Shi factory where Wal-Mart handbags were made, undercover investigators found young women working up to 14 hours a day, seven days a week for 3c an hour, and almost half were in debt to the company because of deductions for board.

Most workers were young women, with a Nike contractor in a Lizhan factory advertising for females only, age 18-25. Complaining about conditions or getting pregnant led to sackings.

American partners are more than willing to look the other way, Mr Wu said.

"Everybody likes workers to have low wages, right? And China has the lowest wages. That's why they want to go over there."

Mr Wu said while a congressional defeat of trading privileges to China may not change conditions, it would be a signal that human rights were important, and would be one of many decisions that would ultimately end communism in China.

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