DASCHLE CALLS FOR PERMANENT FAVORED STATUS ON TRADE.

Byline: Larry Margasak Associated Press 

The Senate's Democratic leader, just back from a trip to China, proposed Sunday that the United States permanently grant China normal trade relations, while continuing to emphasize the importance of human rights.

Sen. Thomas Daschle said the United States, the world's only remaining superpower, must develop a better relationship with the strongest country in Asia. That cannot be done, he said, by keeping China's trade status in uncertainty through annual reviews that use it as the standard for dealing on all other issues.

``We've got to demonstrate some balance; 1.2 billion people can't be ignored,'' Daschle said on ``Fox News Sunday'' a few hours after President Clinton met in Manila, Philippines, with China's president, Jiang Zemin.

China's most-favored-nation trade status must be reviewed every year. Clinton initially insisted on linking human rights with trade and other issues but reversed himself in 1994 under pressure from Beijing.

Daschle, D-S.D., said, ``I think MFN is going to be a factor with regard to China for a long time to come. I favor making it permanent. I think we've got to get on with it.''