–Senate Majority Leader Says Senate Will ‘Do Something On’ China FX
–Sen. Reid; Senate’s China Currency Bill Is ‘Jobs Bill’
–Sen. Reid: Blasts House GOP For Blocking Needed Disaster Funds
–Senate Minority Leader McConnell: Won’t Be Government Shutdown

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid and Senate
Minority Leader Mitch McConnell gave sharply different assessments
Tuesday about the fate of a 2012 fiscal year stop-gap spending bill that
will fund the government until November 18.

In back to back briefings, McConnell said he is confident the House
and Senate will pass a stop-gap bill this week.

“There won’t be a government shutdown,” McConnell said after a
meeting with Senate Republicans.

But Reid, after meeting with Senate Democrats, offered a different
assessment.

“I’m not that sure,” that a government shutdown will be avoided,
Reid said, arguing that House Republicans and Senate Democrats have very
different ideas about how large the emergency assistance package should
be that is attached to the stop-gap bill.

The House GOP supports a package of $3.65 billion in emergency
relief while Senate Democrats support a $6.9 billion package.

“We’re not going to cave in on this,” Reid said. “We are not going
to back down,” he added.

The stop-gap bill, which is expected to fund the government until
Nov. 18, is needed because Congress has not passed any of the 12 regular
spending bills. The new fiscal year begins Oct. 1.

The House will vote on the FY’12 stop-gap bill Wednesday.

Reid said the Senate schedule is packed, but taking up a Chinese
currency bill is a top priority for him.

“We’re going to do something about Chinese currency,” Reid said,
adding this is a “jobs bill.”

There are several versions of currency legislation that have been
drafted. One would prevent the Commerce Department from using a
long-standing rule that makes it more difficult to designate an
undervalued currency as an illegal export subsidy that would result in
economic sanctions.

The White House remains cool to currency legislation.
Administration officials believe that currency matters in general and
especially those pertaining to China are best addressed in private talks
led by the Treasury Department.

House Republican leaders are also not supportive of China currency
bills, saying they address only one aspect of the complex bilateral
relationship. They say that a much more comprehensive approach is
needed.

In another matter, Reid said the Senate must pass legislation to
assist workers who have lost their jobs due to international competition
before it takes up three pending trade agreements.

Reid said repeatedly that the Senate will not consider any of the
three pending U.S. bilateral trade agreements until the Senate passes a
TAA bill.

Those pending U.S. trade agreements are with Panama, Colombia and
South Korea.

McConnell said passage of the three trade bills is important to
boost the U.S. economy. “We have taken America out of the trade
business,” he said.

** Market News International Washington Bureau: (202) 371-2121 **

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