TRADE TALKS

By J.F.O. McAllister/Washington

In the art of diplomacy, the well-timed gesture can make all the difference. During presummit haggling, National Security Adviser SANDY BERGER warned his Chinese counterpart, Liu Hua Qui, that the ballooning trade deficit with China, $44 billion this year, was going to provoke a mega-political backlash. Liu replied that the deficit had many complex causes, including wrongheaded U.S. export controls. During a break, a frustrated Berger told an aide to buy a present for Liu. When the Chinese official unwrapped it, he found, instead of the traditional vase, a spanking-new Barbie--made in China, of course. Berger razzed him, "I want you to put that on your desk and leave it there until the trade deficit comes down." Later, Chinese officials quietly revealed that they planned to cut average tariffs to 10%. Maybe Barbie should get a Foreign Service appointment.

--By J.F.O. McAllister/Washington