Administration, Yielding to Congress, Won’t Fight Study of ‘Radio Free China’ : Foreign policy: The move could head off a dispute with Capitol Hill as it takes up trade benefits for Beijing.

Bowing to pressure from Congress, the Bush Administration announced Wednesday that it will go along with a proposal to study the creation of a new “Radio Free China,” similar to the U.S.-sponsored broadcasts that for decades have promoted the causes of freedom and democracy in the Soviet Union and Eastern Europe.

The announcement seemed to be aimed at heading off another dispute with Capitol Hill over U.S. policy toward China. During the next two months, Congress will consider whether to approve President Bush’s recommendation to extend unconditionally China’s most-favored-nation trade benefits, which provide lower tariffs. Preserving China’s trade privileges represents one of the President’s top legislative priorities.

Last month, Sen. Joseph R. Biden Jr. (D-Del.) introduced legislation aimed at setting up a special new radio service for China along the lines of the existing Radio Free Europe and Radio Liberty. His bill would establish a commission to examine the costs and feasibility of a special new China radio service.

The formation of a Radio Free China is strongly opposed by the Chinese government. Chen Guoqing, a spokesman for the Chinese Embassy in Washington, said his government views Biden’s proposal with “grave concern and a strong indignation.”

Originally it appeared that the Administration would seek to block Biden’s proposal. A statement issued by the State Department last week said that instead of creating a separate broadcast service for China, it would be better to strengthen the existing operations of Voice of America. The statement also argued that the study envisioned by Biden’s bill is unnecessary.

However, Deputy Secretary of State Lawrence S. Eagleburger told a hearing of the House Ways and Means Committee on Wednesday that the Administration has decided not to “stand in the way” of Biden’s proposal. “This Administration has no objection to a study on whether a Radio Free China should go forward,” Eagleburger said.

Biden’s idea for a Radio Free China already had begun to attract support, not only from fellow Democrats but also from Republicans whose support Bush needs to preserve China’s trade benefits. The principal co-sponsor of the Biden bill is Sen. Orrin G. Hatch (R-Utah).

The Voice of America now sends its reports into China in English, Mandarin and Cantonese. The Mandarin-language broadcasts alone consist of 10 hours of programs on six different frequencies, and have an audience estimated in the tens of millions. In addition, acting under an earlier congressional mandate, the VOA this spring started programs in Tibetan.

Biden contends, however, that a special new radio service could go beyond the work of the VOA by focusing more intensively on domestic developments inside China. Also, he said last month, a Radio Free China could emphasize “not only Chinese events, but also developments in neighboring states in Asia--especially those where democracy is slowly taking root, such as the Philippines, South Korea and Taiwan.”

Meanwhile, Secretary of State James A. Baker III on Wednesday repeated past Administration warnings to China not to export its M-9 ballistic missiles to Syria or other countries in the Middle East.

“We have made it clear (to the Chinese government) that there would be potentially profound consequences for our bilateral relationship if they were to change the missile export policies that they might have represented to us,” Baker said in testimony before a Senate Appropriations subcommittee.

Baker emphasized that the United States still has no evidence that China has delivered missiles to Syria. But he said that even if China did export the missiles to Syria, the Bush Administration probably would not change its mind about extending China’s most-favored-nation trade benefits.

The Times disclosed in 1988 that China had concluded a deal to sell Syria a new missile it was developing called the M-9, an advanced surface-to-surface, solid-fuel missile with a range of up to 375 miles. The introduction of M-9s into the Middle East would greatly increase the vulnerability of Israel to a missile attack.

Over the last three years in a series of trips to Beijing, former Defense Secretary Frank Carlucci, Bush and National Security Adviser Brent Scowcroft all have warned China not to export the new missiles. But China has continued to develop and test the M-9s, and they now are said to be at the point where the missiles probably could be delivered to Syria if the Chinese choose to do so.

Times staff writer Norman Kempster contributed to this story.