BOB ABERNETHY: On our persecution watch this week, the U.S. Commission on International Religious Freedom released its first annual report. The federally appointed advisory panel highlighted ongoing religious persecution in China, Sudan, and Russia. It also recommended several steps the U.S. government could take to help improve religious freedom. One recommendation was to deny China permanent normal trading status, an issue Congress takes up in the coming weeks. Lucky Severson reports.

LUCKY SEVERSON: The bipartisan commission's report, just before a historic congressional vote, is hardly what supporters of normal trade with China want to hear.

Mr. STEVE McFARLAND (Executive Director, U.S. Commission on International Religious Freedom): I think any fair assessment of the facts would be -- would lead to the conclusion, yes, it is a marked deterioration in religious freedom in China today.

SEVERSON: The commission, appointed by the White House and Congress, includes prominent religious and civil leaders, nine members in all, and they concluded, in a unanimous vote, that what has been called "constructive engagement" with China -- in other words, doing business with no strings attached -- simply has not worked.

Mr. McFARLAND: Complete delinkage would send a message that when dollars and cents are involved, we really don't put human rights on the same plain.

SEVERSON: There are 1.3 billion potential customers in China, which could ultimately result in billions of dollars in trade, and the government figures that every $1 billion generates 15,000 to 20,000 American jobs. But virtually all human rights groups agree with the commission that religious freedom in China has deteriorated in the last year.

Mr. McFARLAND: There are in excess of two dozen Roman Catholic priests that have been detained. There are seven bishops. There are scores of house-church leaders.