A/S KELLY DISCUSSES KOREA, BILATERAL RELATIONS

C O N F I D E N T I A L STATE 008026

E.O. 12958: DECL: 01/09/2013
TAGS: PREL CH KN KS
SUBJECT: A/S KELLY DISCUSSES KOREA, BILATERAL RELATIONS
WITH PRC AMBASSADOR YANG JIECHI

CLASSIFIED BY: EAP A/S JAMES A. KELLY; REASONS 1.5 B, D.

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SUMMARY
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1. (C) A/S KELLY BRIEFED AMBASSADOR YANG JIECHI JANUARY 9 ON
LATEST DEVELOPMENTS IN OUR APPROACH TO NORTH KOREA, PREVIEWED
HIS UPCOMING TRIP TO THE REGION AND DISCUSSED OVERALL
BILATERAL RELATIONS. ON KOREA, KELLY STRESSED U.S. TACTICAL
FLEXIBILITY IN FOCUSING ON OUR KEY OBJECTIVE, WHICH WAS TO
STOP THE DPRK NUCLEAR PROGRAM. HE WELCOMED CONTINUING
COOPERATION ON CHINA'S PART TOWARD THAT END AND PROMISED TO
BRIEF ON HIS SEOUL TALKS WHEN HE VISITS BEIJING NEXT WEEK.
ON BILATERAL ISSUES, AMB. YANG PRAISED THE TEMPO OF
U.S.-CHINA EXCHANGES IN THE COMING MONTHS WHILE REPEATING
FAMILIAR CONCERNS ABOUT TAIWAN. YANG RAISED CONCERN ABOUT
FALUNGONG LEGAL ACTIONS AGAINST JIANG ZEMIN IN THE U.S. AND
WE RESPONDED WITH OUR OWN CONCERNS ABOUT HARSH JUDICIAL
TREATMENT OF FALUNGONG ADHERENTS IN CHINA. END SUMMARY.


2. (C) AMBASSADOR YANG INVITED A/S KELLY TO BREAKFAST TO
DISCUSS KOREA AND BILATERAL ISSUES ON JANUARY 9. COUNSELORS
DENG HONGBO AND XIAO QIAN FROM THE CHINESE EMBASSY
PARTICIPATED, AS DID EAP/CM DIRECTOR YOUNG (NOTETAKER).

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DISCUSSION OF KOREA
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3. (C) A/S KELLY BEGAN BY NOTING THE SECRETARY WAS PLEASED
WITH HIS PHONE CALL THE PREVIOUS EVENING TO FM TANG JIAXUAN.
THEY HAD A GOOD EXCHANGE ON KOREA AND BILATERAL RELATIONS.
THE TWO HAVE BUILT A RELATIONSHIP OF TRUST AND RESPECT OVER
THE PAST COUPLE OF YEARS THAT HAS PROVEN MOST HELPFUL IN
RECENT MONTHS. YANG WARMLY AGREED WITH THIS ASSESSMENT. IN
RESPONSE TO YANG'S QUERY, A/S KELLY MADE CLEAR WE ARE
PREPARED TO HAVE SOME INTERACTION WITH PYONGYANG IN
CONNECTION WITH STEPS BY THE NORTH TO END THEIR ENRICHED
URANIUM PROGRAM AND BACK AWAY FROM REPROCESSING SPENT FUEL
FROM THE YONGBYON REACTOR, RATHER THAN INSISTING THAT ALL
THIS BE DONE BEFORE TALKS BEGIN. THE KEY POINT WAS TO BRING
THE DPRK NUCLEAR WEAPONS PROGRAM TO AN END IN ALL ITS
ASPECTS. NORTH KOREA WOULD WANT TO BRING OTHER ISSUES TO
THIS DIALOGUE, YANG OBSERVED. AS TO THE NATURE OF ANY
POSSIBLE SECURITY ASSURANCES, A/S KELLY NOTED OUR CITATION IN
THE TCOG JOINT STATEMENT OF THE 1991 KOREAN BASIC AGREEMENT
AND THE DENUCLEARIZATION DECLARATION. WE WERE PREPARED TO
DRAW FROM THIS AND OTHER FORMULATIONS IN CONSIDERING THE
NORTH'S DESIRE FOR SECURITY ASSURANCES. WE HAVE BEEN PLEASED
BY THE IAEA'S ROLE IN ALL THIS. IF WE EXPERIENCE PROGRESS ON
OUR CORE OBJECTIVES WITH THE NORTH, THERE WOULD BE NO NEED TO
RUSH THE IAEA DECISON-MAKING PROCESS TO THE POINT OF THEIR
TAKING THE ISSUE TO THE UNSC.


4. (C) AMB. YANG ASKED IF THE U.S. HAD RECEIVED ANY REACTION
FROM THE NORTH TO ITS LATEST PROPOSAL ON CONTACTS. A/S KELLY
INDICATED THAT A CRYPTIC BUT WORTHWHILE RESPONSE FROM THE
DPRK HAD BEEN RECEIVED. YANG PRAISED PRESIDENT BUSH'S
STATEMENT CONCERNING NORTH KOREA. PYONGYANG IS DEEPLY
ANXIOUS ABOUT THE POSSIBILITY OF A MILITARY THREAT. HE WAS
NOT PASSING JUDGMENT ON THIS, MERELY OBSERVING THE FACTS.
YANG ASKED IF THE U.S. MIGHT BE WILLING TO PROVIDE WRITTEN
SECURITY ASSURANCES TO THE NORTH AT THE SAME TIME THAT IT
PLEDGES TO DO WHAT WE WANT ON ITS NUCLEAR PROGRAM. A/S KELLY
INDICATED THAT WE REMAINED FLEXIBLE IN HOW WE GOT TO OUR
ULTIMATE GOAL OF A NONNUCLEAR KOREA. THE SOUTH'S PERSPECTIVE
WAS IMPORTANT HERE. SEOUL DOES NOT WANT TO FACE A
NUCLEAR-ARMED NORTH, WHICH WOULD PUT IT AT A MAJOR MILITARY
DISADVANTAGE. JAPAN AND COUNTRIES IN THE MIDDLE EAST WERE
ALSO QUITE CONCERNED BY THE POSSIBILITY OF A NUCLEAR DPRK.


5. (C) YANG INQUIRED ABOUT ROK NATIONAL SECURITY ADVISOR
YIM'S VISIT TO WASHINGTON. A/S KELLY INDICATED THAT YIM HAD
GOTTEN INTO MORE SPECIFICS THAN WERE COVERED BY DEPUTY FM LEE
DURING THE TCOG TALKS. YIM WAS REFLECTING KIM DAE-JUNG'S
DESIRE TO MANAGE THE REMAINING SEVEN WEEKS OF HIS
ADMINISTRATION EFFECTIVELY AS REGARDS THIS PROBLEM. YIM HAD
SEEN SECRETARY OF DEFENSE RUMSFELD, NATIONAL SECURITY ADVISOR
RICE AND OTHERS. YANG ASKED ABOUT THE TIMING OF MR. KELLY'S
TRIP TO SOUTH KOREA. A/S KELLY CLARIFIED THAT THIS TRIP HAD
BEEN LONG PLANNED AS A CHANCE TO GET ACQUAINTED WITH THE NEXT
ADMINISTRATION'S NEW TEAM, LED BY PRESIDENT-ELECT ROH
MOO-HYUN. NATURALLY HE WILL DISCUSS LATEST DEVELOPMENTS WITH
OUR ALLIES IN SEOUL. HE WOULD STAND READY TO BRIEF THE
CHINESE ABOUT HIS TALKS IN SOUTH KOREA WHEN HE TRAVELS ON TO
BEIJING NEXT WEDNESDAY. MR. KELLY LOOKED FORWARD TO GOOD
EXCHANGES ON KOREA THERE. HE WAS TRYING TO MEET PEOPLE FROM
THE PARTY'S INTERNATIONAL DEPARTMENT AS WELL AS FAMILIAR
INTERLOCUTERS IN THE MFA. IN PARTICULAR HE INTENDED TO
STRESS THE SERIOUSNESS OF NORTH KOREA'S THREAT TO REPROCESS
SPENT FUEL, WHICH COULD YIELD A GREAT DEAL OF WEAPONS-GRADE
MATERIAL IN A MATTER OF MONTHS. AMB. YANG SAID HIS
GOVERNMENT WELCOMED THIS OPPORTUNITY.

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BILATERAL RELATIONS
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6. (C) YANG THEN TURNED THE DISCUSSION TO BILATERAL
RELATIONS. REHEARSING UPCOMING VISITS TO CHINA BY MR. KELLY,
U/S BOLTON AND POLICY PLANNER HAASS, YANG WELCOMED THIS TREND
TOWARD MORE EXCHANGES. A/S KELLY RESPONDED THAT WE WERE
DOING OUR PART. USTR'S ZOELLICK WOULD BE GOING OUT IN
MID-FEBRUARY TO DISCUSS TRADE ISSUES. THE VICE PRESIDENT'S
ADVANCE TEAM WAS ALSO GOING AFTER THE LUNAR NEW YEAR.
AMBASSADOR FRANK TAYLOR, NOW ASSISTANT SECRETARY FOR
DIPLOMATIC SECURITY, WAS INTERESTED IN GOING TO BEIJING TO
CLEAR UP REMAINING ISSUES IN OUR PROPERTY NEGOTIATION (THE
COCA TALKS) AND MR. KELLY HOPED THE CHINESE SIDE WOULD
WELCOME THIS VISIT. AMB. TAYLOR'S REPLACEMENT AS
COUNTER-TERRORISM COORDINATOR, COFER BLACK, WAS ALSO
INTERESTED IN VISITING TO CONTINUE TALKS ON U.S.-CHINA
COOPERATION IN THIS AREA. AMB. YANG PROMISED TO INFORM
BEIJING OF THESE LAST TWO VISITORS, ADDING THAT "WE SHOULD
BREAK THE DEADLOCK" ON OUR EMBASSY CONSTRUCTION NEGOTIATIONS.


7. (C) YANG INDICATED THAT BEIJING WOULD WELCOME A VISIT
NEXT MONTH BY THE SECRETARY. A/S KELLY REITERATED THAT THE
SECRETARY WOULD LIKE TO COME, IF HE IS ABLE TO GET OUT OF
WASHINGTON TO ATTEND THE SOUTH KOREAN INAUGURATION IN LATE
FEBRUARY. IF THE SECRETARY VISITED BEIJING, HE COULD SEE FM
TANG, VICE PREMIER QIAN AND OTHER CHINESE LEADERS AS
APPROPRIATE. YANG ASSURED US THAT HIS GOVERNMENT WOULD WORK
HARD TO MAKE SUCH A VISIT A SUCCESS.


8. (8) TURNING TO TAIWAN, YANG REITERATED FAMILIAR CHINESE
CONCERNS ABOUT THE U.S.-TAIWAN BUSINESS COUNCIL MEETING
SCHEDULED TO TAKE PLACE IN SAN ANTONIO IN FEBRUARY. BEIJING
WAS PARTICULARLY WORRIED THAT TAIWAN DEFENSE MINISTER TANG
YAO-MING MIGHT ATTEND, AS WELL AS SENIOR USG OFFICIALS.
CHINA WAS ALSO WORRIED ABOUT U.S. INVOLVEMENT IN TAIWAN'S HAN
KUANG EXERCISE. PRESIDENT BUSH WAS OBLIGED TO RESPOND TO
CONGRESS ACCORDING TO LANGUAGE IN THE DEFENSE AUTHORIZATION
BILL ON THE FEASIBILITY OF VARIOUS DEFENSE PROGRAMS WITH
CHINA. IF THESE ISSUES COULD BE SATISFACTORILY RESOLVED,
YANG CONCLUDED, WE COULD MOVE ON TO MORE PRODUCTIVE ISSUES.
A/S KELLY REPEATED THAT OUR POLICY TOWARD TAIWAN HAD NOT
CHANGED, AND THAT WE EMPHASIZED CONSISTENCY IN SUCH ISSUES.


9. (C) YANG THEN RAISED THE FALUNGONG CASE AGAINST PRESIDENT
JIANG ZEMIN IN NORTHERN ILLINOIS DISTRICT COURT. ACCORDING
TO THEIR INFORMATION, THERE WOULD BE A HEARING ON JANUARY 13.
THE PRC WAS STILL VERY MUCH CONCERNED ABOUT THE POTENTIAL OF
THIS CASE TO DAMAGE U.S.-CHINA RELATIONS, YANG INDICATED.
WHILE BEIJING APPRECIATED THE U.S. LEGAL SUBMISSION TO THE
COURT, IT HOPED WE COULD DO MORE TO ENSURE THAT THE CASE WAS
DISMISSED. YOUNG USED THIS OCCASION TO RAISE PRESS REPORTS
THAT CHINA HAD RECENTLY SENTENCED FOUR FALUNGONG ADHERENTS IN
XINING, QINGHAI TO SENTENCES OF UP TO TWENTY YEARS FOR THEIR
ATTEMPTS TO INTERRUPT CHINESE TELEVISION BROADCASTS WITH
PRO-FALUNGONG TAPES. WHILE THE U.S. ACKNOWLEDGES THAT SUCH
ACTIVITIES ARE ILLEGAL, THE HARSH SENTENCES WILL UNDOUBTEDLY
TRIGGER PROTESTS HERE IN THE U.S. OVER THIS DRACONIAN
TREATMENT OF FALUNGONG IN CHINA. A/S KELLY SECONDED THIS
CONCERN.


10. (C) CONCLUDING THIS REVIEW OF BILATERAL RELATIONS, A/S
KELLY SAID HE LOOKED FORWARD TO A VIGOROUS SET OF EXCHANGES
IN THE COMING MONTHS. A/S CRANER HAD BEEN PLEASED BY HIS
TALKS IN BEIJING AND XINJIANG. THE GENEVA HUMAN RIGHTS
CONFERENCE WAS COMING UP, BUT IT WAS STILL TOO EARLY TO
PREDICT HOW THAT WOULD TURN OUT. YANG AGREED ON THE
IMPORTANCE OF MORE EXCHANGES, AND HOPED THAT
MILITARY-TO-MILITARY RELATIONS WOULD REFLECT THIS SPIRIT AS
WELL. YOUNG INDICATED THAT OSD WAS WORKING ON THE CHINESE
PROPOSALS LAID OUT BY GENERAL XIONG GUANGKAI DURING LAST
MONTH'S DEFENSE CONSULTATIVE TALKS.


11. (C) RETURNING TO KOREA, AMB. YANG EXPRESSED SOME CONCERN
OVER ITEMS IN THE U.S. PRESS HE HAD SEEN THAT SUGGESTED CHINA
WAS "SITTING ON THE FENCE," NOT DOING ENOUGH TO COOPERATE ON
KOREA, OR HAD EVEN IN THE PAST ASSISTED PYONGYANG'S NUCLEAR
PROGRAM. HE ASSURED A/S KELLY THAT CHINA SHARED THE SAME
GOALS AS THE U.S. WHILE NOTING THAT THERE HAD BEEN SOME
REGRETTABLE PAST HISTORY INVOLVING CHINA, PAKISTAN AND NORTH
KOREA, A/S KELLY SAID THAT WAS NOW BEHIND US. HE AGREED WITH
YANG'S LAST COMMENT, ADDING THAT BOTH OF US WANT TO PREVENT
THE PROLIFERATION OF NUCLEAR WEAPONS TO NORTH KOREA.
SPEAKING FRANKLY, YANG CONCLUDED, SOME OF BEIJING'S ACTIONS
DO NOT SIT WELL WITH ITS "CLOSE NEIGHBOR" (I.E. NORTH KOREA),
BUT THE FACT WAS THE PRC IS STILL COMMITTED TO MAKING THE
KOREAN PENINSULA NUCLEAR FREE.


POWELL