ADM FALLON AND GENERAL LIANG AGREE ON NEED FOR

S E C R E T BEIJING 014582


E.O. 12958: DECL: 09/05/2015
TAGS: PREL PINS CH
SUBJECT: ADM FALLON AND GENERAL LIANG AGREE ON NEED FOR
BETTER TIES, DISAGREE ON TAIWAN

Classified By: Charge d'Affaires David Sedney. Reasons: 1.4 b/d.


1. (C) SUMMARY: Admiral Fallon and General Liang agreed on
the need to improve bilateral mil-mil ties, but stated frank
disagreements regarding the transparency of the Chinese
military budget and the use of force to resolve the Taiwan
question, during a cordial meeting September 6. Liang
acknowledged the assistance of the American people during
World War II, but hopes the United States will contribute to
reunification, not sell more weapons to Taiwan. The Admiral
said the Taiwan question should be resolved through dialogue,
not by military means. He invited the General to Hawaii to
participate in a regional Chiefs of Defense staff conference.
End summary.


2. (C) SUMMARY. United States Pacific Command chief Chief
Admiral William Fallon paid a courtesy call on General Liang
Guanglie, Chief of the PLA General Staff, on September 6 at
the Ministry of National Defense, Beijing. The meeting was
frank and cordial and both sides presented their
wishesexpressed a desire for increased military ties
exchanges to advance this field to the level of successful
political and economic dialogues; and to strengthen
cooperation to prepare for responding to natural disasters
such as the Asian tsunami and typhoons. END SUMMARY.


3. (C) General Liang expressed his appreciation for the
opportunity to build a personal relationship the opportunity
for building personal contact with Admiral Fallon and noted
PACOM's "close" relationship with the Guangzhou and Nanjing
military region commands. The U.S.United States and China
share a "common understanding of international and regional
issues," he said, and cooperating cooperate on antiterrorism
and on the North Korea nuclear issue.


3. (C) Liang commented on the. Recalling the recent 60th
anniversary celebrations of the end of WWII, noting that U.S.
veterans participated who had supported China during the war;
Liang noted that China "received great help from them and the
American people, which we will never forget."

Momentum for cooperation
--------------


4. (C) Liang characterized military-to-military (mil-mil)
ties as an "important part" of the overall bilateral
relationship; it is not possible to have a constructive,
cooperative relationship without good mil-mil ties,. in his
view. Thanks to the "care and attention of the two heads of
state," Liang continued, the two armed forces have a good
momentum for cooperation. Such The improving mil-mil
contacts arerelationship is demonstrated by senior political
visits, by "cooperation in the intelligence field against
terrorism," visits with between senior military region
commanders and ship calls.

Sharing Ccandid views on defense budgets and Taiwan
-------------- --------------


5. (C) To be frank, continued Liang, "we have a lot of work
to do to be sure our mil-mil relationship matches the level
of our political relationship." ." Liang suggested that "on
the basis we already have," to expand cooperation into more
fields, and ensure such cooperation develops well.


6. (S) Liang went on to "take this opportunity" to share his
views in "a candid manner." First, said Liang, He suggested
that"we suggest the American side exercise caution when
considering upgradingregarding relations with Taiwan" and
increasing increased arms sales. Regarding Taiwan, Tthe
"immediate threat to both (U.S. and Chinese) sides is the
Taiwan independence question," which both sides oppose.
Liang hoped hopes the American side would will contribute to
the future reunification of both sides of thethe mainland and
Taiwan Strait. He insisted that "we will never tolerate
splitting Taiwan from the mainland in any manner."


6. (C) Liang acknowledged that the perceived The second
question, Liang opined, is the very fast growth of "military
power of the mainland ."is also an issue. It is said, he
claimed, Some say that the mainland's military power
surpasses Taiwan, "but that is not my view." Liang
characterized the development of China's military power as
"moderate" compared to its economic development, and
highlighted China's interests in defending against
traditional and non-traditional threats and the need to
maintain territorial integrity. The PLA was is "somewhat
backward; it is a mechanized force, but not yet
informationalized" as a modern force.


7. (C) The A third point to raisearea of contention,
continued Liang, is to explainthe size of the Chinese defense
budget. He quoted a 2004 budget figure of "240 billion RMB,
or less than 30 billion dollars;." most Most of the increased
spending, he proclaimed, is to improve the living conditions
of soldiers and officers, and base infrastructure; "if we
spent some on, with limited expenditures on weapons, it was
limited." Even if China were to became become stronger, he
concluded, it would "never be a hegemon or a threat to
others."

A responsibility to work together
--------------


8. (C) Admiral Fallon thanked Liang for the "generosity of
the Chinese people" in offering help to the Gulf Coast states
while they themselves faced a similar storm in Anhui
province. Expanding upon these events, Adm Fallon offered
that Tthese natural disasters "give us responsibilityboth
sides the opportunity to work together to prepare for such
eventualities in the future." The potential for such
cooperation was demonstrated during As many nations learned
in the Asian tsunami disaster, "strengthening cooperation,
sharing capabilities and resources " are useful in dealing
with such situations. This might offer an opportunity to
"expand mil-mil cooperation in an area that is not
threatening; Eexpanding our mil-mil ties in such a
non-threatening was would be perceived well received by all
in the region as useful."


9. (C) Admiral Fallon stated he "agreed that while our two
countries the United States and China have greatly expanded
political and economic dialogue, we have much to do in the
mil-mil area." While there is in the U.S. concern aboutWith
regard to China's defense budget, some steps "could be taken
to alleviate these concerns- expanding mil-mil contacts and
working more closely together will developwould develop
confidence and improve more transparency."

11. (S) Adm Fallon invited Liang to Hawaii in October to
participate in an annual Pacific region Chiefs of Defense
staff conference hosted by PACOM.


10. (C) On the question of Taiwan, said Admiral Fallon, said
the U.S.United States advocates no change in the existing
status quo, and does not push promote independence.
However, the Taiwan issues should be resolved in a long-term,
peaceful manner, ; and political dialogue is the appropriate
venue, not military means. Liang returned to the issue by
remarking that the U.S. position is "in the main part"
consistent with PRC views; however, "we will never tolerate
splitting Taiwan from the mainland in any form." To gain a
fuller understanding of China's size and diversity, suggested
Liang, Adm Fallon's next visit should cover the central and
western regions.


11. (C) Admiral Fallon invited Liang to Hawaii in October to
participate in an annual Pacific region Chiefs of Defense
staff conference hosted by PACOM.


13. (S) Comment. Both parties to the meeting expressed their
desire for increased mil-mil exchanges; on the Chinese side
to deepen the political and economic relationship to account
for lagging military cooperation, and on the U.S. side to
prepare for cooperative responses to natural disasters in the
region. Although Adm Fallon and Liang did not discuss in
detail the increased exchanges which both proposed, PACOM
raised possible disaster-readiness as a specific goal for
increased military exchanges. Possible bilateral and
cooperative response to a regional humanitarian crisis may be
a topic to explore at the staff and map-exercise level as an
initial step in building joint readiness. End comment.


SEDNEY