EU RECEIVES DEFENSE DEPARTMENT REPORT ON CHINA

UNCLAS BRUSSELS 002840

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: CH PARM PM PREL USEU BRUSSELS
SUBJECT: EU RECEIVES DEFENSE DEPARTMENT REPORT ON CHINA

REF: A. (A) STATE 133146


B. (B) STATE 133722


1. (SBU) On July 25 and 26, we delivered Reftel A points to
Ana Ramirez, Principal Administrator for China and Southeast
Asia at the European Council, and Henriette Geiger, China
Desk Officer at the European Commission. Both expressed
appreciation for the report and talking points. They pointed
out that the EU has no independent way to track or confirm
China's military modernization (other than anecdotal
information gathered by EU officials visiting China, and the
small EU delegation in Beijing).


2. (SBU) Neither seemed alarmed by the 13% growth in
military spending cited in the report, pointing to China's
approximately 9% annual GDP growth in recent years; it is
natural for a rapidly growing country to spend more on
defense, they said. However, they acknowledged concerns
about China's relationship with Taiwan, saying even
high-level Chinese officials have grown more "emotional"
about the issue in recent months, and suggesting the EU and
U.S. should cooperate to support low-profile negotiations
between China and Taiwan.

MCKINLEY

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