Identifier
Created
Classification
Origin
06BEIJING10734
2006-05-31 08:42:00
CONFIDENTIAL
Embassy Beijing
Cable title:  

PRC/GERMANY: MERKEL VISIT READOUT

Tags:  PREL EAID PGOV GE CH 
pdf how-to read a cable
VZCZCXRO2557
OO RUEHCN RUEHGH
DE RUEHBJ #0734/01 1510842
ZNY CCCCC ZZH
O 310842Z MAY 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7106
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHGG/UN SECURITY COUNCIL COLLECTIVE
RUEHRL/AMEMBASSY BERLIN 1340
RUCNDT/USMISSION USUN NEW YORK 1337
C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 010734 

SIPDIS

SIPDIS

E.O. 12958: DECL: 05/31/2026
TAGS: PREL EAID PGOV GE CH
SUBJECT: PRC/GERMANY: MERKEL VISIT READOUT


Classified By: Classified by Political External Unit Chief Edgard Kagan
. Reasons 1.4 (b/d).

Summary
-------

C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 010734

SIPDIS

SIPDIS

E.O. 12958: DECL: 05/31/2026
TAGS: PREL EAID PGOV GE CH
SUBJECT: PRC/GERMANY: MERKEL VISIT READOUT


Classified By: Classified by Political External Unit Chief Edgard Kagan
. Reasons 1.4 (b/d).

Summary
--------------


1. (C) China supports a more important role for
Germany in the United Nations, China's leaders told
visiting German Chancellor Merkel, according to MFA
European Affairs Division Director Wang Shunqing.
Wang said that during Mrkel's May 21-23 visit to
China, China and Germany agreed to initiate a
strategic dialogue later this year. Merkel met with
President Hu Jintao and Premier Wen Jiabao and the
visit strengthened bilateral political and economic
cooperation, including signing 19 cooperation
agreements. An intellectual property rights agreement
related to textiles will strengthen Sino-German trade.
In discussions on Iran, Chinese leaders resisted the
notion of sanctions. China seeks to coordinate energy
policies wih Germany so as to avoid confrontation.
Premier Wen told Chancellor Merkel that when China
decides to expand the Mag-Lev line, China's
cooperation with Germany will continue, according to
Wang. Merkel reassured PRC leadership of the
continuity of German policy toward China but stressed
that good and rapidly developing bilateral relations
must contain certain elements, most notably progress
on enforcing intellectual property rights (IPR)
protection, according to the German Embassy Political
Counselor.

Big Delegation, Short Visit
--------------


2. (C) MFA European Affairs Division Director Wang
briefed diplomats on Chancellor Merkel's May 21-23
visit to China. Separately, German Political
Counselor Kessler briefed Poloff. Wang and Kessler
each said Merkel's delegation comprised more than 200
members, who arrived on two specially-chartered
planes. German Economics Minister Glos, Transport
Minister Tiefensee, six parliamentarians and 40 key
industry representatives accompanied the Chancellor.
By design, the trip lasted under forty-eight hours.
Arriving in Beijing near midnight May 21, Merkel held
a May 22 morning working session with Premier Wen
Jiabao and met President Hu Jintao in the afternoon.

China and Germany signed 19 cooperation agreements
covering finance, culture, transport and renewable
energy. Wen and Merkel attended the fourth annual
Sino-German High-tech Forum. Merkel also met with
Wang Jiarui, Head of the International Department of
the Communist Party of China's (CPC) Central
Committee. Kessler noted that Merkel attended a
reception at the German Ambassador Stanzel's residence
for non-governmental organizations and civil society
representatives concentrating on rural issues and
migrant workers rights. On May 23, Merkel visited
Shanghai before departing China. Vice Premier Zeng
Peiyan accompanied Merkel in Shanghai, where Merkel
met Shanghai Mayor Hang Zheng and, separately, with
Chinese Catholic Bishop Jin Luxian.


3. (C) Merkel's visit strengthened bilateral political
and economic cooperation, according to Wang. During
her consultations, Merkel stressed that Germany will
continue its previous policies toward China and
reiterated its one China policy. Premier Wen agreed
to visit Germany later this year and, separately,
China and Germany decided to begin a Vice Foreign
Minister-level strategic dialogue. Zhang Yesui will
lead PRC efforts. The strategic dialogue format and
topics have not been finalized, but China would like
to include consultations between the foreign
ministries and other line ministries. Both sides
reiterated the importance of strengthening
consultation and coordination on major concerns in
international affairs, Wang said.


4. (C) Asked whether the trip was a success from
Germany's perspective, Kessler said the Chancellor's
visit achieved its objectives. In addition to getting
to starting the process of developing relationships
with PRC leaders, Merkel reassured her Chinese
counterparts of the continuity of German policy toward
China. However, she stressed that good and rapidly
developing bilateral relations must contain certain
elements, most notably progress on IPR protection,
Kessler said.

BEIJING 00010734 002 OF 003



PRC Supports Bigger UN Role For Germany
--------------


5. (C) China supports a more important role for
Germany in the United Nations, Wang said. Merkel and
China's leaders expressed satisfaction with the
overall state of China-EU relations and China hopes
Germany's EU presidency in the first half of 2007 will
continue to advance ties. China believes Germany
plays a significant, active and positive role in
European and international affairs. Other specific
issues, such as the EU arms embargo, Market Economy
Status and EU concerns regarding China's human rights
record were not discussed, Wang said.


6. (C) Kessler said that China's support for Germany's
role was nothing the PRC "hadn't told us before." The
G-4 proposal for UN Security Council reform or other
specifics were not mentioned. Merkel did raise human
rights concerns with both Hu and Wen, specifically
questioning them on prospects for rapprochement with
the Dalai Lama. Hu and Wen both said China's door is
open but the Dalai Lama must stop engaging in
"splittest" tactics and recognize PRC authority,
according to Kessler.

China Resists Iran Sanctions
--------------


7. (C) Wang said Iran topped the agenda for
discussions on international issues. Chancellor
Merkel told President Hu and Premier Wen that Germany
supports diplomatic efforts to resolve the crisis but
believes sanctions should now be considered and Iran
must be instructed to cooperate with the IAEA.
Germany believes Iran has the right to the peaceful
use of nuclear technology but must stop enriching
uranium immediately and transparently meet its IAEA
safeguards obligations. Germany hopes the
international community, including China, can adopt a
united approach. China's leaders reiterated PRC
support for resolving the situation diplomatically.
China appreciates EU-3 and Russian efforts and hopes
the EU-3 plan will contain innovative proposals
acceptable to all. Differences should be resolved
through dialogue. China is aware of the gravity of
the current situation but believes there is still room
for diplomacy, China's leaders told Merkel, according
to Wang.

PRC Seeks Energy Coordination
--------------


8. (C) Wang noted China and Germany recognize energy
security is now a issue of global concern. During
Chancellor erkel's visit, China and Germany committed
to increased cooperation on energy, especially
renewable and alternative energy, and discussed
coordinating policy to avoid confrontation. China's
leaders briefed Merkel on China's energy policy,
according to Wang.

PRC Pledges Mag-Lev Cooperation
--------------


9. (C) Asked about the Mag-Lev train dispute, Wang
said China and Germany share good cooperation and
together produced a 30 km Mag-Lev line between Pudong
Airport and downtown Shanghai. China is considering
extending the line 175 km to Hangzhou and there are
discussions between various companies. Premier Wen
told Chancellor Merkel that when China decides to
expand the Mag-Lev line, China's cooperation with
Germany will continue, Wang said. Kessler stressed
the German and Chinese governments are clearly in
favor of the Mag-Lev project, but said Merkel noted
the companies involved must negotiate and close the
deal.

19 Agreements, Few Details
--------------


10. (C) When asked, Wang declined to provide specifics
on the 19 agreements signed between China and Germany
during the visit, which covered railway technology,
financial cooperation, high-technology,
telecommunications, energy, culture and sports.
German and Chinese textile associations signed a
Memorandum of Understanding (MOU) on IPR protection.

BEIJING 00010734 003 OF 003


China's Government views IPR protection as a priority,
not just for textiles but for many other areas. The
MOU will promote Sino-German and Sino-European trade
and reduce friction. A feasibility study on solar
energy projects was signed between a German company
and a company in Inner Mongolia. China and Germany
also agreed to a variety of cultural and youth
exchanges and agreed to strengthen cooperation on the
Olympic Games, Wang added. Kessler did not provide
further elaboration.

PRC Upbeat On Sino-German Ties
--------------


11. (C) Wang said Sino-German relations have been very
good in recent years, with frequent exchanges of high-
level visits and cooperation in culture, education and
science. President Hu Jintao visited Germany in
November 2005. The new Foreign Minister visited China
in February 2006. Positive momentum continues, with
Chancellor Merkel's visit coming within the first six
months of the formation of Germany's new government.
Merkel's visit, her first to Asia as Chancellor, sends
a clear signal to the outside world that Germany seeks
to expand and deepen its relations with China. China
was the only country she visited on this trip. China
values the visit as a chance to better understand
Germany and ensure optimal personal and working
relations between German and Chinese leadership.
Bilateral trade totaled USD 63.2 billion in 2005, Wang
noted.
RANDT