CHINA/ENERGY: BRITISH EMBASSY CONSIDERING ASKING

C O N F I D E N T I A L BEIJING 011173 SIPDIS SIPDIS PARIS PASS FOR US IEA REPS USDOE PASS FOR OFFICE OF THE SECRETARY/MOLLY WILLIAMSON, DOE OIC FOR PUMPHREY E.O. 12958: DECL: 06/05/2016 TAGS: ENRG EPET PREL CH UK SUBJECT: CHINA/ENERGY: BRITISH EMBASSY CONSIDERING ASKING CHINA TO PURSUE IEA MEMBERSHIP REF: STATE 83676 Classified By: David S. Sedney, Deputy Chief of Mission, Reasons 1.4 (B ) and (D). ¶1. (C) Summary and Action Request: A British Embassy official on Friday June 2, 2006 informally sounded out Embassy Beijing reaction to a possible move by the British Government to promote China's membership in the International Energy Agency (IEA). The British Embassy has yet to present the proposal to the Chinese Government, but is seeking its inclusion on the agenda of the upcoming Sino-British strategic dialog. Embassy Beijing requests Washington agencies' guidance to responding to future enquiries regarding possible Chinese IEA membership. End Summary and Action Request. ¶2. (C) British Embassy in Beijing Second Secretary for Energy Richard Ridout during a meeting on Friday June 2, 2006 told Econoff that the British Embassy is considering making a push to have China join the IEA. The British Embassy assesses that China is still reconciling itself to its rapid ascent to a position as the world's second largest importer of oil. Furthermore, China remains distrustful of international energy markets and is convinced that the United States and other Western countries manipulate those markets to China's disadvantage. Ridout stated that the British Embassy opines that China must engage in broader multilateral energy cooperation in organizations such as the IEA if those preconceptions are to be erased. ¶3. (C) Ridout said that the British Embassy has yet to formally approach the Chinese Government with the idea of IEA membership, but currently is in the process of seeking local foreign diplomatic and Chinese energy expert views on possible Chinese receptiveness to the idea. The British Embassy plans to push the idea with London in the coming weeks with the goal of landing the proposal on the agenda of the Sino-British strategic dialog scheduled for the end of June 2006. Ridout stated that the British Government will presumably seek U.S. Government support for a subsequent Chinese candidacy assuming the Chinese Government's acceptance. ¶4. (C) Note: Embassy Beijing recalls that in Reftel, Washington agencies encouraged China's coordination with IEA members on the use of petroleum reserves as an objective to be incorporated into five-party energy ministerial talks proposed by the Chinese Government. Reftel stated that uncoordinated draw-down from a strategic reserve by China could leave the action ineffective, if not lead to a counterproductive outcome, and encouraged China's cooperation with the IEA regardless of its membership status. End Note. ¶5. (C) Action Request: Embassy Beijing request Washington agencies' guidance on responding to future queries on China's possible membership in the IEA. End Action Request. RANDT