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