ASD RODMAN-MFA HE YAFEI MEETING: LOOKING FOR

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 012179

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/13/2021
TAGS: PREL PINS PM CH TW
SUBJECT: ASD RODMAN-MFA HE YAFEI MEETING: LOOKING FOR
CONVERGENCE AND ENGAGEMENT

Classified By: Deputy Chief of Mission David Sedney.
Reasons 1.4 (b/d).

Summary
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1. (C) China maintains a positive view of relations with
the United States in the aftermath of Chinese President Hu
Jintao's April visit to Washington, Assistant Foreign
Minister He Yafei told Assistant Secretary of Defense Peter
Rodman. AFM He characterized the United States and China
as stakeholders and constructive partners. The two
militaries are having more exchanges which form an
important part of the overall relationship. China will
send observers to the Pacific "Valiant Shield" military
exercise. AFM He warned that Chen Shui-bian could be
desperate because of his domestic problems and both the
United States and China need to be alert to the Taiwan
situation. ASD Rodman said that the more convergence there
is of U.S.-China strategic interests, the more stability
there is to the relationship. The lack of Chinese
participation in the Shangri-La Dialogue and Asia-Pacific
Center for Security Studies courses is a missed
opportunity. AFM He indicated Beijing's unhappiness with
the China Military Power Report. ASD Rodman pointed out
the objective and factual nature of the Report and its
mandate to address developments in the Chinese military.
ASD Rodman said that influence in Central Asia is not a
zero-sum game. AFM He said China is not aiming to
undermine the United States in Central Asia. End Summary.

Chart a Cooperative Course (But Watch Out for Taiwan)
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2. (C) Assistant Secretary of Defense Peter Rodman met
July 9 with MFA Assistant Foreign Minister He Yafei in
Beijing following the eighth U.S.-China Defense
Consultative Talks (DCTs). AFM He assessed that bilateral
relations remain very positive following the April 2006
Bush-Hu summit. The most important achievement of the
visit is that the two heads of state understand how to
chart the course of cooperative relations in the future.
The United States and China are not only "stakeholders"--
the term coined by the U.S. Government--but also
constructive partners. Differences still exist between the
United States and China in fields such as trade and human
rights, but they are now being addressed through dialogue.
For the next few years, bilateral ties are on the right
course, AFM He affirmed.


3. (C) Exchanges and talks between the two militaries have
improved as part of the strengthening of the overall
relationship, AFM He continued. China was encouraged by
President Bush's statement seeking improved junior military
officer exchanges during his June 5 meeting with a visiting
Chinese civil service delegation in Washington. China
welcomes its opportunity to observe the first Western
Pacific "Valiant Shield" military exercise and will
dispatch military and MFA officials to attend.


4. (C) Turning to Taiwan, AFM He declared that "we must be
alert" to possible provocations because Chen Shui-bian
"could be desperate" to divert attention from his domestic
problems.


5. (C) ASD Rodman said that he was in overall agreement
with having more discussions and exchanges. The two sides
have differences on some regional and strategic issues, but
this makes dialogue all the more important; the more
convergence there is of strategic interests, the more
stability to the relationship.

Looking for China in Shangri-La and Hawaii
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6. (C) The International Institute for Strategic Studies
(IISS)-sponsored "Shangri-La Dialogue" in Singapore is an
example of an inclusive forum for regional defense
ministers, Rodman said. China could benefit from
participating in such fora. In Defense Secretary
Rumsfeld's view, China's participation would be useful,
Rodman said.


7. (C) Asia-Pacific Center for Security Studies (APCSS)
courses in Hawaii are another example of an exchange where
China is absent, ASD Rodman stated. APCSS has invited
Chinese military and civilian officials to attend its
courses but China refuses to send representatives because
the United States invites Taiwan participants. ASD Rodman
stated that the United States would not change its policy
on whom to invite to APCSS courses, but he believed the
problem was soluble; a practical way could be found to
ensure that Chinese and Taiwan participants would not be
forced to encounter one another. AFM He said that China
could resume attending if there were no participation by
Taiwan. Beijing could explore different options for
sending participants, AFM He said, noting that he had
visited APCSS for discussions.

China Military Power Report
--------------


8. (C) AFM He commented that Beijing was "very unhappy"
with the 2006 Annual Report to Congress on Military Power
of the People's Republic of China. The Report reflected
the "China threat" mentality and seemed out of line with
positive comments by U.S. officials on China, he asserted.
ASD Rodman pointed out that the Report is required annually
by Congress and that the tone is dry, factual and reflects
coordinated U.S. Government input. Deputy Secretary
Zoellick referred favorably to last year?s report in his
speech on China last September. Lack of transparency
continues to be a key concern for the United States and
others in the region so the Report satisfies a need for
more information. Bringing together drafters of the U.S.
Report and the PRC biennial Defense White Paper could be
useful, as MG Zhang Qinsheng had suggested in the DCT. AFM
He stated that a "weaker" military has to limit some of its
transparency.

SCO/Central Asia
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9. (C) ASD Rodman raised U.S.-China interests in Central
Asia, pointing out that relations with Central Asia are not
a zero-sum game and the U.S. is concerned about pressures
on some of the smaller members of the Shanghai Cooperative
Organization (SCO). AFM He asserted that the United States
should not be concerned about the development of the SCO.
China does not seek to undermine the United States in Asia,
including Central Asia, he said. The SCO was setup to
combat international terrorism, national separatism and
religious extremism, and although it has expanded its
activities as a measure of its success, it is not targeted
at any third country. Iranian President Ahmedinejad will
attend the SCO summit as an observer, but has pledged not
to use the event to advance Iran's political objectives on
issues unrelated to the SCO, AFM He claimed.


10. (U) ASD Rodman has reviewed and cleared this cable.

RANDT