E.O. 13382 DESIGNATED CHINESE FIRM PROCLAIMS ITS

C O N F I D E N T I A L BEIJING 014787 SIPDIS E.O. 12958: DECL: 07/14/2016 TAGS: PREL PARM ETTC EFIN PGOV IR CH SUBJECT: E.O. 13382 DESIGNATED CHINESE FIRM PROCLAIMS ITS INNOCENCE REF: BEIJING 14108 Classified By: Political External Unit Chief Edgard Kagan. Reasons 1.4 (b/d). ¶1. (U) The China Great Wall Industry Corporation (CGWIC),in a "solemn statement" posted on the firm's website, claimed that it was wrongly designated under Executive Order 13382. CGWIC "has never rendered assistance to any country for any weapons of mass destruction program," the company stated, and is engaged in the "peaceful application of space technology," including international commercial launch services and the import-export of aerospace products. CGWIC "strictly abides" by relevant domestic and international laws, and demands the United States compensate CGWIC for the "severe damage" to its reputation and economic interests. The firm said "it reserves the right" to hold the United States legally responsible for the designation. (The complete text of the statement is at paragraph 3.) ¶2. (C) MFA Director General for Arms Control and Disarmament Zhang Yan, in a July 3 meeting with the DCM, referred several times to CGWIC's announcement (reftel) as evidence that the U.S. designation of CGWIC is erroneous. He claimed the United States overlooks information on CGWIC and described the company as a peaceful aerospace firm. (Note: In reftel, Post requested a summary through appropriate channels of actions by the designated Chinese companies, including CGWIC, since July 1, 2005. End Note.) ¶3. (U) BEGIN TEXT OF CGWIC STATEMENT CGWIC's Solemn Statement Regarding the Freezing of its Assets in U.S.A. by the Department of the Treasury Recently, the United States Government announced the freezing of four Chinese companies' assets in the U.S.A., and China Great Wall Industry Corp. (CGWIC) is among the four companies. CGWIC solemnly states as follows: On June 13, 2006, the U.S. Department of the Treasury designated CGWIC in the list of entities whose assets in the U.S.A. are blocked on account of so called CGWIC's provision of support to Iran's missile program. CGWIC hereby expresses strong dissatisfaction and firm opposition to this action. CGWIC is a responsible and credible state-owned company in China with its business scope focusing on international commercial launch services and the import and export of aerospace products, etc. During the past decades, CGWIC has conducted twenty-four international commercial launch missions and six piggyback missions, launching thirty satellites. Commercial satellites successfully launched by CGWIC cover more than 100 countries and regions in Asia, Europe, America and Australia, providing telecommunications services to 75 percent of the world population. Nine out of twelve geo-stationary satellites successfully launched provide direct services to Asia. CGWIC's mission is to bring benefits to the humankind with space technology. CGWIC is engaged in business of the peaceful application of space technology. CGWIC strictly abides by the relevant domestic and international laws, and all commitments made by the Chinese Government towards the international community while conducting launch services, international trade and international transportation. CGWIC has never rendered assistance to any country for any weapon of mass destruction program. It is simply unreasonable that the US Government alleged CGWIC engaging in proliferation activities and imposed sanction, pursuant to its domestic laws, on CGWIC, a company working for the well-being of the people. The true purpose of such an action is known to all. By applying its domestic laws, the U.S. Government seriously interfered in the normal business activities of the Chinese company engaged in peaceful cause, which resulted in severe damage to CGWIC's reputation and economic interests. CGWIC strongly demands that the U.S. Government make correction to its wrong action, remove CGWIC from the assets to be blocked list and compensate CGWIC losses. In addition, CGWIC reserves the right to hold the U.S. Government accountable for its responsibilities by taking various measures including legal means. END TEXT RANDT NNNN