Identifier
Created
Classification
Origin
06BEIJING14787
2006-07-14 07:22:00
CONFIDENTIAL
Embassy Beijing
Cable title:  

E.O. 13382 DESIGNATED CHINESE FIRM PROCLAIMS ITS

Tags:  PREL PARM ETTC EFIN PGOV IR CH 
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O 140722Z JUL 06
FM AMEMBASSY BEIJING
TO SECSTATE WASHDC IMMEDIATE 1682
INFO CHINA POSTS COLLECTIVE
DEPT OF TREASURY WASHINGTON DC
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).

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


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