STRATEGIC ECONOMIC DIALOGUE (SED): MINSTRY OF

UNCLAS SECTION 01 OF 02 BEIJING 021992

SIPDIS

SENSITIVE
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STATE FPR EAP/CM
STATE PASS USTR - WINELAND/CELICO
TREASURY FOR OASIS/ISA - DOHNER/CUSHMAN
NSC FOR HUBBARD, WILDER, TONG
USDOE FOR INTERNATIONAL/PUMPHREY AND GEBERT
USDOE FOR OFFICE OF THE SECRETARY/MOLLY WILLIAMSON

E.O. 12958: N/A
TAGS: ECON EFIN PREL CH
SUBJECT: STRATEGIC ECONOMIC DIALOGUE (SED): MINSTRY OF
FINANCE DISCUSSES U/S TIM ADAMS' OCTOBER 25-27 VISIT AND
AGENDA FOR UPCOMING DECEMBER SED MEETING



1. (SBU) Summary: On October 17 Ministry of Finance (MOF) DG
of International Affairs Zhu Guangyao discussed arrangements
for the Strategic Economic Dialogue (SED) and the upcoming
preparatory trip by Treasury U/S Adams, DUSTR Bhatia, and
Commerce U/S Lavin with Econmincouns, Finatt, FCS Trade
Facilitation Office Director, and econoff. The October 26
opening preparatory discussions on SED will be chaired by MOF
Vice Minister Li Yong, with DG-level or higher participation
from other ministries. MOF Minister Jin Renqing will chair
the concluding discussions on SED preparations on October 27.
End Summary.

-- MOF: Proposed Schedule for U/S Tim Adams, SED Preparatory
Meetings


2. (SBU) Zhu proposed that the October 26 opening preparatory
discussions on SED will be chaired by MOF Vice Minister Li
Yong, with DG-level or higher participation from other
ministries. The October 27 concluding discussions on the SED
will be chaired by MOF Minister Jin Renqing. Zhu proposed
the following schedule for the Adams-Bhatia-Lavin visit:

-- October 26

9:00 - 10:30 AM: General Meeting on SED
Chaired by MOF Vice Minster Li Yong

11:00 AM ) 12:00: Meeting with NDRC Vice Minister Chen
Deming

Lunch: PBOC (Finatt will follow-up)

PM: Meeting with MFA Vice Minister Yang
Jiechi
(MFA Minister Li Zhaoxing drop-by)

Meeting with MOH Vice Minister Wang Longde

Meeting with MOFCOM Vice Minister Ma
Xiuhong

-- October 27

AM or early PM Meetings that could not be arranged
afternoon of October 26.

3:30 ) 4:30 PM Concluding Meeting on SED
Chaired by MOF Minister Jin Renqing.


-- MOF: No Meeting with Wu Yi, State Council,s Xu Xiaoling


3. (SBU) Zhu stated that neither Vice Premier Wu Yi nor Xu
Xiaoling, the Deputy Secretary-General of the State
Council, will be available to meet with Adams-Bhatia-Lavin
during the October 25-27 visit. Although Zhu could not
guarantee that all the Vice Ministers of participating
ministries would be present for the preparatory discussions
on the SED, he guaranteed DG-level or higher level
participation from participating ministries.

-- Proposals for Structure of the SED


4. (SBU) On the agenda, Zhu repeatedly emphasized that the
seven themes enunciated by Vice Premier Wu Yi in her
meeting with Secretary Paulson were meant as issues to cover
over the long-term. For the first round of the SED, Zhu
stressed that the Chinese side wanted to focus on &China,s
Development Road and China,s Development Strategy.8 Zhu
said the themes Secretary Paulson had suggested in his call
with Wu (investment, job creation through market access,
energy and environmental cooperation) could be included in
this topic.


5. (SBU) Finatt told Zhu that the active engagement of
President Hu and Premier Wen is very important to the United
States. Zhu reiterated what Vice Premier Wu Yi told
Secretary Paulson, that as long as Hu and Wen are in Beijing

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at the time of the SED, the Vice Premier will do her utmost

BEIJING 00021992 002 OF 002


to arrange meetings.


6. (SBU) Zhu proposed a notional schedule for SED:

Monday, December 4
Location: Great Hall of the People

9:00 ) 11:30 AM: Ministerial retreat (ministers only)
Co-chaired by Vice Minister Wu Yi and
Secretary Paulson

12:00 ) 2:00 PM: Informal, non-working lunch, with chance
for ministers to meet their counterparts

2:00 ) 4:30 PM: Formal plenary with all ministers, with
both sides giving prepared policy statements

6:30 PM - : Formal dinner hosted by Vice Premier Wu Yi

Tuesday, December 5
Location: Great Hall of the People

9:00 AM: Follow-up meeting


7. (SBU) Zhu requested that the Adams delegation provide
details on the proposed agenda and the structure of the
dialogue, and in particular what we envisioned for ministers
during the afternoon of Tuesday, December 5. Finatt said the
United States was still considering how to structure the
Tuesday afternoon sessions, which might include breaking up
into smaller groups. Finatt said the United States was also
considering what types of press events and documents it would
like to have.

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