PRC/BURMA: READ-OUT OF PM SOE WIN VISIT

UNCLAS SECTION 01 OF 02 BEIJING 003393

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E.O. 12958: N/A
TAGS: PREL PHUM UNSC UNGA PGOV CH BM
SUBJECT: PRC/BURMA: READ-OUT OF PM SOE WIN VISIT

REF: RANGOON 0206

SUMMARY
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1. (SBU) China does not support external interference in
Burma's internal affairs but emphasized to visiting Prime
Minister Soe Win that China wants to see real progress on
national reconciliation and economic development, MFA Asian
Affairs DDG Zhao Jianhua told a gathering of diplomats on
February 23. PM Soe Win said Burma is committed to
developing its national economy, maintaining stability and
carrying out the seven-step road map to build a modern and
democratic country. During his February 14-18 visit to
China, PM Soe Win had meetings with Chinese leadership in
Beijing, signed economic agreements that gained Burma 130
donated passenger train cars and $200 million in credits and
loans and visited high-tech development parks and special
economic zones in Xi'an, Guangzhou and Shenzhen. Zhao said
China does not support UNSC action against Burma because
Burma does not present a regional security threat. China
pushed Soe Win for continued counternarcotics cooperation and
agreed to solve the illegal logging dispute through dialogue.
End summary.


2. (SBU) On February 23 MFA Asian Affairs Deputy Director
General Zhao Jianhua briefed the diplomatic corps on Burmese
Prime Minister Soe Win's February 14 - 18 visit to China.
During his first official bilateral visit as Prime Minister,
Soe Win made stops in the cities of Beijing, Xi'an, Guangzhou
and Shenzhen. (Note: Soe Win had visited China twice before
to attend ASEAN and Great Mekong Sub-Region (GMS) events.)
In Beijing, Soe Win met with President Hu Jintao and National
People's Congress Chair Wu Bangguo and held talks with
Premier Wen Jiabao.

PM Soe Win's Message
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3. (SBU) Soe Win told the Chinese leaders that Burma is
committed to developing its national economy, maintaining
national stability and carrying out the seven-step road map
in an orderly manner. The third National Convention, during
which participants discussed power distribution between the
central and local governments as well as among the three
branches of government, is now complete. The next step is to
discuss the basic rights and obligations of Burma's citizens,
general elections and the role of political parties. Soe Win
said the Burmese government and its people are devoted to
building a modern and democratic country.

PRC Message to Burma
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4. (SBU) Zhao said Premier Wen told PM Soe Win that it is
China's policy that Burma's domestic political and economic
issues should be decided internally and that the
international community should create a relaxed atmosphere to
allow Burma to pursue the democratic process. As a neighbor,
however, China is concerned about the situation in Burma and
hopes Burma can maintain stability, promote economic
development and make real progress toward national
reconciliation. (Note: In response to a question, Zhao
tacitly agreed that China had shifted to using "national"
instead of "ethnic" reconciliation, saying that the former
has a "wider" meaning.)

Donations, Credits, Loans and Economic Zones
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5. (SBU) As previewed in reftel, Soe Win signed eight
agreements, leaving China with a donation of 130 passenger
train cars, assistance in building the GMS Information
Superhighway and general buyer credits and loans totaling
over $200 million. The two countries also signed contracts
for China to supply sub-loans and equipment to Burma's
national telecommunication project, as well as equipment and
services for a hydroelectric power project. Without
elaborating on the details, Zhao said Burma and China also
signed agreements on general economic and technical
cooperation and aviation services. Zhao said Soe Win showed
great interest in China's development during his visits to
Xi'an, Guangzhou and Shenzhen, inquiring about how China
developed its special economic zones and high-tech
development parks and asking for copies of relevant
regulations and policies. Burma is planning to establish a

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special economic zone near Rangoon.


6. (SBU) Responding to questions, Zhao said that while China
does not support countries interfering in the internal
affairs of Burma and does not support UNSC action because
Burma does not pose a threat to regional security, China also
emphasized to Soe Win that China wants to see concrete
progress and development. Narcotics trafficking is a
critical issue for China, which wants close cooperation and
coordination with Burma to tighten control along the border.
Illegal logging was briefly discussed with both sides
agreeing to find a solution through dialogue and cooperation.
The movement to the capital to Pyinmana was not discussed,
nor was the planned visit of the Malaysia FM-lead ASEAN
delegation to Burma.
Sedney