Identifier
Created
Classification
Origin
06BEIJING5965
2006-03-30 09:37:00
UNCLASSIFIED
Embassy Beijing
Cable title:  

MARCH 30 MFA PRESS BRIEFING: EXCHANGE RATE,

Tags:  PREL ECON PHUM PARM CH IR JP 
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VZCZCXRO6780
OO RUEHCN
DE RUEHBJ #5965/01 0890937
ZNR UUUUU ZZH
O 300937Z MAR 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1658
INFO RUEHOO/CHINA POSTS COLLECTIVE IMMEDIATE
RUEHRL/AMEMBASSY BERLIN IMMEDIATE 1299
RUEHRO/AMEMBASSY ROME IMMEDIATE 0860
RUEHYN/AMEMBASSY SANAA IMMEDIATE 0031
RUEHROV/AMEMBASSY VATICAN IMMEDIATE 0052
RUEHUNV/USMISSION UNVIE VIENNA IMMEDIATE 0853
RUEHGV/USMISSION GENEVA IMMEDIATE 0941
RHHMUNA/CDR USPACOM HONOLULU HI IMMEDIATE
UNCLAS SECTION 01 OF 02 BEIJING 005965 

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PREL ECON PHUM PARM CH IR JP
SUBJECT: MARCH 30 MFA PRESS BRIEFING: EXCHANGE RATE,
PRESIDENTIAL STATEMENT, JAPAN, VATICAN, ITALIAN PM
COMMENTS, ZHAO YAN, JCCT

BEIJING 00005965 001.2 OF 002


Summary
-------

UNCLAS SECTION 01 OF 02 BEIJING 005965

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PREL ECON PHUM PARM CH IR JP
SUBJECT: MARCH 30 MFA PRESS BRIEFING: EXCHANGE RATE,
PRESIDENTIAL STATEMENT, JAPAN, VATICAN, ITALIAN PM
COMMENTS, ZHAO YAN, JCCT

BEIJING 00005965 001.2 OF 002


Summary
--------------


1. Key points made at the March 30 MFA press briefing
are as follows:

- An appropriate decision on the RMB exchange rate
must take into account China's level of economic
development and the potential impact on the global
economy.

- China hopes the March 29 UNSC Presidential Statement
will help strengthen the role and authority of the
IAEA in resolving the Iranian nuclear issue.

- Former Japanese Prime Minister Hashimoto's upcoming
visit to China, during which he is scheduled to meet
President Hu Jintao, reflects China's constructive
attitude toward expanding friendly exchanges with
Japan.

- The Chinese Government maintains a sincere
willingness to improve relations with the Holy See on
the basis of two consistent principles, which MFA
Spokesperson Qin Gang did not specify.

- Referring to Italian Prime PM Berlusconi's reported
statements that "babies were boiled in Mao Zedong's
China," Qin expressed China's dissatisfaction with
such "groundless" remarks.

- China's judicial authorities will handle Zhao Yan's
case according to the law.

- Vice Premier Wu Yi will depart for the United States
April 3 to attend the U.S.-China Joint Commission on
Commerce and Trade (JCCT) session.

- Vice President Zeng Qinghong will attend the April
21-23 Boao Forum for Asia.

- Yemeni President Saleh will visit China April 5-10.
End Summary.

U.S.-China Currency Issues
--------------


2. Asked during the regular March 30 MFA press
briefing about recent comments by U.S. Treasury Under
Secretary Adams on China's currency exchange rate, MFA

SIPDIS
Spokesperson Qin Gang asserted that China currently
maintains a market-based and flexible exchange rate
regime. An appropriate decision on the RMB exchange
rate must take into account China's level of economic
development and the potential impact on the global
economy. Such a decision must remain in line with the
country's real situation, he emphasized.


UNSC Presidential Statement on Iran
--------------


3. Asked to comment on the UNSC Presidential
Statement on Iran, Qin noted that the March 29
Presidential Statement calls on Iran to follow the
steps required by the IAEA Board of Governors. In
particular, the Presidential Statement requires Iran
to fully resume suspension of all Iranian enrichment-
related processing activities, including research and
development. It also emphasizes strong UNSC support
for the IAEA role in resolving the Iranian nuclear
issue, Qin highlighted, expressing the hope that the
Presidential Statement will help strengthen the role
and authority of the IAEA. There is still room for a
diplomatic resolution to the issue within the IAEA
framework, and the international community should take
measures to achieve a negotiated resolution.

Japanese Friendship Association Delegation
--------------


4. Questioned about the agenda of reported upcoming
talks between President Hu Jintao and a delegation of
Japanese Sino-Japan friendship associations led by

BEIJING 00005965 002.2 OF 002


former Prime Minister Hashimoto, Qin indirectly
confirmed the meeting, remarking that the content of
the meeting will only be known following its
conclusion. Describing the purpose of the Japanese
visit, he cited policy statements by President Hu and
Premier Wen Jiabao on strengthening people-to-people
contact. Former Prime Minister Hashimoto's visit
reflects China's constructive attitude toward
expanding friendly exchanges with Japan. Asked
whether the visit will help chances for a China-Japan
summit meeting, Qin maintained that Tokyo is clear on
Beijing's policy on bilateral relations. Japan should
make serious efforts to improve Sino-Japanese
relations. Questioned about reported plans to revise
Japanese textbook characterizations of the East China
Sea, Qin argued that the Diaoyu Islands and proximate
islands comprise a longstanding and integral part of
Chinese territory. This is based on indisputable
legal grounds and Japan should take China's position
seriously, he stressed, while remarking that such
issues should always be addressed through appropriate
channels.

Papal Visit to China
--------------


5. Asked by the China Daily correspondent about
reported statements by the Vatican Foreign Ministry
that the Pope hopes to visit China in 2008, Qin
asserted that the Chinese Government maintains a
sincere willingness to improve relations with the Holy
See on the basis of two consistent principles, which
he did not specify. Beijing has made constructive
efforts to enhance relations and hopes the Vatican
will take concrete actions to create conditions for
the improvement of China-Vatican relations.

China Dissatisfied with PM Berlusconi's Comments
-------------- ---


6. Responding to the China Daily correspondent's
question about Italian Prime Minister Berlusconi's
reported statement that "babies were boiled in Mao
Zedong's China," Qin expressed China's dissatisfaction
with such "groundless" remarks. Statements by Italian
officials should be conducive to the stable
development of China-Italy relations.

Zhao Yan
--------------


7. Asked about the legal status of detained NYT
journalist Zhao Yan, Qin said he had no additional
information. China's judicial authorities will handle
the case according to the law.

Wu Yi to the JCCT
--------------


8. Qin announced that Vice Premier Wu Yi will depart
for the United States April 3 to attend the U.S.-China
Joint Commission on Commerce and Trade (JCCT) session,
which will also be led by Secretary of Commerce
Gutierrez and USTR Portman. Vice Premier Wu will also
pay a visit to several U.S. states.

VP Zeng to Boao
--------------


9. Vice President Zeng Qinghong will attend the April
21-23 Boao Forum for Asia, where he will deliver a
keynote speech, Qin reported. VP Zeng will also meet
with other state leaders and representatives at Boao.

Yemeni President's to Visit
--------------


10. Qin announced that Yemeni President Saleh will
visit China April 5-10.
RANDT