Identifier
Created
Classification
Origin
06BEIJING683
2006-01-13 04:56:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Beijing
Cable title:  

U.S.-CHINA WORKING GROUP MEETS VFM QIAO ZONGHUAI

Tags:  PREL TSPA KIPR KN IR TW CH 
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UNCLAS SECTION 01 OF 03 BEIJING 000683 

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TAGS: PREL TSPA KIPR KN IR TW CH
SUBJECT: U.S.-CHINA WORKING GROUP MEETS VFM QIAO ZONGHUAI

SUMMARY
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UNCLAS SECTION 01 OF 03 BEIJING 000683

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TAGS: PREL TSPA KIPR KN IR TW CH
SUBJECT: U.S.-CHINA WORKING GROUP MEETS VFM QIAO ZONGHUAI

SUMMARY
--------------


1. (SBU) Maintaining close relations with the DPRK and Iran
gives Beijing the ability to play a constructive role in
resolving their nuclear issues, VFM Qiao Zonghuai told
Congressmen Mark Kirk, Rick Larsen and Tom Feeney on January

10. China remains dedicated to fulfilling commitments it
made to IPR protection when it acceded to the WTO and has
strengthened legislation, enforcement and public education
efforts. Though China's energy imports are increasing, they
have not reached a level that could have a major impact on
the surge of oil prices in the international market. China's
foreign policy is aimed at creating a peaceful international
environment that is favorable to China's economic
development. Appropriate handling of the Taiwan question is
key to the growth of U.S.-China relations. While China hopes
the U.S.-China Working Group will block pro-Taiwan or
anti-China bills in Congress, Congressman Kirk insisted that
the Working Group represents all opinions in the House of
Representatives. Qiao supports recommendations by
Congressman Kirk that the United States and China establish a
Pentagon-Ministry of Defense direct telephone link and
cooperate on allowing Chinese Shenzhou space vehicles to
carry out emergency docking with the International Space
Station. End Summary.


2. (SBU) Thanks to efforts by both sides, U.S.-China
relations maintained stable development in 2005, VFM Qiao
Zonghuai told Congressmen Mark Kirk, Rick Larsen and Tom
Feeney January 10. Frequent and close contact between
President Bush and President Hu last year helped enhance
mutual understanding and advance relations. Beijing hopes
that President Hu's visit to the United States in April 2006
will give a strong boost to these ties. The United States
and China have cooperated for many years in the fields of
education, science and technology, culture, public health and
defense. The two governments have worked closely on
counterterrorism, nonproliferation, combating avian influence
and nuclear issues. Cooperation is broadening in scope and
deepening in content. Due to differences in history, culture
and national circumstances, however, the United States and

China do have some differences. The timing of the founding
of the U.S.-China Working Group is good for China, Qiao
summarized, as it is often in election years in Congress that
U.S.-China relations experience disruptions.


3. (SBU) The U.S.-China Working Group was founded seven
months ago, Congressman Larsen told VFM Qiao, based on the
idea of creating in Congress a bipartisan space for good
conversation and good debate on how to move forward U.S.
relations with China. The purpose of the group is not to
take bloc positions on issues but to let members educate
themselves on the many issues in the bilateral relationship,
including both areas of agreement and disagreement, Larsen
explained.

Relations with North Korea and Iran
--------------


4. (SBU) A question faced by the U.S.-China Working Group,
Congressman Feeney said, is why China maintains relations
with countries like North Korea and Iran which seek to
destabilize their respective regions. China and the DPRK
share a 1300-kilometer common border, VFM Qiao responded, so
the question of denuclearization of the Korean Peninsula is
of great importance to China. In recent years, China has
worked with other parties to make the Six-Party Talks
possible and to encourage progress at the Talks. China
believes that solving the North Korean nuclear issue through
peaceful talks that maintain peace and stability on the
Korean Peninsula serves the interests of China, the United
States and other countries. Though the problem is
complicated and there are difficulties in finding a solution,
China will continue to work with the other parties,
particularly the United States, to find a proper and
appropriate solution.


5. (SBU) Both China and the United States are completely
opposed to Iran's possession of nuclear weapons and to any
nuclear proliferation, Qiao continued. China's believes the
Iran nuclear issue should be resolved within International
Atomic Energy Agency (IAEA) parameters and supports efforts
by the EU to find a long-term solution. It is important to
resume EU-Iran talks. In their meetings January 9 with
Iranian Deputy Foreign Minister Mehdi Safari, Foreign
Minister Li Zhaoxing and VFM Zhang Yesui reiterated China's
position that Iran should exercise restraint and resume
negotiations. Speaking more broadly to the question of

BEIJING 00000683 002 OF 003


China's relations with North Korea and Iran, Qiao said the
United States should bear in mind that China's close
relations with these countries give Beijing the ability to
play a positive and constructive role.

Protection of Intellectual Property Rights
--------------


6. (SBU) Although Congress has recently focused on the China
National Offshore Oil Corp (CNOOC)-Unocal issue and Senator
Schumer's bill relating to valuation of China's currency,
Congressman Kirk said, what U.S. exporters really care about
with regard to China is protection of Intellectual Property
Rights (IPR). The United States and China should spend more
time figuring out how to build an "invention culture" in
China. The Chinese Government attaches great importance to
protection of IPR, Qiao responded, and remains unswervingly
dedicated to fulfilling the commitments China made when it
acceded to the WTO. Noting that he previously served in
Geneva, Qiao said he had close contact with the World
Intellectual Property Organization (WIPO) in the past. China
has acceded to 15 of the 22 WIPO conventions. In the past 27
years since initiation of reform in China, the PRC has passed
30 laws relating to IPR protection, including laws covering
patents, trademarks and copyrights.


7. (SBU) In addition to passing legislation, China has
strengthened law enforcement efforts and has begun a campaign
to educate Chinese citizens about IPR through specialized TV
programs, Qiao continued. Violations of IPR do occur and the
government is taking actions to address these. Noting a 2005
agreement between the United States and China to exchange
experts on IPR protection, Qiao praised U.S.-China
cooperation on the issue.

Energy Policy
--------------


8. (SBU) Last year's debate in Congress over CNOOC's bid to
purchase Unocal was based in part on questions raised by
China's rising energy consumption and attempts to lock-in
energy supplies, Congressman Larsen said. Energy security is
an area where the United States and China need further
discussion to better understand one another and find areas of
agreement. Areas where the two countries might cooperate
include energy investment, research on energy efficiency,
application of alternate sources of energy and China's
participation with the International Energy Agency, which
seeks to eliminate fluctuations in supply and price.


9. (SBU) China's energy imports are not at a level that could
cause a surge of oil prices in the international market, Qiao
argued. China still derives seventy percent of its energy
from coal and just over twenty percent from oil. In 2005,
China produced 160 million tons of oil and imported an
additional 130-140 million tons, maintaining a high rate of
self-sufficiency. China's oil imports are still only a small
percentage of total oil imports worldwide. The United States
and China should enhance cooperation on energy and on the
international supply and demand of oil to achieve a mutually
beneficial, win-win result.

Taiwan
--------------


10. (SBU) VFM Qiao told the Congressmen that appropriate
handling of the Taiwan question is key to the growth of
U.S.-China relations. China will never waiver in its
adherence to the one-China policy, will never give up on
peaceful reunification, will never compromise in the fight
against secessionist forces and will never give up on the
Taiwanese people. The mainland took measures in 2005
resulting in improvement of relations with Taiwan, but Chen
Shuibian and the Taiwanese authorities continue to trumpet
their ideas of Taiwan independence and "so-called
constitutional re-engineering," Qiao claimed. China hopes
that the U.S.-China Working Group understands the sensitivity
of these issues and that the United States will continue to
uphold the one-China principle, adhere to the three
communiques, oppose Taiwan independence and oppose rhetoric
aimed at changing the status quo. Congressman Larsen
responded that the United States supports the one-China
principle and abides by the three communiques and the Taiwan
Relations Act, cautioning Qiao that the United States does
not want to see any party take unilateral action.


11. (SBU) VFM Qiao told the Congressmen that China hopes the
U.S.-China Working Group will use its influence in Congress
to oppose or block any pro-Taiwan or anti-China bills in

BEIJING 00000683 003 OF 003


Congress. Congressman Kirk rejected this notion, saying that
the Working Group represents all opinions in the House of
Representatives, ranging from support for Taiwan independence
at one extreme and complete support for the mainland at the
other.

Intentions Behind PRC Foreign Policy
--------------


12. (SBU) Calling attention to statements by Secretary Rice
and Deputy Secretary Zoellick that the United States welcomes
a confident, peaceful and prosperous China, Congressman
Larsen asked Qiao to explain how China's foreign policy fits
into its stated goals of seeking balanced development and a
harmonious society, both of which seem to focus on China's
domestic situation. China's foreign policy, Qiao responded,
is aimed at creating a peaceful international environment
that is favorable to China's economic development. Although
China's GDP is now ranked number six in the world, per capita
income is only ranked number 107. The Chinese Government's
most pressing task is to develop China's economy to meet the
increasing material and cultural demands of the Chinese
people, with a goal to achieve a moderately prosperous
country by mid-century.

Pentagon-MOD Direct Communications Link
--------------


13. (SBU) Noting that the Pentagon currently maintains direct
communications links with Ministries of Defense in 26
countries and that there are direct communications links
between President Bush and President Hu as well as the
Department of State and the MFA, Congressman Kirk said that
due to "China's rise" it is time for the Pentagon and China's
Ministry of Defense to upgrade their communications and
establish a Defense Telephone Link. Qiao said he is not
aware of details on efforts to establish such a link, but
thinks taking this action would help build trust and promised
to convey the recommendation to PRC military authorities.

U.S.-China Cooperation in Space
--------------


14. (SBU) Russian Soyuz rockets already have the capability
to dock at the International Space Station (ISS),Congressman
Kirk said, noting that Congressman Feeney's dstrict includes
the U.S. space launch facilities at Cape Canaveral. China
should have a similar docking ring for its Shenzhou space
vehicles. While it would require some engineering, adding
this capability to the ISS would allow astronauts in
emergency situations to be rescued and could be beneficial to
U.S.-China relations. Noting that he had been a researcher
in space science 20 years ago, VFM Qiao agreed that
harmonizing technical standards of space vehicles would
contribute to the ISS and enhance mutual trust.


15. (U) Participants:

U.S. Delegation
--------------
Congressman Mark Kirk
Congressman Rick Larsen
Congressman Thomas Feeney
The Ambassador
Stephan Orlins, President, National Committee on U.S.-China
Relations
Richard Goldberg, U.S.-China Working Group Co-Staff Director
Dr. Yang Hong, Bryant University
Embassy Officers
Interpreter

Chinese Delegation
--------------
VFM Qiao Zonghuai
Wang Xiaolong, MFA Deputy Director General for International
Organizations
Deng Hongbo, Counsellor, Office of U.S. Affairs, MFA North
American and Oceanic Division
MFA Officers


16. (U) The delegation has cleared this cable.
Randt