MFA PREVIEWS PRESIDENT HU'S TRIP TO THE UNITED

UNCLAS SECTION 01 OF 04 BEIJING 007092

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PREL ECON PHUM PARM KNNP CH IR
SUBJECT: MFA PREVIEWS PRESIDENT HU'S TRIP TO THE UNITED
STATES, SAUDI ARABIA, MOROCCO, NIGERIA AND KENYA


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


1. During a special April 14 MFA press briefing, Vice
Foreign Minister Yang Jiechi previewed President Hu
Jintao's April 18-29 visits to the United States,
Saudi Arabia, Morocco, Nigeria and Kenya. Beijing
stands ready to strengthen mutual trust and
cooperation with the United States and address U.S.
concerns. Highlighting the USD 16.21 billion worth of
contracts signed by U.S. and Chinese firms during Vice
Premier Wu Yi's trip to the United States, VFM Yang
stressed that such cooperation shows the two countries
can properly handle trade frictions through dialogue.
China hopes Washington will earnestly honor its
commitments on Taiwan and refrain from sending the
"wrong signals" to Taiwan secessionist forces. VFM
Yang expressed Beijing's concern over Iran's recent
announcement about its uranium enrichment activities.
China has adopted a series of measures that
demonstrate its commitment to the path of peaceful
development. President Hu will address the Saudi
Arabian Consultative Council and Nigerian Parliament
and visit the UN Human Settlements Program and the UN
Environmental Program offices in Kenya. End Summary.


Hu Visit in Midst of Expanding Bilateral Cooperation
-------------- --------------


2. During a special April 14 MFA press briefing, Vice
Foreign Minister Yang Jiechi previewed President Hu
Jintao's visits to the United States April 18-21,
Saudi Arabia April 22-24, Morocco April 24-26, Nigeria
April 26-27 ad Kenya April 27-29. VFM Yang stressed
the sgnificance of President Hu's U.S. visit,
asseting that bilateral relations are generally
developing positively and noting the two Presidents'
meetings last year and a series of other high-level
exchanges. Foreign Minister Li Zhaoxing and Secretary
Rice maintain regular contact, while parliamentary and
military exchanges continue to increase. The two
countries have made progress in trade,
counterterrorism, avian influenza prevention and other
forms of cooperation and have coordinated effectively
in handling Iran, North Korea, Iraq and Afghanistan
issues. President Hu will meet with President Bush,
other U.S. leaders, Members of Congress, state and
municipal officials, businesspeople, academics and
students. He will deliver a speech at Yale University
expounding on China's domestic and foreign policies,
including Beijing's commitment to a "harmonious
society." The speech will help people understand the
importance of developing strategic and long-term
relations with China.


3. Responding to reporters' questions, VFM Yang noted
that President Hu will be accompanied by several dozen
officials, including State Councilor Tang Jiaxuan,
Foreign Minister Li, National Development and Reform
Commission (NDRC) Minister Ma Kai and Minister of
Commerce Bo Xilai. Neither People's Bank of China
Governor Zhou Xiaochuan nor any military officials or
entrepreneurs will travel with him. President Hu will
meet leaders of the Seattle business community,
including Microsoft Chairman Bill Gates. Asked why
President Hu chose to speak at Yale University, VFM
Yang remarked that China greatly appreciates the role
played by American educational institutions in
promoting U.S.-China exchanges, but due to time
constraints President Hu could only visit one.


Bilateral Differences Should Be Properly Handled
-------------- ---


4. Reflecting on the development of U.S.-China
relations, VFM Yang commented that the foundation of
U.S.-China cooperation is making the most of
opportunities and challenges. Bilateral differences
should be properly resolved on the basis of equality,
mutual respect, international standards and the
principles of the Three Joint Communiques. Beijing
stands ready to strengthen mutual trust and
cooperation with the United States and address each

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other's concerns in order to promote constructive and
cooperative relations.

Taiwan Issue Most Important in U.S.-China Ties
-------------- -


5. VFM Yang highlighted that the Taiwan issue is the
most important and sensitive issue in U.S.-China
relations. China appreciates the U.S. commitments to
its one-China policy, the Three Joint Communiques and
opposition to Taiwan independence. Beijing hopes
Washington will earnestly honor its commitments,
refrain from sending the "wrong signals" to Taiwan
secessionist forces and work with China to counter
secessionist activities. Taking such steps will
enhance cross-Strait peace and stability and serve the
interests of China, the United States and the rest of
the international community.

Economic and Trade Relations Are Mutually Beneficial
-------------- --------------


6. While noting bilateral economic and trade
frictions, VFM Yang remarked that China pays great
attention to U.S. concerns over the trade imbalance.
Vice Premier Wu Yi's business delegation to the United
States visited 14 cities in 13 states, purchased a
large amount of cotton, soybeans, electronics and
other products, explored new business opportunities
and signed USD 16.21 billion in contract agreements.
Chinese airlines and Boeing signed a framework
agreement for the purchase of 80 Boeing 787 aircrafts,
and PRC companies will also reach deals to purchase
U.S. software. These actions prove that the two
countries can properly handle trade frictions through
dialogue. Responding to a reporter's question on U.S.
concerns over China's economic policies, VFM Yang
stated that despite some different voices in the
United States, mainstream U.S. opinion supports closer
relations with the China, which has been demonstrated
by opinion polls. The American people and business
community favor strengthening economic relations and
properly handling frictions. VFM Yang expressed
optimism that all U.S. concerns can be resolved
through consultation.


7. Asked how President Hu will respond to expected
U.S. pressure on currency revaluation, VFM Yang
remarked that China maintains a market-based managed
floating exchange rate regime, which fluctuates in
relation to a basket of currencies. China will
proceed with exchange rate reform in accordance with
China's national conditions and the interests of the
global economy. Beijing is prepared to explain its
stance on the RMB exchange rate issue to the
international community.

Discussions on Iran and North Korea
--------------


8. Asked by the AP correspondent how North Korea and
Iran will figure into President Hu's discussions in
the United States, VFM Yang expressed China's concern
over Iran's recent announcement on its successful
enrichment of uranium. Beijing hopes all the parties
will remain calm and work for a peaceful resolution of
the Iranian nuclear issue, as dialogue is better than
confrontation. Turning to the DPRK nuclear issue, VFM
Yang maintained that there have been some positive
developments following the issuance of the Joint
Statement last year. While the Six-Party Talks are
currently facing difficulties, China hopes the parties
will adopt a flexible approach and work for a
resumption of the Talks. The denuclearization of the
Korean Peninsula and safeguarding regional peace and
stability serve all the parties' interests.

Concerns Over Human Rights and Military Transparency
-------------- --------------


9. The ABC News correspondent asked how China would
respond to expected U.S. requests for the release of
political prisoners, in particular Legal Permanent
Resident (LPR) Yang Jianli and AmCit Jude Shao. VFM
Yang asserted that China follows the rule of law and

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will handle these specific cases according to the law.
Questioned by the NHK correspondent about U.S.
criticism of China's lack of transparency, especially
in military spending, VFM stated that following
Chinese leaders' repeated explanations, the U.S.
public has gained a clearer understanding of China's
peaceful development path. Most Americans hope that
President Hu's visit will help increase their
understanding of China's policies. Military
transparency is a relative and constantly changing
concept. China has adopted a series of measures, such
as issuing defense white papers and inviting foreign
observers to its military exercises, which demonstrate
Beijing's commitment to the path of peaceful
development.

Energy Cooperation
--------------


10. Asked whether President Hu will sign an energy
agreement during his U.S. visit, VFM Yang stated that
the two countries regularly discuss energy
cooperation. The Chinese Government maintains a
mechanism for regular discussion of energy issues with
both the U.S. Departments of State and Energy. There
is significant potential for greater cooperation,
especially in developing renewable energy sources and
energy conservation. The two countries should create
conditions for joint energy development in order to
ensure the stability of the global energy supply.
Asked about energy discussions during President Hu's
stops in Saudi Arabia and Nigeria, VFM Yang said that
energy cooperation is one important component of
China's bilateral economic relations. Energy
cooperation is mutually beneficial and not aimed at
harming any other country in the region. Responding
to a reporter's question about U.S.-India nuclear
energy cooperation, VFM Yang said Beijing welcomes
improved U.S.-India relations, adding that the MFA
Spokesperson has already commented on the two
countries' nuclear cooperation.

President Hu's Other Destinations
--------------


11. Discussing President Hu's April 22-24 trip to
Saudi Arabia, VFM remarked that Saudi Arabia exerts
great influence in the Middle East and Arab world.
During his recent visit to China, King Abdullah and
President Hu reached an important agreement on
promoting strategic, friendly and cooperative
relations. The two countries share views and
cooperate on many major international issues. Riyadh
is Beijing's largest trading partner in the West Asia
and North Africa region, with trade volume in 2005
totaling USD 16 billion. President Hu will meet with
King Abdullah and Crown Prince Sultan and deliver a
speech to the Consultative Council. The visit will
further strengthen China-Saudi strategic relations,
economic and trade cooperation and Beijing's ties to
the Gulf Cooperation Council and the Arab world.


12. During President Hu's April 24-26 trip to
Morocco, he will meet King Mohammed VI and other major
leaders. The two countries will sign economic and
trade, cultural and health agreements, VFM reported.
China-Morocco trade in 2005 totaled USD 1.5 billion, a
rise of 28 percent. While visiting Nigeria April 26-
27, President Hu will hold talks with President
Obasanjo and the Speaker of the Nigerian Parliament,
where he will also deliver a speech on China's
relations with Nigeria and Africa policies. The visit
will help deepen mutual trust and the China-Nigeria
strategic partnership. The two countries maintain
cooperation in agriculture, infrastructure
development, power and telecommunications. Bilateral
trade increased 29 percent to USD 2.83 billion in

2005.


13. In addition to meeting with President Kibaki
during his April 27-29 stop in Kenya, President Hu
will visit the UN Human Settlements Program and the UN
Environmental Program offices, VFM Yang noted. Kenya
is committed to its one-China policy. Bilateral trade
reached USD 474.57 million last year, and China has

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already completed USD 780 million of the 830 million
worth of road and housing construction projects the
two countries agreed upon in June 2005. Ten thousand
Chinese tourists visited Kenya last year, China Radio
International has opened a broadcasting station in
Nairobi and China recently established the Confucius
Institute at Nairobi University.
RANDT