A/S SHANNON MEETS WITH VFM YANG JIECHI ON LATIN

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 007116

SIPDIS

SIPDIS

STATE FOR WHA/FO WHA/EPSC

E.O. 12958: DECL: 04/14/2016
TAGS: PREL PINR PGOV CH CU VE XM
SUBJECT: A/S SHANNON MEETS WITH VFM YANG JIECHI ON LATIN
AMERICA

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Classified By: Political Minister Counselor Daniel
Shields. Reasons 1.4 (b/d)

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


1. (C) Vice Foreign Minister Yang Jiechi told A/S
Shannon and the Ambassador that A/S Shannon's visit
and the launching of the U.S.-China Subdialogue on
Latin America under the U.S. China Senior/Strategic
Dialogue have a special significance in the lead-up to
President Hu Jintao's visit to the United States.
China's rapidly developing relationship with Latin
America will not undermine the interests of any third
party, including the United States. China-Latin
America cooperation can help promote regional security
and stability. A/S Shannon's visit and the launching
of the Subdialogue will create opportunities for
mutual cooperation on Latin America, including in
multilateral fora. A/S Shannon said, the United
States and China share an interest in promoting
economic development and political stability in Latin
America to help enable countries in the region to
address social problems and reduce poverty. End
Summary.

Latin American Subdialogue Under Senior/Strategic
Dialogue
-------------- --------------


2. (C) Assistant Secretary of State for Western
Hemisphere Affairs Thomas Shannon and the Ambassador
met on April 14 with Vice Foreign Minister Yang
Jiechi, who said A/S Shannon's visit and the launching
of the U.S.-China Subdialogue (septels) on Latin
America under the U.S. China Senior/Strategic Dialogue
have a special significance in the lead-up to
President Hu Jintao's visit to the United States. The
subdialogue discussions will be helpful as President
Bush and President Hu prepare to discuss various areas
where the United States and China can cooperate more,
such as counterterrorism, nonproliferation and energy.
China realizes the United States has extensive and
deep links with Latin America. China will handle
properly its own rapidly developing relationship with
Latin America and will not undermine the interests of
any third party, including the United States.


3. (C) A/S Shannon conveyed greetings from Secretary
Rice and Deputy Secretary Zoellick. He noted that
this is a very important moment in U.S.-China
relations and the right time to start our Subdialogue
on Latin America. Now is the time for both sides to
seek out common interests and shared goals, creating
the basis for mutual understanding.

China-Latin America Relations
--------------


4. (C) VFM Yang said the current positive state of
China-Latin America relations is the result of the
need on both sides for economic development in the
context of globalization. The relationship can also
be seen as a manifestation of South-South cooperation.
VFM Yang thanked the United States for supporting
China's observer status in the Organization of
American States (OAS). The United States, China and
several Latin American countries already jointly
participate in multilateral forums, such as APEC and
the G-8 dialogue with major developing countries.
U.S.-China-Latin America cooperation, including
multilaterally, can help to address a number of
traditional and nontraditional security threats, such
as terrorism and drug trafficking, and in the process
can help promote regional security and stability.


5. (C) VFM Yang noted that China and Latin America
face similar development challenges, including
increasing domestic consumer demand so economic growth
depends less on exports. He noted that U.S. and EU
investment in Latin America far outstrips China's
investment in the region. China is attempting to

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adopt a comprehensive and realistic approach to global
issues and hopes that its investments in Latin America
will help create local jobs and thereby enhance
regional prosperity and stability. Naturally, some of
China's investment is also intended to secure much-
needed raw materials, he said.

U.S. Pleased that China Seeks Multilateral Engagement
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6. (C) A/S Shannon welcomed VFM Yang's statement that
China's engagement in Latin America is not only
bilateral but also multilateral. This reflects an
understanding of political developments in the region,
because Latin America is not only increasingly
integrating itself but is also using a number of
multilateral forums to reach out to the world. U.S.
regional policy focuses on strengthening these trends
to help Latin America engage the world and to prosper.
Trade is an important part of the process. The United
States respects and welcomes China's participation in
trade with Latin America.


7. (C) A/S Shannonsaid the United States appreciates
China's commitment to dialogue in the region and with
the United States. The United States is committed to
working with Latin America in support of the regional
consensus for democracy, free trade and economic
integration. The United States and China share an
interest in promoting economic development and
political stability in Latin America to help enable
countries in the region address social problems and
reduce poverty.

China will Handle Properly Relations with Latin
America
-------------- --


8. (C) VFM Yang said social stability is a
precondition for economic growth, adding that a
vibrant economy can help create social stability.
Like China, Latin America in the 21st century faces
challenges as well as opportunities. China is
confident that Latin America will find its own way
forward. He reiterated that China is handling its
relations with Latin America properly and fully in
accordance with international norms.


9. (U) The Delegation has cleared this cable.
RANDT