DDG QIU ON JAPAN-CHINA DIALOGUE

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 008801 SIPDIS SIPDIS E.O. 12958: DECL: 05/10/2021 TAGS: PREL ENRG JA CH SUBJECT: DDG QIU ON JAPAN-CHINA DIALOGUE REF: TOKYO 2571 Classified By: Political Minister Counselor Daniel Shields. Reasons 1.4 (b/d). Summary -------------- ¶1. (C) China and Japan agreed to hold the fifth round of talks on the East China Sea dispute next week and to discuss dates and venues for a possible Foreign Minister-level meeting, according to MFA Asian Affairs Deputy Director General Qiu Guohong. During the May 7-9 Japan-China Comprehensive Policy Dialogue (reftel),Japanese Senior Vice Foreign Minister Shotaro Yachi suggested to PRC Executive Vice Foreign Minister Dai Bingguo that a meeting between Foreign Minister Taro Aso and Foreign Minister Li Zhaoxing be held on the sidelines of the Asia Cooperation Dialogue to be held in Qatar, May 23-24. Beijing is considering the proposal. Yachi and Dai also discussed the Yasukuni Shrine visits, which Qiu called the crux of the bilateral deadlock that is preventing the proper resolution of all other bilateral issues. End Summary. ¶2. (C) MFA Asian Affairs Department Deputy Director General (DDG) Qiu Guohong briefed Polmincouns May 10 on the May 7-9 Comprehensive Policy Dialogue between Executive Vice Foreign Minister Dai Bingguo and Senior Vice Foreign Minister Shotaro Yachi. The two met first in Beijing for a day of talks and then moved to Dai's home town of Guiyang in Guizhou Province for another day of talks. This arrangement was in return for Yachi hosting Dai in Niigata Prefecture in February. The two sides exchanged views on sensitive and important issues to both countries, according to Qiu, who called the talks friendly, in-depth and constructive. Yasukuni Remains the Core of the Cold Political Relations -------------- -- ¶3. (C) Qiu said the visitsto the Yasukuni Shrine stand at the core of the Sino-Japan relationship and are the crux of the bilateral deadlock. No other problems in the bilateral relationship can be solved properly until the Yasukuni Shrine issue is resolved. The Japanese side is well aware of the centrality and the ramifications of the Yasukuni Shrine visits, but they "cannot find a solution," according to Qiu. PRC and Japan Agree to Talks on East China Sea Dispute -------------- -------------- ¶4. (C) Qiu reported that Dai and Yachi agreed to hold the fifth round of talks on the East China Sea dispute during the week of May 15 in Tokyo. Both Beijing and Tokyo have the common goal of solving the issue through dialogue and cooperation in order to turn the East China Sea into a "sea of friendship and peace." The two sides agreed that the momentum of the talks needs to be maintained and that joint development in the disputed area will yield mutual benefit, even before the final resolution of the Exclusive Economic Zones (EEZ) demarcation line. However, Japan and China have different ideas about how to realize joint development. Japan is seeking to include long- established Chinese gas fields. Qiu stated that China will never accept this. ¶5. (C) Stating that China first suggested to Japan the idea of joint development of the disputed areas, Qiu said China is looking to draw on its experiences in joint development with the Philippines, Vietnam and the DRPK. China hopes to ease tensions with Japan and realize benefits for both sides, even if the underlying dispute remains unsolved. Qiu placed the blame for the current row on Japan, saying China has been developing the disputed gas fields for twenty years. It was only recently that Japan linked these fields to the larger discussion of demarcating the two countries EEZs. Doubtful About a Foreign Ministers Meeting -------------- ¶6. (C) Qiu confirmed that Senior VFM Yachi proposed BEIJING 00008801 002 OF 002 that Foreign Minister Aso and Foreign Minister Li meet on the sidelines of the Asia Cooperation Dialogue (ACD) that will be held in Qatar, May 23-24. China is seriously considering the idea, with the view that because a FM-level meeting is very important, both sides need to create a favorable atmosphere for the meeting to take place. This will largely depend on Japan's attitude. While there is still time before the ACD and the related departments in Tokyo and Beijing will stay in touch, Qiu said that he is personally not optimistic that the meeting will happen because FM Aso "always says something about China." RANDT