UNSC/SANCTIONS: CHINA'S ETLO/SHAT DESIGNATION

C O N F I D E N T I A L USUN NEW YORK 000340 SIPDIS SIPDIS E.O. 12958: DECL: 02/23/2011 TAGS: ETTC UNSC PREL PGOV PTER CH SUBJECT: UNSC/SANCTIONS: CHINA'S ETLO/SHAT DESIGNATION REQUEST REF: A. STATE 28899 ¶B. STATE 27062 ¶C. BEIJING 3009 Classified By: William J. Brencick, Political Minister- Counselor, for Reasons 1.4 (B and D) ¶1. (U) This is an action request. Please see Para 5. ¶2. (C) PolCouns delivered demarche (reftels A and B) to Chinese Political Coordinator Li Junhua. Li responded that China was "quite disappointed" at the U.S. decision and stressed that the ETLO/SHAT designation request came from the "highest levels" of the Chinese government. China had been encouraged by the Deputy Secretary's remarks, made during his visit to Beijing in January, and Li was "shocked" when he learned of our decision. He underlined that China had engaged U.S. authorities well in advance of the formal submission request and had shared all the available supporting information. Li had personally worked on the ETLO/SHAT case before coming to New York, including several consultations in Washington, and was well-briefed on the specifics. ¶3. (C) Li explained that while ETLO/SHAT might not pose an imminent threat to the United States, it did to China and others States in Central Asia. China understood the U.S. legal process, but Li underlined the importance of showing "political cooperation," especially in the P-5 on a matter that was not directly related to U.S. national interests. ¶4. (C) After the meeting, a Chinese expert told SanctionsOff that the U.S. decision might affect Chinese cooperation on targeted sanctions "across the board." He said the Chinese Foreign Ministry was under immense pressure from other Chinese government entities to "show results." ¶5. (C) ACTION REQUEST: Li asked PolCouns for specific information the U.S. government, specifically the Justice Department, still needed or specific questions the Chinese could help to answer. USUN requests the Department engage the Chinese through appropriate channels. BOLTON