SECRETARY PETERSQ MEETING WITH COMMUNICATIONS

UNCLAS SECTION 01 OF 05 BEIJING 002799 SIPDIS SIPDIS SENSITIVE STATE ALSO FOR EB/TRA/AN ENGLE AND HORWITZ STATE ALSO FOR CA/VO STATE PASS USTR FOR STRATFORD, ALTBACH, CELICO TRANSPORTATION FOR X1, X40 TRANSPORTATION FOR OFFICE OF INTERNATIONAL AVIATION - OPPLER AND GLANTZ TREASURY FOR DEPUTY CHIEF OF STAFF TAIYA SMITH TREASURY FOR AMBASSADOR HOLMER TREASURY FOR OASIA/ISA - HAARSAGER, WINSHIP, CUSHMAN USDOC FOR ITA/OCEA/MCQUEEN USDOC FOR ITA DAS KASOFF NSC FOR TONG, SHRIER E.O. 12958: N/A TAGS: EWWT ELTN SENV PREL CVIS OVIP SECRETARY PETERS CH SUBJECT: SECRETARY PETERSQ MEETING WITH COMMUNICATIONS MINISTER LI: MARITIME AND HIGHWAY TRANSPORT; VISA CONCERNS ¶1. (SBU) Summary. Secretary of Transportation Mary E. Peters and Chinese Minister of Communications Li Shenglin agreed that a bilateral agreement on safe transportation of hazardous materials could and should be concluded in the very near future. Secretary Peters outlined cooperation with China or Chinese companies in areas such as port operations and addressing port congestion issues, and welcomed ChinaQs interest in cooperation to prevent ocean pollution. Minister Li welcomes continuing cooperation on highway safety issues and urged scientific and technological cooperation towards that goal. He requested further cooperative efforts on transportation statistics. He urged that the United States simplify visa application procedures for ship crew members. Secretary Peters noted improvementQlready accomplished in SIPDIS visa processing and that Treasury Secretary Paulson has created a visa-related working group within the Strategic Economic Dialogue (SED). Secretary Peters also advocated changes to ChinaQs regulations to allow greater market access for American-made Harley-Davidson motorcycles. End summary. Maritime Transportation and the Bilateral Relationship -------------- ¶2. (SBU) At a Saturday, April 14 meeting, Minister of Communications Li Shenglin repeatedly underscored the important role of maritime transportation in fostering development of the bilateral trade and economic relationship.Qe lauded extant cooperatQbetween the United States Department of Transportation and the Ministry of Communications as a solid foundation for future cooperation. Secretary Peters cited the bilateral Maritime Agreement as an SIPDIS excellent example of the cooperation to which the Minister referred. That agreement had brought substantial benefits to China and the United States by balancing interests. She noted the role of Chinese shipper COSCO as a welcome partner in addressing each nationQs respective transportation needs. She also pointed out that advance notification is a maritime transportation issue on which further should be done. Issues relating to United States West Coast port congestion have been a topic of bilateral discussion, and cooperation regarding East Coast ports is already going well, with COSCOQs role in Boston Harbor approvingly noted. The Secretary further noted prior exchanges of information about use of the St. Lawrence Seaway to help address port congestion problems. Opportunities to work together very productively are before us. ¶3. (SBU) Minister Li concurred, and vowed that his Ministry will continue to support development of healthy cooperation in the maritime sector, including increasing cooperation on port issues. He noted that some Chinese companies are now involved in port construction projects in the United States and appealed to the Secretary to render assistance to Chinese enterprises involved in such cooperation. The Secretary later replied that Chinese firms are welcome in American ports and other areas of transportation. She emphasized that as the two nationsQ demand for transportation grows, many opportunities will arise for American and Chinese companies to work cooperatively to meet that demand. Hazardous Materials Agreement Imminent -------------- ¶4. (SBU) Minister Li said that close and detailed exchanges by the two sides had yielded consensus on the main contentQr a bilateral agreement on safe transportation of hazardous materials. Time had proven insufficient to finalize the agreement for signing at this April 14 meeting, but the Minister expects the agreement can be signed very soon. He noted that transportation safety encompasses issues of concern to all of society. The APEC Transportation Ministers BEIJING 00002799 002 OF 005 Conference in August 2006 had put forward good recommendations. China attaches great importance to cooperation with the United States on transportation of dangerous goods and urges completion of necessary procedures of conclusion of the bilateral agreement as soon as possible. Secretary Peters regretted that the Memorandum of SIPDIS Understanding on safe transportation of hazardous materials was not ready for signing yet, but said she was encouraged at progress to date and her certainty that the agreement can be finalized in the near future. Maritime Pollution Prevention -------------- ¶5. (SBU) Minister Li recommended that bilateral cooperation be strengthened in the area of prevention of pollution of the seas. A recently concluded Qsister portsQ agreement between Shanghai and Los Angeles includes prevention of maritime pollution as an agreed area of cooperation. The Ministry of Communications will fully support those two ports environmental protection work. The rapid increase in maritime transportation of oil, oil products and chemicals has caused maritime pollution. China has adopted some effective measures to address the problem. China knows the United States is very experienced in combating maritime pollution including through use of advanced technologies. China proposes inclusion (note: the MinisterQs comment and translation thereof did not make explicit whether he meant inclusion in the bilateral agreement on safe transportation of hazardous materials; end note) of cooperation against maritime pollution, such as exchanges of personnel and workshops on the topic. Secretary Peters expressed appreciation for the Minister having raised the topic of cooperation against maritime pollution and for the ports of Los Angeles and Shanghai including environmental protection as part of their sister ports agreement. Maritime pollution is indeed an issue that will require more time and intention in the future, and exchanges of personnel and technology may be part of the means to cooperate in such an important undertaking. The Secretary added that ballast water contamination is a particular concern of the United States, especially with respect to the Great Lakes, and could be an area of exchange and cooperation with China. Highway Cooperation -------------- ¶6. (SBU) Secretary Peters recalled her 2005 visit to China as Federal Highway Administration Administrator and acknowledged the role of Department of Highway Director General Zhang Jianfei in facilitating discussions during her visit to five cities. The discussions had been very helpful and through such cooperation, both sides can learn to build roads more quickly. The Secretary expressed particular interest in opportunities to invest in toll roads and how might one encourage more private investment in toll roads in the United States. Highway safety is a high priority for the United States as it is for China. The National Transportation Safety Board of the United States and ChinaQs National Development and Reform Commission will sign a cooperation agreement on highway safety later this year. The United States and China can work together to improve road safety and reduce traffic deaths. ¶7. (SBU) Many Chinese practices in construction and management of motorways have in fact been learned from the rich experience of the United States, Minister Li replied. The United States is ranked first in the world for length of roadways, and China is ranked second. More exchanges and collaboration on road construction and management are necessary. The Minister proposed expert groups on road construction and management be established for bilateral exchange activities. The same should be done for highway BEIJING 00002799 003 OF 005 safety issues. The Ministry of Communications and the Ministry of Public Security are jointly responsible for road safety. The Ministry of Communications seeks to reduce traffic accidents through improved road safety design and improved training for drivers. China is very eager to cooperate with the United States in traffic safety. The United States has rich experience in areas such as advanced technological treatment of roads that are prone to high accident rates and application of new materials to road construction and traffic safety that are of interest to China. More Under Existing MOUs -------------- ¶8. (SBU) Minister Li referred to the December 2003 Memorandum of Understanding on Cooperation on Science and Technology in Transportation. He recommended that liaison officers be designated by both sides to expand bilateral cooperation pursuant to this MOU in the areas of technologies related to treatment of asphalt pavement and intelligent traffic systems (ITS),i.e., technologies related to coordination of roads and vehicles. ¶9. (SBU) Minister Li also referred to the December 2003 Memorandum of Understanding on Cooperation on Transportation Statistics, saying that initial good cooperation thereunder had stood still since a 2005 shift of responsibility for transportation statistics within the United States Department of Transportation. The Ministry of Communications hopes that this statistical cooperation can be resumed. ¶10. (SBU) Responsibility for transportation statistics had indeed been moved within DOT in 2005, the Secretary replied. She will inquire to determine whether something was lost in that organizational transition. The United States certainly wishes to cooperate on road safety issues. Tremendous opportunities exist to improve roadways through science and technology and ITS. These opportunities include looking at the vehicle - infrastructure interface. Highway safety is very important to the Secretary and to DOT. United States Visas -------------- ¶11. (SBU) Introducing his final topic as Qlast but not least, Minister Li requested that United States visa application procedures for ship crew members be simplified. China recognizes that visa procedures were modified after 9-11 due to counterterrorism concerns. China recognizes that such measures are necessary for security and China has been very cooperative with respect to measures adjusted by the United States. At an APEC meeting in August 2006, China expressed full support for measures for security at sea. Still, one needs to think about facilitation of maritime transportation, hence this request to simplify visa application procedures for ship crew members. Secretary Peters highlighted in reply that progress has already been made on visa issues. Treasury Secretary Paulson has requested that visa issues be addressed SIPDIS in a group established for that purpose in the Strategic Economic Dialogue. In China, the United States Embassy and Consulates General issued more than 351,000 visas last year, an increase of more than ten percent. The United States will continue to work on improving the processing of visa applications. Business Advocacy: Harley-Davidson -------------- ¶12. (SBU) Secretary Peters introduced her final topic by noting that she is an avid motorcyclist who regularly climbs aboard a Harley-Davidson motorcycle made in the United States. She hopes to be able to ride a Harley-Davidson in China and BEIJING 00002799 004 OF 005 knows that concerns about potential noise or pollution restrict motorcycle usage in parts of China. She wishes to discuss with the Ministry of Public Security in the future how Harley-Davidson motorcycles could be deployed for law enforcement purposes. Minister Li said Harley-Davidson representatives had called on the Ministry of Communications in March 2007 to express their concerns. At present, for a variety of reasons, motorcycles are not allowed on Chinese motorways. The Ministry of Communications cannot unilaterally solve this. The Minister proposed that both sides explore alternatives to motorway operations and expressed his firm belief that Harley-Davidson products will have a broad market in China in the future. ¶13. (SBU) Minister Li said China will do its utmost to address issues raised by Secretary Peters and expressed his appreciation for the understanding and responses she had expressed on issues he had raised. A good platform has been established for further cooperation in the Strategic Economic Dialogue, and the Minister looks forward to continuing exchanges on issues of interest or concern on the occasion of the next SED. United States Participants -------------- ¶14. (U) United States Government participants in this hour- long meeting on Saturday, April 14 were: Secretary of Transportation Mary E. Peters SIPDIS Ambassador Clark T. Randt, Jr. Assistant Secretary for Aviation and International Affairs Andrew Steinberg Deputy Chief of Staff Simon Gros Assistant to the Secretary for Policy Jana Weir Assistant to the Secretary for Public Affairs Sarah Echols Special Assistant to the Secretary for Scheduling and Advance Brooke Evans Embassy Special Assistant to the Ambassador Michael Crain Embassy Minister-Counselor for Economic Affairs Robert Luke Embassy United States Coast Guard Representative Captain Bernard Moreland Embassy Economic Section Trade and Investment Policy Unit Chief Eric Madison Embassy Economic Section Deputy Chief Christopher Beede (note taker) Embassy Economic Officer Kamal Latham Embassy Economic Officer Brian Klein Embassy Economic Officer Michael Pignatello ¶15. (U) Chinese Government participants in this meeting, with the exception of Zhang Guangxun, all came from the Ministry of Communications (MOC): Minister of Communications LI Shenglin MOC Vice Minister WENG Mengyong MOC Department of International Cooperation Director General JU Chengzhi MOC Department of Comprehensive Planning Director General DONG Xuebo MOC Department of Highway Director General ZHANG Jianfei MOC Department of Water Transport Director General SONG Dexing MOC Maritime Safety Administration Director General LIU Gongchen MOC Rescue and Salvage Bureau Director General SONG Jiahui MOC Department of International Cooperation Deputy Director General LI Guangling MOC Department of Science, Technology and Education Deputy Director General LI Zuping MOC Secretary of the Minister PEI Wanfa MOC Department of International Cooperation Director REN Weimin BEIJING 00002799 005 OF 005 MOC Department of International Cooperation Director CUI Jingyan MOC Department of International Cooperation Deputy Director ZHANG Hongbin Ministry of Public Security Deputy Director ZHANG Guangxun MOC Department of International Cooperation Program Official LI Juguang MOC Department of International Cooperation Program Official SHI Xiaojie ¶16. (U) Secretary PetersQ delegation has cleared this report of meeting. RANDT