SECRETARY PETERSQ MEETING WITH COMMUNICATIONS

UNCLAS SECTION 01 OF 05 BEIJING 002799

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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

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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

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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
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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

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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

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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
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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

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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
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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
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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

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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
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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

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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
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14. (U) United States Government participants in this hour-
long meeting on Saturday, April 14 were:

Secretary of Transportation Mary E. Peters

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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

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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