PRC: BORDER TALKS WITH INDIA MAKING STEADY

C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 003173

SIPDIS

SIPDIS
C O R R E C T E D C O P Y (CLASSIFIED BY STATEMENT ADDED)
E.O. 12958: DECL: 05/10/2032
TAGS: PREL PGOV IN CH
SUBJECT: PRC: BORDER TALKS WITH INDIA MAKING STEADY
PROGRESS, CHINA CONCERNED ABOUT PRESS REPORTS OF POSSIBLE
QUADRILATERAL MECHANISM


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Classified By: External Unit Chief: Edgard Kagan; Reason 1.4 b & d
Summary
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1. (C) The last round of border talks between China and India
was the most in depth to date, according to MFA Asian Affairs
Department Director for India, Nepal and Sri Lanka Huang
Xilian. The two countries' differences on the Eastern
section of the border remain quite large. Beijing and New
Delhi need to create a better environment for resolving the
issue by shaping public opinion. The next round of talks
will be held in Beijing before Prime Minister Singh's fall
2007 visit to China. The focus of the February trilateral
meeting between India, China and Russia was on finding areas
for join cooperation. As host, India largely determined the
direction of the discussions. Noting that that China also
has joint exercises with India as well as other regional
militaries, Huang said Beijing viewed the April trilateral
military exercise between the United States, Japan and India
as a "normal" development. Huang raised the issue of the
proposed quadrilateral cooperation mechanism between the
United States, Japan, Australia and India stating that this
is a very sensitive issue in China and arguing it is
important for Beijing to be included in regional security
mechanisms. End Summary.

10th Round of Border Talks
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2. (C) The last round of border talks between China and India
was the most in depth to date, stated MFA Asian Affairs
Director for India, Nepal and Sri Lanka Huang Xilian during a
March 8 meeting with poloffs. The 10th round of border
negotiations between China's Special Representative Executive
Vice Foreign Minister Dai Bingguo and India's Special
Representative National Security Advisor MK Narayanan took
place in India April 21-22. Huang noted that this was the
fifth round of negotiations since the two countries entered
the "second stage" of the resolution process. The two sides
are engaged in sensitive negotiations for a package solution
to the border issue and still need more time to resolve
outstanding issues. The two countries differences on the
eastern section of the border remain quite large. India
would like to legalize the status quo line of control between
it and China, according to Huang, who argued that this is
unfair to China and that the status quo must be changed in
order to resolve the border issue.


3. (C) India requested that the 10th round of talks be held
in India even though it was Beijing's turn to host the
negotiations, Huang stated. The next round would definitely
be in Beijing and hopefully would produce positive outcomes
that could be announced during Indian Prime Minister Singh's
possible trip to China in the fall. Expressing hope there
would be progress, Huang stressed that the border talks are
not linked to positive developments in the overall bilateral
relationship or PM Singh's visit.

Need to Shape Public Opinion
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4. (C) Beijing and New Delhi pay close attention to the
border negotiations and are "torn" over whether to share more
details about the on-going talks with their publics. Huang
stated that both sides should create a better environment for
resolving the talks by shaping public opinion. Huang argued
that many people in China want the government to take a
tougher line with India on the border agreement, making it
harder for Beijing to cede control over what it has said is
"sovereign territory." Commenting that India has a similar
problem, Huang said Beijing and India need to educate their
populaces on the outstanding border issues.

Border Talks Promote High-Level Exchange of Views
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5. (C) Huang stated that the Special Representatives
mechanism has been a very useful tool for both Beijing and
New Delhi. The border talks provide a unique opportunity for
the two countries to exchange views on all issues at a
high-level. Huang, who attended the 10th round of talks,
said EVFM Dai Bingguo and National Security Advisor MK
Narayanan have a close and frank working relationship.
During the last round of talks, EVFM Dai and National

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Security Advisor MK Narayanan met one-on-one "under a tree"
for a considerable time to discuss the sensitivities around
the border issue, Huang said. He added that what he knows of
this part of the discussion comes entirely from Dai's
readout.

Trilateral Meeting Between India-China-Russia
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6. (C) New Delhi, Beijing and Moscow issued a joint statement
at the conclusion of the last Tri-lateral meeting held in
India in February that agreed to explore cooperation on
international, economic, trade, energy and agricultural
issues where the three sides have common interests, Huang
stated. As the host, India largely drove the discussions.
India's interest in becoming a member of the Shanghai
Cooperation Organization was not raised at this meeting.
Noting that the MFA's Department of European Affairs had the
lead on the trilateral meetings, Huang said that this was
just one of the many mechanisms between Beijing and New
Delhi.

Trilateral Exercise a "Normal" Development
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7. (C) Despite public concerns expressed in the press and in
internet chat rooms, Beijing did not consider the April joint
military exercises between the United States, Japan and India
as "abnormal" and views them as part of the "normal"
development of regional relations, stated Huang. China has
held joint exercises with all of the participants and with
other regional militaries. Prior to the trilateral exercise,
India and China held bilateral naval exercise involving two
Indian fleets visiting Qingdao. India also assured China
that the exercise was just part of its normal training
schedule and did not signal any change in India-China
relations. The Chinese public's reaction, however,
demonstrates how sensitive regional issues are in China,
Huang said.

Quadrilateral Cooperation is a Different Story
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8. (C) Raising the issue with poloffs, Huang stated that the
proposed quadrilateral cooperation mechanism between the
United States, Japan, Australia and India is a "very
sensitive" issue in China. First, China is concerned that
the mechanism was proposed by Japan. Second, it excludes
China and third, it is viewed by some in China as an Asian
version of NATO directed at Beijing. Huang stated that it is
inevitable that the Chinese public will view any Asian
regional security cooperation mechanism that excludes China
with suspicion. Speaking personally, Huang said that he is
not clear on the motivation or reasoning behind the proposed
mechanism. According to Huang, during Deputy Secretary
Negroponte's visit to China, Negroponte told EVFM Dai Bingguo
that the United States is currently not in favor of the
proposal. New Delhi has told Beijing in informal
conversations that India will never do anything which will
harm China's interests, yet to date there has been no public
official statement from the Indian side regarding a possible
quadrilateral mechanism. China welcomes positive
developments in United States-India bilateral relations but
Huang cautioned that it is important for China to be included
in regional security mechanisms.


9. (C) The development of regional security organizations
should promote confidence among all parties and should be
conducive to confidence building in the region, Huang said.
No matter what China's official position on the grouping is,
it will be difficult to develop a "public opinion" that China
needs to be sensitive towards the proposed quadrilateral
grouping, Huang stated, saying there had been a negative
reaction by many Chinese to the 2004 Tsunami Core Group that
excluded China. Huang said that the Asian Regional Forum
might be better suited to building regional security.


10. (C) Stressing our longstanding alliances with Japan and
Austalia, as well as the great improvements in U.S.-India
relations, Poloffs emphasized the U.S. commitment to regional
security while noting our a strong interest in exploring
areas for cooperation with like-minded countries. Noting
that we are unaware of any formal mechanisms and stressing

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our commitment to a candid, constructive and cooperative
relationship with China, Poloffs undertook to report Huang's
concerns.
RANDT