Identifier
Created
Classification
Origin
07BEIJING3261
2007-05-15 11:27:00
UNCLASSIFIED
Embassy Beijing
Cable title:  

MAY 15 MFA PRESS BRIEFING: TRADE AND SED; SUDAN;

Tags:  PREL ETRD CH SU JA XA XW VM PM KS KN ZK 
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ZNR UUUUU ZZH
O 151127Z MAY 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7915
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHAN/AMEMBASSY ANTANANARIVO 0007
RUEHEK/AMEMBASSY BISHKEK 1289
RUEHKH/AMEMBASSY KHARTOUM 0091
RUEHLO/AMEMBASSY LONDON 3129
RUEHSA/AMEMBASSY PRETORIA 0399
RUEHWL/AMEMBASSY WELLINGTON 0588
RUCPDOC/USDOC WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS SECTION 01 OF 03 BEIJING 003261 

SIPDIS

SIPDIS

TREASURY FOR OASIA/ISA
STATE FOR EAP/CM, SCA AND AF
STATE PASS USTR FOR STRATFORD, WINTER AND ALTBACH

E.O. 12958: N/A
TAGS: PREL ETRD CH SU JA XA XW VM PM KS KN ZK
NZ, SF
SUBJECT: MAY 15 MFA PRESS BRIEFING: TRADE AND SED; SUDAN;
ADMIRAL KEATING VISIT; ROK SHIP ACCIDENT; SCO EXERCISES;
SIX-PARTY TALKS; JAPAN, ROK AND AFRICAN MEETINGS; TAIWAN
AND OLYMPIC TORCH; VISITS


UNCLAS SECTION 01 OF 03 BEIJING 003261

SIPDIS

SIPDIS

TREASURY FOR OASIA/ISA
STATE FOR EAP/CM, SCA AND AF
STATE PASS USTR FOR STRATFORD, WINTER AND ALTBACH

E.O. 12958: N/A
TAGS: PREL ETRD CH SU JA XA XW VM PM KS KN ZK
NZ, SF
SUBJECT: MAY 15 MFA PRESS BRIEFING: TRADE AND SED; SUDAN;
ADMIRAL KEATING VISIT; ROK SHIP ACCIDENT; SCO EXERCISES;
SIX-PARTY TALKS; JAPAN, ROK AND AFRICAN MEETINGS; TAIWAN
AND OLYMPIC TORCH; VISITS



1. Key points at the May 15 MFA Press Conference were:

-- United States-China trade is "win-win," trade frictions
are natural given the volume of trade and China has made
efforts to revalue the rmb. Such topics will be discussed in
the upcoming Strategic Economic Dialogue (SED).

-- China plays a diplomatic role on Sudan and works with the
United States on the Darfur issue. It hopes for continued
peaceful consultation that respects Sudan's sovereignty.

-- China "thinks highly" of Admiral Keating's visit and
hopes to push ahead with such exchanges.

-- China is conducting search-and-rescue operations after an
accident involving a Chinese and ROK vessels and expresses
sympathy for the victims.

-- China sees a "long road ahead" for the Six-Party Talks
with "difficulties, twists and turns."

-- The MFA had no knowledge about American requests to
observe upcoming military exercises of the Shanghai
Cooperation Organization (SCO).

-- The Spokeswoman refused to comment on Taiwan military
exercises and criticized Taiwan's failure to participate in
the Olympic torch relay.

-- China will host a trilateral meeting with Japanese and ROK
foreign ministry officials May 19, is considering a meeting
between FM Yang and Japan's FM on the margins of the ASEM
meetings in Germany in late May and is hosting African
Development Bank meetings in Shanghai May 16-17, along with
visits by some African Presidents.

-- President Nguyen Minh Triet of Vietnam arrived in China
today for a four-day visit. Foreign Ministers from the UK,
New Zealand and South Africa will visit later this month.

SED, Trade Imbalance, Exchange Rate
--------------


2. At the May 15 regular press briefing, MFA Spokeswoman

Jiang Yu said friction on trade issues between the United
States and China is "quite natural" in light of the massive
trade volume of USD 216.8 billion between the two countries.
She stated the U.S.-China trade relationship is "win-win" and
called for both sides to adopt a reasonable approach to trade
issues. Responding to a question on bills in the U.S.
Congress addressing the bilateral trade imbalance, Jiang
expressed hope that Congress better understand Chinese
policies and play an active and positive role in bilateral
relations. She added that China has undertaken renminbi
(RMB) exchange rate mechanism reforms since 2005 which have
seen the value of the RMB grow over time.


3. On the upcoming SED, Jiang affirmed that senior officials
from the Ministry of Commerce and National Development and
Reform Commission (NDRC) would attend the second SED in
Washington later this month to discuss a variety of issues,
including bilateral trade, energy, the environment and
innovation.

China on Sudan Criticism, Dam Project
--------------


4. Responding to a question about the May 8 letter to
President Hu by over 100 American Congressmen urging action
on Darfur, Jiang reiterated her response of the previous week
describing China's humanitarian and peacekeeping efforts in
Sudan and noting that China appreciates the efforts of the
United States. China hopes for continued cooperation to
settle problems in Darfur through peaceful consultation and
negotiation while respecting Sudan's sovereignty.


BEIJING 00003261 002 OF 003



5. Sudan's Merowe Dam Project is important for improving
livelihoods and raising living standards of local people, the
spokeswoman said in response to criticism of the project from
a UPI reporter. China attaches importance to improving
development capacity and environmental concerns and requests
that Chinese companies abide by all local laws and
regulations, she said.

China "Thinks Highly" of Admiral Keating Visit
-------------- -


6. PACOM Commander Admiral Keating met with military and
Foreign Ministry leaders as well as scholars during his May
10-14 visit to China. China "thinks highly" of the exchange
and hopes to push ahead with the healthy and pragmatic
development of United States-China relations.

Rescue Efforts for South Korean Vessel
--------------


7. China is carrying out search-and-rescue operations to
look for survivors of a maritime accident in the Bohai Sea,
said Jiang, responding to questions about a Chinese ship
damaging the South Korean vessel Golden Rose. Jiang said
reports that rescue efforts were delayed are incorrect,
adding that the Chinese government received reports of the
accident on May 12. China will adopt a responsible and
humanitarian attitude and expresses deep sympathy for the
victims and their families.

Request to Observe SCO Military Exercises
--------------


8. Jiang said she was unaware of a United States' request to
observe upcoming military exercises conducted by the Shanghai
Cooperation Organization (SCO). She believes SCO member
countries are now consulting about the exercise.

Six-Party Talks: "Long Road Ahead"
--------------


9. Asked for an update on the Six-Party Talks by a reporter
who called attention to the passing of one month since the
April 13 deadline, Jiang stressed that there is a "long road
ahead" with "difficulties, twists and turns." She expressed
confidence that all parties have the capacity to press ahead
with the Talks and hope that the issue would be solved
properly with consideration to the concerns of all parties.

China-Japan-ROK Meetings; Japan's Constitution
-------------- --


10. The Foreign Ministries of China and Japan are consulting
about a possible meeting of their FMs on the sidelines of the
Asia-Europe (ASEM) Foreign Ministers meeting in Hamburg,
Germany on May 28-29, said Jiang in response to a reporter's
question. AFM Cui will attend May 19 meetings in Beijing
with senior ROK and Japanese officials to carry out
agreements reached at the seventh trilateral summit of these
parties in January, Jiang said. The officials will discuss
mechanisms for cooperation in ten fields.


11. All East Asian countries area closely following the
issue of constitutional reform in Japan, said Jiang
commenting on recently approved referendum procedures. Facts
have proven peaceful development is the right road for Japan
and China hopes Japan will follow this road, Jiang added.

Taiwan Military Exercises, Olympic Torch Route
-------------- -


13. The spokeswoman refused to answer a question about
Taiwan military exercises, stating that the Foreign Ministry
does not comment on such "internal" Chinese affairs. Asked
about Taiwan's refusal of Beijing's proposed route for the
Olympic torch in the run-up to the 2008 Games, Jiang

BEIJING 00003261 003 OF 003


criticized a "handful of people" in Taiwan for taking
advantage of the Olympics to apply pressure on Beijing, which
China strongly opposes. Jiang stated that the Beijing
Organization Committee for the 2008 Olympic Games has already
released a statement on this issue.

China Hosting African Development Bank Meeting
-------------- -


14. Asked what China's objectives were in hosting the annual
board meeting of the African Development Bank in Shanghai May
16-17, the spokeswoman responded that China seeks to support
Africa's development efforts through the exchange of views
and experience as well as cooperation on infrastructure and
poverty programs. Premier Wen, who will be attending the
opening ceremony, is meeting today with the presidents of
Cape Verde and Madagascar, among other African leaders.


15. Jiang deflected a question about whether the World Bank
President should resign, stating that China believes
leadership issues should be resolved through negotiation not
confrontation. China has confidence the board can handle the
issue and that World Bank business will not be affected. She
also had no information about a Shenyang bank official whom a
reporter claimed had fled to the United States nor about
reports that a developer demolished a neighborhood in
Beijing, evicting residents.

Visits: South Africa, New Zealand, UK, Vietnam
-------------- -


16. UK Foreign Secretary Beckett will pay her first visit to
China May 16-21 at FM Yang's invitation to expand and upgrade
both countries' strategic cooperative partnership on the 35th
anniversary of establishing diplomatic ties. She will also
visit Hong Kong. At the invitation of FM Yang, South Africa
FM Zuma will visit May 21-22 and New Zealand FM Peters will
visit May 21-26.


17. President Nguyen Minh Triet of Vietnam arrived in China
today for a four-day visit, during which he will meet with
President Hu and other leaders to exchange views on the
bilateral relationship and issues of mutual interest. The
spokeswoman noted achievements in the relationship such as
USD 9.95 billion in trade between the two countries in 2006
and recent headway made in border negotiations.
RANDT