PRC-JAPAN: EAST CHINA SEA TALKS, LEE TENG-HUI

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 003648 SIPDIS SIPDIS E.O. 12958: DECL: 05/31/2017 TAGS: PREL ENRG JA CH KS SUBJECT: PRC-JAPAN: EAST CHINA SEA TALKS, LEE TENG-HUI VISIT ILLUSTRATE ONGOING OBSTACLES TO IMPROVED TIES REF: BEIJING 2680 Classified By: Polmincouns Daniel Shields. Reasons 1.4 (b/d). Summary -------------- ¶1. (C) The first round of East China Sea talks following Premier Wen's landmark visit to Tokyo clearly outlined the difficulty of bridging gaps between Beijing and Tokyo and moving toward joint exploitation of East China Sea resources, according to MFA Japan Division Deputy Director Lu Guijun. Tokyo remains focused on moving the East China Sea talks forward and on the Joint High Level Economic Dialogue announced after Wen's visit, but Beijing is cautious about Taiwan and history issues, especially in light of the Lee Teng-hui visit to Japan. Taiwan resurfaced as an obstacle to improved relations and FM Yang protested the Lee visit while meeting FM Aso in Europe. At the June 6 trilateral foreign minister's meeting in South Korea, FM Yang plans to voice Beijing's concern that "rightists" in Japan not support Taiwan independence. Lu also raised questions about the U.S.-Japan military alliance, U.S.-Japan military integration and potential regional groups, like the U.S.-Japan-Australia-India "Quad," which China sees as an effort to contain its rise. End Summary. East China Sea Talks Still Tough After Wen Visit -------------- --- ¶2. (C) The Eighth Round of Sino-Japanese talks on the resource and territorial dispute in the East China Sea concluded without a result on May 25, MFA Japan Division Deputy Director Lu Guijun told Poloff on May 30. Both sides clearly stated their differences about sovereignty issues in the Easy China Sea and will meet again at the end of June, according to Lu, who participated in the talks. The talks were significant because they were the first following Premier Wen's April visit to Tokyo and the five-point consensus Wen and Abe announced on peaceful joint development of the East China Sea. Lu said that consensus will be difficult to implement because it requires the parties to "move towards each other at the same time." ¶3. (C) Tokyo places priority on making progress in the East China Sea talks, while Beijing is in no hurry, Lu said, seeing the fall 2007 deadline announced by Wen during his visit to Tokyo as a deadline for a report on the status of talks, not a deadline for resolution of the issues. Beijing is willing to begin joint exploration "tomorrow," Lu said, but Tokyo should not take unilateral steps nor expect unilateral concessions on Beijing's territorial claims. Concern over Taiwan Independence Issues, Lee Visit -------------- -------------- ¶4. (C) Lee Teng-hui's visit to Japan re-emphasizes the possibility that Taiwan can be a major obstacle to improvement in Sino-Japanese affairs, Lu said. In a meeting with FM Aso on the margins of the Asia-Europe Meeting May 28, FM Yang strongly objected to Lee's visit. China's main concern remains that Lee will court Japanese "rightists" and convince some to express support for Taiwan independence, an outcome Lu said Beijing "could not accept." Analyses suggesting that Taiwan will resurface as a major obstacle to improved Sino-Japanese relations now that some WWII history issues have been referred to a scholars' committee (reftel) have "a certain logic," Lu said. He noted that Beijing remains angry about history issues, especially PM Abe's recent gift to Yasukuni Shrine and the May 9 Japanese court ruling denying compensation to individual victims of the Nanjing massacre and germ warfare. (Note: Our meeting with Lu took place prior to a small protest in Beijing, reported separately, over the court decision. The protest took place in front of the Japanese Embassy on May 31. End Note.) Trilateral Meeting on Regional Security -------------- ¶5. (C) China's protest of the Lee visit will likely surface during the June 6 trilateral meeting between FM Yang, FM Aso and South Korean FM Song in South Korea, Lu said. The trilateral aims to focus on Northeast Asian regional security, especially the DPRK nuclear issue. But Lu said China will have no choice but to stress its displeasure over the Lee visit should Tokyo refuse Beijing's request to cancel BEIJING 00003648 002 OF 002 the visit. UN reform is "no longer on the front page" and will not get major play at the trilateral meeting, Lu predicted. Concern about U.S.-Japan Military Integration -------------- ¶6. (C) Beijing remains concerned about the United States-Japan military alliance and what he called the increased integration of American forces and the Japanese Self Defense Forces, Lu said. China also sees potential regional groups, like the U.S.-Japan-Australia-India Quad, as a threat to bilateral cooperation and regional security, he said. Lu said he hopes such topics are discussed during Asia DG Hu Zhengyue's upcoming consultations in Washington, because China wants a clear understanding of American intentions with regard to the United States-Japan alliance. PICCUTA