MFA EXPRESSES CONCERN OVER ARMS SALES TO TAIWAN,

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 004269

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/25/2032
TAGS: PREL CH TW
SUBJECT: MFA EXPRESSES CONCERN OVER ARMS SALES TO TAIWAN,
TAIWAN'S PLANNED REFERENDUM ON JOINING UN


Classified By: Deputy Chief of Mission Dan Piccuta.
Reasons 1.4 (b) and (d).

Summary
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1. (C) MFA North America Director General Liu Jieyi called on
the United States to stop all arms sales to Taiwan and to
"explicitly oppose and curb" the attempts of the "Chen
Shui-bian authorities" to achieve de jure independence during
a June 25 meeting with DCM Piccuta. Liu expressed China's
"serious concern" over Taiwan's recent passage of a defense
budget that contains funding for the purchase of U.S.
weapons, including 12 P-3C aircraft, PAC-II upgrades, a
submarine cost assessment and monies for 66 F-16 C/D fighter
aircraft. Expressing particular concern about the "advanced,
offensive" nature of F-16s, Liu warned of "serious
consequences" should their sale go forward, as advocated by
"some people." Weapons sales to Taiwan only encourage Chen
Shui-bian in his attempts to change the status quo, as
demonstrated by his plan to hold a referendum on joining the
UN under the name Taiwan. DCM Piccuta reiterated our one
China policy based on the three joint communiques and the
Taiwan Relations Act, and stated that we urge both sides to
undertake active efforts to reduce tensions across the Strait
and move toward a peaceful resolution. End Summary.

Chinese Concern Over Arms Sales
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2. (C) MFA North America Director General Liu Jieyi called in
DCM Piccuta on June 25 to express China's "serious concern"
over Taiwan's recent passage of its annual budget, which
contained funding for the purchase of U.S. weapons, including
12 P-3Cs, PAC-II upgrades, a cost assessment for submarines
and "initial" funding for 66 F-16 C/D fighter aircraft. Liu
said it is the PRC's understanding that "some people" in the
United States Government are "advocating and working toward"
the sale of F-16s to Taiwan. Going forward with such arms
sales to Taiwan during this "extremely sensitive" juncture in
cross-Strait relations would only further encourage Chen
Shui-bian's "desperate and unscrupulous attempts" to change
the status quo and achieve de jure independence, as
demonstrated by his plan to hold a referendum on joining the
UN under the name Taiwan, which Liu said in reality is a
"referendum on Taiwan independence." Arms sales to Taiwan
would aggravate cross-Strait tensions, undermine the peace
and security of the region, constitute "serious interference"
in China's internal affairs, hurt the feelings of the Chinese
people and harm U.S.-China relations, including bilateral
cooperation in a number of important areas. China encourages
the United States to recognize the "gravity" of the issue,
Liu emphasized.

F-16s
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3. (C) Commenting further on the F-16 issue, Liu argued that
the fighter is in the "active service" of the U.S. Air Force
and is a "highly advanced, offensive" aircraft with a large
operating radius. He noted that the United States has
already said there has been no agreement to sell F-16s to
Taiwan. China encourages the United States to proceed on the
issue from the standpoint of cross-Strait peace and stability
and overall U.S.-China relations. China urges the United
States to reject the sale, which could have "serious
consequences."

U.S.-China Cooperation
--------------


4. (C) U.S.-China relations in recent years have enjoyed
"positive momentum," including effective consultations and
cooperation on a wide range of issues, such as North Korea,
Iran and Sudan/Darfur, Liu stated. This cooperation has been
"hard to come by" and should be "valued." Taiwan bears on
the sovereignty and territorial integrity of China and is the
most important and sensitive issue in the bilateral
relationship. China has always been clear in its firm
opposition to arms sales to Taiwan, by the United States or
anyone else. China is therefore "puzzled" by U.S. actions.
On the one hand, the United States says it adheres to a
one-China policy and opposes Taiwan independence, with
Washington publicly stating its opposition to Taiwan's
referendum on joining the UN. On the other hand, the United
States is trying to sell more weapons to Taiwan, which only
supports Taiwanese "independence forces." In sum, at the
same time that the United States approaches China seeking

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cooperation on a host of international and regional issues,
it is also contemplating activities that hurt the "core
interests" of China. This calls into question just what
message the USG wishes to send to the Taiwan authorities and
what position the United States wishes to adopt on the Taiwan
issue, Liu declared.

Stop Arms Sales, Curb Independence Moves
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5. (C) China therefore urges the United States to pay
"serious attention" to the PRC's "solemn position," and to
approach the issue from the standpoint of bilateral relations
and cross-Strait peace and security, Liu stated. China calls
on the United States to stop the sale of all weapons to
Taiwan, including P-3Cs, submarines, PAC-III or other
anti-ballistic missile systems, and F-16 C/Ds. The PRC urges
the United States to "explicitly oppose and curb" the
attempts of the "Chen Shui-bian authorities" to achieve de
jure independence, including through the referendum on
joining the UN. The United States should not send the "wrong
signal" to them. DG Liu asked that the DCM report the
Chinese position to Washington.


6. (C) DCM Piccuta said he would report the Chinese
Government's concerns. He stated that there has been no
change to the United States' one China policy based on the
three joint communiques and the Taiwan Relations Act. The
United States supports a peaceful resolution of the Taiwan
issue acceptable to people on both sides of the Strait. We
do not support Taiwan independence, oppose unilateral changes
to the status quo and urge both sides to undertake active
efforts to reduce tensions across the Strait and move toward
a peaceful resolution, he emphasized.
RANDT