REP. HASTERT ENCOURAGES U.S.-PRC ENERGY COOPERATION

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 005295 SIPDIS SIPDIS E.O. 12958: DECL: 08/13/2017 TAGS: PREL PGOV OVIP ENRG CH SUBJECT: REP. HASTERT ENCOURAGES U.S.-PRC ENERGY COOPERATION Classified By: Political Minister Counselor Aubrey Carlson. Reasons 1. 4 (b/d). Summary -------------- ¶1. (C) Visiting House of Representatives members Dennis Hastert (R-IL) and John Shadegg (R-AZ),accompanied by the Ambassador, encouraged greater U.S.-China cooperation in developing clean coal and nuclear technology in an August 13 meeting with Foreign Minister Yang Jiechi. FM Yang said the UN Framework on Climate Change and the Kyoto Protocol are the "foundation" for China's action on clean energy and climate change. FM Yang stressed Chinese opposition to Congressional support for Taiwan, particularly given Taiwan's recent attempt to gain UN membership, and to Congressional attempts to link China's hosting of the Olympics with other issues. FM Yang also highlighted the importance of the fall 2007 visit to the United States of National People's Congress Standing Committee Chairman Wu Bangguo. End Summary. Clean Coal and Climate Change -------------- ¶2. (C) In an August 13 meeting with Chinese FM Yang Jiechi, Representative Dennis Hastert (R-IL) observed that both the United States and China depend on off-shore sources for petroleum and natural gas, but both countries are also endowed with tremendous coal reserves. The challenge is to develop viable, clean coal technologies in order to address economic growth and environmental protection imperatives. There is global consensus that climate change is a problem, but inconsistent action on addressing it, he noted. The United States is widely criticized for not signing the Kyoto Protocol, but other signatories, such as the EU and China, have not met the targets contained in the treaty. ¶3. (C) FM Yang noted that China obtains 65-70 percent of its energy needs from coal and will continue to do for the foreseeable future. He agreed that the United States and China can and should cooperate to develop clean technologies. FM Yang stated that though China is 90 percent self-reliant for its energy needs, it still imports much oil and natural gas and needs to diversify, use renewable sources of energy and convince people to be more environmentally conscious. FM Yang stated that as both major consumers and producers of energy, the United States and China must address environmental issues, including climate change. ¶4. (C) FM Yang affirmed that China considers the UN Framework Convention on Climate Change and the Kyoto Protocol the legal basis for future action on climate change. He underscored the importance of the upcoming United National Climate Change Conference in December in Bali as an important opportunity to discuss environmental issues. FM Yang also highlighted the Chinese government's State Council-level working group on climate change, which is headed by Premier Wen Jiabao and includes Foreign Ministry representatives. China understands the need for the development of clean coal and alternative fuel technologies and to increase environmental consciousness in the Chinese public. China hopes to seriously address climate change and has announced a goal to reduce per-unit GDP consumption of energy by 20 percent by the year 2010 compared to 2005 levels. FM Yang pointed out that the Chinese government no longer solely uses GDP to gauge progress in China. Instead, local officials now use an aggregate index that includes air quality, "transportation efficiency" and environmental protection efforts. Nuclear Energy Technical Exchange -------------- ¶5. (C) Representative Hastert said that Congress will have another opportunity in September to pass legislation to increase the use of nuclear and clean coal technology, though legislative, legal and regulatory roadblocks continue to slow progress in the development of nuclear energy in the United States. Representative Hastert suggested that China, with a more centrally-planned administrative structure, might be able to take advantage of U.S. technologies in developing safe nuclear technologies. China's experience, in turn, could be used to persuade doubters in the United States about the efficacy and safety of "following through on new technology" related to clean coal and nuclear energy. ¶6. (C) FM Yang agreed that nuclear technology is an area of great promise and stated that China hopes to increase its cooperation with the United States in this area. China cooperates in the area of nuclear power with France, Russia and Canada and would like to do so with the United States. FM Yang said he understands the "mountainous hurdles" facing advocates of nuclear cooperation with China. Continued exchange of ideas is crucial for any future success. China, BEIJING 00005295 002 OF 002 too, needs to proceed cautiously on nuclear technology. Many nuclear power plants in China are in densely populated areas, a condition that would not conform to U.S. nuclear safety standards. Taiwan -------------- ¶7. (C) FM Yang stressed the need to ensure that the U.S.-China relationship continues its current positive trend. Both countries have common interests in combating terrorism, proliferation and non-traditional security threats. Exchanges between Congress and the National People's Congress (NPC) have been productive and are a more effective method of addressing bilateral issues than enacting legislation or passing resolutions, he said. ¶8. (C) FM Yang stated that while the majority of Congress understands the one-China policy, occasionally, certain members propose legislation that includes provisions to invite (Taiwan President) Chen Shui-bian to visit Washington, sell arms to Taiwan or support Taiwan's independence. FM Yang noted that the situation is "very serious." Chen Shui-bian's administration is attempting to join the UN under the name "Taiwan." The United States' explicit expression of its position opposing the referendum is welcome, but Congress must be "more cautious" in how it treats the Taiwan situation. China supports peaceful unification, but "there is a bottom line." He added, "Chen Shui-bian is dangerous, and he is trying to push us into a corner." ¶9. (C) Representative Hastert described the separation of powers in the United States and noted that Congress includes a diverse group of representatives, some of whom propose legislation that has no hope of passing but that serves to increase a given member's profile or reflects the concerns of his or her constituents. The majority of Congress supports our one-China policy, and that policy will not change. This issue underscores the importance of increased exchanges between the U.S. and PRC legislative bodies. Economic interdependence has made a military solution to the Taiwan question impractical, he continued. "Discussion is the only answer." Olympics -------------- ¶10. (C) FM Yang expressed hope that Congress will be "very careful" with resolutions and legislation addressing China's hosting of the Olympics. He said the Olympics are not about the Chinese government; rather, they are about the Chinese people, and the Chinese people take great pride in hosting the Olympics. Efforts by members of Congress to use the Olympics "like a Christmas tree" to advance their views on U.S.-China bilateral issues will be detrimental to both sides and hurt the feelings of the Chinese people. ¶11. (C) Representative Hastert recalled his own personal history coaching in the Olympics and said he understands the great pride countries take in hosting the Olympics. He said members of Congress who are attempting to use the Olympics as a lever for other bilateral concerns are in the minority. ¶12. (C) Representative Shadegg stressed the importance of exchanges and dialogue on bilateral issues, adding that those who seek to insert human rights issues into the Olympics are in the minority. Just the same, he said, Chinese government progress on human rights issues would strengthen the position of pro-China voices. Wu Bangguo Visit -------------- ¶13. (C) FM Yang reiterated the importance of inter-parliamentary exchanges and stressed that Wu Bangguo, the Chairman of the Standing Committee of the NPC, will visit the United States in fall 2007. The last such visit occurred in 1989, he noted. ¶14. (U) Representative Hastert's delegation did not review this cable. RANDT