Identifier
Created
Classification
Origin
07BEIJING5776
2007-09-04 08:05:00
CONFIDENTIAL
Embassy Beijing
Cable title:  

CHINESE CENTAL ASIA WATCHERS UPBEAT ON RESULTS OF

Tags:  PREL PTER ETRD ENRG MARR ZK XD CH RS 
pdf how-to read a cable
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FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1469
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHAH/AMEMBASSY ASHGABAT 0711
RUEHTA/AMEMBASSY ASTANA 0018
RUEHEK/AMEMBASSY BISHKEK 1303
RUEHTA/AMEMBASSY DUSHANBE
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RUEHNE/AMEMBASSY NEW DELHI 4421
RUEHNT/AMEMBASSY TASHKNT 1125
C O N F I D E N T I A L SECTION 1 OF 02 BEIJING 005776 

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/04/2017
TAGS: PREL PTER ETRD ENRG MARR ZK XD CH RS
SUBJECT: CHINESE CENTAL ASIA WATCHERS UPBEAT ON RESULTS OF
SCO SUMIT

REF: A. (A) BISHKEK 1048

B. (B) MOCOW 3996

C. (C) BEIJING 5046

D. () SHANGHAI 529

E. (E) YEKATERINBURG 79

Classified By: Classified by Political Miniser Counselor Aubrey Carlso
n for reasons 1.4 (B/D).

C O N F I D E N T I A L SECTION 1 OF 02 BEIJING 005776

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/04/2017
TAGS: PREL PTER ETRD ENRG MARR ZK XD CH RS
SUBJECT: CHINESE CENTAL ASIA WATCHERS UPBEAT ON RESULTS OF
SCO SUMIT

REF: A. (A) BISHKEK 1048

B. (B) MOCOW 3996

C. (C) BEIJING 5046

D. () SHANGHAI 529

E. (E) YEKATERINBURG 79

Classified By: Classified by Political Miniser Counselor Aubrey Carlso
n for reasons 1.4 (B/D).


1. (C) Summary: Three Chinese observers of Central Asian
affairs lauded the mid-August Shanghai Cooperation
Organization (SCO) summit, citing counter-terrorism
cooperation, military exercises, trade and energy. The
scholars told us China is increasingly looking to its SCO
partners for resources. They said that an expansion of SCO
membership, even to include Turkmenistan, is unlikely in the
near term and expressed doubt that the SCO would be a vehicle
to pressure Kyrgyzstan to close the U.S. military airbase
Manas. End Summary.

The "Three Evils:" Terrorism, Extremism and Separatism
-------------- --------------


2. (C) Chinese Academy of Social Sciences (CASS) Institute of
Russian, East European and Central Asian Studies Director Wu
Hongwei and Deputy Director Dong Xiaoyang asserted to Poloff
August 22 that the United States and China share strong
concerns over the "three evils" of terrorism, fundamentalism
and separatism, which the SCO was founded to combat. Wu said
separatists invariably band together with extremists, and
together they use terrorist tactics to pursue their goals.
Wu criticized U.S. policy on terrorism for making
distinctions among the "three evils" and insisting on a high
standard of proof.

Trade
--------------


3. (C) Separately on August 22, Cheng Yurong, Director of the
Center for SCO Studies and of the MFA-affiliated China
Institute of International Studies (CIIS) European-Central
Asian Studies Division, agreed with the CASS scholars on the
increasing attention devoted to trade in the SCO. She noted
that Chinese trade with all of the Central Asian SCO member

nations has risen sharply since the founding of the SCO in
2001 (when the Shanghai Five accepted Uzbekistan's membership
and became the SCO). For example, trade with Kazakhstan in
the first half of 2007 is up over 60 percent when compared
with the same period in 2006. Market demand, trade policies,
including a new free trade zone on the border with
Kazakhstan, and growing transportation links, including a
planned rail link with Kyrgyzstan, are driving the increase.

Energy Cooperation . . .
--------------


4. (C) The CASS and CIIS scholars all stressed the growing
role of energy in SCO deliberations. For example, at the
recent summit China and Kazakhstan agreed to double the
annual volume shipped through the China-Kazakhstan crude oil
pipeline. In addition, Kazakhstan and Uzbekistan (as well as
non-SCO member Turkmenistan) within the last month all signed
new oil pipeline agreements with China. While these deals
are not directly linked to the SCO, the scholars said they
believe SCO cooperation played a role in developing them.

. . . and Conflict
--------------


5. (C) The three scholars agreed hydropower could be a
stumbling block for SCO cooperation. They noted Uzbek
President Islam Karimov's remarks at the summit regarding use
of the shared water resources of the Amu Daria and Syr Daria
rivers, which have their headwaters in Tajikistan and
Kyrgyzstan, respectively, and which have significant
potential for hydroelectric electricity. As it stands,
Kyrgyzstan exploits only ten percent of its hydroelectric
resources and aims to be a major electricity exporter. China
has been funding the expansion of hydroelectricity in
Kyrgyzstan and Tajikistan. Karimov, however, vocally opposed
any reduction in the flow of the Amu Daria and Syr Daria
rivers, which are a primary source of irrigation water for
Uzbek cotton.

BEIJING 00005776 002 OF 002



New Members
--------------


6. (C) The CASS academics said new members are unlikely to
join the SCO in the near term. They repeated Chinese
official statements, published in Xinhua and other open
sources in advance of the summit, that the SCO is too young
and not yet ready for new members, saying that the relatively
new organization has yet to figure out the role for existing
observers. CASS Deputy Director Dong, describing the
problems between India and Pakistan as "unsolvable," said
China fears that those two nations would bring their
bilateral problems with them to the SCO. Iran, Wu and Dong
said, is dabbling in "sensitive" issues like nuclear weapons.
Allowing Iran in the SCO could negatively influence other
members' development. Turkmenistan, they said firmly, will
not join the SCO and will continue to maintain an
isolationist policy.

Manas Airbase
--------------


7. (C) The CIIS and CASS scholars all predicted the SCO will
not be a vehicle for pressuring Bishkek to expel the U.S.
military presence from Kyrgyzstan. They said Kyrgyzstan
would be foolish to ask America to leave Manas Airbase. The
SCO leaders recognize that the United States is using Manas
as a forward operating base to attack the Taliban, the single
largest threat to regional stability in Central Asia.

War Games: Peace Mission 2007
--------------


8. (C) CIIS' Cheng said military cooperation among SCO
members is nothing new; this year's joint military exercise
was the third time since the founding of the SCO that joint
military exercises have taken place. CASS' Wu and Dong said
the exercise was designed purely to fight terrorism and was
not directed at other nations. They grumbled that they did
not understand reports in the U.S. press suggesting that the
United States had something to fear from the exercise. The
researchers conceded that the several-thousand-man-strong
military maneuvers did not quite square with the exercise
scenario of a small village being liberated from terrorists.
However, quoting Russian President Putin's remarks that the
fundamental goal of the SCO is counter-terrorism and not a
military alliance, they disputed contentions that the
exercises were a sign that the SCO aspires to be an "Eastern
NATO."
Randt