CODEL LARSEN-KIRK DISCUSSES PRODUCT SAFETY, TRADE,

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 005836 SIPDIS SIPDIS E.O. 12958: DECL: 09/06/2017 TAGS: PREL OREP PGOV PTER ETRD IR TW AF CH SUBJECT: CODEL LARSEN-KIRK DISCUSSES PRODUCT SAFETY, TRADE, IRAN, TAIWAN, DALAI LAMA WITH AFM HE YAFEI BEIJING 00005836 001.2 OF 002 Classified By: Political Minister Counselor Aubrey Carlson. Reasons 1. 4 (b/d). Summary -------------- ¶1. (SBU) Representatives Rick Larsen (D-WA) and Mark Kirk (R-IL) strongly urged China to address U.S. concerns about the safety of Chinese products and the RMB exchange rate in an August 27 meeting with Assistant Foreign Minister (AFM) He Yafei. Representative Kirk encouraged China's cooperation on drug trafficking and global warming, as well as on the Iran nuclear issue. China values its cooperation with the United States on counternarcotics and energy issues, AFM He said, and shares U.S. concerns about nuclear proliferation, differing only on its specific approach to the Iran nuclear problem. China is "shocked" by the U.S. decision to award the Dalai Lama a Congressional Gold Medal, AFM He said, warning that doing so may undermine bilateral cooperation in other areas. China hopes the United States will affirm its opposition to Taiwan independence in advance of the 2008 Taiwan elections. China also hopes the United States will designate the East Turkestan Liberation Organization a terrorist organization and return Chinese nationals released from Guantanamo. End Summary. Product Safety, Exchange Rate -------------- ¶2. (C) Representative Larsen urged China to address U.S. concerns about the safety of Chinese exports, particularly food products and toys. It would be a mistake for China to "underestimate the passion of the American public on this issue." Congress is not "spinning" this issue and is likely to propose product safety legislation following the summer recess. Concerns over product safety issues could impact the larger U.S.-China relationship. Representative Kirk also stressed the importance of Chinese cooperation in addressing product safety concerns and called for Beijing to assist with U.S. plans to place more Food and Drug Administration officials in China to inspect U.S.-bound goods. Turning to the RMB exchange rate, Rep. Larsen told AFM He that Congress will likely consider legislation to address the exchange rate issue. ¶3. (C) AFM He replied that China pays close attention to Congress' concerns. Ninety-nine percent of Chinese products are safe, and China has already taken action on "the other one percent." As a measure of China's seriousness about the product safety issue, it has placed Vice Premier Wu Yi in charge of efforts to address safety concerns and has implemented "other measures." AFM He said he hopes that Congress will not "demonize" China but will instead engage in dialogue on this issue. AFM He pointed out that the Renminbi has appreciated by 10 percent against the Dollar since China began adjusting the exchange rate in mid-2005. Counternarcotics, Climate Change, Iran, Hotline -------------- -- ¶4. (C) Representative Kirk, citing increased opium production in Afghanistan, called for continued cooperation with the United States in fighting drug trafficking, including opening additional channels for sharing information. Rep. Kirk urged China to do what it can to "stay out of the way" of the United States on the Iran nuclear issue, noting that Congress will devote increasing attention to this important topic. On the subject of climate change, Rep. Kirk said China should help transform potential conflict over greenhouse gas emissions into positive dialogue on how the United States can assist China in boosting its energy efficiency. Rep. Kirk expressed support for the establishment of a telephone link between the U.S. and PRC militaries to avert potential crises in times of emergency. ¶5. (C) AFM He agreed on the importance of cooperating in dealing with Afghan drug exports. AFM He proposed that the U.S. and Chinese missions to Afghanistan take the lead in facilitating coordination on this issue. Regarding Iran, AFM He said that China shares U.S. concerns about nuclear proliferation, commenting that the two countries "only have differences in their specific approaches." AFM He affirmed that China values cooperation with the United States on energy issues. AFM He said China takes the issue of climate change seriously and plans to reduce greenhouse emissions by twenty percent. AFM He said he will pass along the Rep. Kirk's support for a "defense hotline" to relevant authorities. Dalai Lama, Taiwan, Counterterrorism -------------- BEIJING 00005836 002.2 OF 002 ¶6. (C) AFM He said China is "shocked" by and "strongly opposes" the decision to award the Congressional Gold Medal to the Dalai Lama on October 17. This issue, AFM He said, affects China's "core national interests," and the Chinese people will be "infuriated" if the United States proceeds with its plans. AFM He said he could not overstate the impact of such an action on China's relationship with the United States. "If the United States is bent on harming China's core national interests," He said, "this may undermine cooperation in other areas." Representative Larsen reminded AFM He that the United States views the Dalai Lama as a revered religious leader, not as a political figure. Larsen further said that the United States recognizes Tibet as a part of China and encouraged Beijing to engage in direct discussions with the Dalai Lama. ¶7. (C) AFM He said he hopes the United States will affirm its opposition to Taiwan independence to help avoid potential crises in the lead-up to the 2008 elections in Taiwan. (Taiwan President) Chen Shui-bian, AFM He predicted, will use the elections to "step up his independence activities." AFM He said China is concerned about continued military cooperation between the United States and Taiwan. Representative Larsen reiterated the U.S. Government's adherence to its one China policy and urged that any disputes concerning Taiwan be resolved through diplomacy and dialogue. ¶8. (C) AFM He acknowledged close cooperation between the United States and China in fighting terrorism, but said the United States sometimes uses "a double standard" in deciding whether to designate groups as terrorist organizations. AFH He said China still hopes that the United States will designate the East Turkestan Liberation Organization as a terrorist organization and "show more political will" by returning Chinese nationals released from Guantanamo in the future to China to face "legal process." Representative Larsen noted that he and Representative Kirk planned to travel to Xinjiang to better understand counterterrorism issues there (septel). ¶9. (U) The CODEL did not have an opportunity to clear on this message. Randt