Identifier
Created
Classification
Origin
07BEIJING6376
2007-09-28 08:59:00
CONFIDENTIAL
Embassy Beijing
Cable title:
BEIJING-BASED G-5 CHIEFS OF MISSION ON EURO-RMB
how-toVZCZCXRO0699 OO RUEHCN RUEHGH RUEHVC DE RUEHBJ #6376/01 2710859 ZNY CCCCC ZZH O 280859Z SEP 07 FM AMEMBASSY BEIJING TO RUEHC/SECSTATE WASHDC IMMEDIATE 2295 INFO RUEHOO/CHINA POSTS COLLECTIVE IMMEDIATE RUEHRL/AMEMBASSY BERLIN IMMEDIATE 1615 RUEHLO/AMEMBASSY LONDON IMMEDIATE 3193 RUEHFR/AMEMBASSY PARIS IMMEDIATE 4169 RUEHKO/AMEMBASSY TOKYO IMMEDIATE 1595 RHEHNSC/NSC WASHDC IMMEDIATE RUEHBS/USEU BRUSSELS IMMEDIATE
C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 006376
SIPDIS
SIPDIS
E.O. 12958: DECL: 09/28/2017
TAGS: PREL PGOV SENV ECON CH FR GM JA UK
SUBJECT: BEIJING-BASED G-5 CHIEFS OF MISSION ON EURO-RMB
IMBALANCE, MERKEL'S DALAI LAMA MEETING, CLIMATE CHANGE
Classified By: Classified by Deputy Chief of Mission Daniel Piccuta. R
easons 1.4 (b/d).
Summary
-------
C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 006376
SIPDIS
SIPDIS
E.O. 12958: DECL: 09/28/2017
TAGS: PREL PGOV SENV ECON CH FR GM JA UK
SUBJECT: BEIJING-BASED G-5 CHIEFS OF MISSION ON EURO-RMB
IMBALANCE, MERKEL'S DALAI LAMA MEETING, CLIMATE CHANGE
Classified By: Classified by Deputy Chief of Mission Daniel Piccuta. R
easons 1.4 (b/d).
Summary
--------------
1. (C) At the September 28 bi-weekly G-5 Chiefs of Mission
gathering, French DCM Nicholas Chapuis said that Chinese
Premier Wen Jiabao told Chinese economic ministers to "work
on" the current Euro-RMB currency imbalance after French
Finance Minister Lagarde invited China's attention to it.
German Ambassador Michael Schaefer predicted that, in
retaliation for German PM Merkel's meeting with the Dalai
Lama, China will cancel meetings on certain topics such as
human rights. Chinese officials told both the British and
German Embassies that China is moving toward accepting
binding targets for carbon reduction. Upcoming high-level
visits include the British Olympics Minister and London's
Chief of Police to discuss Olympics security, the President
and Foreign Minister of France, the French Minister of State
for the Environment and Sustainable Development, and the
British Home Office Minister of State for Borders and
Immigration. End Summary.
Participants
--------------
2. (C) UK Ambassador William Ehrman, German Ambassador Dr.
Michael Schaefer, Japanese DCM Kunio UMEDA, French DCM
Nicholas Chapuis, and the DCM met September 28 for the
bi-weekly G-5 gathering of Beijing-based Chiefs of Mission.
Euro-RMB Currency Imbalance "Problematic"
--------------
3. (C) The appreciation of the Euro against the RMB has
become "really problematic," and, given that the Euro Zone is
China's largest trading partner, French Finance Minister
Christine Lagarde invited Chinese attention to the problem
during her recent visit, reported French DCM Nicholas
Chapuis. Premier Wen Jiabao responded by assuring Lagarde
that the lack of currency equilibrium was not deliberate and
by telling his economic ministers to "work on this" prior to
French President Nicolas Sarkozy's visit on or about November
26.
French High-Level Visitors to China
--------------
4. (C) French Foreign Minister Bernard Kouchner is scheduled
to visit China on November 1, but the date has not yet been
finalized because of a potential conflict with the Shanghai
Cooperation Organization (SCO) ministerial meeting in Russia,
which Premier Wen Jiabao and Foreign Minister Yang Jiechi
will attend. President Sarkozy's emphasis on climate change
is prompting a visit by French Minister of State for the
Environment and Sustainable Development Jean-Louis Borloo on
or about November 5-8. French Diplomatic Advisor to the
President Jean-David Levitte will visit China on
approximately November 8-10.
Fallout from Merkel's Dalai Lama Meeting
--------------
5. (C) German Ambassador Schaefer reported that China has
expressed dissatisfaction with Merkel's Dalai Lama meeting,
and that Chinese officials were unimpressed with Germany's
argument that meeting the Dalai Lama as a religious leader
and not as a "splittist" was in keeping with Germany's one
China policy. Schaefer said this meeting will likely lead
the Chinese government to cancel or postpone events and
visits in which the Chinese have little interest, but will
not affect other events. For example, Schaefer said the
Governments of Germany and China will probably be unable to
find a time that is "mutually convenient" for the Human
Rights Committee of the German Bundestag to visit China.
Climate Change
--------------
6. (C) On climate change, Schaefer stated that Chinese
Premier Wen Jiabao and President Hu Jintao told German
Chancellor Angela Merkel that the concept of common but
differentiated responsibilities won't preclude China from
accepting limits, such as a per-capita carbon limit, that
would eventually lead to binding targets for pollution
reduction. UK Ambassador William Ehrman said that the
Chinese had informed the British Embassy that they are "ready
BEIJING 00006376 002 OF 002
to accept the principle" of targets.
High-Level British Visitors
--------------
7. (C) British Ambassador William Ehrman reported that Simon
McDonald, Head of Foreign and Defense Policy and Advisor to
PM Gordon Brown, and Jon Cunliffe, Head of International
Economic Affairs and G8 "Sherpa," recently held a strategic
dialogue in China with Vice Foreign Minister Zhang Yesui and
Executive Vice Foreign Minister Dai Bingguo. British Home
Office Minister of State for Borders and Immigration Liam
Byrne will visit China at the end of October to negotiate a
migration agreement with China, as China is the top source of
illegal immigrants in Britain. British Olympics Minister
Tessa Jowell and Commissioner of Police of the Metropolis Sir
Ian Blair will be visiting China at the end of October to
discuss Olympics Security.
Japan: New Prime Minister, East China Sea Talks
-------------- --
8. (C) Japanese DCM Kunio Umeda reported that China has
responded favorably to new Japanese Prime Minister Yasuo
Fukuda especially because of Fukuda's statements that he will
not visit the Yasukuni Shrine. The PRC has invited Fukuda to
visit in late 2007 or early 2008, in advance of Chinese
President Hu Jintao's visit to Japan in the spring. The
Japanese will hold Director General-level talks with China on
joint exploration in the East China Sea October 11, but are
not confident of making any progress.
Randt
SIPDIS
SIPDIS
E.O. 12958: DECL: 09/28/2017
TAGS: PREL PGOV SENV ECON CH FR GM JA UK
SUBJECT: BEIJING-BASED G-5 CHIEFS OF MISSION ON EURO-RMB
IMBALANCE, MERKEL'S DALAI LAMA MEETING, CLIMATE CHANGE
Classified By: Classified by Deputy Chief of Mission Daniel Piccuta. R
easons 1.4 (b/d).
Summary
--------------
1. (C) At the September 28 bi-weekly G-5 Chiefs of Mission
gathering, French DCM Nicholas Chapuis said that Chinese
Premier Wen Jiabao told Chinese economic ministers to "work
on" the current Euro-RMB currency imbalance after French
Finance Minister Lagarde invited China's attention to it.
German Ambassador Michael Schaefer predicted that, in
retaliation for German PM Merkel's meeting with the Dalai
Lama, China will cancel meetings on certain topics such as
human rights. Chinese officials told both the British and
German Embassies that China is moving toward accepting
binding targets for carbon reduction. Upcoming high-level
visits include the British Olympics Minister and London's
Chief of Police to discuss Olympics security, the President
and Foreign Minister of France, the French Minister of State
for the Environment and Sustainable Development, and the
British Home Office Minister of State for Borders and
Immigration. End Summary.
Participants
--------------
2. (C) UK Ambassador William Ehrman, German Ambassador Dr.
Michael Schaefer, Japanese DCM Kunio UMEDA, French DCM
Nicholas Chapuis, and the DCM met September 28 for the
bi-weekly G-5 gathering of Beijing-based Chiefs of Mission.
Euro-RMB Currency Imbalance "Problematic"
--------------
3. (C) The appreciation of the Euro against the RMB has
become "really problematic," and, given that the Euro Zone is
China's largest trading partner, French Finance Minister
Christine Lagarde invited Chinese attention to the problem
during her recent visit, reported French DCM Nicholas
Chapuis. Premier Wen Jiabao responded by assuring Lagarde
that the lack of currency equilibrium was not deliberate and
by telling his economic ministers to "work on this" prior to
French President Nicolas Sarkozy's visit on or about November
26.
French High-Level Visitors to China
--------------
4. (C) French Foreign Minister Bernard Kouchner is scheduled
to visit China on November 1, but the date has not yet been
finalized because of a potential conflict with the Shanghai
Cooperation Organization (SCO) ministerial meeting in Russia,
which Premier Wen Jiabao and Foreign Minister Yang Jiechi
will attend. President Sarkozy's emphasis on climate change
is prompting a visit by French Minister of State for the
Environment and Sustainable Development Jean-Louis Borloo on
or about November 5-8. French Diplomatic Advisor to the
President Jean-David Levitte will visit China on
approximately November 8-10.
Fallout from Merkel's Dalai Lama Meeting
--------------
5. (C) German Ambassador Schaefer reported that China has
expressed dissatisfaction with Merkel's Dalai Lama meeting,
and that Chinese officials were unimpressed with Germany's
argument that meeting the Dalai Lama as a religious leader
and not as a "splittist" was in keeping with Germany's one
China policy. Schaefer said this meeting will likely lead
the Chinese government to cancel or postpone events and
visits in which the Chinese have little interest, but will
not affect other events. For example, Schaefer said the
Governments of Germany and China will probably be unable to
find a time that is "mutually convenient" for the Human
Rights Committee of the German Bundestag to visit China.
Climate Change
--------------
6. (C) On climate change, Schaefer stated that Chinese
Premier Wen Jiabao and President Hu Jintao told German
Chancellor Angela Merkel that the concept of common but
differentiated responsibilities won't preclude China from
accepting limits, such as a per-capita carbon limit, that
would eventually lead to binding targets for pollution
reduction. UK Ambassador William Ehrman said that the
Chinese had informed the British Embassy that they are "ready
BEIJING 00006376 002 OF 002
to accept the principle" of targets.
High-Level British Visitors
--------------
7. (C) British Ambassador William Ehrman reported that Simon
McDonald, Head of Foreign and Defense Policy and Advisor to
PM Gordon Brown, and Jon Cunliffe, Head of International
Economic Affairs and G8 "Sherpa," recently held a strategic
dialogue in China with Vice Foreign Minister Zhang Yesui and
Executive Vice Foreign Minister Dai Bingguo. British Home
Office Minister of State for Borders and Immigration Liam
Byrne will visit China at the end of October to negotiate a
migration agreement with China, as China is the top source of
illegal immigrants in Britain. British Olympics Minister
Tessa Jowell and Commissioner of Police of the Metropolis Sir
Ian Blair will be visiting China at the end of October to
discuss Olympics Security.
Japan: New Prime Minister, East China Sea Talks
-------------- --
8. (C) Japanese DCM Kunio Umeda reported that China has
responded favorably to new Japanese Prime Minister Yasuo
Fukuda especially because of Fukuda's statements that he will
not visit the Yasukuni Shrine. The PRC has invited Fukuda to
visit in late 2007 or early 2008, in advance of Chinese
President Hu Jintao's visit to Japan in the spring. The
Japanese will hold Director General-level talks with China on
joint exploration in the East China Sea October 11, but are
not confident of making any progress.
Randt