S/P GORDON BILAT WITH VFM WANG YI: IRAN, BURMA,

C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 007105

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/15/2017
TAGS: PREL PINS ENRG SENV KNNP ASEAN CH XA BM IR
KN
SUBJECT: S/P GORDON BILAT WITH VFM WANG YI: IRAN, BURMA,
NORTHEAST ASIA SECURITY, AFRICA, ENERGY


Classified By: Political Minister-Counselor Aubrey
Carlson. Reasons 1.4 (b) and (d).

Summary
--------------


1. (C) Chinese Vice Foreign Minister Wang Yi, speaking
with Policy Planning Director David Gordon November 13,
stressed the need for the United States and China to
continue their policy planning dialogue on long-term
strategic issues. S/P Director Gordon emphasized to
VFM Wang that the United States and China have a
mutual interest in preventing Iran from acquiring a
nuclear capability and that economic and financial
pressure is necessary to ensure that international
Iran-related efforts succeed. VFM Wang responded that
China believes the Iran issue should be solved through
peaceful dialogue, citing the Six-Party Talks as a
"useful reference" for dealing with Iran. Regarding
Burma, VFM Wang said the unrest there is an internal
affair that does not influence regional stability or
security. Therefore, it is up to the various parties
in Burma to resolve their differences. Gordon
explained current U.S. thinking regarding a future
Northeast Asian security mechanism and the need to
reinvigorate APEC. Future cooperation mechanisms in
East Asia must be open and transparent, VFM Wang
emphasized, and members "should not close themselves
off" from others. Financial cooperation among East
Asian countries remains in a preliminary stage, VFM
Wang observed, saying the IMF and World Bank should do
more to understand the "unique features" of the East
Asian region. VFM Wang agreed with Director Gordon's
assertion that the United States and China should
cooperate more closely on African development issues
and energy security. End summary.

U.S.-China Policy Planning Dialogue Useful
--------------


2. (C) Policy Planning Director (S/P) David Gordon,
accompanied by the Charge, met November 13 with
Chinese Vice Foreign Minister Wang Yi. VFM Wang
reviewed the history of the bilateral policy planning
dialogue, which VFM Wang initiated in 1999 when he was
head of the MFA's Policy Planning Department. At that
time, VFM Wang observed, there was debate within the
international community over whether China wished to
"chase" the United States out of East Asia. VFM Wang
recalled how he told his American counterparts in 1999
that China had neither the ability nor the intention
to do such a thing. The United States continues to
have major influence and traditional interests in East
Asia, which China respects. The United States, VFM
Wang recalled saying in the first dialogue, should
likewise show respect for China's legitimate concerns
and rights in East Asia. Policy planning
consultations are useful for avoiding strategic
misunderstandings, VFM Wang remarked, and the United
States and China now enjoy better trust, cooperation
and, in some cases, even policy coordination.

Iran
--------------


3. (C) Director Gordon stressed to VFM Wang the
urgency of preventing Iran from acquiring a nuclear
capability. The United States believes constructive
diplomatic engagement should be accompanied by
economic and financial pressures on the Iranian
regime. The primary forum for international efforts
should be the United Nations Security Council, but
additional financial pressures are necessary. The
international community, Gordon warned, is not yet on
a trajectory that will successfully prevent Iran from
developing nuclear weapons. The United States and
China both have a stake in insuring that Iran cannot
destabilize the Middle East and undermine world
nonproliferation efforts, Gordon said.


4. (C) VFM Wang noted the "numerous bilateral
exchanges" on Iran and reiterated China's position:
China is opposed to Iran becoming a nuclear weapons
state, but the issue must be solved by peaceful means.
Dialogue is the only "good way" to resolve such a
complicated issue, VFM Wang said. Iran has stated
that it has no intention of becoming a nuclear weapons
state, and this assurance provides a basis, "albeit
fragile," for talks. All parties should move toward a
peaceful settlement through dialogue and should make
sure that no war breaks out in the Middle East. While

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acknowledging that differences between the Iran and
North Korea nuclear issues exist, VFM Wang said the
United States could consider using the Six-Party Talks
as a "useful reference" for dealing with Iran.

Burma
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5. (C) Director Gordon said an "historic opportunity"
exists to achieve political reconciliation in Burma.
Aung San Su Kyi and the military regime are both
showing some flexibility. The unity of the
international community, Gordon emphasized, is crucial
if we hope to make a difference in the behavior of the
Burmese regime. VFM Wang acknowledged that events in
Burma were a problem, but described the unrest in
Burma as an "internal affair" that does not impact
regional stability. Ultimately, VFM Wang said, it is
up to the parties in Burma to reach a solution. China
welcomes the role played by the international
community so long as those efforts are consistent with
encouraging a Burmese solution.

Future East Asia Cooperation Mechanisms
--------------


6. (C) The United States is a "global superpower," VFM
Wang observed, but China remains focused on East Asia.
The development of regional cooperation mechanisms is
an important agenda item for upcoming policy planning
consultations, VFM Wang said. VFM Wang asked Director
Gordon to describe current U.S. thinking about the
development of multilateral institutions in East Asia,
including potentially joining the East Asia Summit.
Gordon noted that East Asia is a dynamic and diverse
region that will continue to require an equally
diverse set of multilateral structures. The United
States would like to see a deepening of APEC's role on
economic and trade issues. The United States hopes to
see a reinvigoration of APEC and has suggested the
"ambitious goal" of reaching consensus on the
establishment of a Free Trade Area of the Asia-Pacific
(FTAAP). On the security side, the United States
would like to build upon the trust and confidence
created by the Six-Party Talks to establish a
Northeast Asia peace and security mechanism. The
process of establishing such a mechanism, however,
will depend on the pace of denuclearization on the
Korean Peninsula. A Northeast Asia mechanism should
be built "behind the denuclearization process," Gordon
said.


7. (C) VFM Wang agreed that a "European model" does
not suit East Asia's diversity. Sub-regional,
regional and pan-regional mechanisms will continue to
exist, VFM Wang said. The United States will
participate in some regional mechanisms, such as the
ASEAN Regional Forum (ARF),APEC and the Six-Party
Talks, but not all organizations will require American
involvement. All mechanisms, however, must be open
and transparent, and members should not close
themselves off from others, VFM Wang said. Gordon
added that the challenge regional institutions face is
how to balance consensus with effectiveness. In the
case of the ARF, the United States has been
disappointed by the failure of efforts to prod the
organization to address nonproliferation and has
concerns about the ARF's effectiveness.

Regional Financial Cooperation
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8. (C) Director Gordon remarked that regional
financial efforts should be consistent with the
International Monetary Fund, which will remain the
premier institution responsible for managing financial
crises. The United States hopes international
financial institutions will pay more heed to East
Asian voices on governance and operational issues.
VFM Wang observed that financial cooperation among
East Asian countries has lagged far behind regional
trade and investment ties. The Chiang Mai Initiative
on financial cooperation is still at a very
preliminary stage. The Chiang Mai Initiative, VFM
Wang observed, promotes communication on financial
matters rather than financial cooperation in a real
sense. Agreeing with Gordon on the need to increase
East Asia's voice in the international financial
system, Wang said that the IMF, World Bank and other
international financial institutions should better
appreciate the "unique features" of the East Asia

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region and "learn lessons from the past."

Party Congress, Commitment to Peaceful Development
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9. (C) VFM Wang briefed Director Gordon on key points
of General Secretary Hu Jintao's political report to
the 17th Communist Party Congress. In the report, VFM
Wang noted, Hu stated that China is committed to
peaceful development and "rejects hegemony." Hu also
stressed China's desire to develop mutually beneficial
relations with other countries and regions in order
that "China's development can help promote world
development." No ruling party, VFM Wang asserted, has
ever made such a strong commitment to peaceful
development.

Africa
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10. (C) Director Gordon stated that the United States
and China should cooperate more closely on development
assistance programs and conflict resolution in Africa.
VFM Wang described China's Africa policy as
"transparent." China has no ulterior political or
strategic motives in Africa, VFM Wang asserted, and
China's current engagement is a continuation of a
"historical trend" in Chinese diplomacy. When China
encountered difficulties in the past, African
countries offered their support in international
institutions. Now, VFM Wang said, it is only natural
that China assist African countries to develop now
that "we have some ability" to help.

Energy Security
--------------


11. (C) Turning to the issue of energy security,
Director Gordon said that, in addition to cooperating
to enhance stability in resource-rich regions, the
United States and China can also engage in more
technological cooperation. Gordon explained that the
United States policy on global warming is to move away
from a "restrictive approach" to one that reconciles
environmental with economic needs. The United States
also wants to promote a technological revolution in
the energy sector. VFM Wang agreed, noting that, as
two of the largest energy consumers in the world, the
United States and China need to enhance cooperation.
The two sides are facing similar challenges with
regard to global warming and should improve their
environmental dialogue, VFM Wang said.


12. (U) S/P staff cleared this message.
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