U.S.-CHINA POLICY PLANNING TALKS: REGIONAL

C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 007363

SIPDIS

SIPDIS

E.O. 12958: DECL: 12/05/2032
TAGS: PREL ETRD EAID APEC SENV KN JP RU TW CH
SUBJECT: U.S.-CHINA POLICY PLANNING TALKS: REGIONAL
ARCHITECTURE, NEAPSM, APEC, RUSSIA

REF: A. BEIJING 7253


B. BEIJING 7262

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

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


1. (C) During the U.S.-China Policy Planning dialogue in
Beijing in November, both sides agreed that the Six-Party
Talks and APEC represent important parts of the existing East
Asian regional architecture, and China and the United States
have common interests in those institutions. The
post-Six-Party Talks mechanism is of great interest to both
parties. China is adamant that the post-Six-Party Talks
mechanism not address or include Taiwan and should operate on
the basis of equality, trust and consensus. Both countries
agree that creating such a mechanism is a long-term process,
and China emphasized that denuclearization of the Korean
Peninsula and peace between the DPRK and the United States
and between the DPRK and Japan are higher priorities. China
sees Russia as a strong country unsatisfied with its current
role in the world. End Summary.


2. (C) Policy Planning Director David Gordon and James Green
of the Policy Planning Staff visited Beijing November 12-15
for Policy Planning talks with Chinese MFA Director General
for Policy Planning Ma Zhaoxu. On the Chinese side,
Counselor Tang Guocai, Division Director Zhou Jian and First
Secretary Yin Chengwu (of the North American and Oceanian

SIPDIS
Affairs Department's Fourth Division) also participated.
Aspects of the dialogue touching on Chinese foreign policy
and "hotspots" such as Iran and the DPRK are reported in Ref

B. Director Gordon's discussion with Beijing University
scholars on Taiwan, democracy, Asia policy and alliances is
reported in Ref A. The portions of the dialogue relating to
Africa and energy security will be reported septel.

Asian Institution-Building
--------------


3. (C) Director Gordon noted that the economic drivers of
change in Asia are extremely important, primarily the twin
engines of growth and economic integration, but security
drivers also play a role. The Six-Party Talks are an obvious
current example, but historically, the ASEAN initiative was
crucial to Asia's institutional development. The United
States does not see any single "right way forward" and is
open as to how Asia's institutions evolve. Europe might
offer one model, but there is no reason to expect Asia to
evolve the same way Europe has. Asia's primary obstacle to
integrated development is that there is no single overarching
institutional framework. Instead, there are several
international organizations, including new ones. The United
States will join some of these groupings, but not others.
Existing Asian institutions are not a viable alternative to
the United States' traditional alliances with our historic
partners. However, they will serve as an important
complement to those alliances and evolve into a broader
framework for peace and security in the region. The United
States sees that progress in this area will necessarily be
incremental, and there is no likelihood of a "big step
forward."


4. (C) DG Ma said that East Asian regional cooperation is
developing quickly, with institutions progressively stronger
and new institutions being created. Asian institutional
development grows mainly from the economic dynamism of the
Asia Pacific region, he said, and reflects the region's
political and economic diversity. The key element of Asian
institutions is legitimacy, meaning there is agreement that
their purpose and existence advance peace, development,
security and cooperation in the region. The United States
and China both play an important role in the development of
East Asian institutions. China's fundamental foreign policy
interest is to safeguard a peaceful regional environment in
which China can continue its economic development, and with
than in mind, China's policy is to cooperate and coordinate
with the United States on all challenges in the region. This
means that China welcomes a constructive, positive U.S. role
in Asian institutions.

APEC and Northeast Asia
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5. (C) Director Gordon noted that APEC has served well and
can continue to serve well, especially as a basis on which to
build a broader set of institutional networks. The Free
Trade Area of the Asia Pacific (FTAAP) proposed by President
Bush is an example of a way to move forward from the
successes APEC has already achieved. In the security area,
in Northeast Asia, the Northeast Asia Peace and Security
Mechanism growing out of the Six-Party Talks is an important
option to explore to build on the trust created through the
Six-Party Talks.


6. (C) DG Ma noted that China's initial participation in the
Six-Party Talks represented a "slight adjustment" in Chinese
foreign policy and way of doing things. At the beginning of
the multilateral process, China stated its position on the
Korean nuclear issue but refrained from participating; later,
China participated first in the Four-Party Talks and then the
Six-Party Talks in cooperation with the United States.


7. (C) APEC is very important in the region, DG Ma said. The
organization has been mostly focused on trade and investment,
but in the 2007 meeting in Sydney, there was a greater
emphasis on climate change. China believes APEC must stick
to its three basic principles: consensus, independence and
gradualism. This guarantees the achievements of the
institution will continue. Going forward, China believes
APEC should focus on strengthening the economic development
of member states by promoting multilateral economic
development institutions and pushing forward the Doha WTO
round. In addition, APEC needs to focus on trade and
investment facilitation, as well as strengthening economic
and technical cooperation to help developing members deal
with the challenges of economic competition.


8. (C) China acknowledges the importance of APEC structural
reform to the United States, and wants to work with all
members to "push forward continued healthy development" in
the region, Ma said. The Australia ministerial on APEC
structural reform will give impetus to this effort. China
sees the FTAAP as a long-term process deserving of APEC's
further study. DG Ma said China and other APEC member states
are uncertain about the U.S. commitment to this idea and
wonder if there is any urgency to the concept. S/P Staff
Green noted that President Bush raised the idea of the FTAAP
to bring APEC's focus back to trade and to set an
"aspirational goal" for APEC.


9. (C) DG Ma remarked that both the United States and China
are "very interested" in a Northeast Asia Peace and Security
Mechanism as a possible follow-on to the Six-Party Talks.
China is also interested in whatever mechanism is established
to address Korea-specific issues, such as ROK-DPRK talks, and
would like to explore options on how to cooperate with the
United States on these two mechanisms. Green said the United
States is waiting to see a draft charter or statement of
principles as an outcome of the Moscow Six-Party Talks
working group on NEAPSM, and would like such a charter or SOP
to be a component of a Six-Party Talks ministerial. The
actual organization is a long-term project. Concerning the
Peninsula mechanism, the United States believes that any
Korean peace regime should have four parties, he said.


10. (C) China has some ideas about a possible NEAPSM, DG Ma
said. First and foremost, China's core interest is that
Taiwan never be addressed in the NEAPSM and Taiwan not be
included in the mechanism. Beyond that, DG Ma listed
"principles" China believes should apply to the NEAPSM:
- The UN Charter should be mentioned in the NEAPSM's founding
documents.
- The NEAPSM should advocate a "new security concept"
including mutual trust, mutual benefit, equality and
cooperation.
- The NEAPSM parties should "abandon the Cold War mentality"
and pursue new ways of dealing with issues.
- Parties should participate equally and shoulder their own
responsibilities.
- The NEAPSM should be "win-win."
- The NEAPSM should operate on a consensus basis.
- The organization and operation of NEAPSM should give due
respect to the different political systems, levels of
economic development, cultural background and values of each
member.


11. (C) DG Ma described China's vision of the NEAPSM's
purpose:
- Enhance mutual (political) trust and security cooperation

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in Northeast Asia.
- Strengthen multilateral, mutually beneficial cooperation
and realize lasting peace and prosperity in Northeast Asia.
- Enhance strategic mutual trust through a process of
consultation and coordination.

He emphasized that establishment of the NEAPSM requires a
"step-by-step" approach and that "we cannot expect the NEAPSM
to be established tomorrow." The top priority must remain
the denuclearization of the Korean Peninsula; without this,
there is no point in even discussing the NEAPSM. We must
focus our energies on the Six-Party Talks. Following
denuclearization, the next priority should be the
normalization of relations between the United States and the
DPRK, and between the DPRK and Japan.

Russia
--------------


12. (C) DG Ma declared that Russia will remain an important
factor in East Asia, and strong generally, for some time to
come. "Russia's natural resources, human resources and
industrial base are all very strong," he said. Russia's
"natural conditions" are good. However, the United States
should recognize that Russia has an "historical tradition" of
"strongman government" and that recently, Russia has felt
pressure from outside that appears to be similar to
"containment." This external pressure, and internal
uncertainty about President Putin's future role, both
contribute to Russia's increasing assertiveness on
international questions. "Russia is not satisfied with its
current position in the world," he said.


13. (C) China and Russia have a "strategic, cooperative
relationship," DG Ma said, "but not an alliance." The
Sino-Russian relationship is not "aimed at" any other
country, but is instead designed to allow China and Russia to
cooperate internationally on issues where they share core
interests.


14. (U) S/P did not have a chance to clear this message.
RANDT