U.S.-CHINA POLICY PLANNING TALKS: AFRICA, ENERGY

C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 007364 SIPDIS SIPDIS E.O. 12958: DECL: 12/05/2036 TAGS: PREL ENRG ETRD EAID APEC SENV CH XA SUBJECT: U.S.-CHINA POLICY PLANNING TALKS: AFRICA, ENERGY SECURITY REF: A. BEIJING 7253 ¶B. BEIJING 7262 ¶C. BEIJING 7363 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, MFA Director General for Policy Planning Ma Zhaoxu said the United States and China have common concerns on African development issues. He expressed hope for the region and noted the importance of China as a model and a growing source of assistance, which, he added, comes "without conditions." Director Gordon stressed the United States does not oppose increasing Chinese involvement in the continent, said he hoped U.S.-China cooperation would expand beyond the political, and described new developments in U.S. assistance for Africa. Ma said that Chinese energy development in Africa is a part of overall PRC cooperation with the continent, with the goal of "mutual development." Agreeing on the need for close cooperation on energy, the two sides discussed possible international frameworks under which cooperation could take place. End Summary. ¶2. (C) State Department Policy Planning Director David Gordon and James Green of the Policy Planning Staff visited Beijing November 12-15 for Policy Planning talks with 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 America and Oceania SIPDIS Department's Fourth Division) also participated. Director Gordon's discussion with Beijing University scholars on Taiwan, democracy, Asia policy and alliances is reported Ref ¶A. Aspects of the dialogue touching on Chinese foreign policy and "hotspots" such as Iran and the DPRK are reported Ref B. The discussion on trends in East Asian regional architecture and Russia is reported Ref C. Africa: Governance Remains a Challenge - - - - - - - - - - - - - - - - - - - - ¶3. (C) Director Gordon noted that currently there are positive trends toward more effective government in parts of Africa, and Africa has also become a new focal point for energy resource development. Political stability remains a challenge in many countries, however. Sudan is of particular international concern, he noted, adding that international cooperation is important for resolving such crises, as seen in the deployment of UN/AU forces to the Darfur region. Gordon expressed hope for Nigeria and other resource-rich countries, but noted that historically such resources have not often been used to enhance the welfare of citizens. Transparency and accountability remain a particularly acute challenge in Africa, and the United States looks forward to discussing with China energy, financial stability and the use of resources in Africa. The United States has endeavored to reduce the debt burden on some African countries, Gordon noted, and has concerns about the acquisition of new debt in the continent. ¶4. (C) DG Ma responded that China and the United States have many common concerns in the region. He said that it is "emerging as a hopeful continent" and that he expects to see continued growth in the region. Ma added that Africa is also experiencing improved peace and security and is increasingly important in regional and international issues, through both the AU and the UN. Many challenges remain, including persistent poverty, the debt burden and the potential for armed conflict. ¶5. (C) Ma stressed the shared history of China and many African countries as former colonies and suggested that China and Africa share similar positions on many international issues, especially involving economic development. As the PRC has opened up, Ma said, it has sought to establish a new strategic relationship with Africa "based on common interests," and he stressed that "mutual responsibility and mutual benefit" form the foundation of the relationship. As an example, Ma noted President Hu Jintao's announcement at the November 2006 China-Africa Summit of an eight-point assistance plan that includes economic assistance, measures to reduce Africa's debt burden and training programs. BEIJING 00007364 002 OF 003 ¶6. (C) Because of the "brotherly" relationship that China feels toward the continent, Ma said, China attaches no conditions to the assistance it provides Africa. Beijing emphasizes programs that support local development in specific ways, he added, such as building bridges, roads and schools, drilling wells and supporting healthcare initiatives. He further stressed the importance for China of multilateral initiatives for African development. ¶7. (C) Ma said that China shares U.S. concern for African governance and transparency and supports "democratic development." He expressed hope that Africa will view China as a model for its development, not to be copied wholesale, but as a source of ideas and inspiration for sustainable development. Gordon agreed that African countries could draw some useful lessons from the Chinese experience, especially the importance of integration with the world economy. ¶8. (C) DG Ma stressed that the strength of China's interaction with the region lies in its policy of non-interference in the affairs of other countries. For this reason, he asserted, African countries welcome the PRC's participation in development assistance. U.S. Does Not Oppose Increasing Chinese Role in Africa - - - - - - - - - - - - - - - - - - - - - - - - - - - - ¶9. (C) China's increasing interest in the region is good for Africa, Gordon said, and the United States does not oppose this involvement. He said that engagement on Africa at the political level has been effective, and that the United States hopes to expand this discussion to a broader range of issues. The United States and China will need to cooperate in the near term on issues such as AIDS and sustainable development. ¶10. (C) DG Ma noted that "some countries" are concerned about Chinese cooperation on African development. Such concern is unwarranted, he asserted, because China will coordinate with the United States and other partners. However, Ma stressed, the international community should be responsive to the views of African countries on their own needs and deal with them as equals in the name of mutual benefit. ¶11. (C) Responding to Ma's interest in the increase in U.S. interest in Africa in recent years, Director Gordon replied that the United States sees many challenges in the continent in which the United States can play a constructive role, including AIDS, tuberculosis and malaria eradication. U.S. aid programs are more focused now to leverage greater resource flows for countries that are more able to use them for real gains, as is seen in the Millennium Challenge Account program. The creation of the African Command (AFRICOM) should similarly be seen as a push for better coordination on counter-terrorism and counter-extremism, with the focus on developing the capacities of African security forces to respond to such threats. Gordon stressed that the creation of AFRICOM reflects long-standing U.S. engagement with the continent. Energy Development a Part of African Cooperation - - - - - - - - - - - - - - - - - - - - - - - - - ¶12. (C) DG Ma said that with China's economic development has come a natural increase in its demand for petroleum. Noting that China is also an oil-producing country, Ma said that China feels a need to seek opportunities for cooperation on energy development with African countries. Stressing that the United States and EU are already actively involved in the development of African oil fields, and China is a relative newcomer, Ma said that Chinese energy development in Africa is a part of overall PRC cooperation with the continent, with the goal of "mutual development." ¶13. (C) Ma stressed that private companies investing in energy development do so under market conditions, and that they "cannot be ordered" to support local development. He added that U.S. and Chinese companies have shown willingness to cooperate with each other, and that the government should strengthen official dialogue in support of this. He added that Chinese companies in Africa provide donations for education, local development and clean water programs. Energy: Fertile Ground for U.S.-China Cooperation BEIJING 00007364 003 OF 003 - - - - - - - - - - - - - - - - - - - - - - - - - ¶14. (C) Director Gordon responded that cooperation on energy development shows the potential for the United States and China to create win-win scenarios. In countries such as Nigeria, for example, cooperation with the international community is essential for reaching their development potential. The United States and China share an interest in the diversification of the world's supply of oil. Untapped sources of oil are mostly in very challenging places, and we have a shared interest in securing lines of transportation. Gordon stressed that market conditions generate the needed investments, given the growth in global energy demand. Achieving the shared interest in reconciling the role of energy in economic development and the global environment will take strong U.S.-China cooperation. ¶15. (C) Concurring with the U.S. assessment that cooperation on energy is critical, Director Ma said the international energy market is linked to issues of governance and economic development in producing countries. With the increasing price of oil, the Untied States and China share an interest ensuring stability in this market. He stressed that President Hu's new conception of energy security includes a move to increase international cooperation on energy security. Energy: Institutional Framework Concepts - - - - - - - - - - - - - - - - - - - - - ¶16. (C) Gordon noted that the United States is considering institutional mechanisms that could be appropriate for expanding the membership of the International Energy Agency (IEA) to key consumer nations, especially China. He added that such a framework could provide an important institutional focal point on many energy issues, as could the OECD. DG Ma responded that China recently hosted a meeting of energy-consuming countries to discuss economic development and climate change, but that concerns of producing countries also must be addressed. He added that major consuming countries need to take the lead on cooperation. ¶17. (U) S/P did not have a chance to clear this message. RANDT