Identifier
Created
Classification
Origin
07BEIJING7498
2007-12-14 09:47:00
SECRET
Embassy Beijing
Cable title:  

EAP DAS CHRISTENSEN AND MFA DIRECTOR GENERAL LIU

Tags:  PREL PARM ETRD PHUM MARR CH TW IR BM SU UN 
pdf how-to read a cable
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INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCNFUR/DARFUR COLLECTIVE
RUCNIRA/IRAN COLLECTIVE
RUEHMO/AMEMBASSY MOSCOW 8883
RUEHGO/AMEMBASSY RANGOON 4670
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RUEAIIA/CIA WASHINGTON DC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHINGTON DC
S E C R E T SECTION 01 OF 06 BEIJING 007498 

SIPDIS

SIPDIS

E.O. 12958: DECL: 12/14/2032
TAGS: PREL PARM ETRD PHUM MARR CH TW IR BM SU UN
SUBJECT: EAP DAS CHRISTENSEN AND MFA DIRECTOR GENERAL LIU
JIEYI REVIEW CHALLENGES IN U.S.-CHINA RELATIONS

Classified By: Political Minister Counselor Aubrey Carlson. Reasons
S E C R E T SECTION 01 OF 06 BEIJING 007498

SIPDIS

SIPDIS

E.O. 12958: DECL: 12/14/2032
TAGS: PREL PARM ETRD PHUM MARR CH TW IR BM SU UN
SUBJECT: EAP DAS CHRISTENSEN AND MFA DIRECTOR GENERAL LIU
JIEYI REVIEW CHALLENGES IN U.S.-CHINA RELATIONS

Classified By: Political Minister Counselor Aubrey Carlson. Reasons 1.
4 (b/d).

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


1. (C) In a December 14 meeting with EAP DAS Thomas
Christensen, MFA North American and Oceanian Affairs Director
General Liu Jieyi reviewed progress to date and challenges
ahead for bilateral relations. He noted that the U.S.
presidential election, the Olympic Games in Beijing, and the
elections in Taiwan would all be important issues for the two
sides. DAS Christensen pressed China to continue cooperation
on a third UNSC resolution on Iran, reconsider the Yadavaran
oil services contract, and investigate a conventional arms
shipment bound for Iran. Liu said China is still committed
to getting Iran to give up its nuclear program but defended
the Yadavaran deal as unrelated. DAS Christensen stressed
the importance of North Korea making a timely and full
declaration of its nuclear program for the Six-Party process
to move to the next phase. DAS Christensen urged China to
exert influence on the Burmese junta to open its political
process and on the Sudan Government to stop impeding UNAMID
deployments. Liu expressed appreciation for U.S. opposition
to the DPP's UN referendum, but urged vigilance on Chen
Shui-bian and urged Washington to avoid wrong signals. DAS
Christensen urged China not to overreact to Chen's activities
and stressed that a use of force by China would be a
catastrophe for bilateral relations. He also strongly
requested that China reconsider establishing a civilian air
route in the Taiwan Strait which would be seen as very
provocative on Taiwan and play into Chen Shui-bian's campaign
to gain support for the DPP's UN referendum. End Summary.

Outlook for Bilateral Ties in 2008
--------------


2. (C) In a meeting December 14 with DAS Christensen, MFA
North American and Oceanian Affairs Director General Liu

Jieyi praised the recently concluded Strategic Economic
Dialogue (SED) as being in-depth, real, and in compliance
with China's changed economic priorities after the 17th Party
Congress. He noted that China's economic development to date
has been driven by exports and investment, but President Hu
emphasized that the consumption must be placed ahead of
exports and investment as the key to sustained growth.
Attention to the environment was also stressed in Hu's
political report. More focus on consumption and protection
the environment, Liu commented, provide opportunities for
cooperation with the United States. He urged the two sides
to reinvigorate economic and trade relations and to avoid
protectionism.


3. (C) Previewing the upcoming year, Liu said that the U.S.
presidential election, China's hosting of the Olympics, and
the ability for Chen Shui-bian to cause problems at any time
will be important issues for the two countries to face.
Early in 2009 China and the United States will celebrate the
30th anniversary of the establishment of bilateral relations.
Liu said that it was important to maintain healthy
relations, especially through the U.S. political transition.
Liu said that it was particularly important to enhance
political relations and strategic trust. Primarily this can
be accomplished through high-level visits. China is happy
with the SED and the Strategic Dialogue (SD) and hoped that
those processes can be institutionalized to help bridge the
administration changeover in the United States. China would
welcome a visit by Secretary Rice early next year, and
Executive Vice Foreign Minister Dai Bingguo is very much
looking forward to hosting Deputy Secretary Negroponte in
January in Beijing and
Guiyang to set the tone of relations for the year.


4. (C) Liu said the two sides should also sustain cooperation
and coordination on international and regional issues. Liu
expressed hope that the United States would not allow
domestic politics in the election season to damage bilateral
relations. He also urged the United States not to hurt the
interests of the Chinese side on issues such as the Dalai
Lama, Falungong, human rights and the Olympics. Whatever
short-term gains various groups try to achieve on these

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issues could make long-term relations suffer. Liu said that
military-to-military ties should also advance and the two
sides should set up a hotline between the two defense
ministries as soon as a technical agreement is reached.
Deputy Chief of the PLA General Staff Lieutenant General Ma
Xiaotian had an excellent visit to the United States the week
of December 3 for Defense Consultative Talks and made four
suggestions for enhancing strategic trust. In particular, he
said that countries should take into account the concerns of
the other side and ab
andon notions of containment.

Agenda for the Strategic Dialogue
--------------


5. (C) DAS Christensen said that bilateral relations are
positive and heading in the right direction. There has been
excellent progress not only on bilateral but in addressing
issues of common concern in third areas, such as Sudan and
North Korea. Deputy Secretary Negroponte had an excellent
meeting with Ambassador Zhou in Washington on November 21, at
which they discussed preliminary ideas regarding the next
round of the Senior Dialogue. The United States would like
to propose that Sudan, Pakistan and Burma be included as
topics for discussion at the SD, as well as improving common
efforts to counter proliferation in places like North Korea
and Iran. DAS Christensen also said he wanted to provide a
formal response on Dai Bingguo's proposal for a
U.S.-China-Japan trilateral. The idea is very interesting
and bears further study, but the United States does not feel
that the time is ripe for a formal trilateral dialogue. The
United States consulted with our regional allies regarding
the idea, and South Korea in particular is nervous about the
idea and concerned about being excluded. With the Six-Party
Talks going well, we would not like to see a new mechanism
detract from that focus. The United States wants to see the
track-two trilateral dialogue continue, and will continue to
consider with interest the Chinese proposal.


6. (C) Liu responded that China is willing to discuss the
topics proposed. On the trilateral, Liu said that the three
players in the proposed dialogue are very important for
regional security. China's proposal stemmed from U.S.
encouragement, such as in the track-two dialogue, and is not
meant to make any country feel excluded. If everyone is to
be included, then issues would only be discussed in the UN.
It is natural to discuss different issues in different fora.
Nevertheless, China notes the U.S. position and will stay in
touch on this issue.

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


7. (C) DAS Christensen characterized Iran as an ongoing
problem. He expressed appreciation for Assistant Foreign
Minister He Yafei's participation in the Paris P5-plus-1
meeting and his continuing engagement on the issue. The
various parties need to finalize a third UNSC resolution, and
China's cooperation is needed. A non-paper on the issue has
been prepared and will be presented to AFM He in the next
meeting (septel) that specifically discussed the Iranian
entities we want to designate in the third resolution. China
has said that we need to keep the pressure on Iran to be
effective, and we fully agree. In this light, the United
States is very disappointed about SINOPEC's decision to move
forward on a USD 2-billion, seven-year development deal for
the Yadavaran oil field in Iran. The United States hopes
that China will reconsider this decision in light of its
international commitments and responsibilities to work with
the United States and others to pressure Iranian compliance
with the international community's demands.


8. (S) On the issue of conventional arms, DAS Christensen
continued, we have raised concerns about a shipment of
military-related goods on the M/V Iran Matin, which departed
Tianjin on November 23 for Iran. We have new information
that the cargo may include sodium perchlorate, which can be
used to produce ammonium perchlorate, which is used in
solid-fuel rockets motors. We understand the shipment is
destined for the Iran Defense Industries Organization, an
entity designated by existing UNSC resolutions. We urge

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China to recall this shipment and to investigate the cargo to
ensure that it does not violate UNSC resolutions. DAS
Christensen reminded Liu that the Iran issue is very
sensitive in Washington.


9. (C) Liu responded that all sides are working toward a
third UNSC resolution and new amendments are being proposed.
AFM He will discuss this with DAS Christensen at the next
meeting (septel). Liu noted that Ambassador Randt had
presented a non-paper on the SINOPEC deal. Liu said that
China and the United States share the same basic position in
opposing nuclear proliferation in Iran and in seeking a
peaceful resolution to the issue through diplomatic means.
China is a responsible country and has played a key role in
the passage of other UNSC resolutions regarding Iran. That
said, China s a country of 1.3 billion people, and it needs
energy supplies to develop. This is also conducive to the
stability of the world economy. The Yadavaran project is a
normal engineering services project between two companies.
It also reflects concern for the humanitarian needs of the
Iranian people. This deal has been under negotiation since
2003 and is not new. It is a contract for services and is
not an investment.


10. (C) Liu argued that the deal is fully in line with common
practices and with UNSC resolutions and does not harm the
interests of seeking a solution to the nuclear issue. Normal
economic and trade cooperation does not contradict efforts to
convince Iran to scrap its uranium enrichment program.
European countries and Japan also have normal trade with
Iran, but those countries are also working to persuade Iran
to give up its program. He remarked that when Foreign
Minister Yang Jiechi attended the Annapolis Conference in
November, Secretary Rice said she understood that China would
like other countries to respect its interests in Iran and
that the new resolution is not intended to affect energy
cooperation. She also indicated when she met with Foreign
Minister Yang in New York in September that the United States
understands that China has economic interests in Iran and
that the United States does not intend to include the oil and
gas sector in UNSC resolutions. Liu urged the United States
to put such statements into action. Also, the United States
should not impose sanctions based on domestic laws nor make
irresponsible public comments on China's economic
relationship with Iran.


11. (S) On the conventional arms issue, Liu said he was
unaware of a possible solid-fuel component in the shipment
and said that the MFA would look into this. China strictly
upholds UNSC resolutions and has strict export controls.
China will not condone any violations of UNSC resolutions or
its own export controls, he added.

Six-Party Talks
--------------


12. (C) DAS Christensen praised the Six-Party Talks, the
progress made to date, and the important role that China has
played in the process. He reported that the disablement
process is progressing well. It is important, however, that
the North Koreans provide a timely and full declaration of
their nuclear program by year's end to sustain the process
and move it promptly toward the final phase of dismantlement.
He urged China to use its influence to encourage the North
Koreans to act accordingly. Liu did not respond.

Burma
--------------


13. (C) DAS Christensen expressed appreciation for some of
China's actions to date, including helping to pave the way
for UN Special Advisor Gambari's visit. But despite the
efforts of the international community to date, there have
been no meaningful improvements in Burma, and there has been
clear backsliding by the regime in fulfilling the
international community's demand for a serious dialogue
between the regime and the opposition. The situation in
Burma is not stable; it is stagnant. Without the meaningful
participation of the democratic opposition and ethnic
minority groups in a constitutional process, the regime's
"road map" will only lead to further instability because it

BEIJING 00007498 004 OF 006


lacks any domestic credibility. The United States believes
the regime needs to include Aung San Suu Kyi and ethnic
minorities in the process. Furthermore, the regime needs to
allow Gambari to have multiple meetings with the SPDC
leadership, Aung San Suu Kyi, and other representatives of
the political opposition/ethnic minorities. His pending
visit in January must show real results, as was underscored
by SYG Ban's recent statements on the matter. We hope China
will use its influence to encourage the regime to open its
political process to ensure real stability in the country.
We understand that China wants stability in Burma, but Burma
can not be stable without the opening up its political system.


14. (C) Liu responded that the situation in Burma appears to
be improving. China shares objectives with the United States
in wanting to see the development of democracy, the rule of
law, social stability and economic development. China is
encouraged by the "road map" and feels it should be
implemented. There has been good contact between the regime
and Aung San Suu Kyi of late, and she has shown an increased
willingness to engage in dialogue. With this positive
atmosphere, China hopes that nothing will be done that will
make the situation more difficult. China will support
Gambari's next visit, Liu said. DAS Christensen responded
that we have a very different assessment of recent events in
Burma and would like China to use its influence to produce
truly meaningful progress there.

Sudan
--------------


15. (C) DAS Christensen requested that China press Khartoum
to stop creating bureaucratic impediments to delay or derail
UNAMID's full deployment. Khartoum continues to push back on
certain non-African troops participating in the hybrid force
and has been slow to resolve outstanding issues related to
land and water usage. DAS Christensen said that over the
past year China's position has undergone a dramatic and
positive change, highlighted by the decision to send 315
engineering troops to Darfur. The United States has
condemned rebel threats against those Chinese UNAMID troops.
It is important that the Chinese corps be allowed to complete
its work so that the larger force can move in, but Khartoum
needs to stop dragging its feet.


16. (C) Liu responded that China has worked hard from the
beginning with the Sudanese Government to take international
concerns seriously. At all critical junctures, China has
played a crucial role. Liu expressed appreciation for U.S.
condemnation of the terrorist threat to the Chinese
engineering corps. China wants to see the smooth deployment
of the hybrid force. The current difficulties are minor
ones, but we should not let these differences obstruct the
deployment. Liu explained that it is important to do first
things first, but eventually the North-South issue would have
to be faced. He urged the United States to encourage the
rebels to sign on to peace agreements as well. DAS
Christensen agreed that both areas merit attention and said
the United States was already pushing the rebels to accept
peace.

Olympics and Human Rights
--------------


17. (C) DAS Christensen made clear that the United States
hopes that China has a successful Olympics. At the same time
there is a lot of criticism at home about our handling of our
relations with China with many arguing we should be tougher.
Many of these critics focus on the Olympics in their
comments. President Bush announced his intention to attend
the 2008 Olympic Games in Beijing, signifying the USG's hopes
for a truly successful Olympics and our rejection of the
notion of an Olympic boycott. We believe that the Games
provide China an opportunity not only to showcase the
enormous economic progress the country has made in recent
decades, but also demonstrate a commitment to greater
openness, tolerance, and respect for human rights. It is
only natural that the eyes of the international community
turn increasingly toward China in the lead-up to the
Olympics, focusing on China's handling of human rights issues
and press freedoms. DAS Christensen urged China to take

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these concerns seriously and to pursue a truly successful
Olympics experience by showing progress on these fronts.


18. (C) DAS Christensen expressed concern about Rebiya
Kadeer's imprisoned son Ablikim and reports that he is
gravely ill. This is a major concern in the United States.
He requested that the MFA ensure that he is receiving proper
medical attention and urged that the legal cases against him
and his brother, which appear politically motivated, be
overturned.


19. (C) Liu responded that the Olympics belongs to the world;
it is just Beijing's opportunity to host. China hopes the
games will be successful. From Hu Jintao's political report
of the 17th Party Congress, it is clear that China will work
toward being more open even without the Olympic Games. China
is pleased that the United States does not support linking
other issues to Beijing's hosting of the games. With regard
to Rebiya Kadeer's son, Liu noted that Kadeer left China out
of consideration for her health and that she was supposed to
be resting and recuperating in the United States. The United
States should not be a vehicle for her activities. Liu noted
that he is not aware of any illness or if the alleged illness
is real. He said no one is above the law, but prisoners have
rights to medical treatment and if treatment is needed it
will be provided.

Taiwan
--------------


20. (C) Liu expressed appreciation for U.S. efforts to oppose
the DPP's UN Resolution, as well as the U.S. commitment to
one China and the three joint communiques. There are
indications that President Bush has been much more forceful
in opposing the splittist activities of Chen Shui-bian. From
now to the March 2008 election, and from the election to the
May 2008 inauguration, the situation will be extremely
sensitive. Chen may try to take actions that will be highly
detrimental to our mutual interests in an attempt to set
conditions and rules for the new leader. He said that no one
wanted to see a crisis or conflict in the Strait. Liu
expressed hope that the United States will be firm and
forceful in preventing Chen's various attempts at
independence. Liu argued that it is very important for U.S.
signals to be uniform and avoid any action that could
undercut U.S. opposition to the referendum. These would
include any official contact with Taiwan authorities or
further weapon sales.


21. (C) DAS Christensen responded that the United States has
been very forceful on opposition to the referendum and is
going to say something at a very high level at the
appropriate time. He argued that no one in Taiwan reads the
"signals" Liu referred to as indicating U.S. support for the
referendum. In fact, pro-independence activists on the
island routinely criticize the USG position on cross-Strait
relations, and the pan-Blue opposition does not complain to
us about tacit support for Chen Shui-bian. As for meetings
with Taiwan leaders, they provide an opportunity for the
United States to convey its views clearly, and Beijing should
appreciate and support such meetings. The U.S. goal is to
shape the political environment on Taiwan to be less
receptive to Chen Shui-bian's efforts on the UN referendum,
but we must recognize that the referendum is pure symbolism
that cannot actually change Taiwan's constitution or its
place on the international stage. The worst possible thing
would be for China to overreact to the referendum. Chen will
leave office, and the referendum cannot change Taiwan's
status. An overreaction by China would help only help
pro-independence forces on the island. Neither the United
States Government nor the American public would view a
mainland use of force as a reasonable or acceptable response
to the referendum, and any use of force would be a
catastrophe for U.S.-China relations.


22. (C) Along the same lines, DAS Christensen raised the
reported plan to establish a civilian air corridor only a few
miles west of mid-point of the Strait. He pointed out that
this would be seen as very provocative in Taiwan and feed
into Chen Shui-bian's logic about the need for a UN
referendum to improve Taiwan's international stature. He

BEIJING 00007498 006 OF 006


noted that the corridor is close to where military exercises
are held and there could be an incident. This would stoke
fears on Taiwan that it is being squeezed militarily. He
urged that that the decision be reconsidered. When Liu
countered that such a route was fully in keeping with
international civil aviation standards, DAS Christensen
emphasized that this was not an economic or legal issue, but
was a political and security issue. Such a move by China
would be destabilizing, particularly in this highly political
season on the island.

Legal and Pouch Issues
--------------


23. (C) Though the meeting was running over, Liu quickly
raised a few additional issues. On the case of Chinese
citizen Yuan Hongwei who is facing extradition to the United
States from the UK, Liu said the case looks like entrapment
and is being dealt with in China. He urged the United States
to clarify its position on the matter. DAS Christensen
responded that Yuan is accused of counterfeit, forgery and
other charges in the states of Louisiana and Indiana.


24. (C) Liu requested that the U.S. Government intervene to
prevent U.S. citizen Ann Daub's lawyer from again freezing
China's assets in the United States and requested that the
judgment be withdrawn. DAS Christensen said he would be in
touch with DCM Zheng Zeguang about the case.


25. (C) Liu alleged that the Falungong (FLG) is linking up
with democracy activists in an attempt to foment a military
coup in China. In addition, he mentioned FLG legal cases
(NFI). He said that FLG is stirring up antagonism toward
Chinese students in the United States by accusing them of
being agents of the Chinese Government. He asked the U.S.
Government to be attentive to the FLG.


26. (C) Liu protested the opening of two diplomatic
containers in September and October and requested that the
United States respect the inviolability of the diplomatic
pouch. There was no time for DAS Christensen to respond to
these points.


27. (U) DAS Christensen cleared this message.
RANDT