EAP DAS CHRISTENSEN PRESSES CHINA ON IRAN, BURMA,

S E C R E T SECTION 01 OF 05 BEIJING 007499

SIPDIS

SIPDIS

E.O. 12958: DECL: 12/14/2027
TAGS: PARM PREL KNNP MNUC ETRD CH IR SU BM
SUBJECT: EAP DAS CHRISTENSEN PRESSES CHINA ON IRAN, BURMA,
SUDAN, DPRK, HUMAN RIGHTS

REF: A. EAP/CM-BEIJING EMAIL 12/12/07

B. P STAFF-BEIJING EMAIL 12/12/07

C. BEIJING 7197

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


1. (C) Summary: EAP DAS Thomas Christensen told Assistant
Foreign Minister (AFM) He Yafei that the National
Intelligence Estimate (NIE) only underscores the need for
continued pressure on Iran, including via a third UNSC
resolution. AFM He said that language in the UNSCR draft on
export credits to Iran should be removed, and that China had
concerns about designation in the resolution of Bank Melli
but probably not the Qods Force. He cautioned that the NIE
has "changed the situation," as some countries now seek to
restore negotiations and talk about future steps on the
issue, with an eye to developing "a new strategy." He
complained that "irresponsible remarks" by the United States
on Sinopec's Yadavaran oil deal risk undermining U.S.-China
relations, including cooperation on the Iranian nuclear
issue. He defended PRC sales of conventional arms to Iran,
praised U.S.-China cooperation on the DPRK, and, contrary to
ongoing U.S. concerns, positively assessed recent
developments in Burma. AFM He sought U.S. assistance in
influencing rebel groups in Sudan to join the peace process.
End Summary.

Iran: Elements of Draft UNSCR
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2. (C) EAP DAS Thomas Christensen told Assistant Foreign
Minister (AFM) He Yafei December 14 that overall U.S.-China
relations are strong, with good cooperation on many issues,
in particular the DPRK, as well as Sudan and other issues of
mutual concern. One continuing challenge is how to improve
our cooperation on the Iran issue, which seems to be an
important exception to the general trend.


3. (C) Drawing on ref A talking points, DAS Christensen
expressed appreciation for China's continued engagement in
the P5-plus-1 process and AFM He's participation in the
December 1 Political Directors meeting in Paris. He stressed
that the NIE does not indicate that pressure on Iran is any
less necessary than before, and in fact underscores the need
for continued pressure, including a third UNSCR. DAS
Christensen told AFM He that two entities, Bank Melli and the
Qods Force, should be designated in the proposed UNSCR, and
passed AFM He ref B nonpaper on these entities.


4. (C) DAS Christensen explained that Bank Melli is involved
with entities that were targeted in previous UNSCRs, for
example in its handling of transactions for Bank Sepeh. He
stressed that it is the "very firm position" of the United
States that Bank Melli be designated in the next UNSCR. The
Qods Force, Christensen said, are involved in actions that
are not only destabilizing for the region, but are also in
clear violation of UNSCRs, including the sale and transfer of
arms to other countries. On-going support for the Taliban by
the Qods Force also violates UNSCRs related to Afghanistan,
he added.


5. (C) AFM He described U.S.-China cooperation on Iran within
the P5-plus-1 process as "fairly good," but pointed to
"normal" differences on "viewpoints and tactics." China
agrees that Iran should not develop or possess nuclear
weapons. At the same time, China believes that Iran is
entitled to the use of nuclear energy for peaceful purposes.
China takes the P5-plus-1 process very seriously and has been
participating actively.


6. (C) AFM He said that Beijing has noticed that the United
States has taken into consideration some of China's concerns
on the elements of the proposed third UNSCR circulated, but
added that China continues to have additional concerns that
are not reflected in the latest draft. He stressed that
Beijing stands ready to continue discussions within the
P5-plus-1 framework to reach an "early" agreement. AFM He
stressed that China's core concern with the elements draft
continues to be language on export credits to Iran, and said
that "this language" should be removed from the draft.
(Note: After the meeting, a MFA staffer clarified that AFM He
was indicating that the entire paragraph on export credits

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should be deleted.)


7. (C) AFM He said the PRC would seriously consider the
nonpaper on Bank Melli and the Qods Force. AFM He added,
however, that in Paris he made clear to U/S Burns that
consideration of the Iranian people is very important, and
that China continues to have normal trade relations with
Iran. Applying sanctions to Bank Melli would have negative
implications for the lives of ordinary Iranians as will as
undermine normal trade relations with China. He expressed
China's "serious reservations" about the proposal, although
AFM He added that China takes the proposal very seriously,
and if presented credible and sound evidence of the bank's
participation in proliferation activities, China would not
oppose "appropriate measures" by the UNSC. On the Qods
Force, He said that China will provide a response after
studying the nonpaper, but added that he does not think there
should be any "big problem" with the measure.

Iran: NIE Fallout
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8. (C) AFM He cautioned that the recent NIE has "changed the
situation" on the Iranian nuclear issue, and that "many
countries" are reconsidering their approach to the issue. He
said that such countries are stressing the need for enhanced
diplomacy and a return to negotiations with Iran as the way
forward. Germany has proposed, for example, a January
meeting of the P5-plus-1 as a way to consider how to restore
negotiations and talk about future steps on the issue, with
an eye to developing "a new strategy."


9. (C) AFM He said that United States, UK and France appear
to seek to separate the two tracks of the dual-track approach
by pushing on with a new UNSCR while postponing negotiations
to a later stage. The two tracks, he stressed, are related,
and separating them will not achieve positive results. If
the UNSC takes action, He said, there should be concurrent
action on negotiation. Otherwise, he warned, the
international community will have doubts about the sincerity
of the process and may withdraw support for it.


10. (C) AFM He said that China urges the United States to
engage in direct dialogue with Iran as the most effective way
to deal with the nuclear issue, adding that they have sent
the same message to the Iranians. AFM He said that China is
willing to work with the United States to "explore" ways to
bring this about, suggesting that such contact could take
place, for example, within settings such as 6-plus-1,
6-plus-1-plus-IAEA, or even one-on-one talks.


11. (C) AFM He told DAS Christensen that China has been
engaging with Iran to urge them to work with the IAEA to
resolve outstanding issues and respond to the concerns of the
international community on Iran's enrichment activities.
They have suggested, for example, that Iran accept the
"double-freeze" proposal.

Iran: PRC Sales of Conventional Arms
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12. (S) Turning to sales of conventional arms to Iran, DAS
Christensen expressed U.S. appreciation for President Hu
Jintao's commitment at the APEC summit to address the issue
but noted that PRC arms sales to Iran continue and send the
wrong signal to Iran, which continues to export instability
to the region, most notably through its transfer of arms to
groups fighting against Coalition forces in Iraq. Such
onward transfers are intolerable to the United States. He
also reminded AFM He of the November 23 demarche on M/V Iran
Matin, which we believe held, in addition to conventional
arms, a chemical precursor used in the production of
ballistic missiles and destined for a sanctioned Iranian
entity in violation of relevant UNSCRs. With Chinese cargo
aboard, DAS Christensen added, the PRC is authorized to
recall the ship.


13. (C) DAS Christensen summarized by stressing that, given
Iran's violation of UNSCRs, destabilizing activities, and
efforts to undermine the Middle East Peace Process, the
normal relations that China maintains with Iran are, in fact,
abnormal.


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14. (C) AFM He replied that PRC sales of conventional arms to
Iran are "limited" in volume and abide by relevant UNSCRs.
In such sales, he added, China requires Iran to sign end-user
statements, and China does not allow transfer to third
parties. Iran has complained to China about limitations on
its purchases of PRC arms, He said. On the export of
dual-use items and sensitive technologies, AFM He reaffirmed
China's commitment to abide by relevant UNSCRs and China's
obligations under international agreements, as well as
Chinese law, which constitutes a "very strict" export regime.
If a violation is detected, He added, "we will act," noting
that China has done so in the past. DAS Christensen referred
AFM He to the data presented previously to the Chinese
government demonstrating that Iran had transferred Chinese
weapons to Iraq in violation of Tehran's agreement with
Beijing.


15. (S) On the M/V Iran Matin, He disavowed specific
knowledge of the case, adding that China is willing to look
into the case if the United States is able to provide
information on when the cargo was loaded, specifics of the
nature of the nature of the cargo, and the receiving agent in
Iran. DAS Christensen responded that information on the case
was already provided in previous demarches and urged China to
act on the case.

Iran: Sinopec Yadavaran Deal
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16. (C) DAS Christensen called the recent Sinopec deal to
develop oilfields in Yadavaran a "bad signal to Iran" that
runs counter to the goal of applying increased pressure on
Iran over the nuclear program. Other partners in the
negotiations have been decreasing their economic engagement,
and the deal runs contrary to the overall positive spirit of
the recently concluded Strategic Economic Dialogue.


17. (C) AFM He insisted that the deal is for "provision of
services" and thus does not represent investment,
underscoring that the deal has no relation to the nuclear
issue. Calling the deal an "ordinary and conventional
contract," He noted that China is facing growing energy needs
and maintains normal trade relations with Iran. He claimed
that negotiations over the deal have been ongoing since 2003.
AFM He said China is willing to share more detailed
information on the deal with the United States, and that
Sinopec representatives have agreed to meet with USG
officials on the matter.


18. (C) Acknowledging the sensitivity of the agreement for
the United States, AFM He said the deal has received a lot of
attention domestically as well. He complained that
"irresponsible remarks" by the United States are "not
helpful" and undermine U.S.-China cooperation on the nuclear
issue. He warned that Beijing does not want the Chinese
people to believe that the United States is hindering China's
overseas trade through the application of domestic U.S. laws
to legal international interactions.

Six-Party Talks
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19. (C) Noting that U.S.-China cooperation in the Six-Party
Talks is the best example of our bilateral cooperation on
international issues, DAS Christensen urged the Chinese to
continue to lead and push the North Koreans to implement all
Second Phase Actions by the end of 2007. The Six-Party Talks
are in a critical phase. There has been good progress on
disablement. It is important that North Korea offer in a
timely manner a complete and correct declaration of all
nuclear programs so that we can move promptly on to the task
of dismantlement.


20. (C) AFM He agreed that bilateral cooperation on this
issue has been very good. All sides should take the
necessary actions for progress in the Six-Party Talks
process. The North Koreans understand what is required of
them, and EAP A/S Hill's recent visit to North Korea raised
specific issues with them. VFM Wu Dawei will be traveling to
North Korea soon to discuss these issues.

Burma
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21. (C) China should encourage the regime to reach out to the
opposition and engage in genuine dialogue, DAS Christensen
said. He expressed appreciation for China's previous efforts
on behalf of dialogue in, and Special Advisor Gambari's
visits to, Burma, but stressed U.S. unhappiness with the lack
of results. We want Gambari's January visit to achieve real
results. Gambari should be allowed unfettered access to
truly engage with all sides. Aung Sang Suu Kyi (ASSK) should
be allowed full access to opposition and ethnic minority
representatives. Pursuit of a new constitution under the
regime's "road map" without the input of the opposition would
lead to instability, not stability. Likewise, the status quo
does not constitute stability.


22. (C) AFM He responded that as Burma is China's neighbor,
China followed developments there closely. The international
community has three objectives for Burma -- stability,
development and democracy. Stability is the basis for
achieving the other two. China supports the UN role in Burma
and has supported Gambari's good offices mission. China
welcomes Gambari's January visit to Burma, including a stop
in Beijing on his way there. AFM He stressed that the U.S.
practice of pushing for UNSC action each time Gambari
returned to New York to report on his efforts is not helpful.
The history of the Burma issue is long and complicated. The
regime is increasingly attentive to international concerns,
but the question is how far the regime can move. The history
and on-the-ground reality suggests patience is needed on the
part of the international community. The situation is
trending in a favorable direction. Rejecting the road map
completely could make the regime feel cornered. Perhaps the
road map could be taken as the basis for a way forward.


23. (C) In China's view, AFM He continued, there has been
progress in the political dialogue in Burma. Restrictions on
ASSK were relaxed. She can meet with members of her
political party. The international community needs to create
favorable conditions for the Burmese regime to take more
steps. Rather than criticize, we should allow time for the
internal dialogue to develop. Also, as the Burmese told VFM
Wang Yi (ref C),Burma is willing to have a direct dialogue
with the United States. China urges the United States to
seize this opportunity. In New York, China is willing to
support a "Friends of Burma" group, but -- as is the case
with other "Friends of" efforts -- the object of the effort,
in this case Burma, should be included.


24. (C) DAS Christensen made clear the United States does not
share China's positive assessment of either the situation or
the trends in Burma. We see the situation there as stagnant.
To achieve true stability, the regime needed to open up to
the opposition. True stability would only come with
democracy. ASEAN and others agree. For U.S.-Burma dialogue
to resume, we need to see signs of progress. In the
meantime, the international community should maintain
pressure on the regime.

Sudan/Darfur
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25. (C) DAS Christensen urged China to press the Sudan
Government to remove obstacles to the deployment of UN
peacekeeping forces in Darfur. The United States appreciates
China's cooperation over the past year and its commitment of
engineering troops to UNAMID and condemns threats of force
against the Chinese in Sudan. At the same time, the United
States is urging rebel groups to sign on to the peace
agreement.


26. (C) AFM He agreed there is good U.S.-China cooperation on
this issue. China talked to the Sudan Government recently on
the issue of third-country troop contributions to UNAMID.
China believes this should be worked out in the trilateral
UN-Sudan-African Union dialogue. To say that the Sudan
Government seems unwilling to accept third-country troops is
not in accord with the facts. This is a very serious issue
for Sudan; the acceptance of third-country troops constituted
a major compromise by the Government. Thus, the actual
deployment of those troops must be worked out via dialogue
and consultation. Perhaps more important than the
peacekeeping effort is the political peace process. Only the
latter can bring a lasting resolution to the problem. The

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United States, with its great influence with the rebel
groups, should urge them to join the peace process. Finally,
China thanks the United States for its statements in support
for Chinese troops in Darfur in the face of rebel threats.
The recent attack on an oil facility is another challenge to
the international community. China requested the United
States openly condemn this latest threat against Chinese in
Sudan and urge the rebels not to take any unwise steps.

Human Rights
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27. (C) DAS Christensen made clear the United States wishes
China to host a successful Olympics. Part of that success
would be to showcase China's economic and societal progress.
We hope that China will also be able to display openness,
freedom of the press and respect for human rights not only in
this Olympic year but beyond. In this spirit, DAS
Christensen urged the Chinese to resume our bilateral human
rights dialogue at an early date.


28. (C) AFM He replied that China opposes the politicization
of the Olympics and the linkage of the Olympics to human
rights, as some have tried to do.


29. (U) DAS Christensen cleared this message.

RANDT