FEBRUARY 1 MFA PRESS BRIEFING: US-DPRK FINANCIAL

UNCLAS SECTION 01 OF 02 BEIJING 000772

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PREL CH
SUBJECT: FEBRUARY 1 MFA PRESS BRIEFING: US-DPRK FINANCIAL
TALKS, SIX-PARTY TALKS, HUMAN RIGHTS, ORGAN HAVERSTING,
CHINESE CITIZEN CASUALTIES IN IRAQ, KIM JONG IL'S SON


1. Key points made at the February 1 MFA press conference
were:

-- Despite comments from VFM Wu that the Fifth Round of
Six-Party Talks would last 3-4 days, the MFA gave no
timetable and had no substantive comments on the recent
financial talks between the United States and the DPRK.

-- The MFA gave no comment on calls to include the issue of
religious freedom in any strategic dialogue with the United
States and dismissed allegations of torture of a Tibetan boy
as a legal matter.

-- In response to criticism, the MFA Spokesperson defended
China's cautious use of the death penalty and reiterated the
strict policy on organ transplants.

-- China is carrying out gradual financial reforms despite
pressure from Treasury Secretary Paulson.

-- China calls on the United States to repatriate Uighurs
held at Guantanamo and reaffirms its commitments to
international anti-terrorists efforts.

-- Amid deaths of Chinese citizens fighting in Iraq with the
United States military, the MFA says China is concerned about
the welfare of all overseas citizens.

-- Japan calls for an explanation to increased Chinese
production in the East China Sea; China claims the territory,
but has no conflict with Japan.

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


2. MFA Spokesperson Jiang Yu said at the February 1 regular
press briefing that the duration of the Third Phase of the
Fifth Round of Six-Party Talks would depend on the progress
made during negotiations, despite reported comments from Vice
Foreign Minister Wu Dawei that the Talks would likely last
three to four days. Jiang had no news regarding this week's
financial talks between the United States and the DPRK, nor
on what role the issue would play in the upcoming phase of
Six-Party Talks.

Kim Jong Il, Jr. Sighting
--------------


3. Jiang had not heard about reports that Kim Jong Il's
eldest son is living in Macau and Beijing while traveling on
a Portuguese passport.


Human Rights: Religion, Organ Harvesting, Executions
-------------- --------------


4. Jiang denounced as "groundless attacks" claims by the
United States Commission on International Religious Freedom
that religious freedom in China is deteriorating. He
declined to comment on a suggestion that the topic of
religious freedom should be included in the "strategic
dialogue" between the United States and China. Asked for
comment on the case of a 15-year-old Tibetan boy who was
allegedly beaten and tortured in custody after trying to
escape to Nepal, Jiang cited a "large-scale illegal
border-crossing case" in which suspects would be tried in
accordance with the law. Parents of children involved have
been informed to retrieve them. Jiang said China's policy
towards the Vatican remains unchanged, when asked for comment
on Hong Kong Cardinal Zen's reported hopes that China will
arrange a meeting with the Pope as Vietnam has done.


5. Responding to reports that a conference of human rights
groups in Paris would soon issue a statement calling for
transparency in China's practice of the capital punishment,
the spokesperson defended China's use of the death penalty.
She said that releant information is openly reported by the
head of the Supreme People's Court to the People's Congress.
Jiang noted that half of the world's countries still employ
capital punishment. Asked to comment on the report of a
former Canadian diplomat on the practice of organ harvesting
in China, Jiang maintained that China has a very strict
policy on organ transplants, which requires the consent of
all victims.

Monetary Reform
--------------


6. Responding to Treasury Secretary Paulson's comments that
the international community was running out of patience with
China's monetary reform, Jiang said that at the beginning of

BEIJING 00000772 002 OF 002


2005 China began using a market managed floating exchange
mechanism and will proceed with reforms in an active,
controllable and gradual way.

Media Labels Space "Strategic Area"
--------------


7. Questioned about reports in the Chinese media labeling
"space" as a "strategic area," the negative impact of space
debris left from China's January anti-satellite test and
calls for more detailed explanations from Japan, the United
States and others, Jiang replied that China has a purely
defensive military strategy which threatens no other country.
Its position on the anti-satellite test has already been
expressed clearly, China upholds the peaceful exploration of
space, opposes the weaponization of space and will not
participate in a space arms race.

Calls to Repatriate Uighurs
--------------


8. Jiang called for the United States to work with China
through the bilateral relationship and relevant international
laws to repatriate thirteen Uighurs currently held at
Guantanamo Bay, adding that the international community
should hold a firm and consistent attitude toward terrorism,
which is a threat to all.

Chinese Citizens Die in Iraq
--------------


9. Asked to comment on the recent death and possible future
deaths of Chinese citizens fighting for the United States
military in Iraq, Jiang said China is concerned about the
welfare of its citizens abroad, counsels them to be alert and
takes every effort to ensure their safety, but Jiang had no
specifics on the case.

East China Sea, Japan Visits
--------------


10. Commenting on Japan's demand for an explanation to
increased Chinese production from Chunxiao natural gas field
in the East China Sea, Jiang said that the field is in
China's continental shelf zone and China has no conflict with
Japan. Jiang would give no dates for the next round of East
China Sea negotiations or FM Li and PM Wen's upcoming visits
to Japan.

Attacks in Africa
--------------


11. A Xinhua News reporter asked Jiang to comment on the
recent death of a Chinese worker in Kenya and attempts to
rescue nine Chinese workers kidnapped in Nigeria. Jiang
replied that armed robbers attacked a road construction
project killing one Chinese worker and injuring another.
China has activated its emergency response and is working
with Kenyan authorities who have set up a special group to
investigate the attack and increase protection of Chinese
citizens in the region. Jiang added that China is trying its
best to rescue the workers kidnapped in Nigeria.

EU Pressure on Darfur
--------------


12. When asked China's attitude towards Darfur in response to
recent pressure from the European Union for President Hu to
discuss the Darfur issue with Sudanese leaders, Jiang said
China's position has not changed. China follows the Darfur
issue very closely and is maintaining dialogue with all
relevant parties. China hopes the issue is solved through
political negotiation and is pleased by recent progress.

Repatriation of Fugitive in Canada
--------------


13. Asked again for comment on China's demands that Canada
repatriate Gao Shan, a Bank of China clerk from Northeast
China who reportedly stole US$129 million and fled to Canada
in 2005, Jiang voiced hopes that an international convention
on anti-corruption would serve as a basis for positive
cooperation on this issue.
RANDT