CHINESE RESPONSE TO AUSTRALIAN M/V IRAN MATIN

S E C R E T CANBERRA 001771 SIPDIS NOFORN SIPDIS DEPT FOR EAP, EUR, T AND ISN E.O. 12958: DECL: 12/18/2032 TAGS: PARM PREL MASS PTER AS CH SUBJECT: CHINESE RESPONSE TO AUSTRALIAN M/V IRAN MATIN DEMARCHE REF: A. CANBERRA 1757 ¶B. BEIJING 7511 ¶C. CANBERRA 1751 ¶D. STATE 165987 AND PREVIOUS Classified By: Political Counselor James F. Cole, for reasons 1.4 (b)(d ). ¶1. (S) Further to Ref A, Counter-Proliferation Director Gerry McGuire gave us a readout December 18 of the results of Australia's demarche in Beijing on December 14 on the M/V Iran Matin. Upon the U.S. request for Australia and the UK to demarche China (Ref D),DFAT had sought authorization to proceed from newly-appointed Foreign Minister Stephen Smith, then in Bali with PM Rudd for the climate change talks. Smith had agreed readily, McGuire said. ¶2. (S) The Australian Embassy in Beijing had been instructed to demarche at a Deputy Head of Mission equivalent level in MFA, but in the absence of a suitable interlocutor and given the urgency of the topic, the demarche was delivered to Zhang Junan, a section head in the Department of Arms Control and Disarmament, on December 14. The Australian demarche closely followed that provided in Ref D, McGuire recounted, including furnishing Zhang with the description of the cargo and details of the shipping documentation. ¶3. (S) According to McGuire, Zhang noted that the United States had delivered an almost identical demarche on December ¶12. China had quickly launched an investigation and agreed to share the results, Zhang had said, taking into consideration China's strong position on counterproliferation. As with Wu Haitao's response to the United States (Ref B),Zhang emphasized China's careful approach to export controls, stressing PRC's efforts to ensure all exports complied fully with domestic and international laws. Its arms trade with Iran was very limited, Zhang noted, adding that, following passage of UNSCRs 1737 and 1747, China had been even more stringent than the resolutions called for. In regulating its exports, Zhang said China took into account instability in other parts of the world and the sensitivities of other countries (note: possibly a reference to the United States),according to McGuire. ¶4. (S) Zhang told the Australia Embassy official that China attached great importance to its cooperation with both the United States and Australia, McGuire said, and then ended with a rebuke: "If Australia and the United States continue to coordinate their demarches as closely as in this case, you should provide accurate information to the Chinese side." Zhang clarified that the lading list from the United States was "inaccurate and incomplete." ¶5. (S) McGuire said the GOA would welcome the U.S. reaction to the Chinese claim in para 4 above. CLUNE