SARKOZY RACKS UP SALES, BOLSTERS ROLE FOR ACTIVIST

C O N F I D E N T I A L PARIS 004637 SIPDIS SIPDIS E.O. 12958: DECL: 12/01/2017 TAGS: PGOV PREL ETRD SENV EFIN FR CH TW SUBJECT: SARKOZY RACKS UP SALES, BOLSTERS ROLE FOR ACTIVIST FRANCE WHILE HIGHLIGHTING CHINA'S ROLE AS A GLOBAL POWER DURING NOVEMBER VISIT TO CHINA REF: BEIJING 07274 Classified By: POL/MC Josiah Rosenblatt for Reasons 1.4(b) and (d) ¶1. (C) SUMMARY. During a November 25-27 visit to China French President Sarkozy highlighted to Chinese leaders the global responsibilities that come with being a global power, according to the MFA. Using this broad theme, Sarkozy addressed economic, political and environmental issues while at the same time strengthening Sino-French relations by downplaying any public critiques of Chinese human rights and emphasizing French opposition to the proposed Taiwan referendum. Sarkozy quietly discussed his support for lifting the EU arms embargo put in place after the 1989 violent crack-down on student protests in Tiananmen Square. For his domestic audience, Sarkozy chided Beijing for maintaining a weak currency while securing as much as 30 billion dollars in contracts for French companies. MFA DAS-equivalent Poirier declared the visit a success and expects Hu Jintao will visit France in the next six months. END SUMMARY. ¶2. (C) On November 29, MFA DAS-equivalent for the East Asia Jean-Noel Poirier offered comments to Pol M/C on President Sarkozy's November 25-27 visit to China. Poirier acknowledged that Sarkozy, like Chirac, seeks a close commercial relationship with China; however, he contrasted Chirac's past largely mercantile approach with Sarkozy's view of China as a global power with global responsibilities. Sarkozy and Hu Jintao discussed Chinese responsibilities toward the environment, aid to Africa, the value of the Yuan, good governance, non-proliferation, exports, intellectual property and product security. ARMS EMBARGO: "Anachronistic," but no French decision to push EU to lift -------------- -------------- ¶3. (C) Using the same language that former Prime Minister Jean Pierre Raffarin used on a 2005 trip to China under the Chirac Presidency, Poirier described the embargo as "anachronistic" and inappropriate. He noted that the Chirac policy had not changed with the advent of the Sarkozy government. Poirier added that France holds a minority opinion in the EU and acknowledged there is "no positive dynamic" for the lifting of the embargo. He said he "cannot imagine any particular initiatives" that France would undertake to move this issue forward in the EU and noted that in his personal view if the GOF were to decide to, France would first need to discuss the issue with Washington. Poirier added that "the key to lifting the embargo is in Washington not Brussels." TAIWAN: Sarkozy highlights French opposition to Taiwan Referendum -------------- -------------- ¶4. (C) Sarkozy for the first time in his presidency stated France's position on Taiwan. Saying that the French position was very clear, during a November 26 press conference in Beijing Sarkozy restated the French position that "there is one China and Taiwan is a integral part of Chinese territory." Sarkozy also called the Taiwan referendum to join the UN "useless and therefore unfortunate." During our conversation Poirier reiterated this position. HUMAN RIGHTS: Death penalty and journalistic freedom -------------- -------------- ¶5. (C) Noting that Sarkozy's intent was not in China to "rebuke the Chinese publicly" and that France wants to continue working on human rights in China, Poirier highlighted two primary human rights issues - the right of journalists to work and the death penalty. Sarkozy, in his meeting with Hu Jintao, asked that China enforce its current laws and allow journalists to move around the country freely. He also called on the Chinese to reduce the use of the death penalty. While Kouchner had mentioned individual human rights cases of concern during his trip in late October, Sarkozy did not follow up on them, leaving that to the embassy in Beijing. Sarkozy also reaffirmed GOF interest in China ratifying at an early date the UN Covenant on Civil and Political Rights. INTERNATIONAL ISSUES -------------- ¶6. (C) Sarkozy highlighted China's importance as a global player, saying that China must address issues not just in terms of its own benefits but should also seek to apply its influence in support of international stability. Sarkozy discussed Darfur, Burma and Iran, and publicly thanked China for its "engagement to persuade the Sudanese to find a solution." Poirier noted that when there is a crisis - whether in Asia, the Middle East or Africa - people now watch for China's response. Sarkozy publicly welcomed Chinese aid to Africa, adding that aid should not "translate itself into new indebtedness." Privately, Sarkozy pushed the Chinese to use aid in support of governance. While Poirier noted that the Chinese have begun to understand this dialogue since they have seen that aid is often wasted and does not always achieve stated objectives. He added the Chinese were now at least in listening mode -- an advance over their past refusal to hear the French out on conditioning their foreign assistance in Africa. CLIMATE CHANGE: Rhetoric rather than realism -------------- ¶7. (C) One of Sarkozy's primary objectives for the visit was to discuss climate change; the French tried to direct Chinese attention to how the world is affected by policy decisions in Beijing. Poirier judged his interlocutor's responses regarding improving water quality, reducing greenhouse gasses and increasing areas of cooperation to be little more than party-line lip service rather than a core appreciation of the challenges. ECONOMIC DISCUSSIONS: France racked up 30 billion dollars in sales, IPR, Investment Treaty -------------- -------------- ¶8. (SBU) Sarkozy reiterated the themes of global responsibilities and harmonious relationships on economic issues. On December 3 Ministry of Economy A/S-equivalent for bilateral relations Emmanuel Glimet and Director for North Asia and Pacific Vincent Perrin told visiting Commerce A/S David Spooner and Econ Counselor that five broad economic topics were on President Sarkozy's agenda during his visit to China. First were the contracts signed by French firms, totaling some $30 billion, with notable successes in the civil aircraft and nuclear sectors. On financial issues, Glimet said Sarkozy spoke "loud and clear" about exchange rates, in part timed to amplify subsequent messages on the same topic from Eurogroup President Juncker. Sarkozy's statements to the press received considerable coverage in France, including his call for "harmonious and fair relations among the major currencies" and acceleration in appreciation of the yuan against the euro, which he said was "in China's own interest." The French also had positive discussions with the head of the China Investment Corporation on investing "responsibly" and in a manner consistent with market-based rules of the game. ¶9. (SBU) On intellectual property rights, the French said they wanted to see implementation of protection measures, but found it hard to determine who was in charge of the issue. Glimet said it was "striking" how closed the Chinese were to dialogue on IPR. The French did sign an investment protection treaty that had been negotiated "quickly." Glimet believed the rapid closure on the agreement was due in part to the Germans having negotiated a similar instrument just prior to the French. The French also had good discussions on product safety issues. ¶10. (C) COMMENT. Sarkozy accomplished key objectives on this visit. First, he is credited with more than 30 billion dollars in sales at a time when he needs to be seen as stimulating growth at home. Second, he continued to advance France's role in international efforts to address global challenges such as climate change and cross-straits security in keeping with themes of his presidency of renewed activist France. Regarding the EU Arms Embargo, Post recommends a clear message to the GOF at upcoming high-level opportunities that the USG would be adamantly opposed to any GOF effort within the EU to lift the embargo. END COMMENT. Please visit Paris' Classified Website at: http://www.state.sgov.gov/p/eur/paris/index.c fm STAPLETON