Identifier
Created
Classification
Origin
08BEIJING234
2008-01-23 10:26:00
CONFIDENTIAL
Embassy Beijing
Cable title:  

UK PM GORDON BROWN IN CHINA: EXPANDING TRADE,

Tags:  PREL ECON EINV ETRD SENV EFIN PGOV PHUM UK 
pdf how-to read a cable
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C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 000234 

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/23/2028
TAGS: PREL ECON EINV ETRD SENV EFIN PGOV PHUM UK
CH, BM, SU, TW, IR
SUBJECT: UK PM GORDON BROWN IN CHINA: EXPANDING TRADE,
POLITICAL DIALOGUE

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

Summary
-------

C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 000234

SIPDIS

SIPDIS

E.O. 12958: DECL: 01/23/2028
TAGS: PREL ECON EINV ETRD SENV EFIN PGOV PHUM UK
CH, BM, SU, TW, IR
SUBJECT: UK PM GORDON BROWN IN CHINA: EXPANDING TRADE,
POLITICAL DIALOGUE

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

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


1. (C) British Prime Minister Gordon Brown's January 18-20
visit to China focused largely on economics but also covered
Sudan, Burma, Iran, human rights and Hong Kong, British
Embassy contacts told us January 21. Brown gave a qualified
welcome to China's new sovereign wealth fund (the China
Investment Corporation),announced a goal of raising
bilateral trade by 50 percent to USD 60 million by 2010, and
announced plans to upgrade and broaden an existing financial
dialogue. Discussions with China on Sudan bore fruit, with
China agreeing to bring additional pressure on Khartoum to
implement the Comprehensive Peace Agreement and work toward
North-South reconciliation. Our British contacts were less
optimistic about Burma, despite a Chinese pledge to support
UN Special Advisor Gambari's efforts to visit Burma soon.
End summary.


2. (U) British Prime Minister Gordon Brown visited China
January 18-20 and met Chinese President Hu Jintao, Premier
Wen Jiabao and National People's Congress (NPC) Chairman Wu
Bangguo, British Embassy First Secretary David Ward briefed
third-country diplomats including PolOff on January 21.
Brown's party included Secretary of State for Business,
Enterprise and Regulatory Reform John Hutton, Minister for
Trade Promotion Sir Digby Jones and over 30 business leaders.
After Beijing, Brown visited Shanghai.

Brown Guardedly Welcomes Chinese Sovereign Wealth Fund
-------------- --------------


3. (C) Brown, formerly Britain's Minister of Finance,

welcomed investment by China's sovereign wealth fund, the
China Investment Corporation (CIC),but cautioned that the
CIC should remain transparent and be used in a commercial,
apolitical manner with the aim of turning a profit rather
than gaining political leverage. Brown expressed desire to
make the United Kingdom China's preferred trading partner in
the European Union, in the hope that Chinese companies will
use London as a springboard to access global markets. China
and the UK jointly announced their intention to increase
bilateral trade from its current USD 39 billion annually to
USD 60 billion by 2010. Brown raised market access, stating
that it is in China's interest to open its markets and that
doing so would lessen calls for protectionist measures.
During the visit, Brown presided over the opening of the
Beijing branch of the London Stock Exchange.

Upgrading Existing Financial Dialogue
--------------


4. (C) During the visit, China and the UK agreed to elevate
their existing economic dialogue from the Minister-of-Finance
level to the level of Chancellor of the Exchequer and a Vice
Premier to be named in late March. The dialogue will broaden
from standard financial topics and include international
development policy, financial sector development, energy and
the economics of climate change. The first session of the
broadened dialogue is slated for April.

Agreements
--------------


5. (C) Brown signed several agreements over the course of the
visit, including a framework on educational cooperation and a
framework on "sustainable cities," particularly focusing on
Dongtan (near Shanghai) and Wuhan. The British government
will partner with the National Development and Reform
Commission (NDRC) on climate change, and provide financial
support to China via an "Environmental Transformation Fund."
British businesses signed four large contracts during the
visit, including three between British Petroleum and Chinese
counterparts. The contracts amount to approximately USD 800
million and were of greater political than economic
significance, according to the British Embassy.

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


BEIJING 00000234 002 OF 003



6. (C) On Sudan, China and Britain agreed that the trilateral
mechanism should remain the primary avenue for dialogue on
Sudan and that the smooth deployment of peacekeeping forces
is necessary. Both sides hope for a continued ceasefire and
successful implementation of the Comprehensive Peace
Agreement (CPA). UK Embassy First Secretary Gareth Ward told
PolOff separately January 21 that Brown pushed the Chinese on
Sudan to "the edge of their comfort level," and achieved
positive results. Specifically, Brown asked for more Chinese
participation in North-South reconciliation and a more active
role in the implementation of the CPA. According to Gareth
Ward, the Chinese agreed. Brown proposed a joint water
development project and asked China to take steps to minimize
the environmental impact of any new infrastructure projects,
a goal that Britain hopes to include as a deliverable in the
next high-level visit. Britain has invited Chinese Special
Envoy for Darfur Liu Guijin to visit London in the next few
months.

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


7. (C) On Burma, the two sides agreed on the importance of UN
Special Advisor Gambari resolving the outstanding issues in
Burma. China agreed to support Gambari by pressuring Burma
to allow a visit soon. Gareth Ward commented that, while the
outcome of the talks on Sudan was positive, the outcome of
the Burma dialogue was disappointing. Chinese officials were
positive on Gambari, but made statements in advance of
Brown's arrival that China, unlike Britain, has a border with
Burma, and therefore stability is of paramount concern to
China. They further asserted that the roadmap has the
support of many ethnic minority groups in the north, and that
the UK and France have been undermining that roadmap. These
comments were then repeated "in short form" for Brown during
his visit with no additional progress.

International Organization Reform
--------------


8. (C) The British raised the issue of international
organization reform to increase the effectiveness of
multilateral organizations and expressed a desire to be
"constructive" with China on this issue. The British focus
was on the United Nations, specifically strengthening links
between peacekeeping, reconstruction and development, and on
the World Bank and IMF, hoping these two institutions can be
a positive force for change rather than merely a last resort.

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


9. (C) On the Iran nuclear issue, China and Britain both made
public statements against proliferation. Britain asked China
to encourage Iran to take into account the concerns of the
international community. Iran was not discussed in detail,
as Brown's visit came directly before the January 22
P3-plus-3 (P5-plus-1) meeting in Berlin.

Human Rights
--------------


10. (C) Brown raised human rights with Premier Wen Jiabao,
President Hu Jintao and NPC Chairman Wu Bangguo. He asked
the Chinese to ratify the International Convention on Civil
and Political Rights. Chinese officials responded that China
intends to ratify the Convention once domestic legislation is
ready.

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


11. (C) Asked if Taiwan came up in Brown's meetings, David
Ward said Brown discussed the issue in an interview with
Xinhua news agency ahead of the visit, pointing out that
Britain seeks a reduction of tension in the region and thus
opposes Taiwan's planned UN referendum, which will do nothing
to elevate Taiwan's status. Ward said Brown noted that
Britain's Taiwan policy has not changed since 1972, when
Britain established diplomatic relations with the PRC.

Migration Treaty, Dalai Lama, Hong Kong
--------------

BEIJING 00000234 003 OF 003




12. (C) Britain called for full implementation of a migration
treaty signed in 2007, and asked for follow-up visits at the
ministerial level. At this time, Britain has made no
decision on a Dalai Lama visit to the UK, but will inform
China once the decision is made. Brown asked Premier Wen for
a timetable for the implementation of democracy in Hong Kong.
Wen responded that China is committed to maintaining
stability while gradually introducing democracy. Asked about
Pakistan, Kosovo and the EU arms embargo, Ward said Brown did
not raise these issues.

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