PRC/IRAN: CHINA URGES DIALOGUE, SEEKS "COMMON

1. (C) Summary. MFA Arms Control Department DDG Wu Haitao
told Acting PolMinCouns that the atmosphere around Javier
Solana's June 14 presentation of the P5-plus-1 incentives
package to Iran was "active and constructive." Wu argued
that the P5-plus-1 preconditions for negotiations could be
resolved after talks begin and that the PRC regards the
current situation as a hard-won opportunity. He stated the
PRC has urged Iran to respond positively to the P5-plus-1
proposal and believes that Iran is willing to start
negotiations. Wu said the there are "common points" between
the proposals by that P5-plus-1 and the Iranians, and that
"excessive" pressure on Iran would be counter-productive.
End Summary.



2. (C) Wu Haitao, Deputy Director-General (DDG) of the MFA's
Arms Control and Disarmament Department briefed A/PolMinCouns
June 20 on China's views of the visit of EU Foreign Policy
Chief Javier Solana and Political Directors from China,
Russia, Germany, France and the UK to Tehran to present the
P5-plus-1 incentive package to Iranian Foreign Minister
Mottaki and nuclear negotiator Saaed Jalili. The Chinese
delegation was headed by Assistant Foreign Minister Liu
Jieyi. (Note: According to DDG Wu, AFM He Yafei, the regular
PRC Political Director for the Iranian nuclear issue, is
occupied with Olympics-related issues through the Games. AFM
Liu will be taking over his Iran-related duties "for a few
months.")

Iran "Willing" to Enter Dialogue


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3. (C) Describing the atmosphere as "active and
constructive," Wu said that Liu urged the Iranian side to
make an "appropriate" assessment of the situation, implement
the existing UNSCRs, and show "flexibility" on suspension of
uranium enrichment as well as cooperation with the IAEA. Wu
said Liu told the Iranians that the P5-plus-1 proposal
demonstrates the P5-plus-1's sincerity and willingness to
resolve the problem through diplomatic means, and that the
P5-plus-1 proposal is "comprehensive and authoritative,"
having the support of the the Foreign Ministers of all six
states.



4. (C) Wu said that Mottaki and Jalili "welcomed" the
P5-plus-1 proposal and reported that the Iranians said they
would study the package carefully and give a response. He
added that Jalili expressed a "willingness" to enter
constructive negotiations with the P5-plus-1. The Iranians
reiterated, however, that there should be no preconditions to
talks. Wu assessed that the Iranians were "quite restrained"
on this point.



5. (C) AFM Liu also met with the Iranian Ambassador to
Beijing June 19 to urge Iran to carefully consider and
provide a "quick and active" response to the P5-plus-1
proposal without waiting for the P5-plus-1 to respond to the
May Iranian proposal. Wu said the next step for the
P5-plus-1 should be to receive the official Iranian response
and study their proposal carefully.

Preconditions Would be Up for Discussion in Talks


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6. (C) A/PolMinCouns noted that the UNSC required that Iran
suspend its uranium enrichment-related and reprocessing
activities in order to begin negotiations on the package, a
point that seems inconsistent with Iran's demand for no
preconditions. DDG Wu responded that Iran has demonstrated
its interest in talks, and that the P5-plus-1 should not
"prejudge" their intentions. Once the P5-plus-1 and Iran
begin negotiations, Wu suggested, the grouping could "find a
way forward" on the sensitive issues such as the P5-plus-1
preconditions.

"Common Points"


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7. (C) When asked about AFM Liu's comments to the press that
there are "common points" between the P5-plus-1 and Iranian
proposals, DDG Wu noted that Solana had also used the same
formulation. He said that the PRC saw overlapping elements
in the headings of the areas for cooperation in the two

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proposals, but Wu acknowledged that the details were quite
different and that the Iranian proposal required further
"clarification." DDG Wu stated that some points laid out in
the Iran proposal "have some positive elements," and that the
P5-plus-1 should not dismiss the proposal out of hand.

China Urges Dialogue, Wants to Avoid "Excessive" Pressure


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8. (C) DDG Wu noted that neither the United States nor China
wants to see new turbulence in the Middle East and framed the
present situation as an opportunity for dialogue. He urged
the P5-plus-1 to seize this opportunity to break the "present
stalemate" and find a solution to the nuclear issue, however
difficult it might be to open a dialogue. Wu argued that
"excessive" pressure will not solve the issue and would harm
the diplomatic efforts of the P5-plus-1.



9. (C) A/PolMinCouns replied that while the United States
remains committed to a diplomatic solution, the P5-plus-1 has
also committed itself to a dual-track strategy, which
includes increasing international pressure on Iran to comply
with its obligations.
PICCUTA