DEMARCHE DELIVERED ON MAJOR ISSUES AT

UNCLAS BEIJING 002720 SIPDIS SENSITIVE STATE FOR EAP/CM STATE FOR IO/T CHRIS WOOD STATE PASS USTR FOR AUSTR TIM STRATFORD; ANN MAIN USDOC FOR ITA DAS IRA KASOFF; TOM DYCUS E.O. 12958: N/A TAGS: AORC ECON ETRD WTRO CH SUBJECT: DEMARCHE DELIVERED ON MAJOR ISSUES AT UNIVERSAL POSTAL UNION (UPU) CONGRESS REF: STATE 66814 THIS CABLE IS SENSITIVE BUT UNCLASSIFIED. NOT FOR INTERNET DISTRIBUTION. PLEASE HANDLE ACCORDINGLY. ¶1. (U) This is an action request (please see para 7). ¶2. (SBU) On June 25, post delivered reftel diplomatic note to the Ministry of Foreign Affairs (MFA). On June 30, post faxed reftel points to MFA and faxed reftel points and a copy of the diplomatic note to the State Postal Bureau (SPB),which is responsible for postal affairs. SPB informed post that China's trade ministry - the Ministry of Commerce (MOFCOM) - would not be a part of the Chinese delegation to the UPU Congress. On July 3, MFA informed post that an MFA meeting would not be necessary as SPB is the lead Chinese Government agency for UPU-related activities. ¶3. (U) On July 8, ECON Deputy MinsCouns (D/MC) and econoff met with SPB Department of External Affairs Deputy Director-General Lin Hongliang, Division of International Cooperation Director Han Shuangming and Division of International Cooperation Assistant Consultant Ms. Fu Xiaoli to seek support for major United States priorities at the upcoming UPU quadrennial Congress scheduled to be held from July 23 - August 12 in Geneva. ¶4. (SBU) Lin told emboffs that China advocates "mutual support" for the United States and Chinese candidacies to the UPU Council of Administration (CA) and Postal Operations Council (POC). He also said the United States and China are both very important to the CA and POC because the United States represents developed countries and China represents the concerns of developing countries. Lin requested United States support for China's candidate for the position of Deputy Director General of the UPU International Bureau. ¶5. (SBU) On the UPU mission statement, SPB noted that the core UPU mission statement should not be changed, but advocated that appropriate wording should be found to reflect changes in global economic developments. SPB also said an increase in the budget would have negative consequences, agreed with having zero growth, but refrained from using the word "nominal," even when pressed on the point. Lastly, SPB did not oppose extrabudgetary groups but said their work program should not conflict with activities of the UPU Secretariat. ¶6. (U) Additionally, SPB informed post that SPB Administrator Mr. Ma Junsheng would lead the Chinese delegation, which will include over 30 people. Individuals from the postal group company of Hong Kong and Macao will join the delegation as well as an official from China's Ministry of Finance (MOF) and an MFA official attached to China's diplomatic mission in Geneva. ¶7. (U) Action request: SPB has asked for information about the United States delegation. (Comment: It is possible that the Chinese delegation may want to interact with the United States delegation at anticipated events or receptions during the Congress. End Comment).