PRC/RUSSIA: BOTH SIDES OPTIMISTIC ABOUT STRATEGIC

C O N F I D E N T I A L BEIJING 002988 SIPDIS E.O. 12958: DECL: 08/01/2028 TAGS: PREL PBTS ETRD ENRG RS CH SUBJECT: PRC/RUSSIA: BOTH SIDES OPTIMISTIC ABOUT STRATEGIC PARTNERSHIP AFTER FM LAVROV AND DEPUTY PM SECHIN VISITS REF: A. BEIJING 02303 ¶B. MOSCOW 02149 Classified By: Political Minister Counselor Aubrey Carlson. Reasons 1. 4 (b/d). ¶1. (C) SUMMARY: The July 21-22 visit of Russian Foreign Minister Sergei Lavrov and July 26-27 visit of Deputy Prime Minister Igor Sechin to Beijing reinforced the "strategic partnership" between China and Russia and provided another sign of warming ties between the former adversaries, according to an MFA Russia expert, Chinese academics and Russian Embassy officers. During their visits, FM Lavrov signed a deal with Chinese Foreign Minister Yang Jiechi marking the completion of the demarcation of the Sino-Russian border, and Deputy PM Sechin and Chinese Vice Premier Wang Qishan signed an agreement to establish an "energy negotiation mechanism." Russian and Chinese sources described the current Sino-Russian relationship as "better than ever." END SUMMARY. ¶2. (C) Russian Embassy Political Officers Denis Agafonov and Andrey Chernyshov briefed PolOff July 24 on the Lavrov visit. Chinese MFA Russia expert Wu Xiaoying, who has been seconded to the state-owned China National Petroleum Corporation for the last year, shared her views on Sino-Russian relations with PolOff on July 31. Sino-Russian relations "better than ever" -------------- ¶3. (C) Russian EmbOffs described Sino-Russian relations as "better than ever," saying that the current "strategic partnership" is even better than it was during the honeymoon period of Sino-Soviet relations in the 1950s. They said the agreement marking the completion of the demarcation of the border is significant because it ends 40 years of border disputes and demonstrates that both sides are committed to deepening the strategic partnership. According to the state-run China Daily newspaper, Russia agreed to return to China 69.6 square miles of island territory in the rivers that form the border between the two countries, including all of Yinlong Island (known as Tarabarov in Russian) and half of Heixiazi Island (Bolshoi Ussuriysky in Russian). ¶4. (C) MFA Russia expert Wu said China and Russia have reached a high point in bilateral relations. In her view, the border agreement is an important milestone that shows that leaders on both sides understand the need to put historical disputes behind them and pursue closer cooperation. She said officials on both sides hope that China and Russia can someday enjoy the kind of secure and mutually beneficial border that the United States and Canada have. Energy Cooperation Bringing the Two Sides Closer -------------- --- ¶5. (C) The visit by PM Sechin resulted in an agreement to establish an energy negotiation mechanism to promote long-term energy cooperation. MFA's Wu said the energy agreement, along with Premier Wen Jiabao's planned visit to Moscow in October to discuss energy, are indications that energy cooperation has become a major priority at high levels of both governments. She was optimistic about cooperation on energy, arguing that Russia's desire for an eastern outlet for its energy and China's growng demand make for an ideal partnership. Givn the proximity of oil and gas resources in Russia's Far East to China's border, the two countries realize that increased energy cooperation will reduce costs for both sides, Wu said. RANDT