VFM ZHANG YESUI STRESSES TAIWAN ARMS SALES WILL

C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 003551 SIPDIS NSC FOR SENIOR DIRECTOR WILDER AND HAENLE E.O. 12958: DECL: 09/11/2033 TAGS: PREL PARM MASS MARR MOPS CH TW UN SUBJECT: VFM ZHANG YESUI STRESSES TAIWAN ARMS SALES WILL HARM SINO-U.S. TIES Classified By: Ambassador Clark T. Randt, Jr. Reasons 1.4 (b) and (d). Summary -------------- ¶1. (C) In a September 11 meeting called by the Chinese side, Vice Foreign Minister Zhang Yesui stressed to the Ambassador that if the United States goes forward with a rumored USD eleven billion arms sale to Taiwan, then China will react strongly. Such a sale would jeopardize the progress in bilateral relations achieved with so much effort over the past seven years, as well as the fruitful cooperation between the United States and China on major international issues. VFM Zhang urged the United States to reconsider the sale of advanced weapons to Taiwan so as to avoid making "a historic mistake." The Ambassador responded that the United States remains committed to our one China policy based on the three joint Sino-U.S. communiques and the Taiwan Relations Act. He urged China to take advantage of the recent positive developments in cross-Strait relations, in particular to find a way to increase Taiwan's participation in international organizations. On this last point, VFM Zhang acknowledged that Taiwan's UNGA approach is different this year and that China is ready to discuss this issue with Taiwan, but there is no change in China's one China principle. VFM Zhang reported that he takes up his position as PRC Permanent Representative to the United Nations beginning September 25, just in time for China's turn as President of the Security Council. End Summary. Positive Development of U.S.-China Relations -------------- ¶2. (C) In an informal setting outside the MFA (which the Chinese often use to deliver their most frank messages),Vice Foreign Minister Zhang Yesui, accompanied by the entire line-up of MFA officials responsible for U.S. relations (Assistant Foreign Minister Liu Jieyi, North American Affairs Department Director General Zheng Zeguang and U.S. Affairs Division Director An Gang),delivered a formal demarche reading from a prepared text and using an interpreter. He noted the positive and important developments in U.S.-China relations over the past seven years that have been the result of strenuous efforts on both sides. He praised the close high-level exchanges as well as those at all levels. He noted the importance of the Strategic Economic Dialogue and the Senior Dialogue. He mentioned the various important international issues on which there have been good bilateral exchanges, cooperation and coordination, including on economic and trade issues, counterterrorism, nonproliferation, energy and the envronment, and numerous international issues suh as the Korean and Iranian nuclear issues, UN reform and Darfur. In addition, people-to-people exchanges increased and the friendship between the American and Chinese people had strengthened, as demonstrated by the reciprocal concerns expressed over the Wenchuan earthquake and Hurricane Gustav. He also expressed deep appreciation for the U.S. Government's -- and President Bush's in particular -- support for China's hosting of the Olympic and Paralympic Games and in general for building positive bilateral relations over the past seven years. Positive U.S.-China relations are in the interest of both countries and are conducive to peace and stability in the Asia-Pacific Region, VFM Zhang stated. North Korea, South Ossetia, Iran, UN Reform -------------- ¶3. (C) Second, VFM Zhang stated, the United States and China need to continue close cooperation on international issues, including the Korean nuclear issue, Georgia, Iran and UN reform. VFM Zhang said China is very concerned about current difficulties in the Six-Party Talks process and is paying close attention to the "internal situation" in North Korea. China and the United States share common strategic interests on the Korean nuclear issue. China will work with all sides to make progress in the Six-Party Talks and to overcome current obstacles. China is looking closely at the United States' recent proposal to engage in dialogue on contingencies related to North Korea. ¶4. (C) On the "South Ossetia issue," VFM Zhang said China has played a responsible and constructive role in urging a peaceful resolution to the dispute. VFM Zhang said that BEIJING 00003551 002 OF 003 China has good relations with Russia and the United States and that China has been under "tremendous pressure" on the issue. China has tried to make a correct judgment on the issue and make its own conclusions based on the merits of the situation and China's principles. He said that in formulating its position on this issue China has taken "fully into account" its relations with the United States. VFM Zhang added that the United States and China should maintain close communication and coordination on these and other issues, including the Iranian nuclear issue and UN reform. Transition to New Administration -------------- ¶5. (C) Third, VFM Zhang continued, China is ready to work with the United States to ensure that the transition in the United States to a new Administration works to the benefit of continued and increasingly good bilateral relations. In the coming months, the two sides will engage in a series of high-level exchanges, including a meeting between Presidents Bush and Hu on the margins of the APEC summit in Lima in late November, Vice Premier Wang Qishan's participation in the 19th session of the Joint Commission on Commerce and Trade later this month, and the Senior Dialogue and the Strategic Economic Dialogue late this year. The two sides should work to achieve good results from these meetings. U.S. Arms Sales Biggest Threat to Relations -------------- ¶6. (C) Turning to his fourth and final point, VFM Zhang said that the importance and sensitivity of the Taiwan issue cannot be overemphasized. The Chinese side has raised this issue numerous times in recent weeks in Washington and Beijing, and there is no need to repeat all of China's concerns in detail. However, VFM Zhang emphasized, the Taiwan issue touches on China's sovereignty and territorial integrity and is a core concern. China is "firm and clear" in its opposition to U.S. arms sales to Taiwan. Based on many reports, China has heard that as early as this week or next the U.S. Government may notify Congress of the intention to sell USD 11 billion worth of advanced weapons to Taiwan, including PAC-3 anti-missile systems, E-2 2000 (Hawkeye) aircraft, Apache and Blackhawk Helicopters, Harpoon anti-ship missiles, anti-tank missiles, aircraft components and spare parts and a submarine feasibility assessment. In a recent meeting, a U.S. official hinted informally that these sales may go ahead. ¶7. (C) VFM Zhang said he wanted to make three points. First, the possible arms sales would seriously violate the commitments made by the United States in the three joint communiques, especially the August 17, 1982 communique in which the United States stated that it had no intention to carry out a long-term policy of arms sales to Taiwan and intended to reduce the quantity and quality of such sales until a final resolution. Should the United States proceed with such sales, it would be a blatant violation of this commitment. Secondly, despite some claims that these weapons are defensive, they have both offensive and defensive capabilities and some are purely offensive. These weapons are very modern and sophisticated and pose an "immediate danger" to China's national security and peaceful reunification. Third, there have been many positive developments in cross-Strait relations. A massive arms sale to Taiwan at this time would send a seriously wrong signal to Taiwan independence forces and would damage and destroy the progress in cross-Strait relations. ¶8. (C) VFM Zhang asserted that China will "definitely" make a "strong response" to such a decision to sell arms to Taiwan. Such a move would hurt bilateral relations, seriously undermine cooperation on major issues and in the end hurt U.S. interests. All the work the two sides have made to gain momentum over the past seven years would come to nothing. This is something that neither side wants to see. The United States should think twice, not proceed with a decision to sell arms to Taiwan, and avoid making an "historic mistake." VFM Zhang concluded that the relationship built over the past seven years is a "shared asset" that should be "long cherished." There should be a "fond memory" of the Bush Administration's contribution to bilateral ties. VFM Zhang urged the Ambassador to faithfully report his comments to Washington and to President Bush. BEIJING 00003551 003 OF 003 Ambassador's Response -------------- ¶9. (C) The Ambassador, accompanied by PolMinCouns and PolOff, agreed that bilateral relations are good, that much progress in the relationship was achieved during this U.S. Administration, that continued cooperation on international issues is important and that the two sides should work to see that relations and cooperation only improve. On the Taiwan arms sales issue, however, the Ambassador was clear that the United States remains committed to our one China policy based on the three joint communiques and the Taiwan Relations Act. The United States does not support Taiwan independence and opposes unilateral actions by either side to alter the cross-Strait status quo. We appreciate recent positive developments in cross-Strait relations, the Ambassador said, and hope for more progress. He called upon the Chinese to note that the moderate approach to the UN by Taiwan was qualitatively much different than last year's and to make progress on increasing Taiwan's "international space." While the United States continues to not support Taiwan's membership in international organizations that require statehood, we do continue to strongly support Taiwan's increased participation in international organizations. ¶10. (C) VFM Zhang responded that China has always opposed the Taiwan Relations Act, which runs contrary to the principles of the three joint communiques and the norms of international relations. The United States has no right to place domestic law above international law or to use such law to sell arms to Taiwan and thereby interfere in the internal affairs of China. Cross-Strait relations have indeed undergone positive changes, and China did notice that the UNGA proposal by Taiwan's "diplomatic allies" is different from previous years. China's one China principle, however, has not changed. China continues to oppose Taiwan independence, Taiwan membership in international inter-governmental organizations that require statehood, as well as third countries' "political, substantive or official relations" with Taiwan. At the same time, China is ready to discuss with Taiwan the issue of participation in international activities. Zhang to New York -------------- ¶11. (SBU) VFM Zhang announced that he will take up his new position in New York as China's Permanent Representative to the United Nations beginning September 25. This will allow him to be in place in time for China's occupancy of the UN Security Council's rotating presidency, which begins October ¶1. RANDT