NPC VICE CHAIR CHEN ZHILI MEETS WITH SENATOR HAGEL

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 003948

SIPDIS

DEPT FOR EAP/CM, H PLEASE PASS TO SENATOR HAGEL'S OFFICE

E.O. 12958: DECL: 10/16/2033
TAGS: PREL PGOV PHUM MASS ECON SCUL SOCI CH TW GG
SUBJECT: NPC VICE CHAIR CHEN ZHILI MEETS WITH SENATOR HAGEL
ON TAIWAN ARMS SALE, TIBET, DPRK, ECONOMY

Classified By: Political Minister Counselor
Aubrey Carlson. Reasons 1.4 (b) and (d).

Summary
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1. (C) National People's Congress Standing Committee Vice
Chairperson Chen Zhili told Senator Chuck Hagel October 13
that China hopes Congress will act to cancel the
recently-announced U.S. arms sale to Taiwan. The Chinese
people see a contradiction between PRC efforts to help the
United States overcome the current financial crisis and the
arms sale, Chen said, and the United States and China should
stand together to overcome the crisis. Chen said the door to
dialogue remains open to the Dalai Lama, but he represents an
obstacle to progress who is implicated in the March riots in
Tibet and the violence surrounding the torch relay. Chen
also offered thoughts on Georgia, the Six-Party talks,
U.S.-China relations and the Central Committee's Third
Plenum. END SUMMARY.

Taiwan Arms Sale
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2. (C) In an October 13 meeting with Senator Chuck Hagel
(R-NE),National People's Congress Standing Committee Vice
Chairperson Chen Zhili said she was "very concerned" by the
recently-announced U.S. arms sale to Taiwan. The sale has
"hurt the feelings of 1.3 billion Chinese people," and Chen
hopes Congress will exert its influence to cancel the deal
and uphold the one China policy. In responding to Senator
Hagel's comment that the sales are not new and are in keeping
with the Taiwan Relations Act (TRA),Chen said that though
the policies are old, they are "not correct." "You have been
moving on the wrong track for a long time," she said. Chen
commented that personally she finds it "strange" that "on the
one hand the U.S. sells arms to Taiwan, while on the other,
China is joining hands with the United States in the
financial crisis." Chen said that average Chinese see a
contradiction between the two issues. Chen also noted recent
positive developments in cross-Strait relations and now is
"not a good time" for the arms sale.

Economic Crisis
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3. (C) Chen stressed the need for U.S.-China coordination
given the "great changes" financial systems are undergoing.
Chen said that just as "two ships might tie themselves
together to weather rough waves," the United States and China
should stand together to overcome the current crisis. Chen
was pleased that the United States decided to "take measures
to lessen the size" of the crisis and looks forward to their
successful implementation. China is "willing to work with
international mechanisms" to resolve the crisis, but it will
take time and will impact people's lives all over the world,
including in China. China will work hard to ensure its
domestic economy enjoys steady growth, which will be good not
only for the Chinese people but also for the world economy.

Tibet
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4. (C) Chen said she is also "very concerned" about the Tibet
issue and hopes the U.S. administration and Congress will
"consider this issue." Tibet is "not a human rights,
religious or democracy issue" but a "separatist" one related
to China's national interests. Chen said that the channel
for dialogue with the Dalai Lama is always open provided he
agrees to the "three noes": not engaging in separatist
activities or violence, and not supporting the Tibetan Youth
Congress. Chen stressed the importance in particular of the
prohibition against separatist activities. The Dalai Lama is
the "obstacle" to the resolution of the issue, not China,
said Chen. As "evidence" of the Dalai Lama's "violent
activities," Chen pointed to the March 14 riots in Lhasa and
the violence surrounding the torch relay. Chen said that she
presumes that if riots similar to the ones Lhasa experienced
in March occurred in Hawaii, the United States would respond
"even more promptly."

Six-Party Talks
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5. (C) Asked about China's view of the status of the
Six-Party Talks, Chen said that "China sticks to its position
that all sides should continue dialogue." China is pleased
to see the recent progress on the issue, said Chen.

South Ossetia

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6. (C) Asked about the situation in Georgia, Chen referred
Senator Hagel to President Hu Jintao's statements on South
Ossetia, adding that China supports a peaceful solution to
the issue and will not support South Ossetia independence.

Bilateral Relations
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7. (C) The stable development of U.S.-China bilateral
relations is conducive to the world as a whole and Chinese
and U.S. leaders attach great importance to the development
of bilateral ties, Chen said. Whatever the outcome of the
upcoming U.S. Presidential election, she hopes that Senator
Hagel will encourage the new administration to attach great
importance to the development of ties with China.

Third Plenum
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8. (C) The Third Plenum of the Chinese Communist Party 17th
Central Committee recently concluded and released a
communique that shows that China attaches great importance to
agriculture, Chen reported. The meetings included a review
the status of rural reforms in China, an agreement on the
importance of further reform and a list of tasks to be
completed by 2020.


9. (U) Senator Hagel's delegation has cleared this message.
PICCUTA