PRC-EGYPT STRATEGIC DIALOGUE COVERS IRAN, SUDAN,

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 004281 SIPDIS E.O. 12958: DECL: 11/21/2033 TAGS: PREL PGOV ECON EAID PTER AORC UN CH EG SU IR SUBJECT: PRC-EGYPT STRATEGIC DIALOGUE COVERS IRAN, SUDAN, IRAQ, OTHER MIDDLE EAST ISSUES Classified By: Acting Deputy Chief of Mission Aubrey Carlson. Reasons 1.4 (B/D). Summary -------------- ¶1. (C) In the first China-Egypt Strategic Dialogue, led by Foreign Ministers Yang Jiechi and Aboul Gheit, Egypt pressed China to take a more "comprehensive" approach in its Middle East policy and to avoid viewing topics like the Middle East Peace Process and the Iranian nuclear issue as isolated issues, according to MFA and Egyptian Embassy readouts. The two sides reaffirmed their opposition to Iran's development of nuclear weapons, but agreed that diplomatic efforts to deal with Iran need to consider the balance of power in the region and Israel's nuclear capability. They confirmed their mutual opposition to the International Criminal Court (ICC) indictment of Sudanese President Bashir, but China cautioned that its ability to oppose the indictment is limited. Both sides agreed that U.S. troops should remain in Iraq for the short term. The Foreign Ministers also discussed the outcome of the U.S. election and its potential impact on the Middle East, UN Security Council expansion and bilateral issues. End Summary. ¶2. (C) MFA West Asian Department Deputy Division Director Zhang Zhisheng briefed PolOff on Egyptian Foreign Minister Aboul Gheit's November 5-7 visit to Beijing. Egyptian Embassy Political Officer Haitham Safey El-Din also provided a readout. FM Gheit was in Beijing for the first round of the China-Egypt Strategic Dialogue, hosted by PRC Foreign Minister Yang Jiechi. According to Haitham, the Dialogue was proposed by the two sides in 1999 but not held until now. While in China, FM Gheit also met with Vice President Xi Jinping, although Haitham said the meeting was not substantive. Egypt: China Needs a Comprehensive Middle East Policy -------------- -------------- ¶3. (C) Haitham said that at the Strategic Dialogue Egypt stressed that China needs to develop a more "comprehensive" strategy on Middle East issues. He said that FM Gheit told the Chinese that it is not sufficient to consider individual issues of Chinese interest in the region in isolation. China must understand the political factors that connect the major issues and develop a plan for broader engagement. As an example, the Egyptians stressed the need for the international community, including China, to remain engaged with the Middle East Peace Process (MEPP) to create progress on an issue that affects other countries in the region, particularly Egypt. MFA's Zhang acknowledged that China received this message at the Strategic Dialogue. He said that the Egyptians seemed to "hope for more" from China in terms of region-wide engagement. Zhang noted as an example that the Egyptians raised the recent Israeli elections as a good opportunity for China to engage more vigorously in the MEPP. Zhang, however, offered no sign that China is ready to develop new initiatives. Sudan/ICC Indictment -------------- ¶4. (C) Haitham said that Sudan was the top specific item on the Strategic Dialogue agenda. He said that Egypt recognizes China's important role and influence with the Khartoum Government and the Egyptian Foreign Minister sought China's assistance in stabilizing Sudan. MFA's Zhang said that China views Egypt as an important regional leader and seeks to reach a consensus on the situation in Sudan. Zhang stressed that both sides oppose the International Criminal Court (ICC) indictment of President Bashir as counter-productive and potentially destabilizing. China advocated postponing action on the ICC indictment, he said, "for example" through Article 16 of the Rome Statute. Haitham concurred that the two sides are in agreement in their opposition to the ICC indictment, adding that although China opposes the indictment, the Chinese MFA warned the Egyptians that the issue would be "tough" given Western support for the ICC action. Iran -------------- ¶5. (C) According to Haitham, the Chinese briefed FM Gheit on BEIJING 00004281 002 OF 002 recent efforts by the P5-plus-1 to resolve the Iranian nuclear issue. The Egyptians encouraged China to view the Iranian nuclear issue in the context of broader Middle East engagement and not as an isolated issue, noting that Iran has influence in parts of Iraq, Syria and the Palestinian territories. Zhang said that the two sides affirmed their mutual opposition to a nuclear-armed Iran, saying that Iranian development of nuclear weapons would have a destabilizing effect on the region. The two sides agreed on the need to "push" Iran to cooperate with the international community and stressed the need to resolve the issue through dialogue. Zhang noted, however, that the two sides also agreed that efforts to deal with the Iranian nuclear program must take into consideration the overall balance of military power in the region, and thus should include discussion of Israel's nuclear capability. The two sides, Zhang said, see the Iranian and Israeli nuclear capabilities as "similar issues." He added that the two sides concluded that any "arrangement" reached on the Iranian nuclear issue should not "interfere" with other countries in the region. Iraq -------------- ¶6. (C) Zhang said that both sides are concerned about the security situation in Iraq. Zhang and Haitham both said the two sides agreed that a rapid drawdown of U.S. forces risks destabilizing Iraq, acknowledged the need for the U.S. presence for the time being, and hoped for a careful approach to any withdrawal that takes into consideration the interests of other countries in the region. The Chinese side expressed concern about the potential for Iraq to become a base for terrorist activities "like Algeria." U.S. Election -------------- ¶7. (C) The U.S. election was also at the top of the agenda for the Strategic Dialogue, both Zhang and Haitham said. Both sides agreed that the Middle East is a critical region in the world beset by very complex problems and expressed hope that the new U.S. administration would stay engaged in the region, according to Zhang. The two sides agreed on the need for a smooth transition in U.S. policy in the Middle East. UNSC Reform -------------- ¶8. (C) Haitham said that the Egyptians urged the Chinese to be active in upcoming intergovernmental negotiations on UN Security Council expansion. He said that China agreed with the Egyptian view that any expansion should include increased representation from Africa. Bilateral Issues -------------- ¶9. (C) According to Haitham, the two sides discussed bilateral issues, particularly trade and investment. The Egyptians pushed China to open its markets further to imports from Egypt and increase investment in Egypt, especially in the Suez development zone. RANDT