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