AUSTRALIA:INTERIM REPLY ON ENGAGING CHINA RE

S E C R E T CANBERRA 000926 SIPDIS STATE FOR ISN, INR, T, NEA, EUR AND EAP STATE ALSO PASS TO TREASURY E.O. 12958: DECL: 09/17/2018 TAGS: PARM KNNP PTER PINR ETRD MOPS MCAP CH IR AS SUBJECT: AUSTRALIA:INTERIM REPLY ON ENGAGING CHINA RE PROLIFERATION-RELATED IRAN TRADE REF: STATE 99000 Classified By: Political Counselor James F. Cole. Reasons: 1.4(b)(d). ¶1. (S) In accepting Ref A demarche points on September 17, Assistant Secretary for Arms Control and Counter-Proliferation John Sullivan told us that Australia took very seriously the issue of Chinese proliferation trade with Iran, particularly if military or dual-use items were transferred for use against the Australian presence in Iraq or against Australian troops fighting in Afghanistan. He promised to consult with his intelligence counterparts to see if GOA IC assessments matched those of the United States, after which the GOA would decide on engagement with China over the issue. ¶2. (C) Sullivan, who was joined by Christopher King, Acting Director for Arms Control, commented that Australia, as chair of the Australia Group, made a point of briefing China after each AG plenary and encouraging them to adopt AG export control standards. Moreover, in the past Australia had raised with China specific instances involving arms or dual-use exports to countries of concern, he said, recollecting that the Chinese had taken action in one such case. Sullivan, who had previously visited China in his official capacity, noted that China's size and explosive economic expansion made it difficult for central authorities to exercise proper oversight over industry exports, and its customs controls beyond the largest ports were likely weak. MCCALLUM NNNN End Cable Text