Identifier
Created
Classification
Origin
08TOKYO1166
2008-04-28 06:49:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

AID ADMINISTRATOR FORE'S MEETING WITH CHINESE VM YI

Tags:  EAID ECON JA PREL CH OECD 
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P 280649Z APR 08
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UNCLAS SECTION 01 OF 02 TOKYO 001166 

SIPDIS

SIPDIS

STATE FOR DFA FORE
STATE FOR EAP/CM SECOR AND CARTIN
STATE FOR EEB/IFD/ODF WEBSTER
STATE PASS TO USAID FOR ODP/AA TURNER AND AFRICA/AA ALMQUIST
NSC FOR SHRIER, TONG

E.O. 12958: N/A
TAGS: EAID ECON JA PREL CH OECD
SUBJECT: AID ADMINISTRATOR FORE'S MEETING WITH CHINESE VM YI

REF: A. BEIJING 1225

B. TOKYO 841

UNCLAS SECTION 01 OF 02 TOKYO 001166

SIPDIS

SIPDIS

STATE FOR DFA FORE
STATE FOR EAP/CM SECOR AND CARTIN
STATE FOR EEB/IFD/ODF WEBSTER
STATE PASS TO USAID FOR ODP/AA TURNER AND AFRICA/AA ALMQUIST
NSC FOR SHRIER, TONG

E.O. 12958: N/A
TAGS: EAID ECON JA PREL CH OECD
SUBJECT: AID ADMINISTRATOR FORE'S MEETING WITH CHINESE VM YI

REF: A. BEIJING 1225

B. TOKYO 841


1. (SBU) Summary. While China is interested in learning more
about U.S. official development assistance (ODA),Chinese
Commerce Vice Minister YI Xiaozhun declined to commit to a
bilateral dialogue on development issues during an April 7
meeting with USAID Administrator Henrietta Fore. Yi stated
most Chinese aid is funneled through the Ministry of
Commerce, but the Health, Agriculture and other Ministries
also have aid budgets. China is concerned with the high
price of agricultural products and Yi believes the G8
countries should act to stabilize prices. Yi's designation
of an individual as point of contact for a possible
development dialogue suggests China may agree to the idea
sometime in the future. End Summary.


2. (SBU) The U.S. and China should launch a dialogue to
discuss development issues of interest to both countries, Aid
Administrator and Director of Foreign Assistance (DFA)
Henrietta Fore proposed to Chinese Ministry of Commerce
(MOFCOM) Vice Minister (VM) Yi Xiaozhun during an April 7
meeting on the fringes of the G8 Development Ministerial in
Tokyo. In particular, the two sides could discuss how ODA is
structured within the respective governments, successes and
failures of ODA programs, and how each works with
multilateral organizations, Fore said. She suggested the
dialogue be kicked-off in May or June in Beijing with a
follow-up meeting in Washington in September. Alternatively,
the dialogue could be held in Japan on the fringes of the May
28-30 Tokyo International Conference on African Development
(TICAD).


3. (SBU) While China would like to learn more about how the
United States' aid program is structured, how the USG
provides assistance, and particularly what is the primary
focus of U.S. ODA, Yi declined to commit to a bilateral
dialogue stating he would like to consult with colleagues.
Yi suggested a working-level meeting would be most fruitful
as these are the individuals most familiar with development
programming. "I am more familiar with ODA as a recipient,"
Yi joked. Yi designated MOFCOM Department of Aid to Foreign
Countries Director Liu Junfeng to be the point of contact
going forward. (Note. Also accompanying Yi was MOFCOM
Department of Aid to Foreign Countries Director General Wang
Shichun. End Note.) DFA Fore selected USAID Office of
Development Partners Director Karen Turner as the U.S. point
of contact.


4. (SBU) DFA Fore stated U.S. ODA policy has benefited from
input by scholars, non-profit organizations, journalists and
the private sector. She suggested the proposed development
dialogue could also include these groups. Yi demurred,
stating while Chinese scholars are knowledgeable in micro and
macro economics, development economics is not yet a popular
subject among Chinese academics.


5. (SBU) Yi explained most Chinese assistance is channeled
through MOFCOM, but noted the Health, Agriculture and other
Ministries also have aid budgets. The Chinese government has
not been very focused in providing development assistance and
has funded projects related to agriculture, light industry,
public health programs, schools, and even sports stadiums, Yi
acknowledged.


6. (SBU) USAID Africa Bureau Assistant Administrator
Katherine Almquist noted China's increasing importance on the
continent and suggested the U.S. and China should share ODA
strategies to determine if cooperation is possible. The U.S.
is working with the European Union and Japan in several
African countries and believes the combined effort leads to a
greater impact, Almquist said. Yi stated China does not have
any single person overseeing aid to Africa.


7. (SBU) Yi indicated China is concerned with current high

TOKYO 00001166 002 OF 002


prices for agriculture products. Many Chinese have just
risen out of poverty and cannot pay these high prices. The
G8 countries should work together to stabilize prices to
prevent poor people in developing countries from suffering,
Yi observed.


8. (SBU) Comment. While VM Yi was hesitant to agree to a
development dialogue at this time, he was open and friendly
during the meeting. Yi spoke entirely in English, despite
having an interpreter at his side. Yi's designating a point
of contact for a possible bilateral may be a good sign the
Chinese could be persuaded to enter into a dialogue, albeit
with persistent coaxing from the U.S. End Comment.


9. DFA Fore has cleared this cable.
SCHIEFFER