APRIL 16 MFA PRESS BRIEFING: NORTH KOREA, HOLBROOKE VISIT,

UNCLAS BEIJING 001013

SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV PARM KNNP KWBG IAEA EFIN AMED CH KS KN
JA, RS, SY, IS, EG

SUBJECT: APRIL 16 MFA PRESS BRIEFING: NORTH KOREA, HOLBROOKE VISIT,
SOUTH CHINA SEA, CURRENCY


1. Key points at the April 16 MFA press briefing:

-- China has "taken note" of reports that International Atomic
Energy Agency inspectors have been expelled from North Korea.

-- Special Representative for Afghanistan and Pakistan Richard
Holbrooke "exchanged views on issues of common interest including
South Asia" during meetings with Foreign Minister Yang Jiechi and
State Councilor Dai Bingguo.

-- It is "completely lawful" for China to "conduct law enforcement
activities" in its exclusive economic zones.

-- China has "taken note" of the United States' declining to name
China as a currency manipulator.

North Korea Reaction to UN Security Statement
--------------


2. China has "taken note" of reports that International Atomic
Energy Agency inspectors have been expelled from North Korea, said
spokesperson Jiang Yu at the April 16 regularly scheduled MFA press
briefing. China hopes that "all relevant parties will proceed from
overall interests and show restraint to jointly safeguard the
Six-Party Talks." Promoting the denuclearization of the Korean
Peninsula is "the consensus of all parties" and China is "willing to
stay in contact with relevant parties." China also hopes that
countries will "work together to promote the peace and stability" of
the region.

Holbrooke Visit
--------------


3. Special Representative for Afghanistan and Pakistan Richard
Holbrooke "exchanged views on issues of common interest including
South Asia" during meetings with Foreign Minister Yang Jiechi and
State Councilor Dai Bingguo. The two sides agreed to "increase
cooperation" in the region.

South China Sea
--------------


4. The spokesperson had "no information" on reports that China is
increasing its patrols of its exclusive economic zone in the South
China Sea. Jiang did say, however, that it is "completely lawful"
for China to "conduct law enforcement activities" in its exclusive
economic zone.

Currency and U.S. Debt
--------------


5. China has "taken note" of the United States' declining to name
China as a currency manipulator. China will "push forward Renminbi
exchange rate mechanism reform" in order to "maintain stability" of
the currency. This plan is "not only good for China but also good
for the world economy." Asked about China's holding of U.S.
Treasury Bonds, Jiang said that China seeks to maintain value and
liquidity in its investments.

Train Quarantine
--------------


6. China "takes seriously" reports of Russian train passengers being
quarantined due to the death of a Chinese woman passenger. China
will "make further investigations into the matter." Asked whether
China would conduct health checks on citizens leaving the country,
Jiang said that it is the responsibility of the country being
entered to conduct the checks.

Visits
--------------


7. Foreign Minister Yang Jiechi will travel to Egypt, Israel and the
Palestinian Territories, Syria and Russia from April 21 to April 27
to "exchange views on bilateral and regional issues."

WEINSTEIN