Food Security at L'Aquila Summit: China

UNCLAS SECTION 01 OF 02 BEIJING 001727 SIPDIS SENSITIVE STATE FOR EEB/TPP/MTAA/ABT SPECK, CLEMENTS, MORTON USDA FOR ONA/MANNIS, OCRA/RADLER, SHEPPARD STATE PASS USTR FOR STRATFORD/SCHWAB TREASURY FOR OASIA GENEVA PASS TO USTR E.O. 12958: N/A TAGS: EFIN ETRD ECON WTRO EAGR EAID PREL CH SUBJECT: Food Security at L'Aquila Summit: China Response REF: A. State 58996 ¶B. 08 Beijing 3598, 08 Beijing 3519 ¶C. Beijing 1720 ¶1. (SBU) Summary: China is skeptical $15 billion can be raised for food security at the L'Aquila Summit, according to Guo Xuejun, Deputy Director in the Foreign Ministry International Organizations Department. China prefers bilateral and United Nations channels for delivering assistance. Guo also said the U.S. proposal does not address broader developing country concerns about the global economy, and suggested the Summit should make a gesture on Doha. End Summary. ¶2. (SBU) Post delivered reftel demarche (Ref A) to Mr. Wang Ying, Director General, International Cooperation Department, Ministry of Agriculture (MoA) on June 18 and to Mr. Guo Xuejun Deputy Director in the International Organizations Department, Ministry of Foreign Affairs, on June 19. MFA's Guo offered initial reactions, couched as his "personal opinion." MoA, which has been assigned to draft China's position on food security for the L'Aquila Summit, has not yet responded. Post will forward any additional information as it becomes available. Skeptical About Funding Targets -------------- ¶3. (SBU) Guo commented that food security is a vital issue and China has done much to ensure food security both domestically (Ref B) and internationally by assisting developing countries. China appreciates U.S. work to promote food security, particularly in Africa. Guo said developing countries will welcome the increased investment in country-owned plans (principle #2 in Ref A). Guo was skeptical, however, that the Summit will be able to raise $15 billion, and doubted that the necessary institutions exist to spend the money effectively. Guo noted the U.S. goal to raise $3 billion over the next 3-4 years, but questioned where the additional $12 billion will come from. He said he cannot imagine developing countries contributing more than developed countries, and that developed countries are already having a problem meeting their ODA commitments. No Indication of Chinese Financial Support -------------- ¶4. (SBU) Responding to a question, Guo avoided directly addressing China's willingness to contribute financially to the food security initiative, but when discussing the G-20 process (Ref C),said the IMF, World Bank and African Development Bank had the capacity to do more to help poor countries, including on food security. He indicated that G-20 countries, including China, could do more individually to assist Africa and the developing countries, emphasizing China's bilateral initiatives. Guo said the World Bank has a mandate to deliver on L'Aquila, but is "still reforming." The UN should play a large role, because it has credibility in the developing world. Guo objected to the use of "reformed" in reference to the Food and Agricultural Organization (FAO) and said the FAO makes important contributions, as does the World Food Program (WFP). Both have performed well in recent crises, and China was very satisfied. Guo emphasized that the United Nations (especially the FAO and WFP) has credibility in Africa and a prominent role for the UN could make the L'Aquila Summit more credible among developing countries. Pushing Developing Country Doha, Economic Concerns -------------- -------------- ¶5. (SBU) Developing countries are also concerned about developed countries' trade barriers and BEIJING 00001727 002 OF 002 subsidies, according to Guo. With agriculture a major stumbling block in Doha, he suggested that perhaps L'Aquila could "make a gesture" on this. Guo also noted that the U.S. proposal did not address the issues about which developing countries have complaints regarding U.S. policies, including currency levels and dollar volatility, and the role of speculation in commodity markets and food inflation. He noted global inflation pressures, stating that oil prices have gone up, and food prices would most likely follow. Follow-Up -------------- ¶6. (SBU) Guo also asked if food security will be a deliverable at the G8+5+Egypt+Africa meeting and if food security was going to be on the agenda at both the L'Aquila and the G-20 Pittsburgh Summit. Econoff promised to check with Washington. Comment -------------- ¶7. (SBU) Guo prefaced his comments as his personal opinions, but his statements parallel oft-cited Chinese Government concerns about food security and participation in multilateral economic fora in general. China generally avoids large financial contributions to multilateral aid projects, preferring bilateral assistance from which China accrues more direct goodwill. Beijing has also taken every opportunity possible to raise its concerns about the negative impact of Western financial speculators in the world economy, as well as the possible dangers of inflation and dollar instability. We would not be surprised if China tries to raise these points at L'Aquila, but they are fundamentally rhetorical vice substantive points. PICCUTA