SCENESETTER FOR THE PRESIDENT'S TRIP TO CHINA

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 003060 SIPDIS FOR THE PRESIDENT FROM THE AMBASSADOR STATE PLEASE PASS TO USTR E.O. 12958: DECL: 11/5/2029 TAGS: PGOV CH ECON IR KN MARR MNUC OVIP PARM PHUM AF, PK, PREL, SENV, TW SUBJECT: SCENESETTER FOR THE PRESIDENT'S TRIP TO CHINA Classified By: Classified by Ambassador Jon M. Huntsman, Jr. Reasons 1 .4 (b/d). ¶1. (C) Mr. President, China's leaders view your upcoming travel to Shanghai and Beijing as the single most important visit to China by a foreign leader this year. As we have heard repeatedly, President Hu Jintao and the senior leadership are committed, as are we, to making your meetings and program a success. China's newfound position ON the world stage has created some unprecedented political opportunities. The Chinese now appear more willing to address key strategic issues )- global economic recovery, North Korea, Iran and Afghanistan, climate change, and proliferation. Thus we may be able to make more rapid progress toward the kind of "positive, cooperative and comprehensive" relationship we have both publicly espoused as our common goal. Now in his second and final term as president, Hu is making key decisions that will define his legacy and determine what kind of global citizen China will become. During your upcoming discussions with Hu, you can build ON the themes you have laid out since the beginning of your presidency: America embraces China's rise, and we want to work with China to face the challenges of the 21st century. In short, our message is resonatig. ¶2. (C) You will also be speaking directly to the people of China )- the older generations that have overcome so much and the new generation that views the world from the perspective of a more confident and dynamic China. You can assure them )- at your town hall meeting in Shanghai, in press statements with local media, during meetings with the leadership, and in encounters when you tour the Forbidden City and Great Wall -) that we value and respect their accomplishments and that despite inevitable differences, we should diligently search for common ground in promoting global and regional as well as bilateral interests. The Global Economy -------------- ¶3. (C) You and President Hu already demonstrated the benefits of our bilateral cooperation when you managed the worst of the global financial crisis. By acknowledging China's role in stabilizing the global economy over the past year, you enhanced Hu's stature internally and helped him step out of 
former leader Deng Xiaoping's shadow. But more must be done, and the Chinese are aware that we expect them to be more proactive ON the issue of economic recovery. We want them to commit to faster and deeper measures that address our bilateral imbalances, liberalize their service sector, deal with currency concerns and create a much needed social safety net, without which rebalancing will surely fail. These challenges are no easier for Hu to overcome than the domestic issues America faces. Security -------------- ¶4. (C) The Six-Party Talks represent the best current example of our two countries cooperating to resolve a difficult regional security issue. Still, we need to urge the Chinese to push Pyongyang harder to give up its nuclear weapons program and weapons proliferation and return to the negotiating table. The Chinese, in turn, will encourage you to promote direct bilateral talks with Pyongyang. Elsewhere, our challenge is to demonstrate to China that our national interests similarly overlap in places such as Iran, Afghanistan and Pakistan. We are together ON the importance of regional stability, effective governance and addressing the rise of extremism. You have an excellent opportunity to call for bold cooperative action. The Chinese share many of our concerns about Iran's nuclear program and have been impressed by our willingness to engage in dialogue with Tehran. You have already made clear that Iran is a core interest of the United States. Hu's response to any request we make for follow-up steps either to implement an IAEA agreement or apply more pressure ON Tehran will be an important test of China's willingness to stand with us. ¶5. (C) Your Prague speech outlining America's commitment to BEIJING 00003060 002 OF 002 nonproliferation, your resumption of the START talks and your commitment to the CTBT have caused the Chinese to reexamine arms control and nonproliferation. If you can win President Hu's commitment to attend next year's Nuclear Security Summit (he likely will want to come ON a state visit as a condition of acceptance),we should be able to build new ways to work together ON nonproliferation. The best way to improve military-to-military ties is for you and President Hu together to insist that our militaries develop new and creative confidence-building measures and new means of communicating. Climate Change -------------- ¶6. (C) No issue better illustrates the importance of our cooperation than climate change. China's commitment to clean energy and to addressing greenhouse gas emissions through its ambitious energy intensity, renewable energy and nuclear energy targets is impressive and represents an enormously potent area for commercial collaboration. Beijing, however, has been reluctant to give up the mantra of "common but differentiated commitments" that allows it to determine when economic development trumps climate change obligations. This was most recently illustrated at the Barcelona climate change talks, when China declared its solidarity with the G-77 and stated that Kyoto Protocol principles must be maintained. We expect to be able to reach an understanding ON climate change by the time you arrive that can allow for the hoped-for political deal in Copenhagen. Chinese Concerns and Areas of Friction -------------- ¶7. (C) Hu will raise China's "core interests" )- Taiwan, Tibet, Xinjiang, and U.S. military surveillance operations in China's exclusive economic zone (EEZ). PRC leaders remain critical of prospects that you will meet with the Dalai Lama after your visit to China, and they are concerned about a possible Taiwan arms sale announcement. Chinese leaders would be happy if you did not raise human rights during your visit. To date, our responses to Chinese complaints have been firm and consistent: U.S. officials meet with the Dalai Lama in his capacity as an internationally revered spiritual leader; our arms sales to Taiwan are in accordance with our One China Policy and the Taiwan Relations Act, and are conducive to cross-Strait stability; our support for human rights and human dignity is what defines who we are as Americans; our EEZ operations are conducted in international waters and are permitted under international law. When Hu raises these issues, he will be speaking as much to internal constituencies as to you. We suggest you underscore that at the 30-year mark of our formal bilateral relationship, a sign of our engagement is not that we have disagreements, but rather that we can we deal with them without jeopardizing regional and global peace and prosperity. ¶8. (U) Mr. President, your commitment to building a relationship with China that will allow us together to shape the 21st century has the attention of our country, China and the world. We are proud to be a part of your team. HUNTSMAN