BEIJING-BASED G-5 CHIEFS OF MISSION ON SINO-FRENCH

C O N F I D E N T I A L BEIJING 000613


E.O. 12958: DECL: 03/10/2029
TAGS: PREL PGOV EFIN ECON CH FR JA GM UK
SUBJECT: BEIJING-BASED G-5 CHIEFS OF MISSION ON SINO-FRENCH
RELATIONS, G-20 SUMMIT, HIGH-LEVEL VISITS, OTHER TOPICS

Classified By: Acting DCM William Weinstein. Reasons 1.4 (b/d).


Summary
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1. (C) At the regular meeting of G-5 Ambassadors in Beijing
March 6, French Ambassador Herve Ladsous reported that
Sino-French talks are "still in the doldrums." France
suspects that the Chinese government is behind the Chinese
antique collector who bid on the Chinese cultural relics at a
Paris auction and then refused to pay. UK Ambassador William
Ehrman said China wants to increase its voting shares in
international financial institutions and is opposed to
including language on macroeconomic imbalances and climate
change in the statement to come out of the April 2 G-20
summit. Japanese Ambassador Yuji Miyamoto reported that the
Japanese government would not formally assist the China
Investment Corporation (CIC) investment mission to Japan.
German Ambassador Dr. Michael Schaefer said Germany will
bring a German film about the Nanjing massacre to China. End
Summary.

Participants
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2. (C) French Ambassador Herve Ladsous hosted Japanese
Ambassador Yuji Miyamoto, German Ambassador Dr. Michael
Schaefer, UK Ambassador William Ehrman and A/DCM March 6 for
the regular G-5 gathering of Beijing-based Chiefs of Mission.

Sino-French Relations: Still in the Doldrums
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3. (C) French Ambassador Ladsous reported that Sino-French
talks were still "in the doldrums." The MFA was still
refusing to see the French Ambassador unless the Chinese had
a specific issue to address. French Embassy officials were
still getting meetings with provincial leaders and technical
ministries (including a meeting at the Ministry of Commerce
to discuss the G-20 Summit),but those meetings were usually
at the level of Director General or below. Regarding the
recent Paris auction of Chinese cultural relics, Ambassador
Ladsous said France suspected Chinese antique collector Cai
Mingchao, who reportedly had the highest bid for two
statuettes allegedly looted during the Second Opium War but
refused to pay, was acting on instructions from the Chinese
government. Ambassador Ladsous said China was taken aback by
the reaction abroad to the auction and was now directing Cai
to make excuses about his inability to pay for the
statuettes. China had not delivered a formal demarche
regarding the auction, but MFA officials had privately urged
the French Ambassador to have his government make a statement
of concern. Ambassador Ladsous said he had recommended that
the French MFA not make such a statement.


4. (C) Ambassador Ladsous reported that the Dalai Lama
planned to travel to Europe June 4-9, including a stop in
Paris to meet the mayor and collect his honorary citizen
award. Ladsous had heard reports from the Dalai Lama's
representatives that the Dalai Lama would travel to the
United States in the fall to meet President Obama.
Ambassador Ladsous said China was planning to send a number
of trade missions to Europe, including an investment mission
to Germany and the UK and a purchasing mission to Hungary,
Romania and other central European countries. Commenting on
increased Chinese investment in Europe, he noted that concern
was building over the potential purchase of a GM plant in
Alsace Loraine, where a Chinese company was the sole bidder.

UK and China Negotiating over G-20 Objectives, Photo
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5. (C) China would like to increase its voting shares in
international financial institutions and was opposed to
including language on macroeconomic imbalances and climate
change in the statement to be issued at the April 2 G-20
summit in London, UK Ambassador Ehrman reported. The UK had
pushed back on climate change, but Chinese officials were
reluctant to support language on climate change, commenting
"we know what Obama has said, let's see what he does."
Ambassador Ehrman said the UK and China were also negotiating
over the G-20 leaders' photo. China requested that President
Hu be next to Prime Minister Brown in the photo, based on
Hu's status as the leader with the second-longest tenure
after Brazilian President Lula. UK officials had told China
that the UK would follow normal diplomatic protocol for the
photo.


6. (C) The UK had no objections to two Chinese investment
missions planned for this spring, Ambassador Ehrman said.
Vice Premier Wang Qishan would attend an investment dialogue
with the UK in May, and State Councilor Dai Bingguo would
visit London in May or June for talks with the UK Foreign
Minister. The UK Vice Chief of Defense Staff would attend
the Chinese naval review off the coast of Qingdao in April.
Other upcoming visits to China include UK Business Secretary
Peter Mandelson, Environment Minister Hilary Benn and First
Minister of Scotland Alex Salmond.

Japan Concerned about CIC Investment in Japan
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7. (C) Japanese Ambassador Miyamoto reported that the China
Investment Corporation (CIC) would like to send an investment
mission to Japan and requested official Japanese government
assistance, but the Japanese government would not provide
assistance to CIC. He said that CIC's interest in investing
in Japan was a sensitive issue and that no Japanese company
was willing to be sold to CIC. Japanese Foreign Minister
Nakasone held talks with Chinese Premier Wen Jiabao, Foreign
Minister Yang Jiechi and State Councilor Dai Bingguo March 1.
FM Yang stressed the need to use diplomatic means to resolve
the dispute over the Senkaku Islands, Ambassador Miyamoto
reported, adding that China wanted to "put aside" the
disputed islands issue. Japanese Deputy Foreign Minister
Kenichiro Sasae was slated to host a security dialogue in
Tokyo March 27. China's delegation would be headed by
Assistant Foreign Minister Hu Zhengyue and would include
officials from the Ministry of National Defense.

German Film about Nanjing Massacre, Upcoming Visits
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8. (C) German Ambassador Schaefer reported that a German film
about the Nanjing massacre called "John Rabe," which
premiered in February at the Berlin International Film
Festival, would be shown in China. Directing his comments
about the film to the Japanese Ambassador, Ambassador
Schaefer said he wanted to make sure he was sensitive to
Japan's concerns. Ambassador Schaefer said the German
Minister of Economy would come to China in April to meet
Minister of Commerce Chen Deming. In April, Germany would
sponsor a three-day rule of law conference in Shenzhen and an
ecological and industrial reform conference in Liaoning
Province. Representatives of the German Bundestag would like
to travel to Tibet in April, but China had not yet approved
the trip and had adopted a "wait-and-see" attitude.


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