SARKOZY-HU MEETING AT G-20 STILL A POSSIBILITY

C O N F I D E N T I A L BEIJING 000778 SIPDIS E.O. 12958: DECL: 03/25/2029 TAGS: PREL PGOV ECON KIRF CH FR SF SUBJECT: SARKOZY-HU MEETING AT G-20 STILL A POSSIBILITY REF: A. 08 BEIJING 4372 ¶B. BEIJING 176 Classified By: Deputy Political Minister Counselor Ben Moeling, Reasons 1.4 (B/D). ¶1. (C) Summary: A meeting between the Chinese and French Presidents at the London G-20 summit is still a possibility despite press reports to the contrary, according to a French Embassy contact. However, Chinese insistence on France taking "concrete steps" to resolve the continuing contretemps over President Sarkozy's December, 2008 meeting with the Dalai Lama is holding back efforts at rapprochement. While regular bilateral diplomatic contacts and economic ties have suffered little during the downturn in relations between the two countries, according to our contact, China appears to have accomplished its goal of influencing other nations' approach to the Dalai Lama by making an example out of France. End Summary. Meeting Still Possible -------------- ¶2. (C) A meeting between French President Nicolas Sarkozy and Chinese President Hu Jintao on the sidelines of the April 2 G-20 Summit in London has not been ruled out, despite Chinese and French media reports to the contrary, French Embassy Second Secretary Marianne Ziss (protect) told POLOFF March ¶25. French and Chinese officials in Paris have been in "nearly-constant" high-level contact since the beginning of the crisis in Sino-French relations that culminated in cancellation of the EU-China Summit following Sarkozy's December 2008 meeting with the Dalai Lama (Ref B),with the most recent discussions on rapprochement occurring March 24th, she said. These negotiations may still lead to a meeting between the two leaders during the summit. Extrication Difficult Without Loss of Face -------------- ¶3. (C) The Chinese have created a situation from which it will be difficult to extricate themselves without losing face, Ziss said. While many Chinese commentators have called for a meeting between Hu and Sarkozy as a first step towards rapprochement, Ziss said, hardliners in the Chinese government continue to insist that France take unspecified "concrete steps" to rectify the ongoing problems. However, France remains a sovereign nation, and the President cannot say that he will never again meet with the Dalai Lama, she said. Despite this impasse, Ziss remains hopeful that rapprochement will occur in the near future. She noted that every time Chinese leaders call for France to "take concrete steps" towards rebuilding the bilateral relations, they preface their remarks with comments on the importance of the bilateral relationship and the "special friendship" that exists between the two countries. Other Nations Learning From France's Mistake -------------- ¶4. (C) China appears to have accomplished the goals of souring relations between the Dalai Lama and other nations by using France to set an example, Ziss suggested. She cited South Africa's refusal to grant a visa to the Dalai Lama to allow his participation in a March 27 peace conference in Pretoria. While the South African government claims it made the decision independent of Chinese influence in an effort to prevent the Tibet issue from overshadowing the conference, Ziss felt that South Africa "learned from the French" and chose to cancel the conference out of trepidation over possible Chinese pique. Sino-French Cooperation Continues Roughly Apace -------------- -- ¶5. (C) Despite the well-publicized problems between China and France, Ziss reported that bilateral cooperation between two nations has not suffered significantly. In contrast with other nations whose leaders have met the Dalai Lama, such as Germany in September 2007, the French Embassy "has not had too many problems" arranging meetings with Chinese officials, she said. Economic cooperation has likewise not suffered significantly, she added. However, she noted resentment towards France from some EU partners who feel that France has sacrificed the EU's overall relations with China in order to push its own bilateral agenda. PICCUTA