APRIL 9 MFA PRESS BRIEFING: DPRK LAUNCH, IRAN DIALOGUE,

UNCLAS SECTION 01 OF 03 BEIJING 000953

SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV PHUM PARM EFIN KNNP KCRM CH KS KN FR IR
TW, XC, KZ, PP

SUBJECT: APRIL 9 MFA PRESS BRIEFING: DPRK LAUNCH, IRAN DIALOGUE,
XINJIANG, TIBET, LIMMT SANCTIONS, TAIWAN SHIP HIJACKING, CYBER-SPY
ATTACK, ANTI-DUMPING SUIT, BO'AO FORUM

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1. Key points at the April 9 MFA press briefing:

-- China believes "pressure will not help" the situation in North
Korea, "diplomatic efforts" need to be continued and all parties
should "exercise calmness, restraint and caution."

-- China "takes note of" North Korea's announcement of having
launched a satellite, as opposed to a missile.

-- China maintains an "open attitude" toward proposals encouraging
negotiation and dialogue with Iran.

-- Regarding LIMMT, China opposes the United States "invoking
domestic law" to impose sanctions on a Chinese company.

-- Regarding the Taiwan fishing vessel hijacked by Somali pirates,
China has contacted authorities in Taiwan to express its
"willingness to assist" with the ship's rescue.

-- Sino-French relations are in "recovery," and three former French
leaders will visit China in April.

-- China urges American media to "prudently" handle "erroneous
accusations" alleging that Chinese cyber-spies hacked into the U.S.
electric grid. The spokesperson claimed the White House had denied
the report.

-- Former President George W. Bush will attend the Bo'ao Forum for
Asia (BFA) April 17-19 in Hainan.

North Korea
--------------


2. As a starting point, all relevant parties should work to
"safeguard peace and stability" on the Korean Peninsula to "enhance
understanding and mutual trust and to build harmony," said
spokesperson Jiang Yu at the April 9 regular MFA press conference in
response to a question about Senator McCain's recent comment that
China should strengthen its stance against North Korea and push for
stronger international sanctions through the UN Security Council
(UNSC). Jiang Yu added that "pressure will not help" the situation,
"diplomatic efforts" need to be continued and all parties should
"exercise calmness, restraint and caution."


3. When asked if China would support a new UNSC resolution on North
Korea or prefer a UNSC statement, Jiang Yu replied that China's
position is that the UNSC should proceed with the "appropriate
response" to safeguard "peace and stability" in the region. She
added that China has engaged in "communication and coordination" in
"bilateral and multilateral channels" and hopes the issues can be
"properly handled through dialogue and consultation."


4. China "takes note" of North Korea's announcement of having
launched a satellite, replied Jiang Yu when asked if China believed
a satellite or a missile had been launched.

P5+1 Statement on Iran
--------------


5. When asked about the recent statement issued by the P5+1
announcing EU foreign policy chief Javier Solana's intention to
invite the Iranian Government to engage in dialogue, Jiang Yu said
China maintains an "open attitude" toward proposals encouraging
negotiation and dialogue and hopes that a "long-term comprehensive
resolution" of the issue can be found.

Executions in Xinjiang
--------------


6. Jiang Yu referred a journalist to local authorities when asked
about the recent execution of two Uighurs for an attack on border
police in Xinjiang last August that left 17 dead. She added that
China processes such cases "in accordance with the law" and that in
China "everyone is equal before the law."

Death Sentences in Tibet
--------------


7. The arson attacks that occurred during the March 14, 2008 Lhasa
incident "undermined the safety, life and assets of local people"
and "threatened law and order," said Jiang Yu when asked about the
four Tibetans recently sentenced to death for starting deadly fires
during last year's unrest in the region. She pointed out that the

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convictions were handed down in "strict accordance with the Chinese
legal system" and that the legal rights of those convicted were
"fully granted." She asserted that their "ethnic habits and dignity
were fully respected" and that "judicial authorities in China have
always handled cases according to law."

LIMMT Sanctions
--------------


8. China has "taken note" of the sanctions imposed on LIMMT Economic
and Trade Co. Ltd. and the indictment by a New York grand jury of
the Chinese metals company and its manager, Lee Fangwei, said Jiang
Yu. She added that China's nonproliferation policy is clear,
consisting of "strict and effective export controls." China opposes
the U.S. "invoking domestic law" to impose sanctions on a Chinese
company.

Hijacking of Taiwan Fishing Vessel
--------------


9. China takes the hijacking of the Taiwan fishing vessel "very
seriously" and has been in touch with the "relevant authorities" as
well as various Chinese Embassies to "safely rescue" the boat and
crew, said Jiang Yu. China has also contacted authorities in Taiwan
to express its "willingness to assist" with the incident. Jiang Yu
added that the MFA Consular Department has issued a warning for
Chinese vessels to avoid dangerous waters in the area, and that
China "opposes international piracy, in accordance with relevant UN
resolutions."

Former French Leaders to Visit China
--------------


10. Three former French leaders will visit China in April, said
Jiang Yu. Former French Prime Minister Jean-Pierre Raffarin will
attend an economic and trade fair, while former French President
Jacques Chirac will meet with Chinese leaders at the invitation of
the Institute for Foreign Affairs. Bernard Accoyer, the President
of the National Assembly of France, will also visit China in April
at the invitation of the National People's Congress (NPC). Jiang Yu
added that Sino-French relations were in "recovery" and that the
joint PRC-France press release, issued during the G-20 summit in
London, signaled the "ushering in of a new era" in bilateral
relations between the two countries. When asked about Chinese
leaders' potential visit to France this year, Jiang Yu said she had
no additional information.

Cyber-spy Attack on U.S. Electric Grid
--------------


11. Jiang Yu urged American media to "prudently" handle "erroneous
accusations" alleging that Chinese cyber-spies hacked into the U.S.
electric grid. Jiang claimed the White House had denied the
report's veracity. When asked about the U.S. Government's
reportedly spending USD 100 million in six months on responding to
cyber attacks, Jiang Yu said that China, too, was a victim of cyber
crime and that it was "willing to enhance its cooperation with the
international community" to fight this problem.

U.S. Steel Industry Anti-dumping Suit
--------------


12. When asked about an anti-dumping suit filed by the U.S. steel
industry against China, Jiang Yu referred the journalist to the
Ministry of Commerce (MOFCOM).

"Settlement Currency" and ASEAN 10+3
--------------


13. The spokesperson referred to "competent authorities" a question
about China's decision to allow exporters in five cities to invoice
in renminbi (RMB). She added, however, that at the upcoming
Association of Southeast Asian Nations (ASEAN) 10+3 meetings in
April in Thailand, financial cooperation will be discussed. She
pointed out that such cooperation between 10+3 countries had
achieved "great breakthroughs" and that due to the large foreign
exchange reserve collectively held by the 10+3 countries, the
region's ability to "withstand financial risk" was "enhanced."

Bo'ao Forum
--------------


14. Premier Wen Jiabao will give a keynote speech at the Bo'ao Forum

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for Asia (BFA) April 17-19 in Hainan, said Jiang Yu. She added that
many foreign leaders will attend the forum, entitled "Asia: Managing
Beyond Crisis," including President Zardari of Pakistan, President
Nazarbayev of Kazakhstan, President Gnassingbe of Togo, Prime
Minister Bayar of Mongolia, Prime Minister Thein Sein of Burma,
Prime Minister Nguyen Tan Dung of Vietnam, Prime Minister Matti
Vanhanen of Finland, Prime Minister Sali Berisha of Albania, Prime
Minister John Key of New Zealand, Prime Minister Somare of Papua New
Guinea and the Deputy Prime Minister of Thailand. Former President
George W. Bush and former Prime Minister Fukuda of Japan will also
attend.

Official Visits
--------------


15. Jiang Yu announced that President Nazarbayev of Kazakhstan will
visit China April 15-19 at the invitation of President Hu Jintao and
that Prime Minister Somare of Papua New Guinea will visit China
April 14-19 at the invitation of Premier Wen Jiabao. Jiang Yu added
that China and Kazakhstan are "friendly neighbors and strategic
partners," stating that during President Nazarbayev's visit, he will
attend the Bo'ao Forum and that the two countries will sign a series
of "cooperative agreements."

WEINSTEIN