VISITS SIGNAL WARMING RELATIONS WITH CHINA

S E C R E T SECTION 01 OF 02 CANBERRA 001012

NOFORN
SIPDIS

E.O. 12958: DECL: 11/10/2019
TAGS: AS CH PGOV PREL
SUBJECT: VISITS SIGNAL WARMING RELATIONS WITH CHINA

CANBERRA 00001012 001.2 OF 002


Classified By: Pol/Econ Counselor Edgard D. Kagan for Reason 1.4(b)(d)


1. (C/NF) SUMMARY: A pair of recent visits by high-level
Chinese officials signals that China is willing to move past
recent tensions with Australia. PLA Chief of Staff General
Chen Bingde and Vice Premier Li Keqiang both met with Prime
Minister Rudd and other senior officials during their visits,
which came just weeks apart. Chen delivered hard messages on
some bilateral issues, but both he and Li were generally
positive about relations with Australia. Several key
Australian government officials, including the Prime
Minister, are planning to visit China early next year.
Australia's relationship with China is on the upswing after a
tense six months.

Vice Premier Avoids Tough Issues
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2. (C/NF) Chinese Vice Premier Li Keqiang recently visited
China and met with several of the most senior figures in the
government. Deputy Prime Minister Julia Gillard met Li at
the airport, and he went on to have audiences with Prime
Minister Kevin Rudd and leader of the opposition Malcolm
Turnbull during a two day, three city visit to Australia.
Rudd hosted Li for dinner in Canberra and the two spoke for
over three hours. According to Richard Neumann of the China
Political and External Section at the Department of Foreign
Affairs and Trade (DFAT),Li was very forward leaning and
avoided mentioning the more divisive issues that have marred
the Sino-Australian relationship of late.


3. (C/NF) Though agreed to in principle earlier in 2009, the
PRC approached Australia to arrange Li's visit on
comparatively short notice. It was highlighted by the
release of the first joint statement from the Australian and
Chinese governments since 1972. Li had expressed interest in
visiting some months back, but did not commit to the visit
until one week before his scheduled arrival, Neumann said.
Prior to the trip, China pressed hard to get Australia to
agree to the joint statement, which expresses a general
commitment to working closer together. China was so eager to
finalize the statement that it readily agreed language that
Neumann expected to be the contentious, such as the
reaffirmation of Australia's position on Taiwan and the
softening of Chinese language asserting Chinese rule over
Tibet. A small group of protesters gathered outside Li's
hotel in Brisbane, but other than that Neumann characterized
the visit as a success.

PLA Chief of Staff: Don't "Slavishly" Follow America
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4. (S/NF) The Li visit follows closely the recent visit by
General Chen Bingde, Chief of Staff of the People's
Liberation Army (PLA). During a meeting with Australian
Department of Defence (ADOD) officials a few weeks prior to
Li's arrival, Chen was less conciliatory. Chen came with
clear talking points, and in a meeting that Defense Minister
John Faulkner characterized as "an exchange of speeches,"
Chen criticized Australia for "slavishly" following America.
He also chided Australia for their portrayal of China as a
potential threat in the Defence White Paper and for several
high profile cases in which Chinese investments in Australian
natural resources were blocked over security concerns.
Still, Chen was generally positive about the future of
Australian and Chinese relations, reserving his harshest
QAustralian and Chinese relations, reserving his harshest
words for criticism of the United States. Kim Arthur,
Director of the North Asia Division for ADOD, reported that
during his own three hour meeting with PM Rudd, Chen asked
whether recent tensions constituted a change in the
relationship. Rudd assured him that nothing fundamental
about the relationship had changed because of recent events.

Going Forward: Rudd, Others to Visit China
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5. (C/NF) The visit of two officials of such high rank
within a month shows that China is willing to move past
recent tensions with Australia. Neumann said that both
visits were considered a success from the Australian side,
and that both Li and Chen left happy. He believes that the
Li visit was finalized only after China considered the Chen
visit a success and that Li was sent here as the "good cop"
after Chen delivered the hard messages.

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6. (C/NF) Within the next six to eight months, many top
Australian officials plan to visit China. DFAT,s Neumann
expects that Prime Minister Rudd will visit China for the
Shanghai Expo in 2010. Deputy Prime Minister Julia Gillard,
Defense Minister John Faulkner and the Chief of the Defence
Force Angus Houston also plan to visit Beijing during the
first half of next year.

Foreign Minister to Take Play a Greater Role?
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7. (C/NF) Foreign Minister Stephen Smith recently gave a
speech on China policy possibly signaling a growing role for
him in that arena. Smith's speech was his first major
address on China since becoming Foreign Minister. Rudd, who
speaks Mandarin and has worked as a diplomat in China, is
widely seen as the key government player on China policy.
Neumann says that many within the Australian government are
taking the speech as a signal that Smith will now take on a
greater role, possibly the lead role, on China issues.


8. (C/NF) COMMENT: It appears that both China and Australia
are eager to move past recent tensions and resume their
normal working relationship. The fact that Australia managed
to arrange meetings with the Prime Minister, Deputy Prime
Minister, and Leader of the Opposition for Li within one week
signals the level of commitment within the government to
engagement with China. Barring another high profile spat,
the worst of the tension is over and Australia and China will
continue to increase their economic and political ties. END
COMMENT.

CLUNE