SUBJECT: PAPER SCORE'S PM'S "SECRET" MEETING WITH

C O N F I D E N T I A L CANBERRA 000298


NOFORN
SIPDIS

E.O. 12958: DECL: 03/24/2019
TAGS: AS CS PREL
SUBJECT: SUBJECT: PAPER SCORE'S PM'S "SECRET" MEETING WITH
CHINESE OFFICIAL

Classified By: POLITICAL COUNSELOR JAMES F. COLE. REASON: 1.4 (D)


1. (C/NF) SUMMARY: "The Australian" newspaper has criticized
Prime Minister Kevin Rudd's "secret" talks with Chinese
Communist Party propaganda chief Li Changcum, on March 21.
Officials in the Office of Prime Minister and Cabinet have
told the Embassy that Rudd and Li discussed the need for
coordinated action by the G-20 in dealing with the Global
Economic Crisis and the Free Trade Agreement talks between
the two. However, the meeting is viewed by many in the
context of China's plays for Australian resources, and Rudd's
call for China to have greater influence in the IMF. Li also
met Opposition Leader Malcolm Turnbull, acting Governor
General Marie Bashir and Australian press executives. The
Prime Minister's meeting with Li was routine - the public
recognize China is a key trading partner - yet by excluding
Australian media he has left himself open to questions and
suspicions about his dealings with China, particularly in
light of his subsequent strong advocacy for a greater role
for Beijing in the IMF. END SUMMARY.

RUDD MEETS CHINESE PROPAGANDA CHIEF


2. (U) The front page of the March 24 "The Australian"
newspaper carried a headline: "Chinese walls: PM keeps
Lodge talks secret," with photos of Rudd and the propaganda
chief of the Chinese Communist Party, Li Chanchun. The
article reported that Chinese state-owned media but not
Australian were invited to cover Rudd March 21 meeting with
Li at the Prime Minister's residence in Canberra. Less than
24 hours later, Rudd declared he would push for China to be
given a greater role at the IMF when he attends the G20
summit next week.


3. (C/NF) Officials in the Office of Prime Minister and
Cabinet told Pol on March 24 that Rudd and Li discussed the
need for coordinated action by the G-20 in dealing with the
Global Economic Crisis and the Free Trade Agreement talks
between the two. Chinalco's proposal for a greater stake in
mining giant Rio Tinto was also undoubtedly on the agenda -
PRC Embassy DCM Hong Liang told us last week that he was
working on the visit of a "senior leader" and that Chinese
investment in Australia would be an important topic. The
Prime Minister's office described the meeting as "private"
and reportedly noted it was "not the Prime Minister of
Australia's role to put out a press release announcing what
every visiting politician is doing." According to the
Australian Broadcasting Commission (ABC) it received a tip
that Li was arriving Friday night (March 20) on a flight from
China.

LI MEETS OPPOSITION LEADER TURNBULL


4. (U) On March 23, Li and other Chinese officials met
Opposition Leader Malcolm Turnbull in Sydney. Addressing the
media afterwards, Turnbull said they discussed climate
change, Chinalco's proposal for a greater stake in mining
giant Rio Tinto, and economic matters. Like Rudd, Turnbull
backed a greater role for China in the IMF, pointing out that
this was a policy of the Howard government. Likely referring
to the Australian press being kept away from the PM's
meeting, Turnbull noted that "It is always best for leaders
to be open and transparent about their dealings with foreign
government and leaders." Li also met with acting Governor
General Marie Bashir and Australian press executives.
RUDD MISREADS PRESS REACTION


5. (C/NF) COMMENT: (SBU) COMMENT: Rudd,s handling of the
public relations aspect of this senior official's visit is
puzzling, if not inept. The Prime Minister's meeting with Li
Qpuzzling, if not inept. The Prime Minister's meeting with Li
was justifiable and defensible - the public recognize China
is a key trading partner - yet by excluding Australian media
he has left himself open to questions and suspicions about
his dealings with China, particularly in light of his
subsequent strong advocacy for a greater role for Beijing in
the IMF. Once the Chinese media filed their stories about
the meeting, it was inevitable the Australian media would
learn about it. If the PM consented to a Chinese request to
exclude Australian media from his official residence, it
looks even worse for him, and only supplies fuel for those
who claim he is too deferential to China. END COMMENT.