FEBRUARY 25, 2010 MFA PRESS BRIEFING: AMBASSADOR BOSWORTH

UNCLAS BEIJING 000458

SIPDIS

E.O. 12958: N/A
TAGS: PREL PARM MASS MNUC KNNP EINT EFIN CH TW KN KS PK
IN, IR

SUBJECT: FEBRUARY 25, 2010 MFA PRESS BRIEFING: AMBASSADOR BOSWORTH
VISIT, TAIWAN ARMS SALES, FX RESERVES


1. Key points at the February 25 MFA press briefing were:

-- Foreign Minister Yang met with visiting Special Representative
Ambassador Stephen Bosworth. China will coordinate and consult with
all parties to push for an early resumption of the Six-Party Talks.
The six parties are currently presented with opportunities for
progress.

-- The United States should take concrete measures to address
China's concerns about arms sales to Taiwan in order to develop
healthy relations.

-- China invests its foreign exchange reserves based on market
considerations with the aim of maintaining the value of its
holdings.

S/R Bosworth Visit to China
--------------


2. At the February 25 regularly scheduled Foreign Ministry press
briefing, Spokesperson Qin Gang announced that Foreign Minister Yang
Jiechi and Special Representative Wu Dawei met in Beijing with
visiting Special Representative Ambassador Stephen Bosworth to
exchange views on the Six-Party Talks. Qin noted that the six
parties were presented with a "good opportunity to work out of a
dilemma." China would maintain close coordination and consultations
with all parties involved to push for an early resumption of the
Six-Party Talks.

Arms Sales to Taiwan
--------------


3. Qin stated that U.S. arms sales to Taiwan were a "gross
violation" of the three Joint Communiques, specifically the August
17 Communique. The arms sales undermined China's national security
and disrupted the peace, stability, and development of cross-Strait
relations, and would "gravely" affect U.S.-China military exchanges,
Qin said. China's decision to suspend military exchanges remained
unchanged Qin said, adding that the "people who tied this knot
should untie this knot." China urged the United States to take
concrete measures to address China's concerns in order to develop
healthy relations.

China's Foreign Exchange Reserves
--------------


4. When asked about how China's recent reduction of U.S. Treasury
securities holdings, Qin said that China would invest its foreign
exchange reserves based on market considerations with the aim of
maintaining the value of its holdings and the security and liquidity
of its foreign exchange reserves. He noted that the United States
should take "effective steps" to ensure confidence in the dollar.

India-Pakistan Relations
--------------


5. In response to reports of a resumption of ministerial level
meetings by Pakistan and India, Qin stated that China hoped dialogue
and consultations between India and Pakistan would bring substantive
results and continued momentum. India and Pakistan were both major
neighboring countries whose stability, peace, and development affect
not only South Asia, but the whole region, said Qin.


Cyber Attacks
--------------


6. Qin noted that the Chinese law strictly prohibited cyber attacks
and cyber crimes and that China was also a victim of cyber attacks.
Qin characterized Google's allegations of a PRC government role in
hacking attacks against its systems as "baseless." Qin said that
China operates within the boundaries of law.

Iran Nuclear Program
--------------


7. China believed that there was still room for diplomatic efforts
and dialogue in responding to achieve the peaceful resolution of the
Iran nuclear issue.

HUNTSMAN