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