PRESIDENT FISCHER'S CHINA VISIT FOCUSED ON TRADE

UNCLAS VIENNA 000122 SIPDIS DEPARTMENT FOR EUR/CE E.O. 12958: N/A TAGS: PGOV PREL ETRD ECIN CH TW AU SUBJECT: PRESIDENT FISCHER'S CHINA VISIT FOCUSED ON TRADE ¶1. Summary: Austrian President Fischer's January 19-22 China visit was focused on business and trade, though he also raised human rights and North Korea with Chinese President Hu Jintao, according to an Austrian MFA contact. Hu said the Government of China was pleased with President Obama's visit, but concerned about U.S. arms sales to Taiwan. End Summary. ¶2. The visit marked Fischer's first official trip to China since his election in 2004. He was accompanied by Defense Minister Darabos, Health Minister Stoeger, MFA Secretary General Kyrle, a group of MPs, and a large business delegation. Herbert Pichler, MFA Unit Chief for Eastern Asia, told us that Fischer, in his meeting with Hu, discussed ways of increasing Austrian exports to China, which has a large trade surplus with Austria. Pichler said Austria is hoping to send another business delegation to China in the near future to follow up on the President's visit. He said Chinese FM Yang had, for scheduling reasons, postponed a planned February 8 visit to Austria, but the GOA was hoping the visit could take place later this year. ¶3. Fischer emphasized to Hu the importance of human rights and described the historical processes leading to the abolition of the death penalty in Austria and other EU countries. He did not mention the recent execution in China of a British citizen or any other specific human rights-related cases in China, Pichler said. Fischer raised human rights in part on the assumption that reporters would ask whether the issue was discussed, which they did, he said. ¶4. The Austrian President said the GOA and other EU governments would like to see a resumption of the six-party talks on North Korea, and asked Hu how he viewed the prospects for negotiations. Hu said China was in favor of resuming the talks, and was prepared to play a constructive role. ¶5. Hu told Fischer the Government of China was pleased with the visit of President Obama and believed that the transition to a new U.S. government had gone more smoothly, in terms of bilateral relations, than Chinese officials had expected. He added, however, that U.S. arms sales to Taiwan undermined good relations. The Chinese President compared Taiwan to Hong Kong and Macau; Pichler said Fischer took this to mean that Taiwan could be part of China while maintaining a separate political and economic system. Hu also averred that the Western media were exaggerating China's power, creating a false image of China's rise as a threat. ¶6. The two presidents discussed plans to stage cultural events in Austria and China in 2011 to mark the 40th anniversary of bilateral relations. ¶7. Pichler said he had not received a readout of Defense Minister Darabos' meeting with his Chinese counterpart. According to press reports, the ministers agreed to increase contacts between leaders of the two armed forces. Pichler said Health Minister Stoeger and his Chinese counterpart signed a number of agreements on cooperation in the medical sector. EACHO