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DE RUEHBJ #6074/01 0901056
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O 311056Z MAR 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1790
INFO RUEHBY/AMEMBASSY CANBERRA PRIORITY 9199
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RUEHWL/AMEMBASSY WELLINGTON PRIORITY 0524
RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS COLLECTIVE
RUEHOO/CHINA POSTS COLLECTIVE
RUEHKN/AMEMBASSY KOLONIA 0005
RUEHKR/AMEMBASSY KOROR 0002
RUEHMJ/AMEMBASSY MAJURO 0115
RUEHPB/AMEMBASSY PORT MORESBY 0106
RHHMUNA/CDR USPACOM HONOLULU HI
RHHJJAA/JICPAC HONOLULU HI

UNCLAS SECTION 01 OF 03 BEIJING 006074 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ECON EAID ETRD EFIS ECIN CH FJ PP TW
AS, CB, NZ 
SUBJECT: SPECIAL MFA PRESS CONFERENCE ON PREMIER WEN TRAVEL 
TO AUSTRALIA, NEW ZEALAND, FIJI AND CAMBODIA, APRIL 1-8 
 
REF: A. SUVA 00123 
 
     ¶B. PORT MORESBY 00073 
     ¶C. BEIJING 5362 
 
BEIJING 00006074  001.4 OF 003 
 
 
Summary 
------- 
 
¶1.  Premier Wen Jiabao will visit Australia, Fiji, New 
Zealand and Cambodia from April 1-8, MFA Director Generals 
for Asian Affairs and for American and Oceanian Affairs told 
the local and international press corps on March 24.  This 
will be a trip of firsts: the first visit by a PRC Premier to 
Australia and New Zealand in 18 years, the first official 
visit of any Chinese leader to the Pacific Islands and the 
first visit by the current Chinese leadership to Cambodia. 
Highlights of the visits will include the expected signing in 
Australia of two documents covering the "peaceful use of 
nuclear energy and cooperation on uranium," opening a 
China-Pacific Islands economic cooperation conference in Fiji 
and the signing of a joint communique that will layout plans 
for future PRC-Cambodian cooperation.  End summary. 
 
¶2.  On March 24 MFA American and Oceania Affairs Director 
General Liu Jieyi and MFA Asian Affairs Director General Hu 
Zhengyue provided a briefing to the press on Premier Wen 
Jiabao's April 1-8 travel to Australia (April 1-4), Fiji 
(April 4-5), New Zealand (April 5-7) and Cambodia (April 
7-8).  FM Li Zhaoxing, Commerce Minister Bo Xilai and NDRC 
Chairman Ma Kai will accompany Premier Wen. 
 
Australia: Agreements on Uranium and Kickstarting FTA Talks 
--------------------------------------------- ------------- 
 
¶3.  Liu said that during this first visit to Australia and 
New Zealand by a PRC Premier in eighteen years Premier Wen 
would meet with Australian Prime Minister Howard and New 
Zealand Prime Minister Clark, as well as with the Governor 
Generals in both countries.  Devoting the most of his time to 
the Australian portion of the visit, Liu said the two sides 
will exchange views on their friendly and cooperative 
relations as well as discuss regional and international 
issues of mutual interests.  China will also be seeking to 
explore new channels and modalities for developmental 
cooperation under the "new circumstances."  Liu said the two 
sides will sign agreements on cooperation in science and 
technology, economics, trade and culture. 
 
¶4.  Asked to comment on the differences in public statements 
on China by Australian FM Downer and Secretary Rice and the 
Trilateral Security Dialogue, Liu said China had noticed that 
the "comments and words used internationally by some people" 
were not in line with the reality that China is firmly 
committed to the path of peaceful development and that the 
overall situation in the Asia-Pacific region is stable. 
However, the region faces challenges of traditional and 
non-traditional threats, Liu continued, saying countries 
should build mutual trust, strengthen cooperation and promote 
common security in order to meet these challenges.  For its 
part, China has always played a constructive role in 
international affairs and it will continue to work for peace 
and stability, Liu said. 
 
¶5.  Although refusing to go into details, Liu confirmed that 
China and Australia have reached an agreement on the drafts 
of two documents that cover the "peaceful use of nuclear 
energy and cooperation on uranium."  These documents will 
likely be signed during Premier Wen's visit.  Asked about 
Australia's cooperation with India on uranium, DG Liu said 
Canberra is doing a good job in preventing proliferation and 
observed that Australia has said it would fully comply with 
its NPT obligations.  Turning to the question of energy 
cooperation in general, Liu said China is a large energy 
consumer and producer with an overall self-sufficiency rate 
of 90% and per capita energy consumption that is well below 
the world average.  China is currently focused on meeting its 
demand with domestic supplies, while promoting energy 
conservation and efficiency.  China hopes the private energy 
sector companies in both countries will also engage in more 
cooperation for the benefit of both economies. 
 
BEIJING 00006074  002.4 OF 003 
 
 
 
¶6.  Pointing out that PRC-Australia trade was $27.2 billion 
in 2005, representing a 30% year-on-year increase, Liu said 
China would like to see a further strengthening of economic 
relations.  Despite the efforts on FTA negotiations with 
Australia and New Zealand that have lead to some progress, 
Liu said there are still outstanding issues that need to be 
resolved.  China wants to reach a "high quality" agreement. 
Beijing hopes the meeting between Premier Wen and PM Howard, 
as well as Premier Wen's meeting with New Zealand PM Clark, 
will kickstart the FTA negotiations, according to Liu. 
 
¶7.  In response to a question on iron ore prices, Liu said he 
was not sure whether this would be raised by Premier Wen 
during his meetings.  He went on to say that recent 
speculation in iron prices is putting pressure on world 
markets and a balance needs to be struck between suppliers 
and consumers, taking into account everyone's interests. 
 
¶8.  Asked to comment on potential Falun Gong interference 
with Premier Wen's visit, Liu expressed confidence that the 
concerted efforts of the PRC and Australian governments would 
successfully prevent the Falun Gong from "sabotaging" the 
visit to serve their evil interests and political agenda." 
 
Fiji: Wooing and Showing Off at the Economic Conference 
--------------------------------------------- ---------- 
 
¶9.  Liu said Premier Wen's visit to Fiji will be the first 
official visit to the Pacific Islands by a PRC senior leader. 
 Premier Wen will join the leaders of Pacific Island nations 
to open the inaugural "China-Pacific Island Countries 
Economic Development and Cooperation Forum Ministerial 
Conference" on April 5.  Wen will give a keynote address in 
which he is expected to lay out China's policy towards the 
South Pacific and propose areas of further cooperation.  Wen 
and the Pacific Island leaders will sign a "Plan of Action" 
for China-Pacific Island economic cooperation and 
development.  Wen will also hold bilateral meetings with the 
leaders of each Pacific Island state in attendance. 
 
¶10.  Liu said the PRC deeply values its relations with the 
Pacific Island nations and wants to support their economic 
growth, promote good governance, focus on sustainable develop 
and secure their national security.  Beijing also hopes to 
enhance cooperation in areas of common interest.  Pointing 
out that China's trade with the Pacific Islands increased 58% 
in 2005 to $838 million, of which $45.3 million was trade 
with Fiji, Liu said China is looking to expand its 
cooperation with the Pacific Islands in the areas of 
agriculture, forestry and fisheries.  As a fellow developing 
country, China is ready to support the Pacific Island nations 
to achieve the UN Millennium Development Goals (MDG) and will 
continue to provide assistance, according to Liu. 
 
¶11.  Asked whether island nations that do not recognize the 
PRC would attend the conference, Liu said the final list of 
participating countries was still being worked on but 
expressed confidence that some countries without diplomatic 
relations with the PRC would attend.  Liu said Beijing hopes 
that some of those countries will establish or restore 
relations with the PRC at an early date, once they realize 
that the PRC can assist their development and help them meet 
the UN MDGs. 
 
Cambodia: Everything is Good 
---------------------------- 
 
¶12.  Hu said Premier Wen will visit Cambodia at the 
invitation of Prime Minister Hun Sen and in response to a 
series of recent visits by Cambodia's leaders.  Pointing out 
that this will be the first visit to Cambodia by the current 
Chinese leadership, Hu said Premier Wen will exchange views 
with PM Hun Sen on bilateral relations and areas of mutual 
concern.  Premier Wen will also meet with King Sihamoni, the 
President of the Senate and the President of the National 
Assembly.  Wen will attend a welcoming ceremony by PM Hun 
Sen, witness the signing of a joint communique that will 
layout plans for future bilateral cooperation and attend the 
 
BEIJING 00006074  003.4 OF 003 
 
 
earth-breaking ceremony of PRC-funded construction project 
for a new government office building.  The two leaders will 
also sign a series of documents covering specific bilateral 
cooperation in economics and trade, health and combating 
transnational crime and an agreement on a "phase two" project 
to jointly protect and preserve Angkor Wat and historical 
relics, according to Hu. 
 
¶13.  Providing an overview of PRC-Cambodia relations, Hu said 
there are no political issues of concern, with bilateral 
relations based on deeply rooted friendly feelings between 
the two peoples, recognition that mutual cooperation brings 
tangible benefits to both countries and a shared cultural 
heritage.  There is frequent interaction between the Chinese 
Communist Party and the Cambodian People's Party (CPP), the 
National United Front for an Independent, Neutral, Peaceful, 
and Cooperative Cambodia (FUNCINPEC) and the Sam Rangsi Party 
(SRP).  In addition, China and Cambodia enjoy frequent 
military officer exchanges, good law enforcement cooperation 
and good collaboration and coordination in regional affairs. 
PRC-Cambodia economic relations are closer than ever, with 
bilateral trade climbing 16.7% in 2005 to reach $563 million, 
with 80 Chinese companies in Cambodia signing contracts 
valued at over $850 million in the areas of energy, 
construction, project contracting and agricultural 
development.  China provides economic assistance to Cambodia 
to support the development of economic and social undertakings 
 
Thailand: Not Convenient Now 
---------------------------- 
 
¶14.  DG Hu confirmed that Premier Wen's trip to Thailand has 
been postponed because of the politic difficulties PM Thaksin 
is now facing.  Saying China and Thailand have very good 
relations and frequent contacts, DG Hu said the visit would 
take place in the future during a convenient time for both 
countries.  DG Hu also said other visits by PRC leaders to 
Southeast Asia are being arranged for later this year. 
RANDT