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O 140849Z APR 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2948
INFO RUEHOO/CHINA POSTS COLLECTIVE IMMEDIATE
RUEHUJA/AMEMBASSY ABUJA IMMEDIATE 0094
RUEHNR/AMEMBASSY NAIROBI IMMEDIATE 0320
RUEHRB/AMEMBASSY RABAT IMMEDIATE 0332
RUEHRH/AMEMBASSY RIYADH IMMEDIATE 0524
RUEHGV/USMISSION GENEVA IMMEDIATE 0984
RUEHUNV/USMISSION UNVIE VIENNA IMMEDIATE 0875

UNCLAS SECTION 01 OF 04 BEIJING 007092 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ECON PHUM PARM KNNP CH IR
SUBJECT: MFA PREVIEWS PRESIDENT HU'S TRIP TO THE  UNITED 
STATES, SAUDI ARABIA, MOROCCO, NIGERIA AND  KENYA 
 
 
Summary 
------- 
 
¶1.  During a special April 14 MFA press briefing, Vice 
Foreign Minister Yang Jiechi previewed President Hu 
Jintao's April 18-29 visits to the United States, 
Saudi Arabia, Morocco, Nigeria and Kenya.  Beijing 
stands ready to strengthen mutual trust and 
cooperation with the United States and address U.S. 
concerns.  Highlighting the USD 16.21 billion worth of 
contracts signed by U.S. and Chinese firms during Vice 
Premier Wu Yi's trip to the United States, VFM Yang 
stressed that such cooperation shows the two countries 
can properly handle trade frictions through dialogue. 
China hopes Washington will earnestly honor its 
commitments on Taiwan and refrain from sending the 
"wrong signals" to Taiwan secessionist forces.  VFM 
Yang expressed Beijing's concern over Iran's recent 
announcement about its uranium enrichment activities. 
China has adopted a series of measures that 
demonstrate its commitment to the path of peaceful 
development.  President Hu will address the Saudi 
Arabian Consultative Council and Nigerian Parliament 
and visit the UN Human Settlements Program and the UN 
Environmental Program offices in Kenya.  End Summary. 
 
 
Hu Visit in Midst of Expanding Bilateral Cooperation 
--------------------------------------------- ------- 
 
¶2.  During a special April 14 MFA press briefing, Vice 
Foreign Minister Yang Jiechi previewed President Hu 
Jintao's visits to the United States April 18-21, 
Saudi Arabia April 22-24, Morocco April 24-26, Nigeria 
April 26-27 ad Kenya April 27-29.  VFM Yang stressed 
the sgnificance of President Hu's U.S. visit, 
asseting that bilateral relations are generally 
developing positively and noting the two Presidents' 
meetings last year and a series of other high-level 
exchanges.  Foreign Minister Li Zhaoxing and Secretary 
Rice maintain regular contact, while parliamentary and 
military exchanges continue to increase.  The two 
countries have made progress in trade, 
counterterrorism, avian influenza prevention and other 
forms of cooperation and have coordinated effectively 
in handling Iran, North Korea, Iraq and Afghanistan 
issues.  President Hu will meet with President Bush, 
other U.S. leaders, Members of Congress, state and 
municipal officials, businesspeople, academics and 
students.  He will deliver a speech at Yale University 
expounding on China's domestic and foreign policies, 
including Beijing's commitment to a "harmonious 
society."  The speech will help people understand the 
importance of developing strategic and long-term 
relations with China. 
 
¶3.  Responding to reporters' questions, VFM Yang noted 
that President Hu will be accompanied by several dozen 
officials, including State Councilor Tang Jiaxuan, 
Foreign Minister Li, National Development and Reform 
Commission (NDRC) Minister Ma Kai and Minister of 
Commerce Bo Xilai.  Neither People's Bank of China 
Governor Zhou Xiaochuan nor any military officials or 
entrepreneurs will travel with him.  President Hu will 
meet leaders of the Seattle business community, 
including Microsoft Chairman Bill Gates.  Asked why 
President Hu chose to speak at Yale University, VFM 
Yang remarked that China greatly appreciates the role 
played by American educational institutions in 
promoting U.S.-China exchanges, but due to time 
constraints President Hu could only visit one. 
 
 
Bilateral Differences Should Be Properly Handled 
--------------------------------------------- --- 
 
¶4.  Reflecting on the development of U.S.-China 
relations, VFM Yang commented that the foundation of 
U.S.-China cooperation is making the most of 
opportunities and challenges.  Bilateral differences 
should be properly resolved on the basis of equality, 
mutual respect, international standards and the 
principles of the Three Joint Communiques.  Beijing 
stands ready to strengthen mutual trust and 
cooperation with the United States and address each 
 
BEIJING 00007092  002 OF 004 
 
 
other's concerns in order to promote constructive and 
cooperative relations. 
 
Taiwan Issue Most Important in U.S.-China Ties 
--------------------------------------------- - 
 
¶5.  VFM Yang highlighted that the Taiwan issue is the 
most important and sensitive issue in U.S.-China 
relations.  China appreciates the U.S. commitments to 
its one-China policy, the Three Joint Communiques and 
opposition to Taiwan independence.  Beijing hopes 
Washington will earnestly honor its commitments, 
refrain from sending the "wrong signals" to Taiwan 
secessionist forces and work with China to counter 
secessionist activities.  Taking such steps will 
enhance cross-Strait peace and stability and serve the 
interests of China, the United States and the rest of 
the international community. 
 
Economic and Trade Relations Are Mutually Beneficial 
--------------------------------------------- ------- 
 
¶6.  While noting bilateral economic and trade 
frictions, VFM Yang remarked that China pays great 
attention to U.S. concerns over the trade imbalance. 
Vice Premier Wu Yi's business delegation to the United 
States visited 14 cities in 13 states, purchased a 
large amount of cotton, soybeans, electronics and 
other products, explored new business opportunities 
and signed USD 16.21 billion in contract agreements. 
Chinese airlines and Boeing signed a framework 
agreement for the purchase of 80 Boeing 787 aircrafts, 
and PRC companies will also reach deals to purchase 
U.S. software.  These actions prove that the two 
countries can properly handle trade frictions through 
dialogue.  Responding to a reporter's question on U.S. 
concerns over China's economic policies, VFM Yang 
stated that despite some different voices in the 
United States, mainstream U.S. opinion supports closer 
relations with the China, which has been demonstrated 
by opinion polls.  The American people and business 
community favor strengthening economic relations and 
properly handling frictions.  VFM Yang expressed 
optimism that all U.S. concerns can be resolved 
through consultation. 
 
¶7.  Asked how President Hu will respond to expected 
U.S. pressure on currency revaluation, VFM Yang 
remarked that China maintains a market-based managed 
floating exchange rate regime, which fluctuates in 
relation to a basket of currencies.  China will 
proceed with exchange rate reform in accordance with 
China's national conditions and the interests of the 
global economy.  Beijing is prepared to explain its 
stance on the RMB exchange rate issue to the 
international community. 
 
Discussions on Iran and North Korea 
----------------------------------- 
 
¶8.  Asked by the AP correspondent how North Korea and 
Iran will figure into President Hu's discussions in 
the United States, VFM Yang expressed China's concern 
over Iran's recent announcement on its successful 
enrichment of uranium.  Beijing hopes all the parties 
will remain calm and work for a peaceful resolution of 
the Iranian nuclear issue, as dialogue is better than 
confrontation.  Turning to the DPRK nuclear issue, VFM 
Yang maintained that there have been some positive 
developments following the issuance of the Joint 
Statement last year.  While the Six-Party Talks are 
currently facing difficulties, China hopes the parties 
will adopt a flexible approach and work for a 
resumption of the Talks.  The denuclearization of the 
Korean Peninsula and safeguarding regional peace and 
stability serve all the parties' interests. 
 
Concerns Over Human Rights and Military Transparency 
--------------------------------------------- ------- 
 
¶9.  The ABC News correspondent asked how China would 
respond to expected U.S. requests for the release of 
political prisoners, in particular Legal Permanent 
Resident (LPR) Yang Jianli and AmCit Jude Shao.  VFM 
Yang asserted that China follows the rule of law and 
 
BEIJING 00007092  003 OF 004 
 
 
will handle these specific cases according to the law. 
Questioned by the NHK correspondent about U.S. 
criticism of China's lack of transparency, especially 
in military spending, VFM stated that following 
Chinese leaders' repeated explanations, the U.S. 
public has gained a clearer understanding of China's 
peaceful development path.  Most Americans hope that 
President Hu's visit will help increase their 
understanding of China's policies.  Military 
transparency is a relative and constantly changing 
concept.  China has adopted a series of measures, such 
as issuing defense white papers and inviting foreign 
observers to its military exercises, which demonstrate 
Beijing's commitment to the path of peaceful 
development. 
 
Energy Cooperation 
------------------ 
 
¶10.  Asked whether President Hu will sign an energy 
agreement during his U.S. visit, VFM Yang stated that 
the two countries regularly discuss energy 
cooperation.  The Chinese Government maintains a 
mechanism for regular discussion of energy issues with 
both the U.S. Departments of State and Energy.  There 
is significant potential for greater cooperation, 
especially in developing renewable energy sources and 
energy conservation.  The two countries should create 
conditions for joint energy development in order to 
ensure the stability of the global energy supply. 
Asked about energy discussions during President Hu's 
stops in Saudi Arabia and Nigeria, VFM Yang said that 
energy cooperation is one important component of 
China's bilateral economic relations.  Energy 
cooperation is mutually beneficial and not aimed at 
harming any other country in the region.  Responding 
to a reporter's question about U.S.-India nuclear 
energy cooperation, VFM Yang said Beijing welcomes 
improved U.S.-India relations, adding that the MFA 
Spokesperson has already commented on the two 
countries' nuclear cooperation. 
 
President Hu's Other Destinations 
--------------------------------- 
 
¶11.  Discussing President Hu's April 22-24 trip to 
Saudi Arabia, VFM remarked that Saudi Arabia exerts 
great influence in the Middle East and Arab world. 
During his recent visit to China, King Abdullah and 
President Hu reached an important agreement on 
promoting strategic, friendly and cooperative 
relations.  The two countries share views and 
cooperate on many major international issues.  Riyadh 
is Beijing's largest trading partner in the West Asia 
and North Africa region, with trade volume in 2005 
totaling USD 16 billion.  President Hu will meet with 
King Abdullah and Crown Prince Sultan and deliver a 
speech to the Consultative Council.  The visit will 
further strengthen China-Saudi strategic relations, 
economic and trade cooperation and Beijing's ties to 
the Gulf Cooperation Council and the Arab world. 
 
¶12.  During President Hu's April 24-26 trip to 
Morocco, he will meet King Mohammed VI and other major 
leaders.  The two countries will sign economic and 
trade, cultural and health agreements, VFM reported. 
China-Morocco trade in 2005 totaled USD 1.5 billion, a 
rise of 28 percent.  While visiting Nigeria April 26- 
27, President Hu will hold talks with President 
Obasanjo and the Speaker of the Nigerian Parliament, 
where he will also deliver a speech on China's 
relations with Nigeria and Africa policies.  The visit 
will help deepen mutual trust and the China-Nigeria 
strategic partnership.  The two countries maintain 
cooperation in agriculture, infrastructure 
development, power and telecommunications.  Bilateral 
trade increased 29 percent to USD 2.83 billion in 
¶2005. 
 
¶13.  In addition to meeting with President Kibaki 
during his April 27-29 stop in Kenya, President Hu 
will visit the UN Human Settlements Program and the UN 
Environmental Program offices, VFM Yang noted.  Kenya 
is committed to its one-China policy.  Bilateral trade 
reached USD 474.57 million last year, and China has 
 
BEIJING 00007092  004 OF 004 
 
 
already completed USD 780 million of the 830 million 
worth of road and housing construction projects the 
two countries agreed upon in June 2005.  Ten thousand 
Chinese tourists visited Kenya last year, China Radio 
International has opened a broadcasting station in 
Nairobi and China recently established the Confucius 
Institute at Nairobi University. 
RANDT