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INFO RUEHOO/CHINA POSTS COLLECTIVE
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RUEAIIA/CIA WASHINGTON DC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHINGTON DC

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 006939 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 11/01/2032 
TAGS: PREL PARM ETRD CVIS MASS CH TW KN XV
SUBJECT: A/S HILL-VFM ZHANG BILATERAL MEETING, OCTOBER 31, 
2007 
 
BEIJING 00006939  001.3 OF 002 
 
 
Classified By: DCM Dan Piccuta. Reasons 1.4 (b/d). 
 
Summary 
------- 
 
¶1. (C) In an October 31 meeting with EAP Assistant Secretary 
Christopher R. Hill and the Ambassador, Vice Foreign Minister 
Zhang Yesui urged the United States to be cautious on the 
Taiwan issue during this sensitive period, expressed 
opposition to "protectionist" U.S. Congressional resolutions 
and called for the United States to begin issuing visas at 
the approved Consulate General in Wuhan as soon as possible. 
China hopes the United States will give positive 
consideration to China's request to open consulates in 
Atlanta and Boston, VFM Zhang said.  A/S Hill expressed hope 
there would be "major progress" on the Six-Party Talks before 
President Bush's visit in summer 2008 and said the United 
States hopes to see a Six-Party Ministerial meeting in 
Beijing in December.  A/S Hill passed to Zhang a letter from 
President Bush to President Hu Jintao.  A/S Hill and VFM 
Zhang exchanged views on the Pacific Islands Forum that both 
attended in Tonga October 16-17.  End Summary. 
 
U.S. Hopes for Six-Party Ministerial, Major Progress 
--------------------------------------------- ------- 
 
¶2. (C) Meeting with Vice Foreign Minister Zhang Yesui on 
October 31, Assistant Secretary Christopher R. Hill, 
accompanied by the Ambassador, passed VFM Zhang a letter from 
President Bush to President Hu Jintao encouraging U.S.-China 
cooperation in the years ahead.  A/S Hill said he is in 
Beijing to hold consultations on the Six-Party process with 
the goal of discussing scope and timing for a ministerial 
meeting.  A/S Hill added that he hopes to make a great deal 
of progress on Six-Party Talks issues before the end of the 
year, by which time he hopes all sides would be "very close" 
to a final agreement whereby North Korea would abandon its 
nuclear programs.  The Six-Party talks are a strong element 
in the relationship.  A/S Hill said he hopes that by the time 
President Bush visits China in summer 2008 there will be 
"major progress" and we will be able to say that we have 
denuclearized the Korean Peninsula. 
 
A Busy Season in Bilateral Relations 
------------------------------------ 
 
¶3. (C) VFM Zhang thanked A/S Hill for the letter from 
President Bush and promised to pass it to President Hu 
immediately.  The bilateral relationship is at a critical 
moment, and there is a lot to do, Zhang said, reciting a list 
of upcoming bilateral events.  The third Strategic Economic 
Dialogue (SED) will be held in December, preceded by the 18th 
Joint Committee on Commerce and Trade and followed by the 
fifth round of Strategic Dialogue in January.  China also 
looks forward to the visits of Defense Secretary Gates 
(November 4-6) and, if arrangements for a Six-Party 
Ministerial can be worked out for December, of Secretary Rice. 
 
Taiwan 
------ 
 
¶4. (C) VFM Zhang remarked that the two sides need to work out 
differences on some issues.  Taiwan is an area of concern, he 
said.  China hopes that "at this sensitive time," the United 
States will not hold official exchanges with Taiwan or 
announce any more sales of advanced weapons, which would send 
a "seriously wrong signal" to (Taiwan President) Chen 
Shui-bian, Zhang said. 
 
Protectionist Congressional Resolutions Opposed 
--------------------------------------------- -- 
 
¶5. (C) VFM Zhang expressed concern about what he called 
protectionist aspects of U.S. Congressional resolutions, 
which appear to be an effort to politicize trade issues. 
Since the beginning of the year there have been over 50 
Congressional resolutions targeted at China, he said, and 
"many of them have the tone of protectionism."  In 
particular, the Baucus resolution dealing with anti-dumping 
and anti-subsidies entails punitive measures.  If such 
penalties are imposed on China, it will damage bilateral 
 
BEIJING 00006939  002.3 OF 002 
 
 
business ties, VFM Zhang warned.  China has taken note of 
U.S. Government efforts to oppose such measures and asks the 
USG to continue to work with Congress to ensure that such 
protectionist resolutions do not pass. 
 
Wuhan Approved, China Wants Atlanta, Boston 
------------------------------------------- 
 
¶6. (C) Zhang informed A/S Hill of the approval for the 
opening of the U.S. Consulate General in Wuhan.  The new 
consular district, which will include Hubei, Hunan, Henan and 
Jiangxi Provinces, are in central China and have growing 
economies and increasing links to the United States.  China 
hopes that CG Wuhan will be able to issue visas as soon as 
possible.  China also hopes the United States will give 
positive consideration to China's request to open consulates 
in Atlanta and Boston. 
 
¶7. (C) The United States is pleased with the approval to move 
ahead with opening the Consulate in Wuhan, A/S Hill remarked. 
 The first order of business will be to open the Consulate 
General, assign staff, begin working on business outreach and 
then "take it from there."  He noted the bilateral 
relationship is growing on all fronts and mentioned the 
arrival of baseball legend Cal Ripken, Jr., who is currently 
conducting baseball clinics around China. 
 
Pacific Islands Issues 
---------------------- 
 
¶8. (C) A/S Hill and VFM Zhang exchanged views on the Pacific 
Islands Forum that both attended in Tonga October 16-17. 
Both noted the level of Chinese investment there and the 
destruction wrought by recent anti-government groups that 
left much of the downtown area in burned ruins.  VFM Zhang 
said that China had approved a request from Tonga for 
concessionary loans to rebuild the central business district. 
 On issues like the Pacific Islands States, A/S Hill said, 
the United States and China should coordinate particularly on 
economic assistance and disaster relief.  "Working together, 
the United States and China can move mountains," Hill 
remarked. 
Randt