O 061345Z SEP 05
FM AMEMBASSY BEIJING
TO HQ USPACOM HONOLULU HI IMMEDIATE
SECSTATE WASHDC IMMEDIATE 7107
INFO CHINA POSTS COLLECTIVE
SECDEF WASHINGTON DC

S E C R E T  BEIJING 014582 
 
 
E.O. 12958: DECL: 09/05/2015 
TAGS: PREL PINS CH
SUBJECT: ADM FALLON AND GENERAL LIANG AGREE ON NEED FOR 
BETTER TIES, DISAGREE ON TAIWAN 
 
Classified By: Charge d'Affaires David Sedney.  Reasons: 1.4 b/d. 
 
¶1. (C) SUMMARY: Admiral Fallon and General Liang agreed on 
the need to improve bilateral mil-mil ties, but stated frank 
disagreements regarding the transparency of the Chinese 
military budget and the use of force to resolve the Taiwan 
question, during a cordial meeting September 6.  Liang 
acknowledged the assistance of the American people during 
World War II, but hopes the United States will contribute to 
reunification, not sell more weapons to Taiwan.  The Admiral 
said the Taiwan question should be resolved through dialogue, 
not by military means.  He invited the General to Hawaii to 
participate in a regional Chiefs of Defense staff conference. 
 End summary. 
 
¶2. (C) SUMMARY. United States Pacific Command chief Chief 
Admiral William Fallon paid a courtesy call on General Liang 
Guanglie, Chief of the PLA General Staff, on September 6 at 
the Ministry of National Defense, Beijing.  The meeting was 
frank and cordial and both sides presented their 
wishesexpressed a desire for increased military ties 
exchanges to advance this field to the level of successful 
political and economic dialogues; and to strengthen 
cooperation to prepare for responding to natural disasters 
such as the Asian tsunami and typhoons. END SUMMARY. 
 
¶3. (C) General Liang expressed his appreciation for the 
opportunity to build a personal relationship the opportunity 
for building personal contact with Admiral Fallon and noted 
PACOM's "close" relationship with the Guangzhou and Nanjing 
military region commands.  The U.S.United States and China 
share a "common understanding of international and regional 
issues," he said, and cooperating cooperate on antiterrorism 
and on the North Korea nuclear issue. 
 
¶3. (C) Liang commented on the.  Recalling the recent 60th 
anniversary celebrations of the end of WWII, noting that U.S. 
veterans participated who had supported China during the war; 
Liang noted that China "received great help from them and the 
American people, which we will never forget." 
 
Momentum for cooperation 
------------------------ 
 
¶4. (C) Liang characterized military-to-military (mil-mil) 
ties as an "important part" of the overall bilateral 
relationship; it is not possible to have a constructive, 
cooperative relationship without good mil-mil ties,. in his 
view.  Thanks to the "care and attention of the two heads of 
state," Liang continued, the two armed forces have a good 
momentum for cooperation.  Such The improving mil-mil 
contacts arerelationship is demonstrated by senior political 
visits, by "cooperation in the intelligence field against 
terrorism," visits with between senior military region 
commanders and ship calls. 
 
Sharing Ccandid views on defense budgets and Taiwan 
--------------------------------------------- ----- 
 
¶5. (C) To be frank, continued Liang, "we have a lot of work 
to do to be sure our mil-mil relationship matches the level 
of our political relationship."  ."  Liang suggested that "on 
the basis we already have," to expand cooperation into more 
fields, and ensure such cooperation develops well. 
 
¶6. (S) Liang went on to "take this opportunity" to share his 
views in "a candid manner."  First, said Liang, He suggested 
that"we suggest the American side exercise caution when 
considering upgradingregarding relations with Taiwan" and 
increasing increased arms sales.  Regarding Taiwan, Tthe 
"immediate threat to both (U.S. and Chinese) sides is the 
Taiwan independence question," which both sides oppose. 
Liang hoped hopes the American side would will contribute to 
the future reunification of both sides of thethe mainland and 
Taiwan Strait. He insisted that "we will never tolerate 
splitting Taiwan from the mainland in any manner." 
 
¶6. (C) Liang acknowledged that the perceived The second 
question, Liang opined, is the very fast growth of "military 
power of the mainland ."is also an issue.  It is said, he 
claimed, Some say that the mainland's military power 
surpasses Taiwan, "but that is not my view."  Liang 
characterized the development of China's military power as 
"moderate" compared to its economic development, and 
highlighted China's interests in defending against 
traditional and non-traditional threats and the need to 
maintain territorial integrity.  The PLA was is "somewhat 
backward; it is a mechanized force, but not yet 
informationalized" as a modern force. 
 
¶7. (C) The A third point to raisearea of contention, 
continued Liang, is to explainthe size of the Chinese defense 
budget.  He quoted a 2004 budget figure of "240 billion RMB, 
or less than 30 billion dollars;." most Most of the increased 
spending, he proclaimed, is to improve the living conditions 
of soldiers and officers, and base infrastructure; "if we 
spent some on, with limited expenditures on weapons, it was 
limited."  Even if China were to became become stronger, he 
concluded, it would "never be a hegemon or a threat to 
others." 
 
A responsibility to work together 
--------------------------------- 
 
¶8. (C) Admiral Fallon thanked Liang for the "generosity of 
the Chinese people" in offering help to the Gulf Coast states 
while they themselves faced a similar storm in Anhui 
province.  Expanding upon these events, Adm Fallon offered 
that Tthese natural disasters "give us responsibilityboth 
sides the opportunity to work together to prepare for such 
eventualities in the future."  The potential for such 
cooperation was demonstrated during As many nations learned 
in the Asian tsunami disaster, "strengthening cooperation, 
sharing capabilities and resources " are useful in dealing 
with such situations.  This might offer an opportunity to 
"expand mil-mil cooperation in an area that is not 
threatening; Eexpanding our mil-mil ties in such a 
non-threatening was would be perceived well received by all 
in the region as useful." 
 
¶9. (C) Admiral Fallon stated he "agreed that while our two 
countries the United States and China have greatly expanded 
political and economic dialogue, we have much to do in the 
mil-mil area."  While there is in the U.S. concern aboutWith 
regard to China's defense budget, some steps "could be taken 
to alleviate these concerns- expanding mil-mil contacts and 
working more closely together will developwould develop 
confidence and improve  more transparency." 
¶11. (S) Adm Fallon invited Liang to Hawaii in October to 
participate in an annual Pacific region Chiefs of Defense 
staff conference hosted by PACOM. 
 
¶10. (C) On the question of Taiwan, said Admiral Fallon,  said 
the U.S.United States advocates no change in the existing 
status quo, and does not push promote  independence. 
However, the Taiwan issues should be resolved in a long-term, 
peaceful manner, ; and political dialogue is the appropriate 
venue, not military means.  Liang returned to the issue by 
remarking that the U.S. position is "in the main part" 
consistent with PRC views; however, "we will never tolerate 
splitting Taiwan from the mainland in any form."  To gain a 
fuller understanding of China's size and diversity, suggested 
Liang, Adm Fallon's next visit should cover the central and 
western regions. 
 
¶11. (C) Admiral Fallon invited Liang to Hawaii in October to 
participate in an annual Pacific region Chiefs of Defense 
staff conference hosted by PACOM. 
 
¶13. (S) Comment.  Both parties to the meeting expressed their 
desire for increased mil-mil exchanges; on the Chinese side 
to deepen the political and economic relationship to account 
for lagging military cooperation, and on the U.S. side to 
prepare for cooperative responses to natural disasters in the 
region.  Although Adm Fallon and Liang did not discuss in 
detail the increased exchanges which both proposed, PACOM 
raised possible disaster-readiness as a specific goal for 
increased military exchanges. Possible bilateral and 
cooperative response to a regional humanitarian crisis may be 
a topic to explore at the staff and map-exercise level as an 
initial step in building joint readiness.  End comment. 
 
 
SEDNEY