VZCZCXRO8348
OO RUEHCN
DE RUEHBJ #2090/01 0381221
ZNY CCCCC ZZH
O 071221Z FEB 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7051
INFO RUEKJCS/JCS WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEAFVS/OSD WASHDC PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RHHMUNA/CDR USPACOM HONOLULU HI PRIORITY
RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY
RUEHOO/CHINA POSTS COLLECTIVE

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 002090 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 02/07/2016 
TAGS: PARM PM PREL CH
SUBJECT: PRC EXPRESSES STRONG DISSATISFACTION OVER QDR 
 
 
Classified By: Charge d'Affaires David Sedney.  Reasons 1.4 (b/d). 
 
SUMMARY 
------- 
 
¶1. (C) China is "strongly dissatisfied and completely 
disagrees" with the China portion of the February 6 
Quadrennial Defense Review (QDR), MFA Director General for 
North American and Oceanian Affairs Liu Jieyi told the CDA 
under instructions and reading from a prepared text at a 
February 7 meeting.  Calling the report untruthful, 
groundless, misleading and interference in China's internal 
affairs, DG Liu said China is firmly on the path towards 
peaceful development and has adopted a "defensive defense 
policy."  DG Liu urged the United States to redress the 
situation, stop interfering in China's internal affairs and 
limit the negative effect of the report on Sino-U.S. 
relations.  The CDA told DG Liu that the United States does 
not consider China a threat and that the QDR highlights 
possibilities that might result from China's economic rise 
and growing military capabilities.  Increased transparency 
and openness by China regarding its intentions will decrease 
the uncertainty in the region and international community. DG 
Liu said China hopes public reports like the QDR would 
reflect the commitments of Chinese and American leaders to 
cooperative future and point out that China is being more 
transparent about its military spending.  End Summary 
 
PRC: STRONG DISSATISFACTION 
--------------------------- 
 
¶2. (C) During a February 7 meeting, MFA North American and 
Oceanian Affairs Director General Liu Jieyi, reading from a 
prepared text, expressed, under instructions, China's "strong 
dissatisfaction and complete disagreement" with the China 
section of the February 6 QDR.  After citing specific 
passages that refer to China's "potential to compete 
militarily with the United States and field disruptive 
technologies," investments "designed to improve its ability 
to project power beyond its borders" and that "the outside 
world has little knowledge of China's motivations and 
decision-making capabilities," DG Liu said China considers 
the QDR to be unreflective of the true situation and full of 
groundless accusations of China's normal defense building, 
interference in China's internal affairs, tantamount to 
encouraging the "China threat" theory and misleading the 
public. 
 
¶3.  (C) DG Liu said that prior to the release of the QDR, 
Chinese officials in Washington DC had asked the United 
States to proceed cautiously and approach the Chinese part of 
the QDR carefully to avoid detrimental effects on the overall 
Sino-U.S. relationship.  China left the meetings believing 
the U.S. side was clear about China's position.  China has 
firmly embarked on the path of peaceful development and has 
adopted a "defensive defense policy." China is an important 
force for peace and stability in the region and the world. 
China is engaging in a necessary defense build-up to 
safeguard its territorial integrity, national security and 
sovereignty.  This is normal and it is inappropriate for 
others to interfere with China's internal affairs.  DG Liu 
said the U.S. $455.9 billion defense budget is 17.8 times 
greater than China's $25.79 billion budget.  China has no 
troops stationed abroad and its military is limited purely to 
national defense.  China does not and will not present a 
threat to its neighbors. 
 
¶4.  (C) DG Liu said the Sino-U.S. relationship is developing 
in a healthy and steady manner and the United States should 
"treasure the current situation and put into practice the 
consensus view of President Bush and President Hu to advance 
the relationship in comprehensive ways to create a 
cooperative relationship for the 21st Century." The United 
States should do more to facilitate the development of the 
East Asian region and not make groundless accusations that 
create disharmony.  The United States should reject its "Cold 
War mentality," work together with China and look positively 
on China's development.  DG Liu asked the CDA to report 
China's strong dissatisfaction to Washington and urged the 
United States to take actions to redress the situation, stop 
interfering in China's internal affairs and limit the 
negative effect on China-U.S. relations. 
 
CDA: CHINA IS NOT A THREAT BUT NEEDS MORE TRANSPARENCY 
--------------------------------------------- --------- 
 
¶5.  (C) The CDA told DG Liu that the United States and China 
have broad and deep common interests and the United States 
does not see China as a threat.  Pointing out that the QDR 
talks about a potential threat from China that could arise, 
CDA said the report highlighted the consistent U.S. message 
that we need to more openness and transparency about China's 
intentions and what it plans to do with its new capabilities. 
 The CDA pointed out that the lack of transparency leads to 
uncertainty in the region and international community about 
China's military intentions.  In order to reduce this 
uncertainty and potential for misunderstanding, the CDA urged 
more discussion and transparency and meaningful mil-to-mil 
exchanges. 
 
¶6.  (C) DG Liu agreed that the United States and China share 
common interests and Beijing appreciates U.S. statements that 
China is not a threat. DG Liu said China hopes these 
observations would be factored more into public reports like 
the QDR and public statements by U.S. officials, which affect 
U.S. public opinion and the views of other nations.  China is 
concerned that the QDR will affect its bilateral relations 
with other nations. Referring to China's White Papers on 
Defense, DG Liu said over the years China has shown more 
transparency in its military spending and acquisitions and 
welcomes more military-to-military exchanges. 
Sedney