VZCZCXRO6780
OO RUEHCN
DE RUEHBJ #5965/01 0890937
ZNR UUUUU ZZH
O 300937Z MAR 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1658
INFO RUEHOO/CHINA POSTS COLLECTIVE IMMEDIATE
RUEHRL/AMEMBASSY BERLIN IMMEDIATE 1299
RUEHRO/AMEMBASSY ROME IMMEDIATE 0860
RUEHYN/AMEMBASSY SANAA IMMEDIATE 0031
RUEHROV/AMEMBASSY VATICAN IMMEDIATE 0052
RUEHUNV/USMISSION UNVIE VIENNA IMMEDIATE 0853
RUEHGV/USMISSION GENEVA IMMEDIATE 0941
RHHMUNA/CDR USPACOM HONOLULU HI IMMEDIATE

UNCLAS SECTION 01 OF 02 BEIJING 005965 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ECON PHUM PARM CH IR JP
SUBJECT: MARCH 30 MFA PRESS BRIEFING: EXCHANGE RATE, 
PRESIDENTIAL STATEMENT, JAPAN, VATICAN, ITALIAN PM 
COMMENTS, ZHAO YAN, JCCT 
 
BEIJING 00005965  001.2 OF 002 
 
 
Summary 
------- 
 
¶1.  Key points made at the March 30 MFA press briefing 
are as follows: 
 
- An appropriate decision on the RMB exchange rate 
must take into account China's level of economic 
development and the potential impact on the global 
economy. 
 
- China hopes the March 29 UNSC Presidential Statement 
will help strengthen the role and authority of the 
IAEA in resolving the Iranian nuclear issue. 
 
- Former Japanese Prime Minister Hashimoto's upcoming 
visit to China, during which he is scheduled to meet 
President Hu Jintao, reflects China's constructive 
attitude toward expanding friendly exchanges with 
Japan. 
 
- The Chinese Government maintains a sincere 
willingness to improve relations with the Holy See on 
the basis of two consistent principles, which MFA 
Spokesperson Qin Gang did not specify. 
 
- Referring to Italian Prime PM Berlusconi's reported 
statements that "babies were boiled in Mao Zedong's 
China," Qin expressed China's dissatisfaction with 
such "groundless" remarks. 
 
- China's judicial authorities will handle Zhao Yan's 
case according to the law. 
 
- Vice Premier Wu Yi will depart for the United States 
April 3 to attend the U.S.-China Joint Commission on 
Commerce and Trade (JCCT) session. 
 
- Vice President Zeng Qinghong will attend the April 
21-23 Boao Forum for Asia. 
 
- Yemeni President Saleh will visit China April 5-10. 
End Summary. 
 
U.S.-China Currency Issues 
-------------------------- 
 
¶2.  Asked during the regular March 30 MFA press 
briefing about recent comments by U.S. Treasury Under 
Secretary Adams on China's currency exchange rate, MFA 
 
SIPDIS 
Spokesperson Qin Gang asserted that China currently 
maintains a market-based and flexible exchange rate 
regime.  An appropriate decision on the RMB exchange 
rate must take into account China's level of economic 
development and the potential impact on the global 
economy.  Such a decision must remain in line with the 
country's real situation, he emphasized. 
 
UNSC Presidential Statement on Iran 
----------------------------------- 
 
¶3.  Asked to comment on the UNSC Presidential 
Statement on Iran, Qin noted that the March 29 
Presidential Statement calls on Iran to follow the 
steps required by the IAEA Board of Governors.  In 
particular, the Presidential Statement requires Iran 
to fully resume suspension of all Iranian enrichment- 
related processing activities, including research and 
development.  It also emphasizes strong UNSC support 
for the IAEA role in resolving the Iranian nuclear 
issue, Qin highlighted, expressing the hope that the 
Presidential Statement will help strengthen the role 
and authority of the IAEA.  There is still room for a 
diplomatic resolution to the issue within the IAEA 
framework, and the international community should take 
measures to achieve a negotiated resolution. 
 
Japanese Friendship Association Delegation 
------------------------------------------ 
 
¶4.  Questioned about the agenda of reported upcoming 
talks between President Hu Jintao and a delegation of 
Japanese Sino-Japan friendship associations led by 
 
BEIJING 00005965  002.2 OF 002 
 
 
former Prime Minister Hashimoto, Qin indirectly 
confirmed the meeting, remarking that the content of 
the meeting will only be known following its 
conclusion.  Describing the purpose of the Japanese 
visit, he cited policy statements by President Hu and 
Premier Wen Jiabao on strengthening people-to-people 
contact.  Former Prime Minister Hashimoto's visit 
reflects China's constructive attitude toward 
expanding friendly exchanges with Japan.  Asked 
whether the visit will help chances for a China-Japan 
summit meeting, Qin maintained that Tokyo is clear on 
Beijing's policy on bilateral relations.  Japan should 
make serious efforts to improve Sino-Japanese 
relations.  Questioned about reported plans to revise 
Japanese textbook characterizations of the East China 
Sea, Qin argued that the Diaoyu Islands and proximate 
islands comprise a longstanding and integral part of 
Chinese territory.  This is based on indisputable 
legal grounds and Japan should take China's position 
seriously, he stressed, while remarking that such 
issues should always be addressed through appropriate 
channels. 
 
Papal Visit to China 
-------------------- 
 
¶5.  Asked by the China Daily correspondent about 
reported statements by the Vatican Foreign Ministry 
that the Pope hopes to visit China in 2008, Qin 
asserted that the Chinese Government maintains a 
sincere willingness to improve relations with the Holy 
See on the basis of two consistent principles, which 
he did not specify.  Beijing has made constructive 
efforts to enhance relations and hopes the Vatican 
will take concrete actions to create conditions for 
the improvement of China-Vatican relations. 
 
China Dissatisfied with PM Berlusconi's Comments 
--------------------------------------------- --- 
 
¶6.  Responding to the China Daily correspondent's 
question about Italian Prime Minister Berlusconi's 
reported statement that "babies were boiled in Mao 
Zedong's China," Qin expressed China's dissatisfaction 
with such "groundless" remarks.  Statements by Italian 
officials should be conducive to the stable 
development of China-Italy relations. 
 
Zhao Yan 
-------- 
 
¶7.  Asked about the legal status of detained NYT 
journalist Zhao Yan, Qin said he had no additional 
information.  China's judicial authorities will handle 
the case according to the law. 
 
Wu Yi to the JCCT 
----------------- 
 
¶8.  Qin announced that Vice Premier Wu Yi will depart 
for the United States April 3 to attend the U.S.-China 
Joint Commission on Commerce and Trade (JCCT) session, 
which will also be led by Secretary of Commerce 
Gutierrez and USTR Portman.  Vice Premier Wu will also 
pay a visit to several U.S. states. 
 
VP Zeng to Boao 
--------------- 
 
¶9.  Vice President Zeng Qinghong will attend the April 
21-23 Boao Forum for Asia, where he will deliver a 
keynote speech, Qin reported.  VP Zeng will also meet 
with other state leaders and representatives at Boao. 
 
Yemeni President's to Visit 
--------------------------- 
 
¶10.  Qin announced that Yemeni President Saleh will 
visit China April 5-10. 
RANDT