VZCZCXRO5127
OO RUEHCHI RUEHCN RUEHDT RUEHGH RUEHHM RUEHNH
DE RUEHBJ #8333/01 1251006
ZNY CCCCC ZZH
O 051006Z MAY 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4500
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHOO/CHINA POSTS COLLECTIVE
RUEHMJ/AMEMBASSY MAJURO 0118
RUEHPY/AMEMBASSY PORT MORESBY 0122
RUEHSV/AMEMBASSY SUVA 0053
RUEHWL/AMEMBASSY WELLINGTON 0535
RHHMUNA/CDR USPACOM HONOLULU HI
RHHJJAA/JICPAC HONOLULU HI
RUNGFAB/USCINCPACREP GUAM ISLAND GU

C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 008333 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 05/05/2021 
TAGS: PREL CH AS NZ FJ PP
SUBJECT: PRC ON RELATIONS WITH AUSTRALIA & NEW ZEALAND AND 
THE SOLOMON ISLANDS EVACUATION 
 
REF: A. CANBERRA 00601 
     ¶B. WELLINGTON 00298 
     ¶C. BEIJING 07890 
 
BEIJING 00008333  001.2 OF 003 
 
 
Classified By: Political External Unit Chief Edgard 
Kagan. Reasons 1.4 (b) and (d). 
 
SUMMARY 
------- 
 
¶1.  (C) PRC relations with Australia and New Zealand 
are smooth with frequent high-level dialogues, common 
ground on sensitive issues and growing economic and 
trade ties, MFA North American and Oceanian Affairs 
Counselor Zhang Ping told EAP Senior Advisor Steven 
McGann (incoming EAP/ANP Director) on April 28.  China 
seeks stable and healthy bilateral relations with 
Pacific Island nations and is willing to provide 
assistance with no political conditions.  Zhang lashed 
out at Taiwan's "money diplomacy" in the region, which 
he blamed for the recent violence against the ethnic 
Chinese community on the Solomon Islands.  China 
recognized the need to respond promptly by evacuating 
PRC citizens and other ethnic Chinese seeking 
assistance as they faced the imminent threat to their 
safety.  McGann pointed out that the protection of 
refugees and other vulnerable populations is a key 
U.S. policy.  Zhang said China responded on a 
humanitarian basis and now the evacuees are free to go 
where they want.  End Summary. 
 
Smooth PRC Relations with Australia and New Zealand 
--------------------------------------------- ------ 
 
¶2.  (C) MFA North American and Oceanian Affairs 
Counselor for Australia and New Zealand Zhang Ping 
told EAP Senior Advisor Steven McGann (incoming 
EAP/ANP Director) that China's relations with 
Australia and New Zealand are "on the whole smooth" 
with particularly positive developments over the last 
four years.  Relations have four main features. 
First, there are regular and constant exchanges of 
high level visits. Second, sensitive bilateral issues 
are handled by seeking common ground while not letting 
disagreements harm the overall positive bilateral 
relationship.  Zhang noted that both Australia and New 
Zealand adhere to the one-China policy and oppose 
Taiwan independence.  Third, there are well 
established mechanisms for dialogue on regional and 
international issues, such as annual Foreign Minister- 
level dialogues and human rights dialogues.  Finally, 
economic ties are close, with a steady growth in 
trade. 
 
Steadily Developing Trade, Largely Commodities & 
Resources 
--------------------------------------------- --- 
 
¶3.  (C) Zhang noted that China is Australia's second 
largest trading partner with over USD 20 billion in 
bilateral trade in 2004, double the 2002 amount.  Two- 
way investments are also increasing with Australia 
investing in natural resources and insurance in China, 
while PRC firms invest in minerals, mining and energy 
projects in Australia.  Zhang noted that a 25-year 
PRC-Australia liquefied natural gas (LNG) joint 
venture project would make its first shipment of LNG 
to China in June 2006.  Turning to New Zealand, Zhang 
said that the bilateral political relationship is 
sound and the economic relationship is developing 
steadily, with total bilateral trade standing at USD 
2.7 billion.  Dairy, timber, wool and agricultural 
products make up the majority of PRC-New Zealand 
trade. 
 
FTA Benefits Abound? 
-------------------- 
 
¶4.  (C) Responding to McGann's inquiry as to whether 
China has seen any indirect benefits from the U.S- 
Australia Free Trade Agreement (FTA), Zhang said China 
had not studied the issue in depth but he guessed 
China is probably enjoying some kind of benefit. 
 
BEIJING 00008333  002.2 OF 003 
 
 
Zhang noted that China is pursuing negotiations with 
Australia and New Zealand on FTAs, assessing that 
everyone will benefit from an increase in FTA's as 
they promote an overall opening of global trade. 
 
China is Promoting Stability and Providing Assistance 
--------------------------------------------- -------- 
 
¶5.  (C) McGann commented that the lack of good 
governance in some Pacific Island nations, made worse 
by the lack of resources and underdeveloped economies, 
is an important issue for the United States.  The 
United States is concerned that good governance is 
undermined by the competition between Mainland China 
and Taiwan over diplomatic recognition and apparent 
attempts to woo local vested interests.  Zhang 
responded by stating China's policy in the Pacific 
Islands is to promote peace, stability, economic 
development and common prosperity in the region. 
China adheres to the policy of equality in relations 
with the Pacific Island nations and supports their 
efforts to maintain stability and promote the regions 
economic development.  China is willing to contribute 
to these efforts by providing technical and economic 
assistance with no political preconditions attached. 
Zhang noted China's assistance is focused on 
infrastructure and social projects, like schools, 
bridges, hydropower stations, stadiums and sports 
facilities. 
 
Lashing out at Taiwan's "Money Diplomacy" 
----------------------------------------- 
 
¶6.  (C) Zhang said that while China seeks a stable and 
healthy bilateral relationship with each Pacific 
Island nation, Taiwan's "money diplomacy" is a majo 
source of instability in the region.  The recent 
violent political upheaval in the Solomon Islands is 
one example.  Noting that China does not have 
diplomatic relations with the Solomon Islands, Zhang 
claimed Taiwan has close relations with politicians 
there and said he had heard reports that Taiwan 
influenced the formation of the recent short-lived 
government of Prime Minister Snyder Rini by bribing 
local officials and this was a key cause of the recent 
riots targeting resident Chinese.  Zhang said China is 
absolutely against such conduct, calling it 
politically and economically "unhealthy."  Zhang 
argued that in order to achieve of stability and 
realize good governance in the region Taiwan's "money 
diplomacy" must be checked. 
 
Clear Taiwan Issue & China Will Support Resource 
Management 
--------------------------------------------- --- 
 
¶7.  (C) Zhang agreed with McGann that properly 
managing natural resources would promote the 
sustainable economic development of the Pacific Island 
nations.  For instance, China supports the development 
of multilateral fishery regulations in the region. 
However, the issue of Taiwan inevitably arises, Zhang 
continued, insisting that Taiwan is province of China 
and should not be given equal status in the 
negotiation of a regional fishery resource agreement. 
As soon as the Taiwan issue is "cleared up" then China 
is ready to support the development of regulations to 
ensure the sustainability of the island nations' 
natural resources. 
 
Evacuation the Only Solution to Solomon Islands 
Trouble 
--------------------------------------------- -- 
 
¶8.  (C) Asked by McGann to comment on the Solomon 
Islands evacuation reported in reftels, Zhang said 
Chinese citizens and non-Chinese citizens alike sought 
asylum in police stations as their houses and business 
burned and they faced an imminent threat to their 
safety.  China recognized the need to respond 
promptly, Zhang contended, pointing out that the 
voluntary evacuation of ethnic Chinese was the only 
solution as the PRC has no officials or resources in 
 
BEIJING 00008333  003.2 OF 003 
 
 
Honiara.  Zhang pointed out that the PRC also 
evacuated over 100 people during large scale riots in 
Honiara in 2000. 
 
China Acting on a Humanitarian Basis? 
-------------------------------------- 
 
¶9.  (C) Expressing appreciation for China's evacuation 
of an ethnic Chinese Amcit, McGann commended China for 
helping PRC citizens and non-PRC ethnic Chinese, 
pointing out that the United States also believes it 
is important to protect refugees and other vulnerable 
populations.  McGann asked how China is handling 
repatriation and resettlement issues of the evacuees. 
Zhang said in deciding how to handle requests from 
non-Chinese citizens, China just considered the 
imminent danger they were facing and sought to 
safeguard the life and safety of as many people as 
possible.  The evacuation was on a voluntary basis and 
represented a temporary arrangement to relieve the 
immediate threat.  Most of the evacuees returning to 
China are deciding to stay with families, while some 
will likely choose to return to the Solomon Islands 
after the situation stabilizes.  Zhang said some of 
the evacuees could not produce passports or other 
proof of citizenship but insisted on taking the flight 
to China.  On a humanitarian basis, China allowed them 
to board and now that they are in China, they are free 
to go where they want. 
 
¶10.  (U) EAP Senior Advisor McGann cleared this cable. 
SEDNEY