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C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 009009 
 
SIPDIS 
 
SIPDIS 
 
NSC PLEASE PASS WILDER 
 
E.O. 12958: DECL: 05/15/2016 
TAGS: PREL MOPS CH TW KN JP
SUBJECT: PACOM COMMANDER ADMIRAL FALLON MEETING WITH 
CHINESE FOREIGN MINISTER LI ZHAOXING 
 
Classified By: Political Minister Counselor Daniel L. Shields.  Reasons 
 1.4 (b/d). 
 
Summary 
------- 
 
¶1.  (C) Foreign Minister Li Zhaoxing agreed to adjust 
his schedule to allow for a meeting with Admiral 
Fallon in spite of his heavy commitments in the run-up 
to a meeting of the Shanghai Cooperation Organization. 
FM Li told Admiral Fallon that the aim of China's 
military development is to safeguard global peace and 
to allow all countries to enjoy stable economic 
advancement.  At a May 12 meeting at the Diaoyutai 
State Guest House, FM Li stressed that while China is 
committed to cooperating with the United States to 
combat terrorism, Beijing is concerned by the recent 
transfer of ethnic Uighurs to Albania.  China wants to 
see a "positive result" from the upcoming London 
meeting on Iran, FM Li said, adding that "we do not 
want to see Iran possess nuclear weapons."  On North 
Korea, FM Li suggested that the United States have 
more direct contact with the DPRK.  FM Li also 
discussed China's human rights situation, Taiwan and 
the upcoming Shanghai Cooperation Organization 
meeting.  Admiral Fallon informed FM Li that the 
Congressionally-mandated China Military Power annual 
report will be released by the end of May.  The 
Admiral underlined that the report will note that 
China has the potential to become a competitor.  He 
urged increased engagement between the U.S. and 
Chinese militaries with a view to enhancing 
transparency.  With each exchange, we will understand 
each other better, the Admiral said.  End Summary. 
 
Upcoming Report 
--------------- 
 
¶2.  (C) Admiral Fallon told FM Li that the 
Congressionally mandated annual China Military Power 
Report will be released to the public later this 
month.  The Admiral said the report attempts to lay 
out in objective terms the U.S. military's estimate of 
the Chinese armed forces' technical advances and long- 
term goals.  The report also touches on Taiwan and 
other issues.  As with the National Security Strategy 
document, the paper emphasizes President Bush's 
statement that the United States welcomes China's rise 
as a world power but encourages its leadership to make 
positive choices and be a responsible player on the 
international stage.  He cautioned FM Li that the 
report includes a statement that among the nations in 
the world, China has the greatest potential to become 
a competitor to the United States.  This conclusion is 
based on China's economic and military growth.  In 
this context, the Admiral stressed that the United 
States does not have access to the kind of military 
information that could better illuminate China's 
intentions. 
 
¶3.  (C) Against this backdrop, the United States wants 
to encourage more exchanges and interaction between 
our two militaries, Admiral Fallon underlined.  With 
each engagement, we can learn more about each other 
and alleviate misconceptions.  Despite the fact that 
the United States and China have considerable 
cooperation and contact in business, education and 
other spheres, one area that lags behind is mil-mil- 
relations.  "The anchor is dragging," the Admiral 
said, holding back progress toward increased 
understanding. 
 
FM Li: China Not a Threat 
------------------------- 
 
¶4. (C) FM Li expressed hope that this year's report on 
China's military would be "fairer, more objective and 
more constructive" than last year's.  He contended 
that the aim of China's military development is to 
safeguard global peace and to allow all countries to 
enjoy stable economic advancement.  This represents an 
opportunity for the international community as opposed 
to a threat, as has been alleged by a small number of 
U.S. politicians "who turn a blind eye to the facts or 
have ulterior political motives."  China's goal is to 
focus on its own peaceful development so that its 
 
BEIJING 00009009  002 OF 003 
 
 
citizens can improve their lives.  In international 
relations, peace and stability are in China's 
interests so that global economic and social progress 
can continue.  Any other reading of China's domestic 
and foreign policy is not in line with the facts, FM 
Li argued. 
 
Uighurs in Albania 
------------------ 
 
¶5.  (C) FM Li expressed concern over the United 
States' transfer to a third country of Chinese 
nationals who are suspected terrorists (a reference to 
the five ethnic Uighurs who were recently resettled in 
Albania).  FM Li said China hopes the United States 
will take China's representations on the matter 
seriously so that we can continue to cooperate in 
fighting terrorism. 
 
Iran and North Korea 
-------------------- 
 
¶6.  (C) On other global matters, FM Li remarked that 
China and the United States have considerable common 
interests.  He pointed in particular to 
nonproliferation.  On the Iran nuclear issue, FM Li 
said he hoped the Political Directors' meeting in 
London will have positive results.  "We all do not 
want to see Iran possess nuclear weapons," FM Li said, 
underscoring that China does not want the Middle East 
to become even more turbulent.  On North Korea, FM Li 
urged all sides to display flexibility.  He suggested 
that the United States have more direct contact with 
the DPRK.  This would go a long way to building 
confidence.  China urges all parties to return to the 
Six-Party Talks, FM Li concluded, adding that 
negotiation is always preferable to confrontation. 
 
Taiwan 
------ 
 
¶7.  (C) Describing President Hu's recent visit to the 
United States as a success, FM Li said President 
Bush's reaffirmation of the United States' adherence 
to the One-China Policy was especially welcome.  He 
went on to criticize Taiwan President Chen Shui-bian, 
charging that Chen is working hard to sow discord 
between the Mainland and the United States.  FM Li 
said he hopes Washington understands that an 
"unbridled and unchecked" Chen presents a real danger 
to U.S.-China relations.  This could harm U.S. 
strategic interests, FM Li maintained, because of the 
possible threat to peace and stability. 
 
The SCO Targets No "Third Country" 
---------------------------------- 
 
¶8.  (C) FM Li said he will be traveling May 13 to a 
meeting of the Foreign Ministers of the SCO.  He made 
a point of emphasizing to Admiral Fallon that 
cooperation among the group is meant to bolster the 
member states but that the nature of the alliance is 
"mutually beneficial, neutral and not directed toward 
any third country."  (Note:  The Foreign Minister did 
not say so explicitly, but he meant the United 
States.)  After the SCO meeting, FM Li intends to 
travel directly to Mexico City, transiting through Los 
Angeles. 
 
Human Rights 
------------ 
 
¶9.  (C) FM Li acknowledged that frictions exist 
between the United States and China in certain areas, 
particularly the human rights situation within China. 
FM Li said Beijing wants to continue its dialogue with 
the United States on Human Rights issues.  He stated 
that the Chinese Government's primary mission is to 
improve the living standards of its citizens.  In 
addition, however, the Government is committed to 
increasing political rights and implementing Article 
II of China's Constitution, that is, that the state 
will respect the human rights of its people. 
 
Transparency Is Key 
------------------- 
 
BEIJING 00009009  003 OF 003 
 
 
 
¶10.  (C) Admiral Fallon returned to the theme of 
increased openness, urging more transparency in 
China's military sector.  The Admiral said that as a 
military professional, he understands the desire to 
transition China's military from a concentration on 
sheer manpower to developing a more modern force.  But 
i the goal is to create a more sophisticated force, 
why is the bulk of the military budget going toward 
strategic weapons systems rather than investing in 
people?  Perhaps with increased exchanges, the Admiral 
observed, the United States would better understand 
China's strategy in this regard. 
 
Bio Note 
-------- 
 
¶11.  (C) Bio note:  FM Li related that when he was in 
high school, he dreamed of being in the military.  He 
tried to enlist in the air force.  On the second round 
of physicals, however, he was rejected.  The reason? 
His sense of smell was not acute enough, he said.  In 
the end he served in the PLA infantry but never rose 
above the level of squad leader. 
 
¶12.  (U) Admiral Fallon has cleared this message. 
 
Participants 
------------ 
 
¶13.  (U) Participants: 
 
United States: 
Admiral William J. Fallon 
Ambassador Clark T. Randt, Jr. 
General Ralph Jodice, Defense Attache 
Political Advisor Ravic Huso 
Interpreter 
Notetaker 
 
China: 
Foreign Minister Li Zhaoxing 
Yang Jiechi, Director General, Ministry of Foreign 
Affairs Office of North America and Oceania Affairs 
Deng Hongbo, Deputy Director General, MFA Office of 
North America and Oceania Affairs 
Interpreter 
Notetaker 
RANDT