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OO RUEHCN RUEHGH
DE RUEHBJ #9507/01 1381139
ZNR UUUUU ZZH
O 181139Z MAY 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5790
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHRL/AMEMBASSY BERLIN 1324
RUEHEG/AMEMBASSY CAIRO 0209
RUEHIL/AMEMBASSY ISLAMABAD 6372
RUEHRH/AMEMBASSY RIYADH 0544
RUEHUNV/USMISSION UNVIE VIENNA 0926
RUEHGV/USMISSION GENEVA 1065

UNCLAS SECTION 01 OF 03 BEIJING 009507 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PARM ECON KNNP CH IR JP
SUBJECT: MAY 16 MFA PRESS BRIEFING: IRAN, SCO SUMMIT, 
PRC-RUSSIA FM MEETING, SIX-PARTY TALKS, TAIWAN SPY  CASE, 
UNSGY ANNAN'S VISIT AND EAST CHINA SEA TALKS 
 
Summary 
------- 
 
¶1.  Key points made at the May 18 MFA press briefing 
are as follows: 
 
-- China stands ready to help solve the Iran nuclear 
issue and hopes the EU-3 proposal will prove to be 
feasible and acceptable to Iran. 
 
-- The leaders of all SCO member states and observer 
states, including Iran President Ahmadinejad, have 
been invited to the sixth SCO Summit in Shanghai on 
June 15. 
 
-- FM Li and Russian FM Lavrov discussed border 
issues, illegal migration and energy cooperation 
during their May 16 meeting in Beijing. 
 
-- China considers groundless reports that a Taiwanese 
businessman arrested in the United States was spying 
and purchasing U.S. military equipment for China. 
 
-- UNSGY Annan arrives in China on May 19.  He will 
meet with President Hu and State Councilor Tang 
Jiaxuan as well as travel to different parts in China, 
including Shenyang. 
 
-- China is still considering Japan's proposal for FM- 
level meetings at the Asian Cooperation Dialogue in 
Doha May 23-24. 
 
-- The MFA has set up an office focused on providing 
assistance to overseas Chinese nationals facing 
difficulties like the recent violence in the Solomon 
Islands. 
 
Iran Nuclear Issue 
------------------ 
 
¶2. China stands ready to press ahead to help solve the 
Iranian issue, MFA Spokesperson Liu Jianchao stated 
during his regular May 18 press briefing in response 
to an NHK reporter's question about Chinese 
discussions with the Iranian oil minister.  China is 
taking a pragmatic and constructive approach and is 
encouraging dialogue between Iran and relevant 
parties.  Beijing hopes the EU-3 proposal will prove 
to be feasible and acceptable in order to achieve 
progress.  Pointing out that China and Iran have 
normal relations and cooperate on energy, Liu referred 
the questioner to the NDRC for details about China- 
Iran energy discussions. 
 
Shanghai Cooperation Organization (SCO) Summit 
--------------------------------------------- - 
 
¶3. Liu announced that the 6th SCO Summit will be held 
in Shanghai June 15.  The leaders of all six SCO 
member countries are expected to attend and the 
leaders of all SCO observer nations, including Iranian 
President Ahmadinejad and international organizatins 
that cooperate with the SCO, have been invited.  This 
is in accordance with the consensusof the SCO 
members, Liu said.  Member nationswill sign several 
documents that will summarize the SCO's achievements 
over the last five years and define its future 
direction.  Liu said that SCO foreign ministers had 
exchanged views on the question of increasing SCO 
membership during their recent meeting in Beijing and 
had decided to study the issue further and work to 
improve the legal basis for expanding the SCO. 
 
PRC-Russia Foreign Minister's Meeting 
------------------------------------- 
 
¶4.  Commenting on FM Li Zhaoxing's May 16 meeting with 
Russian FM Segey Lavrov in Beijing, Liu called the 
China-Russia relationship a strategic partnership, 
with both sides devoted to realizing long term 
stability and mutual confidence.  Sidestepping a 
question on the specifics of bilateral border issues, 
Liu said Beijing and Moscow had already reached 
agreement on the 4000km border and that the on-going 
 
BEIJING 00009507  002 OF 003 
 
 
demarcation work is expected to be completed next 
year.  FM Li and FM Lavrov signed an agreement for the 
joint design, construction, management and maintenance 
of a bridge over the Argun River.  The two foreign 
ministers also signed an agreement to set up a joint 
workshop on immigration that would increase 
coordination and cooperation to stem illegal 
migration. 
 
¶5.  Separately, Liu said energy cooperation was an 
important part of the China-Russia economic and trade 
relationship.  The two economies are highly 
complementary and this has allowed for the 
satisfactory development of energy ties that has 
benefited both people.  More than 10 million tons of 
crude oil was shipped from Russia to China in 2005. 
There are also active discussions regarding the 
construction of a crude oil pipeline and increasing 
Russian natural gas exports to China. 
 
Six-Party Talks 
--------------- 
 
¶6.  In response to a question about A/S Hill's visit 
to Beijing next week, Liu said China maintains close 
contact with all of the Six-Party Talks participants, 
including the United States.  The talks have been 
suspended for a long time, but China hopes all parties 
can move forward in a pragmatic and constructive 
manner so that the talks can be resumed at an early 
time.  Liu refused to comment specifically when asked 
about a New York Times report referring to a new U.S. 
approach to the DPRK, saying all parties should take a 
conciliatory attitude, be earnest and make pragmatic 
efforts to build consensus and achieve progress to 
ensure a nuclear-free Korean Peninsula. 
 
Taiwan Man Not Spying for China 
-------------------------- 
 
¶7.  Liu said China has noted but considers groundless 
reports that a businessman from Taiwan has been 
arrested in the United States for spying and 
attempting to purchase U.S. military equipment for 
China.  There are rigorous systems in place in China 
to regulate the importation of military product, Liu 
stated, and no Chinese company would import any 
military equipment without appropriate documentation. 
 
Chen Shui-Bian's Stopover in Indonesia 
-------------------------------------- 
 
¶8. Liu said China made serious representations and 
voiced its strong concerns to Indonesia for allowing 
Chen Shui-Bian to stopover in Indonesia. 
 
UNSGY Annan's Visit to China, Japan and the ROK 
--------------------------------------------- -- 
 
¶9.  Liu said UN Secretary General Kofi Annan would 
meet with President Hu Jintai and State Councilor Tang 
Jiaxuan to exchange views on major international and 
regional issues.  During his May 19-23 visit to China, 
UNSGY Annan will visit Beijing and Shenyang, as well 
as other parts of China.  Asked to comment on UNSGY 
Annan's visits to Japan and South Korea, Liu said both 
are countries of significance in the region and as 
such developing better relations with the United 
Nations would be helpful to the region.  Answering a 
question about UNSGY Annan's call for dialogue to 
solve disputes, Liu said high level meetings between 
China and Japan are important but Japan is responsible 
for the lack of such meetings because of visits to the 
Yasukuni Shrine.  China stands ready to hold meetings, 
but Japan needs to create the right atmosphere and 
conditions first. 
 
China-Japan FM Meeting 
---------------------- 
 
¶10.  In response to questions regarding a potential 
meeting between FM Li and FM Taro Aso in Doha during 
the Asian Cooperation Dialogue, Liu said China is 
still considering Japan's request. 
 
BEIJING 00009507  003 OF 003 
 
 
 
East China Sea Talks 
-------------------- 
 
¶11.  Liu said it was too early to comment on the on- 
going Sino-Japanese talks in Tokyo on the East China 
Sea dispute, but pointed out that China is maintaining 
a responsible attitude to narrow the gap between the 
two countries' positions. 
 
PRC Assistance to Overseas Chinese 
---------------------------------- 
 
¶12.  Responding to a Taiwan reporter's question about 
China's preparatins for responding to future 
situations like the recent turmoil in the Solomon 
Islands, Liu said the MFA has set-up a new office and 
is looking at other mechanisms to provide assistance 
to overseas Chinese nationals facing difficulties. 
China stands ready to assist all Chinese citizens 
overseas. 
 
Strategic Partnerships 
---------------------- 
 
¶13.  Asked to comment on the possibility of China 
pursuing strategic partnerships with the United States 
and other countries, Liu said such partnerships are 
the outcomes of bilateral relations that have reached 
a "certain stage."  China is ready to set-up 
partnerships to increase coordination and cooperation 
with different countries when it is appropriate.  Liu 
said the U.S.-China relationship should be 
constructive, stable and not directed at other 
countries and that Beijing stands ready to work 
towards this. 
 
PRC Response to SARS 
-------------------- 
 
¶14. Asked by an AP reporter to comment about a recent 
WHO released book that is critical of China's response 
to the SARS outbreak, Liu declared that the Chinese 
government and people had been highly responsible and 
unified in the fight against SARS, which allowed them 
to eradicate the epidemic in a short period of time. 
The Chinese government also had a sound, efficient and 
cooperative relationship with the WHO and quickly 
shared its experiences with the international 
community.  China hopes others will take an objective 
attitude when reviewing China's achievements combating 
this epidemic. 
 
East Timor President Visit 
-------------------------- 
 
¶15.  Liu announced East Timor President Xanana Gusmao 
will visit China May 29-June 3. 
RANDT