VZCZCXRO2022
OO RUEHCN RUEHGH
DE RUEHBJ #1614/01 1591130
ZNR UUUUU ZZH
O 081130Z JUN 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8131
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHAR/AMEMBASSY ACCRA 0046
RUEHEG/AMEMBASSY CAIRO 0226
RUEHDR/AMEMBASSY DAR ES SALAAM 0350
RUEHIL/AMEMBASSY ISLAMABAD 6390
RUEHKM/AMEMBASSY KAMPALA 0038
RUEHKI/AMEMBASSY KINSHASA 0059
RUEHLU/AMEMBASSY LUANDA 0076
RUEHSA/AMEMBASSY PRETORIA 0378

UNCLAS SECTION 01 OF 03 BEIJING 011614 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PHUM CH JP
SUBJECT: JUNE 8 MFA PRESS BRIEFING:  IRANIAN NUCLEAR ISSUE, 
SCO SUMMIT, EIGHTH DEFENSE CONSULTATION TALKS, CHINA SPY 
CASE, EU EMBARGO, IPR, DARFUR, SINO-AFRICAN RELATIONS, 
INTERNET CENSORSHIP, SINO-JAPANESE RELATIONS. 
 
 
 Summary 
------- 
 
¶1.  Key points made at the June 8 MFA press briefing are as 
follows: 
 
--  President Hu will meet with Iranian President Mahmud 
Ahmadinejad during the June 15 Shanghai Cooperation 
Organization (SCO) summit in Shanghai to discuss the Iranian 
nuclear issue. 
 
--  All SCO member heads will attend the SCO Summit and meet 
with President Hu. 
 
--  China welcomes the Eighth Defense Consultative Talks 
(DCTs) as evidence of increased military-to-military 
exchanges and cooperation with the United States. 
 
--  Claims that China is attempting to steal U.S. military 
secrets are unfounded and based on ulterior motives. 
 
SIPDIS 
 
--  Despite recent criticism by EU Trade Commissioner Peter 
Mandelson, China has a responsible attitude towards military 
technology transfer and the EU Arms Embargo should be lifted. 
 
--  China realizes it has continuing problems with IPR 
violations but is improving its enforcement. 
 
--  China welcomes the EU and UN Security Council agreement 
that UN Peacekeeping forces take over the peacekeeping 
mission in Darfur. 
 
PM Wen Jiabao will make a 7 nation African tour to Egypt, 
Ghana, Uganda, the Congo, Angola, Tanzania, and South Africa 
from June 17-21.  China supports Angola's post-war 
reconstruction and will continue to provide Angola with 
further developmental assistance. 
 
--  President Koizumi must stop visiting the Yasukuni Shrine 
before Sino-Japanese relations can improve. 
 
--  Afghan President Hamid Karzai will visit China from June 
18-21. 
 
Iranian President to Attend SCO 
------------------------------- 
 
¶2.  During the regular June 8 MFA press briefing spokesman 
Liu Jianchao confirmed that Iranian President Ahmadinejad 
will attend the June 15 Shanghai Cooperation Organization 
(SCO) Summit in Shanghai.  In preparation for the meeting, 
Iran's Deputy Foreign Minister for Legal and International 
Affairs Abbas Araghchi met with  Chinese Foreign Minister Li 
Zhaoxing today to discuss developments in Iran's nuclear 
program.  Liu stated that during the SCO, President Hu Jintao 
and President Ahmadinejad will discuss the nuclear issue. 
 
¶3.  China, the EU, Russia and the United States reached a 
consensus on a proposal to resolve the Iranian nuclear 
situation, Liu stated.  The proposal is a solid foundation 
for a diplomatic solution, Liu stated.  Liu skirted the 
question of whether or not the aforementioned proposal 
offered Iran a direct guarantee of security in exchange for a 
suspension of its nuclear program, stating only that early 
media reports indicated that the proposal has been received 
favorably in Tehran.  China believes resolution of Iran's 
nuclear program is possible through diplomatic dialogue, Liu 
said. 
 
The SCO 
------- 
¶4.  Liu confirmed that the presidents of all the Shanghai 
Cooperation Organization (SCO) member states will attend the 
organization's summit on June 15 in Shanghai.  Additionally, 
Pakistani President Musharref, Mongolian President Nambaryn 
Enkhbayar, and Iranian President Mahmud Ahmadinejad will 
attend in the status of observers.  India, another SCO 
observer, will send its Minister of Petroleum and Natural Gas 
Murli Deora to the summit, Liu said.  Liu confirmed that 
Afghan President Hamid Karzai, Executive Secretary of the 
Commonwealth of Independent States Vladimir Rushailo and 
 
BEIJING 00011614  002 OF 003 
 
 
ASEAN Deputy Secretary-General Villacorta will also attend 
the summit as guests.  President Hu will hold bilaterals with 
all heads of state during the SCO, Liu said. 
 
¶5.  Asked by the Pakistani reporter for details on any 
proposed agenda for upcoming SCO Sino-Pakistani meetings, Liu 
stated that President Hu will discuss a wide range of issues 
with SCO participants.  China maintains good relations with 
SCO member and observer states and hopes to use the SCO 
framework to further regional cooperation and development. 
 
Defense Consultation Talks 
-------------------------- 
 
¶6.  The current Eighth Round of Defense Consultative Talks 
with the United States, led by Assistant U.S. Secretary of 
Defense Peter Rodman and Chinese delegation head Zhang 
Qinsheng, enhances military-to-military trust and 
cooperation, Liu stated, when asked to explain the purpose of 
the talks.  Military exchanges are an important part of 
U.S.-China relations, he added.  China noted President Bush's 
recent positive comments on military cooperation and hopes 
that these exchanges will continue in the future.  In 
response to another question, Liu confirmed that China would 
send observers to the U.S. military exercise "Valiant Shield" 
in mid-June. 
 
U.S.-China Spy Case 
------------------- 
 
¶7.  Queried by the AP reporter about a recent indictment 
handed down in a California Court against a mother and son 
accused of conspiring to steal U.S. Naval secrets for China, 
Liu stated that these "so-called" accusations were groundless 
and based on "ulterior motives." 
 
EU Arms Embargo 
--------------- 
 
¶8.  China's position on the export of weapons technology is 
clear-cut and responsible, Liu answered when asked by the 
Bloomberg reporter to comment on EU Trade Commissioner Peter 
Mandelson's recent comments that the EU would not lift the 
arms embargo until Beijing could guarantee it wouldn't 
transfer military technology.  The embargo should have been 
removed "long ago," and is both an obstacle to development 
and international relationships, Liu stated. 
 
IPR 
--- 
 
¶9.  China has made progress in recent years on IPR 
enforcement, Liu stated, when questioned about the 
possibility that the U.S. government would bring the issue up 
in the WTO.  China takes strong measures against IPR 
violations but realizes it has continual problems that 
require enhanced enforcement, Liu stated.  IPR protection 
serves China's interests as well as those of the concerned 
countries, he said. 
 
 
Darfur Crisis 
------------- 
 
¶10.  China is closely following and is extremely concerned 
about the situation in Darfur, Liu answered when asked how 
China views the Darfur instability, especially in light of 
Chinese energy interests in the region.  China welcomes the 
EU and UN Security Council agreement that UN Peacekeeping 
forces take over the peacekeeping mission in Darfur, Liu 
said.  China hopes for peace and stability to return to the 
region as soon as possible, he added. 
 
Sino-Angolan Relations 
----------------------- 
 
¶11.  PM Wen Jiabao's upcoming trip to 7 African countries 
follows President Hu's successful April trip to the region, 
Liu stated.  Lu deflected questions about whether China was 
overextending credit to Angola by stating that China sought 
to develop and enhance bilateral relations, mutual interests, 
 
BEIJING 00011614  003 OF 003 
 
 
and further the development of the entire African region.  PM 
Wen Jiabao will visit Angola from June 20-21 and meet with 
Angolan President Jose Eduardo Dos Santos, Liu stated.  The 
two will discuss bilateral and regional issues and Wen Jiabao 
plans to visit a provincial general hospital.  Sino-African 
trade posted record highs last year, Liu commented.  China 
supports Angola's post-war reconstruction and will continue 
provide Angola with further developmental assistance, he 
added. 
 
Internet Censorship 
------------------- 
 
¶12.  Cooperation on economics and trade should occur within a 
legal framework, Liu stated when asked about recent 
criticisms of China's Internet censorship.  Companies 
operating within China should abide by Chinese laws, he added. 
 
Yasukuni Shrine Visits 
---------------------- 
 
¶13.  There is no information that President Hu and President 
Koizumi will hold bilateral talks on the margins of the July 
G-8 Summit in Russia, Liu stated.  When asked if the chances 
of such a meeting were linked to Koizumi's Yasukuni Shrine 
visits, Liu stated that the Chinese position on visits to 
Yasukuni is unchanged. 
 
Upcoming Visits: 
--------------- 
 
¶14.  Afghan President Hamid Karzai will visit China from June 
18-21. 
RANDT