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OO RUEHCN RUEHGH RUEHVC
DE RUEHBJ #0399/01 0171316
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O 171316Z JAN 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3922
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHINGTON DC

C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 000399 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 01/17/2027 
TAGS: PREL ASEC KOLY CH TW KN JA KS
SUBJECT: MILITARY THINK TANKERS STRESS TAIWAN CONCERNS TO 
EAP PDAS STEPHENS 
 
 
Classified By: Deputy Chief of Mission David Sedney.  Reasons 1.4 (b) a 
nd (d). 
 
Summary 
------- 
 
¶1. (C) Academics from military-related think tanks stressed 
to EAP PDAS Kathleen Stephens that Taiwan remains the most 
important security issue in the U.S.-China relationship. 
Following an overwhelming stress on Taiwan, they also noted 
North Korea, security for the Olympics and potential 
differences with Japan in the East China Sea as additional 
concerns, but asserted that these problems cannot compare 
to Taiwan's potential for disrupting U.S.-China relations. 
One scholar emphasized dangers to the relationship stemming 
from attempts by third parties, in both the cases of Taiwan 
and North Korea, to exacerbate differences between the 
United States and China and stressed the need for continued 
close coordination to prevent this.  PDAS Stephens noted 
that United States policy on Taiwan has been clear and 
consistent and that we have made clear our opposition to 
changes in the status quo.  She noted the need for quick 
progress in negotiations with the DPRK and urged China to 
compel the North Koreans to take the talks more seriously. 
In response to the PDAS's question about China's foreign 
policy ambitions, the scholars downplayed China's global 
role, describing China as a "responsible constructive 
cooperator" and stressing the need for Chinese to address 
domestic challenges and work toward global stability.  End 
summary. 
 
Taiwan 
------ 
 
¶2.  (C) During an informal dinner with Chinese military and 
academic security specialists at the DCM's Residence, PDAS 
Stephens solicited Chinese views on security concerns, 
urged China to do more to persuade North Korea to engage 
seriously in negotiations and asked about China's vision 
for a more global foreign policy.  Leading off the 
discussion, PLA-affiliated China Institute for 
International Strategic Studies (CIISS) scholar Gong 
Xiantian (a General who was formerly posted as China's DATT 
in Washington) stated that Taiwan is the main security 
issue in U.S.-China relations and underlined that Chen 
Shui-bian's pursuit of de jure independence for Taiwan 
would present serious challenges to U.S.-China relations if 
not prevented.  Chen will attempt to exploit potential 
differences between the United States and China over the 
definition of Taiwan independence in order to involve the 
United States in the problem, Gong warned.  For example, 
Chen will use the notion of a "Second Republic" 
Constitution to avoid declaring independence or crossing 
clear U.S. red lines, while at the same time using this 
concept to trumpet the accomplishment of de jure 
independence in the media.  This would be a serious problem 
for the Mainland, Gong said. 
 
¶3.  (C) Academy of Military Science's (AMS) Major General 
Peng Guangqian agreed that Taiwan is the paramount security 
issue between the United States and China, suggesting that 
while Beijing can manage and control other potential 
security problems, the Taiwan issue is beyond the power of 
Beijing to control.  He expressed concern that Chen Shui- 
bian will use tactics similar to those employed in his 
February 2006 decision to "cease the functioning of" the 
National Unification Council and Guidelines, which Peng 
posited could lead to a crisis in U.S.-China relations. 
 
¶4.  (C) PLA-affiliated Foundation for International 
Strategic Studies (FISS) scholar Zhang Tuosheng added that 
while long-term prospects for cross-Strait stability are 
positive, China worries that, in the short-term, Chen Shui- 
bian will try to incorporate the "two-state theory" into 
the Constitution in a way that will bring pressure on the 
Mainland to act.  People will claim that such an action 
violates the Anti-Secession Law, but if Beijing counters 
with a strong response, this will create problems in U.S.- 
China relations, Zhang stated.  Currently, there are three 
schools of thought in China about the near-term cross- 
Strait situation.  The first says that time is on Beijing's 
side and the Mainland must continue to be patient.  The 
second views the current period as one of "great danger." 
The third school believes long-term trends are on the 
Mainland's side, but sees danger in the short-term.  China 
and the United States should continue to have frequent 
discussions and keep a watchful eye on the issue. 
 
 
BEIJING 00000399  002 OF 003 
 
 
¶5.  (C) CIISS scholar Chen Wei reiterated the sensitivity 
of the coming year in dealing with the Taiwan issue.  The 
stability of U.S.-China relations is important to the 
security of the entire region and the world.  Vigilance and 
close communication on Taiwan will be the key to 
maintaining stability in the bilateral relationship in the 
coming year, he said.  Chen rejected attempts to move the 
discussion off the Taiwan dime and he and the others 
returned to and stressed the Taiwan theme relentlessy. 
 
¶6.  (C) President of te Ministry of State Security- 
affiliated Chnese Institute of Contemporary International 
elations (CICIR) Cui Liru noted that Chen Shui-ian is 
adept at using salami tactics to bump up against any "red 
lines" which, in this situation, are necessarily ill- 
defined.  If the situation reaches a "red line," it may be 
too late to prevent conflict.  This would be a disaster for 
the United States and China.  This is why China is so 
alarmed about Chen's possible moves and tries to warn the 
United States first, Cui stated.  China is aware that a 
harsh Mainland reaction will strengthen Chen's hand 
domestically and that a softer policy is more effective. 
Chen is also aware of this, however, and looks to provoke a 
Mainland reaction, he said. 
 
¶7.  (C) PDAS Stephens repeated and reaffirmed the United 
States' consistent policy on Taiwan, noting that the policy 
has dealt effectively with the issue to date.  Economic and 
cultural ties between Taiwan and the Mainland are improving 
and the United States encourages continued improvement and 
dialogue.  The United States and China have a common 
interest in preserving cross-Strait stability and in 
continuing to be patient, she stated. 
 
North Korea 
----------- 
 
¶8. (C) Cui turned to the topic of North Korea, noting that 
aside from Taiwan, potential instability on the Korean 
Peninsula is a major concern for China.  China welcomes the 
prospect of resumption of U.S.-DPRK consultations on 
financial issues, he noted.  PDAS Stephens noted that the 
United States is prepared to discuss financial measures, 
but if the DPRK continues to stonewall in implementing the 
September 2005 agreement on denuclearization, it will be a 
problem for all the parties.  Cui said China noticed the 
seriousness of the United States during the last round of 
the Six-Party Talks and believes North Korea may also be 
serious. 
 
¶9.  (C) Gong added that instability on the Korean Peninsula 
is the greatest external security facing China.  (Taiwan is 
an internal threat, he said.)  North Korea is currently in 
a difficult position.  It is struggling hard over how to 
proceed.  There is the danger that Pyongyang may be tempted 
to again play a provocative card such as a nuclear test. 
Previously, China did not believe such threats were 
serious, but now the United States and China have more 
common ground.  Asked about the state of China-DPRK mil-mil 
relations, Gong said that they have certainly been affected 
by the changed relations between the two countries.  Zhang 
added that China does not want to see North Korea and Iran 
become nuclear powers, in part because it will greatly 
diminish leverage over countries like Japan to remain non- 
nuclear.  If North Korea tests another nuclear weapon, 
China's situation will become more difficult, he said. 
 
China's Growing Influence 
------------------------- 
 
¶10.  (C) Asked about China's growing international profile 
and foreign policy vision, Chen Wei asserted that Deng 
Xiaoping's concept of keeping a low profile in 
international affairs is no longer the sine qua non of 
Chinese foreign policy.  After some debate over the 
intentions behind Deng's formulation and criticism of the 
common English translation "hiding one's light and biding 
one's time," scholars downplayed the significance of the 
formulation, noting that it was meant, at the time, to 
allow China to avoid diverting attention from its domestic 
development.  Following the 1980s and 90s when China 
strengthened its relations with Western countries, some 
criticized China's neglect of its traditional friends in 
the Third World, FISS's Zhang said.  For this reason and 
because China seeks resources, including oil, for its 
continued rapid development, Beijing has been moving to 
strengthen relations with Africa, Latin America and other 
countries.  Building good relations with developing 
 
BEIJING 00000399  003 OF 003 
 
 
countries is a long-term strategy for China, he stressed, 
not just a short-term tactic.  China sees itself as a 
developing country that has increasing influence in the 
world, but that remains a regional power.  China does not 
have hegemonistic ambitions, he said. 
 
¶11. (C) Gong said that China views itself as an active 
participant in the international system.  Some refer to 
China as a "responsible constructive cooperator" in the 
international system, he said, meaning that China advocates 
actions that are positive for humanity and foster a 
"harmonious world."  Building up relations with Africa and 
Latin America is symptomatic of China's efforts to 
diversify its foreign relations. 
 
Olympics and Terrorist Threats 
------------------------------ 
 
¶12. (C) CICIR's Cui posited that, aside from Taiwan, the 
most direct security threat that China currently faces is 
countering terrorist threats to the 2008 Olympics.  There 
are threats from both internal and external terrorist 
groups, Cui said, but he downplayed the likelihood of 
threats emanating from disaffected groups within China. 
China's internal political situation is "greatly improved," 
he claimed, adding that the Chinese government should be 
more confident in projecting its problems and 
accomplishments.  China is in a transition and needs to 
deal with economic disparities and a host of other 
problems.  As seen by the recent revisions to regulations 
for foreign journalists, however, the Government believes 
that outsiders will understand that China is working on 
these problems and that knowing more about China's 
shortcomings is not a problem.  Rather, problems come from 
others knowing too little about China. 
 
Japan and the East China Sea 
---------------------------- 
 
¶13.  (C) Another possible security threat, according to 
Zhang, stems from the fragile situation in the East China 
Sea.  While China's relations with Japan have improved 
somewhat in recent months, unresolved territorial disputes 
and conflicting maritime interests still hold the potential 
for problems.  Japanese companies that had begun 
exploration for energy resources on the Chinese side of the 
so-called mid-line have pulled back and are now in 
negotiations, he noted.  If negotiations do not make 
progress, however, or if an incident occurs as a result of 
the increased number of planes and ships in the region, 
this could lead to difficulties.  China does not have 
maritime consultations with Japan as it does with the 
United States, he noted.  Asked for the Chinese reaction to 
the change in the name of Japan's Defense Ministry, Zhang 
said that the change in the name was not a serious issue. 
However, if there are attempts to change Article 9 of the 
Constitution, China would have concerns. 
 
¶14.  (U) PDAS Stephens cleared this message. 
RANDT