VZCZCXRO7318
RR RUEHCN RUEHGH
DE RUEHBJ #1786 0750915
ZNR UUUUU ZZH
R 160915Z MAR 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 5775
RUCPDOC/USDOC WASHDC
RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHGH/AMCONSUL SHANGHAI 7150
RUEHSH/AMCONSUL SHENYANG 7703
RUEHCN/AMCONSUL CHENGDU 8020
RUEHGZ/AMCONSUL GUANGZHOU 2585
RUEHHK/AMCONSUL HONG KONG 9025
RUEHIN/AIT TAIPEI 6321

UNCLAS BEIJING 001786 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS CEQ FOR CONNAUGHTON 
STATE PASS CEA FOR BLOCK 
STATE PASS USTR FOR STRATFORD/ALTBACH/CELICO/ROSENBERG 
NSC FOR HUNTER/SHRIER/TONG 
COMMERCE FOR 4420/MCQUEEN 
TREASURY FOR SMITH/DOHNER/HAARSAGER/BAKER/CUSHMAN 
GENEVA FOR CHAMBERLIN AND USTR 
DOE FOR INTERNATIONAL/PUMPHREY/NAKANO/GEBERT 
STATE FOR OES/STC/HOWARD AND PADGETT, OES/PCI/COVINGTON, AND 
EB/MOORE 
STATE ALSO FOR EAP/CM/SECOR AND WARD 
STATE PASS TO USTR 
EPA FOR INTERNATIONAL/NGUYEN AND CHENG 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR SENV PREL ENRG KSCA CH
SUBJECT: MOST'S VIEWS ON SED DIALOGUES AND UPCOMING BILATERAL 
SCIENCE PROGRAM. 
 
 
¶1.  (SBU) Summary: ESTH Counselor met with Ministry of Science and 
Technology (MOST) Department of International Cooperation Deputy 
Director General Ma Linying March 14 to touch base following the SED 
Whitepaper meetings and hear MOST's views on SED preparations and 
other upcoming bilateral issues.  DDG Ma is very optimistic about 
the outcome of the Energy and Environment section of the next SED. 
The State Council assigned the Innovation dialogue to MOST because 
China's understanding was that it would focus on science and 
technology research and development.  MOST is hoping to sign the 
FutureGen agreement at SED II in May, but is still waiting for the 
documentation from the U.S. side.  Finally, MOST would like to add 
an annex covering energy efficiency and renewable energy to the 
Department of Energy (DOE) - MOST bilateral agreement, and is 
currently studying Environmental Protection Agency (EPA) proposals 
to begin cooperation under the MOST-EPA agreement.  End Summary. 
 
¶2.  (SBU) DDG Ma reported that MOST did not seek to be the lead on 
innovation at the SED.  Instead, it was the Chinese understanding 
that the innovation dialogue would focus on science and technology, 
research and development, and innovation systms that led the State 
Council to assign the issue to MOST.  DDG Ma reemphasized MOST's 
discomfort with discussing IPR trade disputes under negotiation in 
the Joint Commission on Commerce and Trade (JCCT) in the SED.  DDG 
Ma stated that MOST's original expectation was that the two sides 
would exchange experiences and then come up with more focused areas 
for discussion and cooperation.  He said the Chinese side was 
expecting a much more balanced discussion on innovation than was 
proposed in our white paper. 
 
¶3.  (SBU) DDG Ma commented that the Energy and Environment 
discussions were going well and that he was optimistic they would 
lead to concrete results.  He specifically mentioned that China was 
hoping to sign a FutureGen agreement at SED II and hopes the U.S. 
side will supply the documentation requested at the last FutureGen 
meetings here in Beijing.  Ma indicated the Ministry of Finance 
would be providing a written counterproposal to the U.S. whitepapers 
that will likely to contain some possible areas of consensus that 
could be announced in May as well as a list of asks from the Chinese 
side.  He did not have any idea when such a paper might be 
provided. 
 
¶4.  (U) DDG Ma also mentioned several outstanding science and 
technology issues that should be addressed this year. The next 
Executive Secretaries Meeting (ESM) is due this autumn.  Ma thought 
early September might be appropriate, but indicated he would welcome 
US input on timing and on a preferred location.  Given that the JCM 
was in Beijing, Ma thought the ESM might be in another Chinese city. 
 ESTH Couns suggested choosing another location with rich scientific 
resources to facilitate good site visits. 
 
¶5.  (SBU) MOST is still studying the Environmental Protection 
Agency's proposals to initiate cooperation under the MOU signed in 
October 2006, and is waiting for a response from the Department of 
Social Development.  Under the MOU with the Department of Energy, 
MOST hopes to negotiate new annexes covering cooperation on energy 
efficiency and renewable energy at the working group meeting in the 
United States later this year.  ESTH counselor mentioned that EPA 
and the General Administration for Quality, Supervision, Inspection, 
and Quarantine will be signing the Energy Star agreement on Monday, 
March 19, facilitating exchange on energy efficiency standards. 
 
RANDT