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courage is contagious

Viewing cable 07BEIJING1795, MARCH 16 PREMIER WEN JIABAO NPC PRESS CONFERENCE:

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Reference ID Created Released Classification Origin
07BEIJING1795 2007-03-16 15:12 2011-08-23 00:00 UNCLASSIFIED Embassy Beijing
VZCZCXRO7786
OO RUEHCN RUEHGH RUEHVC
DE RUEHBJ #1795/01 0751512
ZNR UUUUU ZZH
O 161512Z MAR 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5795
INFO RUEHOO/CHINA POSTS COLLECTIVE
UNCLAS SECTION 01 OF 03 BEIJING 001795 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV PHUM MARR CH JA TW KN
SUBJECT: MARCH 16 PREMIER WEN JIABAO NPC PRESS CONFERENCE: 
ASAT/MILITARY SPENDING, TIBET, TAIWAN, JAPAN, HONG KONG, 
GROWTH, CAPITAL MARKETS, FOREIGN RESERVES 
 
SUMMARY 
------- 
 
1. At his March 16 press conference immediately following 
conclusion of the National People's Congress (NPC), Premier 
Wen Jiabao made the following key points: 
 
-- China's anti-satellite (ASAT) test was neither aimed at 
nor threatened any country and did not violate any 
international treaties.  The PRC's position in support of the 
peaceful use of, and opposition to an arms race in, space 
remains unchanged. 
 
-- China's security policy is defensive in nature.  The PRC 
is committed to the path of peaceful development and 
maintains a limited military to safeguard China's security, 
independence and sovereignty. 
 
-- If Prime Minister Abe's visit to China last October was an 
"ice-breaker," Premier Wen hopes his visit to Japan in April 
will be an "ice-melter."  During the visit, consensus will be 
reached on establishing strategic and mutually beneficial 
relations.  The PRC sympathizes with the Japanese abduction 
issue but believes it is an issue between Japan and North 
Korea. 
 
-- The "door is always open" to dialogue with the Dalai Lama, 
as long as he recognizes that Tibet, and Taiwan, are 
inalienable parts of China's territory and abandons his 
separatist activities. 
 
-- The PRC firmly opposes Taiwan secessionist activities of 
any form, such as promoting "de jure" independence. 
 
-- Democracy, the rule of law, freedom, human rights, 
equality and fraternity are not peculiar to capitalism but 
are common values of mankind.  China will promote political 
system reform and build democracy in its own way, according 
to its unique national conditions. 
 
Comment:  Some 700 journalists attended the Premier's 
standing-room-only press conference.  Wen broke little new 
ground but answered questions for nearly two hours, coming 
across as warm, open and well-briefed on a range of issues, 
including hard questions on democracy, the Dalai Lama and 
China's military spending.  END SUMMARY AND COMMENT. 
 
Closing the NPC:  Focus on the People 
------------------------------------- 
 
2.  At his press conference immediately following the 
conclusion of the NPC, Premier Wen began by thanking citizens 
across China for their attention to the "Two Meetings" (the 
National People's Congress (NPC) and Chinese People's 
Political Consultative Conference (CPPCC)), especially the 
more than 10,000 questions posed by "netizens" to the Premier 
online.  The Premier said he took time to read and consider 
some of the questions raised in these online forums.  Over 
the past four years, the government has learned that all 
power of the government is given by the people and all power 
belongs to the people; everything it does must be for the 
people, it must rely on the people and must attribute all 
achievements to the people. 
 
ASAT Test, Military Buildup:  Not a Threat 
------------------------------------------ 
 
3.  Asked to respond to the seeming contradiction between 
China's anti-satellite (ASAT) test and increased military 
expenditures with China's self-expressed peaceful rise and 
development, Premier Wen said the test was neither aimed at 
nor threatened any country and did not violate any 
international treaties.  The PRC's position in support of the 
peaceful use of, and opposition to an arms race in, space 
remains unchanged.  He called on relevant countries to sign 
an agreement on the peaceful use of space at an early date. 
China's security policy is defensive in nature.  Because of 
its geographic position and painful historical experience, 
the PRC is committed to the path of peaceful development and 
maintains a limited military to safeguard security, 
independence and sovereignty.  On this matter, China has been 
completely transparent. 
 
Dalai Lama:  Door for Dialogue "Open," but... 
--------------------------------------------- 
 
4.  In response to the question why the Dalai Lama is still 
considered a "splittist" by the Chinese government even 
though he now claims not to promote Tibetan independence, Wen 
Jiabao urged reporters to observe the Dalai Lama's actions 
rather than simply his words.  The "door is always open" to 
 
BEIJING 00001795  002 OF 003 
 
 
dialogue with the Dalai Lama, as long as he recognizes that 
Tibet, and Taiwan, are inalienable parts of China's territory 
and abandons his separatist activities.  Nevertheless, Wen 
pointed out that the Dalai Lama was chairman of the 
representative committee for Tibet's government in 1956, but 
later chose to go abroad, establish a government in exile, 
advocating a highly autonomous Tibet, the removal of the PLA 
and all non-Tibetan ethnic groups from Tibet.  It therefore 
is not difficult to tell whether the Dalai Lama truly desires 
the nation's unity or wants to sabotage it. 
 
Taiwan:  Opposing "de jure" Independence 
---------------------------------------- 
 
5.  On Taiwan, the Premier responded to a Taiwanese reporter 
by saying that the coming two years are crucial for 
cross-Strait relations, emphasizing China's firm opposition 
to Taiwan secessionist activities of any form, such as "de 
jure" independence.  China will never allow anyone to change 
the historical reality and internationally recognized status 
that Taiwan is an inalienable part of China since ancient 
times.  China remains committed to peaceful development 
across the Taiwan Strait.  China will continue to protect the 
lawful rights of the increasing numbers of Taiwan businessmen 
and compatriots on the mainland.  China will promote the 
"three links," resolving the issue of direct charter weekend 
flights direct charter cargo flights.  The mainland hopes to 
realize soon the dream of many mainland tourists to travel to 
Taiwan. 
 
Japan-China Relations 
--------------------- 
 
6.  If Prime Minister Abe's visit to China last October was 
an "ice-breaker," Premier Wen hopes his visit to Japan in 
April will be an "ice-melter."  During the visit, consensus 
will be reached on establishing strategic and mutually 
beneficial relations.  The PRC sympathizes with the Japanese 
abduction issue but believes it is an issue between Japan and 
North Korea.  The Three Political Documents are the 
foundation for the development of China-Japan relations.  We 
must uphold the spirit of these three documents and view 
history as a mirror while looking forward to the future. 
 
Hong Kong 
--------- 
 
7.  Over the past 10 years since Hong Kong was returned to 
the motherland, China has strictly followed the Basic Law, 
implementing the one country, two systems policy and not 
intervening in the internal affairs of the Hong Kong 
government SAR.  Wen drew attention to Hong Kong's successful 
rebound from the 1997 financial crisis and the SAR's 
irreplaceable economic role. 
 
Socialist Democracy 
------------------- 
 
8.  A reporter from Le Monde asked the Premier a) whether his 
recent Renmin Ribao article about China being in the initial 
stage of socialism meant that China would have no democracy 
for 100 years, and b) for his comment on Zhao Ziyang's recent 
memoir which calls for China to democratize in order to 
modernize.  In reply, Wen said that, in his article, he said 
socialism and democracy are not incompatible.  Democracy, the 
rule of law, freedom, human rights, equality and fraternity 
are not peculiar to capitalism but are common values of 
mankind.  China will promote political system reform and 
build democracy in its own way, according to its unique 
national conditions. 
 
9.  It would be a misunderstanding to think that my article 
implied that China would not want democracy for 100 years. 
At this stage, we must accomplish two major tasks and two 
major reforms.  The two major tasks are first, concentrate on 
developing social productive forces; second, promote social 
fairness and justice.  The two reforms are to promote 
economic reform with marketization as the goal; and to 
promote reform of the political system with democratization 
as the goal.  As for the book mentioned by the reporter, Wen 
said he had not read it and that it had nothing to do with 
his aforementioned views. 
 
Economic Growth, Environmental Problems 
--------------------------------------- 
 
10.  Addressing the ability of the Chinese economy to sustain 
its high rate of growth, Premier Wen said China faces many 
challenges, but so long as the international environment is 
peaceful, he is confident they can be overcome.  Challenges 
include market instability, regional development disparities, 
 
BEIJING 00001795  003 OF 003 
 
 
lack of coordinationand reliance on foreign investment and 
exports to drive growth.  Areas for improvement include 
increasing consumer demand, strengthening the knowledge 
economy, and removing obstacles for greater reform and 
opening. 
 
11.  Regarding the issues of increasing energy efficiency and 
controlling pollution, Premier Wen referred reporters to his 
eight points in his work report delivered to the NPC. 
Regarding China's stance on greenhouse gases, Wen said that 
China endorses the Kyoto Protocol.  Although a developing 
country not bound by the Protocol's mandatory targets, China 
has nonetheless established its own national plan which 
includes a 20 percent energy consumption reduction per unit 
of GDP by 2010. 
 
Stock Market, Foreign Reserves 
------------------------------ 
 
12.  Premier Wen said he pays attention to the development of 
the stock market but pays even more attention to the stock 
market's health.  Since last year, the government has 
strengthened capital market institutions and promoted 
stockholder reform.  To establish a mature capital market, 
China must improve the quality of its listed companies, 
increase openness, fairness and transparency, while at the 
same time raising awareness among investors of the risks and 
exposure in the market.  Turning to the 
soon-to-be-established institution in charge of investing 
China's foreign exchange reserves, Wen said the agency will 
not be affiliated with any government ministry or department 
and will follow market rules and regulations.  The Premier 
stressed that China's non-financial outbound investment 
account of USD 73.3 billion is still relatively small.  China 
will handle buying USD-denominated assets on the basis of 
mutual benefit, said Wen, maintaining this development would 
not relevantly impact the value of USD-denominated assets. 
RANDT