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OO RUEHCN RUEHDBU RUEHGH RUEHLN RUEHVC RUEHVK RUEHYG
DE RUEHBJ #1925/01 0800906
ZNR UUUUU ZZH
O 210906Z MAR 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6000
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCNCIS/CIS COLLECTIVE

UNCLAS SECTION 01 OF 03 BEIJING 001925 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL UNSC RS CH
SUBJECT: Assistant Foreign Minister Briefs on Hu 
Jintao's March 26-28 Visit to Russia: China Year, 
Energy, Military and Iran Will be Key Topics 
 
 
Summary 
------- 
 
¶1.  President Hu Jintao will pay a state visit to 
Russia from March 26-28 meeting with President Putin, 
PM Fradkov, SpeakerGryzlov, and Tatarstan Republic 
President Shaeymiev, AFM Li Hui announced in a special 
March 21 press briefing.  Hu and Putin will atten the 
China Year in Russia's opening ceremony nd the China 
National Exhibition.  The visit will produce a 
political document discussing bilateral and 
international issues of common concern and a number of 
interagency and commercial agreements with an 
estimated value over 2 billion USD.  Li said major 
topics to be discussed between Hu and the Russian 
leaders will include energy cooperation, upcoming 
joint military exercises held under the Shanghai 
Cooperation Organization (SCO) framework and the Iran 
nuclear issue.  Objectives for the visit include 
deepening mutual trust, increasing people-to-people 
and cultural exchanges and furthering practical, local 
and international cooperation.  END SUMMARY. 
 
Hu State Visit to Russia, March 26-28 
------------------------------------- 
 
¶2.  At the invitation of Russian President Putin, 
President Hu Jintao will pay his third state visit to 
Russia on March 26-28, Assistant Foreign Minister Li 
Hui announced in a March 21 press briefing.  Hu and 
Putin will attend the opening ceremony of the China 
Year in Russia and the China National Exhibition held 
in Moscow.  President Hu will also meet with Russian 
PM Fradkov and Speaker of the State Duma Gryzlov.  Hu 
will also travel to Kazan, capital of the Tatarstan 
Republic, and meet Tatarstan President Shaeymiev. 
 
¶3.  Li said the two countries' strategic cooperative 
partnership has seen comprehensive and rapid growth. 
Bilateral trade reached 33.4 billion USD last year, a 
14.7 percent increase, with large scale cooperation in 
energy, transportation and science and technology. 
China and Russia have also cooperated in multilateral 
international arenas such as the UN and Shanghai 
Cooperation Organization, on issues including Iran and 
the Korean Peninsula, and with the goal of promoting 
peace and stability throughout the world. 
 
China Year in Russia 
-------------------- 
 
¶4.  China believes "national year" events play an 
important role in building bilateral relations, AFM Li 
said.  The 2006 Russia Year in China was a great 
success with over 300 activities promoting cooperation 
in all areas.  The 2007 China Year in Russia will 
consist of over 200 activities including the Chinese 
National Exhibition, China's largest-ever overseas 
exhibition covering over 20000 meters.  Over 200 
organizations from across China, Hong Kong and Macau 
will attend, representing 30 sectors including energy 
automotive, home appliances, textiles, information- 
technology, tourism, agriculture, high-tech and 
service industries.  Cultural and educational 
activities such as research conferences and youth, 
expert and scholarly exchanges will play a large role 
in the China Year. 
 
¶5.  AFM Li dismissed reporters' suggestions that lack 
of support from the Russian government will cause the 
China Year in Russia to be less spectacular than the 
Russia Year in China.  He said China is glad to see 
the Putin government pay great attention to the smooth 
undertaking of the China Year in Russia, in particular 
the committee headed by First Deputy Prime Minister 
Medvedev's formulation of a clear program for the 
events.  Li believes Russia will take reciprocal 
measures to provide services to Chinese citizens 
traveling to Russia as China facilitated the travel of 
Russians to China in connection with last year's 
Russia Year. 
 
Political Document, Commercial Deals To Be Signed 
--------------------------------------------- ---- 
 
¶6.  The visit will produce a political document 
discussing bilateral issues and elaborating on both 
countries views and propositions for UN reform, the 
SCO, the Middle East, the Korean Peninsula nuclear 
issue, the Iran nuclear issue and international 
 
BEIJING 00001925  002 OF 003 
 
 
counter-terrorism efforts. Interagency cooperation 
documents will also be signed.  Pressed by Russian 
journalists for more details, AFM Li said the 
political documents are still being discussed and 
would provide no additional information.  Regarding 
other agreements, Li said the China Ministry of 
Railways will sign an agreement with the Russia Rail 
Company on crude oil transport and on science and 
technology cooperation.  The China National 
Development Bank will sign a credit agreement with the 
Russian Foreign Trade Bank and an agreement on 
cooperation with the Russian Bank of Foreign Economy 
and the Krasnoyarsk government.  Agreements signed by 
leaders and between enterprises during the China 
National Exhibition will total over 2 billion USD. 
 
Energy Cooperation, Pipelines Important 
--------------------------------------- 
 
¶7.  Energy is an important part of China-Russia 
bilateral cooperation and will be a topic of 
discussion during the visit, said Li responding to 
questions.  As strategic cooperative partners and 
neighbors, China and Russia have strategic advantages 
in this sector including ease of transport and 
complimentary needs.  Cooperation is mutually 
beneficial and not directed at undermining a third 
party.  Asked about specific projects including an oil 
pipeline, cooperation with Rosneft and electric power 
projects along the border, Li provided no details, 
replying only that both countries have reached a 
consensus on the oil pipeline and national oil 
companies have close coordination.  He labeled 
electric power as an important aspect of cooperation, 
but said this visit would produce no new agreements in 
that field. 
 
Military Cooperation, Joint Exercises Under SCO 
--------------------------------------------- -- 
 
¶8.  When asked about China-Russia military cooperation 
including joint military exercises and weapons 
purchases, Li replied that, as strategic cooperative 
partners, military cooperation is a normal and 
important part of bilateral relations.  China and 
Russia will continue to have healthy, effective 
military cooperation not targeted at a third party 
aimed at maintaining world peace.  Li emphasized 
China's weapons purchases from Russia are small and 
most of its arsenal is domestically manufactured. 
Upcoming joint military exercises this year will be 
conducted under the framework of the SCO, but Li had 
no details on them, saying the parties are still 
conferring.  The joint exercises on counterterrorism 
demonstrate that SCO members can engage in military 
cooperation which promotes peace and stability in the 
region and mutual understanding. 
 
SCO Cooperation Not Directed at U.S. 
----------------------------------- 
 
¶9.  Questioned about whether China and Russia 
cooperation within the SCO is a form of jint policy 
against the United States, Li said both countries are 
working closely to promote the growth of the SCO and 
its role in the region, specifically in implementing 
agreements reached by leaders and increasing practical 
cooperation to benefit the people of SCO member states. 
Li hopes SCO members will increase their political and 
economic input to promote political, security, 
economic and cultural cooperation.  China and Russia 
will work within the SCO framework to strengthen 
cooperation and work with other member states to 
ensure the SCO grows in a healthy manner to fulfill 
its mission of safeguarding regional and world peace 
and stability. 
 
Iran Nuclear Issue 
------------------ 
 
¶10. Li said Presidents Hu and Putin will discuss Iran. 
China is ready to play its due role in the proper and 
peaceful settlement of the Iran issue, he added. 
Asked about differences in policy between China and 
Russia on Iran and the potential for a coordinated 
response to UNSC sanctions, AFM Li said China and 
Russia have clear and close positions on Iran with 
common concerns.  China and Russia are in agreement 
regarding non-proliferation issues and coordinate 
action on the Korean Peninsula and Iranian nuclear 
 
BEIJING 00001925  003 OF 003 
 
 
issues.  Li drew parallels between the Six-Party Talks 
and the Iran issue emphasizing the need for all 
parties to make efforts to solve the issues through 
diplomatic, peaceful means. 
 
Cultural, Commercial and People-to-People Exchange 
--------------------------------------------- ----- 
 
¶11. Success of the China Year in Russia and 
strengthening cooperation in education, culture, 
health, sports, tourism and mass media are major goals 
of the visit, Li said.  Large joint projects between 
China's West and Northeast and Russia's Siberian and 
Far East regions should be expanded, he said, noting 
that border trade is 20 percent of total bilateral 
trade.  China's other objectives for this visit 
include deepening mutual trust, increasing people-to- 
people and cultural exchanges and furthering practical, 
local and international cooperation.   Cultural and 
educational cooperation can increase mutual 
understanding between China and Russia and consolidate 
their historical friendship, said Li, answering a 
journalist's question.  Last year, more than 10,000 
Chinese students studied in Russia, an even greater 
number than in the Soviet Era, he said.