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UNCLAS SECTION 01 OF 03 BEIJING 002907 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL IAEA CH IR RU
SUBJECT: U.S.-CHINA ECONOMIC AND SECURITY REVIEW 
COMMISSION ROUNDTABLE WITH CIIS SCHOLARS 
 
 
Summary 
------- 
 
¶1. (SBU) In response to questions posed by a United 
States-China Economic and Security Review Commission 
(USCC) delegation led by USCC Chair Carolyn 
Bartholomew, scholars from the MFA-affiliated Chinese 
Institute for International Studies (CIIS) noted that 
China-Russia relations are enjoying the highest level 
of cooperation in their history.  The scholars said 
current India-Iran military ties are superficial but 
could develop in the future.  China is upholding its 
Missile Technology Control Regime (MTCR) commitments 
and is not aiding the development of Iran's missile 
program.  The Iranian nuclear issue must be resolved 
through diplomatic means.  China's relations with 
Saudi Arabia are rapidly improving, but the United 
States should not see increasing China-Saudi energy 
cooperation as a threat.  China is willing to play a 
role to promote peace in the Middle East, but does not 
expect a solution in the near future, the scholars 
said.  End Summary. 
 
China-Russia Relations Reach Historical Zenith 
--------------------------------------------- - 
 
¶2. (SBU) A USCC delegation led by Commission Chair 
Carolyn Bartholomew held a roundtable with scholars 
from the MFA-affiliated CIIS on April 23. 
Participants are listed in para 8.  In response to 
Vice Chair Blumenthal's query on the status of China- 
Russia relations, CIIS Senior Research Fellow on 
Russia Wang Chuan said China and Russia have a 
strategic partnership.  Relations between the two 
countries are at the highest point in their history. 
China enjoys cooperation with Russia in a wide range 
of fields including economics, politics and energy. 
Russia holds rich oil and gas resources that China 
needs to maintain its peaceful development strategy. 
This creates a strong complementary relationship in 
the field of energy supply.  Beijing and Moscow are 
discussing steps, including the construction of a 
pipeline, in the field of energy cooperation, but Wang 
believes that cooperation needs to be intensified 
before the construction on the pipeline will begin. 
 
China Assesses India-Iran Military Relations to be 
Minimal 
--------------------------------------------- --------- 
 
¶3. (SBU) In response to Commissioner Wortzel's 
question on China's assessment of India-Iran military 
relations, CIIS Senior Research Advisor and retired 
Major General Xu Lingren said that at present India 
and Iran do not have strong cooperation between their 
two militaries.  It is likely, however, that India 
will explore opportunities for deeper cooperation with 
Iran because this is in India's self interest.  India 
maintains military cooperation with a wide range of 
countries, including Russia, Western nations and 
Israel.  China will pay close attention to 
developments in India-Iran military relations, stated 
Xu. 
 
China Upholding Its MTCR Commitments and Does Not Aid 
Iran 
--------------------------------------------- --------- 
 
¶4. (SBU) Wang Chuan said that during the 1970-80's, 
China closely cooperated with Iran to develop its 
missile program.  However, after Beijing became a 
signatory to the Missile Technology Control Regime, it 
suspended all cooperation with Iran on missile 
technology.  Wang did not address Commissioner 
Wortzel's question on whether China has concerns about 
how missile-related sales to Iran in areas not 
specifically restricted by the MTCR could affect the 
security of shipping lanes in the Persian Gulf. 
 
BEIJING 00002907  002 OF 003 
 
 
 
Iran Nuclear Issue Must Be Resolved Diplomatically 
--------------------------------------------- ----- 
 
¶5. (SBU) Iran has the right to develop nuclear 
technology for peaceful use, but the international 
community is very concerned that Tehran's intention is 
to build nuclear weapons, stated Wang Chuan in 
response to Commissioner Fielder's question on the 
likelihood of resolving the Iranian nuclear issue. 
Wang, noting that he served in Iran before the Islamic 
Revolution, stated that even then the Shah had voiced 
his desire to develop nuclear weapons.  It is 
therefore difficult for the international community to 
accept that Iran has committed itself to peaceful 
development.  Even though Iran has adopted a defiant 
attitude in the face of international sanctions, the 
nuclear issue can still be resolved through diplomatic 
or political means.  The international community must 
find universal principles and definitions to apply to 
nuclear power and nuclear weapons development so that 
there can be clear mutual understanding, Wang said. 
 
China's Improving Relations with Saudi "Not a Threat" 
--------------------------------------------- -------- 
 
¶6. (SBU) Because of China's rapid economic 
development, since 1993 China has had to import oil to 
meet its energy needs, stated Major General Xu 
Lingren.  By the end of 2006, China imported more than 
100 million tons of oil, two-thirds of which came from 
Middle Eastern countries.  Saudi Arabia is the biggest 
exporter of oil to China.  Since diplomatic relations 
were established between China and Saudi Arabia in 
1990, the relationship has developed very rapidly, 
particularly in recent years.  China is cooperating 
closely with the Saudi government to establish and 
maintain a strategic energy reserve.  Xu stated that 
China-Saudi relations will not negatively affect other 
countries. 
 
China's Role in the Middle East Peace Process 
--------------------------------------------- 
 
¶7. (SBU) The Middle East Peace Process is currently 
facing a dilemma because the United States, the 
European Union and the Arab League are all floating 
their own ideas on how to achieve peace, stated Vice 
President Gong Xianfu in response to Chairperson 
Bartholomew's query on China's role in the Middle 
East.  China is supportive of the Road Map laid out by 
the United States, the European Union, Russia and the 
United Nations, as well as the Mecca Agreement between 
the two Palestinian parties and the Arab League 
Initiative.  Beijing is willing to play its unique 
role in the process and believes that for a 
breakthrough to be achieved, all parties involved must 
agree to the UN principles and "land for peace." 
China is trying hard to leverage the Israeli and 
Palestinian governments and sent its special envoy Sun 
Bigan to the Middle East to seek a breakthrough.  The 
problem is too complicated to resolve overnight. 
Trust has to be built between Israel and Palestine. 
Neither Palestinian President Abbas nor Israeli Prime 
Minister Olmert is strong enough to push forward the 
process.  Gong added that while the United States 
plays an undeniable role in the Middle East Peace 
Process, Washington's main focus now is on Iraq. 
Israel and Palestine have many basic problems to 
resolve such as borders, refugees and the creation of 
an independent state.  These issues will not be solved 
in the short term. 
 
¶8. (SBU) Participants: 
 
United States-China Economic and Security Review 
Commission: 
 
 
BEIJING 00002907  003 OF 003 
 
 
Carolyn Bartholomew, Chair 
Daniel Blumenthal, Vice Chair 
¶C. Richard D'Amato, Commissioner 
Jeffery Fielder, Commissioner 
Larry M. Wortzel, Commissioner 
Marta McLellan, Analyst 
 
China Institute For International Studies: 
 
Gong Xianfu, Vice President (served in Israel, Saudi 
Arabia, Egypt) 
Wang Chuan, Senior Research Fellow (served in Russia 
and Slovakia) 
Xu Lingren, Senior Advisor and retired Major General 
(served in Iran) 
 
¶9. (U) The USCC delegation has cleared this message. 
RANDT