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O 151127Z MAY 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7915
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHAN/AMEMBASSY ANTANANARIVO 0007
RUEHEK/AMEMBASSY BISHKEK 1289
RUEHKH/AMEMBASSY KHARTOUM 0091
RUEHLO/AMEMBASSY LONDON 3129
RUEHSA/AMEMBASSY PRETORIA 0399
RUEHWL/AMEMBASSY WELLINGTON 0588
RUCPDOC/USDOC WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS SECTION 01 OF 03 BEIJING 003261 
 
SIPDIS 
 
SIPDIS 
 
TREASURY FOR OASIA/ISA 
STATE FOR EAP/CM, SCA AND AF 
STATE PASS USTR FOR STRATFORD, WINTER AND ALTBACH 
 
E.O. 12958: N/A 
TAGS: PREL ETRD CH SU JA XA XW VM PM KS KN ZK
NZ, SF 
SUBJECT: MAY 15 MFA PRESS BRIEFING: TRADE AND SED; SUDAN; 
ADMIRAL KEATING VISIT; ROK SHIP ACCIDENT; SCO EXERCISES; 
SIX-PARTY TALKS; JAPAN, ROK AND AFRICAN MEETINGS; TAIWAN 
AND OLYMPIC TORCH; VISITS 
 
 
¶1. Key points at the May 15 MFA Press Conference were: 
 
-- United States-China trade is "win-win," trade frictions 
are natural given the volume of trade and China has made 
efforts to revalue the rmb.  Such topics will be discussed in 
the upcoming Strategic Economic Dialogue (SED). 
 
-- China plays a diplomatic role on Sudan and works with the 
United States on the Darfur issue.  It hopes for continued 
peaceful consultation that respects  Sudan's sovereignty. 
 
-- China "thinks highly" of Admiral Keating's visit  and 
hopes to push ahead with such exchanges. 
 
-- China is conducting search-and-rescue operations after an 
accident involving a Chinese and ROK vessels and expresses 
sympathy for the victims. 
 
-- China sees a "long road ahead" for the Six-Party Talks 
with "difficulties, twists and turns." 
 
-- The MFA had no knowledge about American requests to 
observe upcoming military exercises of the Shanghai 
Cooperation Organization (SCO). 
 
-- The Spokeswoman refused to comment on Taiwan military 
exercises and criticized Taiwan's failure to participate in 
the Olympic torch relay. 
 
-- China will host a trilateral meeting with Japanese and ROK 
foreign ministry officials May 19, is considering a meeting 
between FM Yang and Japan's FM on the margins of the ASEM 
meetings in Germany in late May and is hosting African 
Development Bank meetings in Shanghai May 16-17, along with 
visits by some African Presidents. 
 
-- President Nguyen Minh Triet of Vietnam arrived in China 
today for a four-day visit.  Foreign Ministers from the UK, 
New Zealand and South Africa will visit later this month. 
 
SED, Trade Imbalance, Exchange Rate 
----------------------------------- 
 
¶2.  At the May 15 regular press briefing, MFA Spokeswoman 
Jiang Yu said friction on trade issues between the United 
States and China is "quite natural" in light of the massive 
trade volume of USD 216.8 billion between the two countries. 
She stated the U.S.-China trade relationship is "win-win" and 
called for both sides to adopt a reasonable approach to trade 
issues.  Responding to a question on bills in the U.S. 
Congress addressing the bilateral trade imbalance, Jiang 
expressed hope that Congress better understand Chinese 
policies and play an active and positive role in bilateral 
relations.  She added that China has undertaken renminbi 
(RMB) exchange rate mechanism reforms since 2005 which have 
seen the value of the RMB grow over time. 
 
¶3.  On the upcoming SED, Jiang affirmed that senior officials 
from the Ministry of Commerce and National Development and 
Reform Commission (NDRC) would attend the second SED in 
Washington later this month to discuss a variety of issues, 
including bilateral trade, energy, the environment and 
innovation. 
 
China on Sudan Criticism, Dam Project 
------------------------------------- 
 
¶4.  Responding to a question about the May 8 letter to 
President Hu by over 100 American Congressmen urging action 
on Darfur, Jiang reiterated her response of the previous week 
describing China's humanitarian and peacekeeping efforts in 
Sudan and noting that China appreciates the efforts of the 
United States.  China hopes for continued cooperation to 
settle problems in Darfur through peaceful consultation and 
negotiation while respecting Sudan's sovereignty. 
 
 
BEIJING 00003261  002 OF 003 
 
 
¶5.  Sudan's Merowe Dam Project is important for improving 
livelihoods and raising living standards of local people, the 
spokeswoman said in response to criticism of the project from 
a UPI reporter.  China attaches importance to improving 
development capacity and environmental concerns and requests 
that Chinese companies abide by all local laws and 
regulations, she said. 
 
China "Thinks Highly" of Admiral Keating Visit 
--------------------------------------------- - 
 
¶6.  PACOM Commander Admiral Keating met with military and 
Foreign Ministry leaders as well as scholars during his May 
10-14 visit to China.  China "thinks highly" of the exchange 
and hopes to push ahead with the healthy and pragmatic 
development of United States-China relations. 
 
Rescue Efforts for South Korean Vessel 
-------------------------------------- 
 
¶7.  China is carrying out search-and-rescue operations to 
look for survivors of a maritime accident in the Bohai Sea, 
said Jiang, responding to questions about a Chinese ship 
damaging the South Korean vessel Golden Rose.  Jiang said 
reports that rescue efforts were delayed are incorrect, 
adding that the Chinese government received reports of the 
accident on May 12.  China will adopt a responsible and 
humanitarian attitude and expresses deep sympathy for the 
victims and their families. 
 
Request to Observe SCO Military Exercises 
----------------------------------------- 
 
¶8.  Jiang said she was unaware of a United States' request to 
observe upcoming military exercises conducted by the Shanghai 
Cooperation Organization (SCO).  She believes SCO member 
countries are now consulting about the exercise. 
 
Six-Party Talks: "Long Road Ahead" 
---------------------------------- 
 
¶9.  Asked for an update on the Six-Party Talks by a reporter 
who called attention to the passing of one month since the 
April 13 deadline, Jiang stressed that there is a "long road 
ahead" with "difficulties, twists and turns."  She expressed 
confidence that all parties have the capacity to press ahead 
with the Talks and hope that the issue would be solved 
properly with consideration to the concerns of all parties. 
 
China-Japan-ROK Meetings; Japan's Constitution 
--------------------------------------------- -- 
 
¶10.  The Foreign Ministries of China and Japan are consulting 
about a possible meeting of their FMs on the sidelines of the 
Asia-Europe (ASEM) Foreign Ministers meeting in Hamburg, 
Germany on May 28-29, said Jiang in response to a reporter's 
question.  AFM Cui will attend May 19 meetings in Beijing 
with senior ROK and Japanese officials to carry out 
agreements reached at the seventh trilateral summit of these 
parties in January, Jiang said.  The officials will discuss 
mechanisms for cooperation in ten fields. 
 
¶11.  All East Asian countries area closely following the 
issue of constitutional reform in Japan, said Jiang 
commenting on recently approved referendum procedures.  Facts 
have proven peaceful development is the right road for Japan 
and China hopes Japan will follow this road, Jiang added. 
 
Taiwan Military Exercises, Olympic Torch Route 
--------------------------------------------- - 
 
¶13.  The spokeswoman refused to answer a question about 
Taiwan military exercises, stating that the Foreign Ministry 
does not comment on such "internal" Chinese affairs.  Asked 
about Taiwan's refusal of Beijing's proposed route for the 
Olympic torch in the run-up to the 2008 Games, Jiang 
 
BEIJING 00003261  003 OF 003 
 
 
criticized a "handful of people" in Taiwan for taking 
advantage of the Olympics to apply pressure on Beijing, which 
China strongly opposes.  Jiang stated that the Beijing 
Organization Committee for the 2008 Olympic Games has already 
released a statement on this issue. 
 
China Hosting African Development Bank Meeting 
--------------------------------------------- - 
 
¶14.  Asked what China's objectives were in hosting the annual 
board meeting of the African Development Bank in Shanghai May 
16-17, the spokeswoman responded that China seeks to support 
Africa's development efforts through the exchange of views 
and experience as well as cooperation on infrastructure and 
poverty programs.  Premier Wen, who will be attending the 
opening ceremony, is meeting today with the presidents of 
Cape Verde and Madagascar, among other African leaders. 
 
¶15.  Jiang deflected a question about whether the World Bank 
President should resign, stating that China believes 
leadership issues should be resolved through negotiation not 
confrontation.  China has confidence the board can handle the 
issue and that World Bank business will not be affected.  She 
also had no information about a Shenyang bank official whom a 
reporter claimed had fled to the United States nor about 
reports that a developer demolished a neighborhood in 
Beijing, evicting residents. 
 
Visits: South Africa, New Zealand, UK, Vietnam 
--------------------------------------------- - 
 
¶16.  UK Foreign Secretary Beckett will pay her first visit to 
China May 16-21 at FM Yang's invitation to expand and upgrade 
both countries' strategic cooperative partnership on the 35th 
anniversary of establishing diplomatic ties.  She will also 
visit Hong Kong.  At the invitation of FM Yang, South Africa 
FM Zuma will visit May 21-22 and New Zealand FM Peters will 
visit May 21-26. 
 
¶17.  President Nguyen Minh Triet of Vietnam arrived in China 
today for a four-day visit, during which he will meet with 
President Hu and other leaders to exchange views on the 
bilateral relationship and issues of mutual interest.  The 
spokeswoman noted achievements in the relationship such as 
USD 9.95 billion in trade between the two countries in 2006 
and recent headway made in border negotiations. 
RANDT