VZCZCXRO4089
OO RUEHCN RUEHGH RUEHVC
DE RUEHBJ #7363/01 3391135
ZNY CCCCC ZZH
O 051135Z DEC 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3830
INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY
RHMFISS/CDR USPACOM HONOLULU HI PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 1914

C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 007363 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 12/05/2032 
TAGS: PREL ETRD EAID APEC SENV KN JP RU TW CH
SUBJECT: U.S.-CHINA POLICY PLANNING TALKS: REGIONAL 
ARCHITECTURE, NEAPSM, APEC, RUSSIA 
 
REF: A. BEIJING 7253 
 
     ¶B. BEIJING 7262 
 
Classified By: Political Minister Counselor Aubrey Carlson. 
Reasons 1.4 (b) and (d). 
 
Summary 
------- 
 
¶1. (C) During the U.S.-China Policy Planning dialogue in 
Beijing in November, both sides agreed that the Six-Party 
Talks and APEC represent important parts of the existing East 
Asian regional architecture, and China and the United States 
have common interests in those institutions.  The 
post-Six-Party Talks mechanism is of great interest to both 
parties.  China is adamant that the post-Six-Party Talks 
mechanism not address or include Taiwan and should operate on 
the basis of equality, trust and consensus.  Both countries 
agree that creating such a mechanism is a long-term process, 
and China emphasized that denuclearization of the Korean 
Peninsula and peace between the DPRK and the United States 
and between the DPRK and Japan are higher priorities.  China 
sees Russia as a strong country unsatisfied with its current 
role in the world.  End Summary. 
 
¶2. (C) Policy Planning Director David Gordon and James Green 
of the Policy Planning Staff visited Beijing November 12-15 
for Policy Planning talks with Chinese MFA Director General 
for Policy Planning Ma Zhaoxu.  On the Chinese side, 
Counselor Tang Guocai, Division Director Zhou Jian and First 
Secretary Yin Chengwu (of the North American and Oceanian 
 
SIPDIS 
Affairs Department's Fourth Division) also participated. 
Aspects of the dialogue touching on Chinese foreign policy 
and "hotspots" such as Iran and the DPRK are reported in Ref 
¶B.  Director Gordon's discussion with Beijing University 
scholars on Taiwan, democracy, Asia policy and alliances is 
reported in Ref A.  The portions of the dialogue relating to 
Africa and energy security will be reported septel. 
 
Asian Institution-Building 
-------------------------- 
 
¶3. (C) Director Gordon noted that the economic drivers of 
change in Asia are extremely important, primarily the twin 
engines of growth and economic integration, but security 
drivers also play a role.  The Six-Party Talks are an obvious 
current example, but historically, the ASEAN initiative was 
crucial to Asia's institutional development.  The United 
States does not see any single "right way forward" and is 
open as to how Asia's institutions evolve.  Europe might 
offer one model, but there is no reason to expect Asia to 
evolve the same way Europe has.  Asia's primary obstacle to 
integrated development is that there is no single overarching 
institutional framework.  Instead, there are several 
international organizations, including new ones.  The United 
States will join some of these groupings, but not others. 
Existing Asian institutions are not a viable alternative to 
the United States' traditional alliances with our historic 
partners.  However, they will serve as an important 
complement to those alliances and evolve into a broader 
framework for peace and security in the region.  The United 
States sees that progress in this area will necessarily be 
incremental, and there is no likelihood of a "big step 
forward." 
 
¶4. (C) DG Ma said that East Asian regional cooperation is 
developing quickly, with institutions progressively stronger 
and new institutions being created.  Asian institutional 
development grows mainly from the economic dynamism of the 
Asia Pacific region, he said, and reflects the region's 
political and economic diversity.  The key element of Asian 
institutions is legitimacy, meaning there is agreement that 
their purpose and existence advance peace, development, 
security and cooperation in the region.  The United States 
and China both play an important role in the development of 
East Asian institutions.  China's fundamental foreign policy 
interest is to safeguard a peaceful regional environment in 
which China can continue its economic development, and with 
than in mind, China's policy is to cooperate and coordinate 
with the United States on all challenges in the region.  This 
means that China welcomes a constructive, positive U.S. role 
in Asian institutions. 
 
APEC and Northeast Asia 
----------------------- 
 
 
BEIJING 00007363  002 OF 003 
 
 
¶5. (C) Director Gordon noted that APEC has served well and 
can continue to serve well, especially as a basis on which to 
build a broader set of institutional networks.  The Free 
Trade Area of the Asia Pacific (FTAAP) proposed by President 
Bush is an example of a way to move forward from the 
successes APEC has already achieved.  In the security area, 
in Northeast Asia, the Northeast Asia Peace and Security 
Mechanism growing out of the Six-Party Talks is an important 
option to explore to build on the trust created through the 
Six-Party Talks. 
 
¶6. (C) DG Ma noted that China's initial participation in the 
Six-Party Talks represented a "slight adjustment" in Chinese 
foreign policy and way of doing things.  At the beginning of 
the multilateral process, China stated its position on the 
Korean nuclear issue but refrained from participating; later, 
China participated first in the Four-Party Talks and then the 
Six-Party Talks in cooperation with the United States. 
 
¶7. (C) APEC is very important in the region, DG Ma said.  The 
organization has been mostly focused on trade and investment, 
but in the 2007 meeting in Sydney, there was a greater 
emphasis on climate change.  China believes APEC must stick 
to its three basic principles:  consensus, independence and 
gradualism.  This guarantees the achievements of the 
institution will continue.  Going forward, China believes 
APEC should focus on strengthening the economic development 
of member states by promoting multilateral economic 
development institutions and pushing forward the Doha WTO 
round.  In addition, APEC needs to focus on trade and 
investment facilitation, as well as strengthening economic 
and technical cooperation to help developing members deal 
with the challenges of economic competition. 
 
¶8. (C) China acknowledges the importance of APEC structural 
reform to the United States, and wants to work with all 
members to "push forward continued healthy development" in 
the region, Ma said.  The Australia ministerial on APEC 
structural reform will give impetus to this effort.  China 
sees the FTAAP as a long-term process deserving of APEC's 
further study.  DG Ma said China and other APEC member states 
are uncertain about the U.S. commitment to this idea and 
wonder if there is any urgency to the concept.  S/P Staff 
Green noted that President Bush raised the idea of the FTAAP 
to bring APEC's focus back to trade and to set an 
"aspirational goal" for APEC. 
 
¶9. (C) DG Ma remarked that both the United States and China 
are "very interested" in a Northeast Asia Peace and Security 
Mechanism as a possible follow-on to the Six-Party Talks. 
China is also interested in whatever mechanism is established 
to address Korea-specific issues, such as ROK-DPRK talks, and 
would like to explore options on how to cooperate with the 
United States on these two mechanisms.  Green said the United 
States is waiting to see a draft charter or statement of 
principles as an outcome of the Moscow Six-Party Talks 
working group on NEAPSM, and would like such a charter or SOP 
to be a component of a Six-Party Talks ministerial.  The 
actual organization is a long-term project.  Concerning the 
Peninsula mechanism, the United States believes that any 
Korean peace regime should have four parties, he said. 
 
¶10. (C) China has some ideas about a possible NEAPSM, DG Ma 
said.  First and foremost, China's core interest is that 
Taiwan never be addressed in the NEAPSM and Taiwan not be 
included in the mechanism.  Beyond that, DG Ma listed 
"principles" China believes should apply to the NEAPSM: 
- The UN Charter should be mentioned in the NEAPSM's founding 
documents. 
- The NEAPSM should advocate a "new security concept" 
including mutual trust, mutual benefit, equality and 
cooperation. 
- The NEAPSM parties should "abandon the Cold War mentality" 
and pursue new ways of dealing with issues. 
- Parties should participate equally and shoulder their own 
responsibilities. 
- The NEAPSM should be "win-win." 
- The NEAPSM should operate on a consensus basis. 
- The organization and operation of NEAPSM should give due 
respect to the different political systems, levels of 
economic development, cultural background and values of each 
member. 
 
¶11. (C) DG Ma described China's vision of the NEAPSM's 
purpose: 
- Enhance mutual (political) trust and security cooperation 
 
BEIJING 00007363  003 OF 003 
 
 
in Northeast Asia. 
- Strengthen multilateral, mutually beneficial cooperation 
and realize lasting peace and prosperity in Northeast Asia. 
- Enhance strategic mutual trust through a process of 
consultation and coordination. 
 
He emphasized that establishment of the NEAPSM requires a 
"step-by-step" approach and that "we cannot expect the NEAPSM 
to be established tomorrow."  The top priority must remain 
the denuclearization of the Korean Peninsula; without this, 
there is no point in even discussing the NEAPSM.  We must 
focus our energies on the Six-Party Talks.  Following 
denuclearization, the next priority should be the 
normalization of relations between the United States and the 
DPRK, and between the DPRK and Japan. 
 
Russia 
------ 
 
¶12. (C) DG Ma declared that Russia will remain an important 
factor in East Asia, and strong generally, for some time to 
come.  "Russia's natural resources, human resources and 
industrial base are all very strong," he said.  Russia's 
"natural conditions" are good.  However, the United States 
should recognize that Russia has an "historical tradition" of 
"strongman government" and that recently, Russia has felt 
pressure from outside that appears to be similar to 
"containment."  This external pressure, and internal 
uncertainty about President Putin's future role, both 
contribute to Russia's increasing assertiveness on 
international questions.  "Russia is not satisfied with its 
current position in the world," he said. 
 
¶13. (C) China and Russia have a "strategic, cooperative 
relationship," DG Ma said, "but not an alliance."  The 
Sino-Russian relationship is not "aimed at" any other 
country, but is instead designed to allow China and Russia to 
cooperate internationally on issues where they share core 
interests. 
 
¶14. (U) S/P did not have a chance to clear this message. 
RANDT