VZCZCXRO4109
OO RUEHCN RUEHDU RUEHGH RUEHMR RUEHPA RUEHRN RUEHTRO RUEHVC
DE RUEHBJ #7364/01 3391207
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O 051207Z DEC 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3833
INFO RUEHZO/AFRICAN UNION COLLECTIVE PRIORITY
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 1917

C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 007364 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 12/05/2036 
TAGS: PREL ENRG ETRD EAID APEC SENV CH XA
SUBJECT: U.S.-CHINA POLICY PLANNING TALKS: AFRICA, ENERGY 
SECURITY 
 
REF: A. BEIJING 7253 
     ¶B. BEIJING 7262 
     ¶C. BEIJING 7363 
 
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, MFA Director General for Policy Planning 
Ma Zhaoxu said the United States and China have common 
concerns on African development issues.  He expressed hope 
for the region and noted the importance of China as a model 
and a growing source of assistance, which, he added, comes 
"without conditions."  Director Gordon stressed the United 
States does not oppose increasing Chinese involvement in the 
continent, said he hoped U.S.-China cooperation would expand 
beyond the political, and described new developments in U.S. 
assistance for Africa.  Ma said that Chinese energy 
development in Africa is a part of overall PRC cooperation 
with the continent, with the goal of "mutual development." 
Agreeing on the need for close cooperation on energy, the two 
sides discussed possible international frameworks under which 
cooperation could take place.  End Summary. 
 
¶2. (C) State Department Policy Planning Director David Gordon 
and James Green of the Policy Planning Staff visited Beijing 
November 12-15 for Policy Planning talks with 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 America and Oceania 
 
SIPDIS 
Department's Fourth Division) also participated.  Director 
Gordon's discussion with Beijing University scholars on 
Taiwan, democracy, Asia policy and alliances is reported Ref 
¶A.  Aspects of the dialogue touching on Chinese foreign 
policy and "hotspots" such as Iran and the DPRK are reported 
Ref B.  The discussion on trends in East Asian regional 
architecture and Russia is reported Ref C. 
 
Africa:  Governance Remains a Challenge 
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¶3. (C) Director Gordon noted that currently there are 
positive trends toward more effective government in parts of 
Africa, and Africa has also become a new focal point for 
energy resource development.  Political stability remains a 
challenge in many countries, however.  Sudan is of particular 
international concern, he noted, adding that international 
cooperation is important for resolving such crises, as seen 
in the deployment of UN/AU forces to the Darfur region. 
Gordon expressed hope for Nigeria and other resource-rich 
countries, but noted that historically such resources have 
not often been used to enhance the welfare of citizens. 
Transparency and accountability remain a particularly acute 
challenge in Africa, and the United States looks forward to 
discussing with China energy, financial stability and the use 
of resources in Africa.  The United States has endeavored to 
reduce the debt burden on some African countries, Gordon 
noted, and has concerns about the acquisition of new debt in 
the continent. 
 
¶4. (C) DG Ma responded that China and the United States have 
many common concerns in the region.  He said that it is 
"emerging as a hopeful continent" and that he expects to see 
continued growth in the region.  Ma added that Africa is also 
experiencing improved peace and security and is increasingly 
important in regional and international issues, through both 
the AU and the UN.  Many challenges remain, including 
persistent poverty, the debt burden and the potential for 
armed conflict. 
 
¶5. (C) Ma stressed the shared history of China and many 
African countries as former colonies and suggested that China 
and Africa share similar positions on many international 
issues, especially involving economic development.  As the 
PRC has opened up, Ma said, it has sought to establish a new 
strategic relationship with Africa "based on common 
interests," and he stressed that "mutual responsibility and 
mutual benefit" form the foundation of the relationship.  As 
an example, Ma noted President Hu Jintao's announcement at 
the November 2006 China-Africa Summit of an eight-point 
assistance plan that includes economic assistance, measures 
to reduce Africa's debt burden and training programs. 
 
BEIJING 00007364  002 OF 003 
 
 
 
¶6. (C) Because of the "brotherly" relationship that China 
feels toward the continent, Ma said, China attaches no 
conditions to the assistance it provides Africa.  Beijing 
emphasizes programs that support local development in 
specific ways, he added, such as building bridges, roads and 
schools, drilling wells and supporting healthcare 
initiatives.  He further stressed the importance for China of 
multilateral initiatives for African development. 
 
¶7. (C) Ma said that China shares U.S. concern for African 
governance and transparency and supports "democratic 
development."  He expressed hope that Africa will view China 
as a model for its development, not to be copied wholesale, 
but as a source of ideas and inspiration for sustainable 
development.  Gordon agreed that African countries could draw 
some useful lessons from the Chinese experience, especially 
the importance of integration with the world economy. 
 
¶8. (C) DG Ma stressed that the strength of China's 
interaction with the region lies in its policy of 
non-interference in the affairs of other countries.  For this 
reason, he asserted, African countries welcome the PRC's 
participation in development assistance. 
 
U.S. Does Not Oppose Increasing Chinese Role in Africa 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶9. (C) China's increasing interest in the region is good for 
Africa, Gordon said, and the United States does not oppose 
this involvement.  He said that engagement on Africa at the 
political level has been effective, and that the United 
States hopes to expand this discussion to a broader range of 
issues.  The United States and China will need to cooperate 
in the near term on issues such as AIDS and sustainable 
development. 
 
¶10. (C) DG Ma noted that "some countries" are concerned about 
Chinese cooperation on African development.  Such concern is 
unwarranted, he asserted, because China will coordinate with 
the United States and other partners.  However, Ma stressed, 
the international community should be responsive to the views 
of African countries on their own needs and deal with them as 
equals in the name of mutual benefit. 
 
¶11. (C) Responding to Ma's interest in the increase in U.S. 
interest in Africa in recent years, Director Gordon replied 
that the United States sees many challenges in the continent 
in which the United States can play a constructive role, 
including AIDS, tuberculosis and malaria eradication.  U.S. 
aid programs are more focused now to leverage greater 
resource flows for countries that are more able to use them 
for real gains, as is seen in the Millennium Challenge 
Account program.  The creation of the African Command 
(AFRICOM) should similarly be seen as a push for better 
coordination on counter-terrorism and counter-extremism, with 
the focus on developing the capacities of African security 
forces to respond to such threats.  Gordon stressed that the 
creation of AFRICOM reflects long-standing U.S. engagement 
with the continent. 
 
Energy Development a Part of African Cooperation 
- - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶12. (C) DG Ma said that with China's economic development has 
come a natural increase in its demand for petroleum.  Noting 
that China is also an oil-producing country, Ma said that 
China feels a need to seek opportunities for cooperation on 
energy development with African countries.  Stressing that 
the United States and EU are already actively involved in the 
development of African oil fields, and China is a relative 
newcomer, Ma said that Chinese energy development in Africa 
is a part of overall PRC cooperation with the continent, with 
the goal of "mutual development." 
 
¶13. (C) Ma stressed that private companies investing in 
energy development do so under market conditions, and that 
they "cannot be ordered" to support local development.  He 
added that U.S. and Chinese companies have shown willingness 
to cooperate with each other, and that the government should 
strengthen official dialogue in support of this.  He added 
that Chinese companies in Africa provide donations for 
education, local development and clean water programs. 
 
Energy:  Fertile Ground for U.S.-China Cooperation 
 
BEIJING 00007364  003 OF 003 
 
 
- - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶14. (C) Director Gordon responded that cooperation on energy 
development shows the potential for the United States and 
China to create win-win scenarios.  In countries such as 
Nigeria, for example, cooperation with the international 
community is essential for reaching their development 
potential.  The United States and China share an interest in 
the diversification of the world's supply of oil.  Untapped 
sources of oil are mostly in very challenging places, and we 
have a shared interest in securing lines of transportation. 
Gordon stressed that market conditions generate the needed 
investments, given the growth in global energy demand. 
Achieving the shared interest in reconciling the role of 
energy in economic development and the global environment 
will take strong U.S.-China cooperation. 
 
¶15. (C) Concurring with the U.S. assessment that cooperation 
on energy is critical, Director Ma said the international 
energy market is linked to issues of governance and economic 
development in producing countries.  With the increasing 
price of oil, the Untied States and China share an interest 
ensuring stability in this market.  He stressed that 
President Hu's new conception of energy security includes a 
move to increase international cooperation on energy security. 
 
Energy:  Institutional Framework Concepts 
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¶16. (C) Gordon noted that the United States is considering 
institutional mechanisms that could be appropriate for 
expanding the membership of the International Energy Agency 
(IEA) to key consumer nations, especially China.  He added 
that such a framework could provide an important 
institutional focal point on many energy issues, as could the 
OECD.  DG Ma responded that China recently hosted a meeting 
of energy-consuming countries to discuss economic development 
and climate change, but that concerns of producing countries 
also must be addressed.  He added that major consuming 
countries need to take the lead on cooperation. 
 
¶17. (U) S/P did not have a chance to clear this message. 
RANDT