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P 151656Z FEB 08
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UNCLAS LONDON 000498 
 
SIPDIS 
 
SENSITIVE, SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN ETRD EINV UK
SUBJECT: UK PM BROWN REACHES OUT TO CHINA AND INDIA 
 
REF: A) LONDON 347 B) LONDON 289 
 
¶1. (SBU) SUMMARY: CBI's head of international affairs Gary Campkin 
(PROTECT) described PM Brown's recent trip to China and India as 
"warm, but frantic." The UK-Chinese relationship is going through an 
especially friendly period in his opinion. In China, the PM 
discussed climate change, trade, sovereign wealth funds, the 
Olympics, the Shanghai Expo, intellectual property rights (IPR), and 
market economy status (MES)for China. Campkin characterized Brown's 
visit to India also as "warm," but he believes no market reforms are 
likely to take place until after India's next election. In India, 
the PM discussed trade, infrastructure, private-public partnerships 
(PPP's), and climate change.  END SUMMARY 
 
CHINA 
------- 
 
¶2. (SBU) Gary Campkin, head of international affairs at the 
Confederation of British Industry (CBI), gave us a read out February 
1 of PM Brown's recent trip to China and India, which he accompanied 
as part of the CBI delegation. (See reftel A for comments on the WTO 
Doha negotiations). 
Campkin said his main impression of Brown's visit to China is that 
UK - Chinese relations are going through an especially congenial 
period. He believes the Chinese view Brown as someone they can do 
business with and are also pleased that the UK is not pressuring 
them to revalue their currency. That Beijing is hosting the Olympics 
in 2008 and London in 2012 cements the relationship. If the Dali 
Lama visits the UK, however, it could upset this new relationship, 
as it has in Germany, he suggested. 
 
¶3. (SBU) Brown raised the topic of climate change with the head of 
the Chinese National Development and Reform Commission. Campkin was 
pleased that Brown used CBI's climate change task force report as a 
blueprint for the meeting. He said the Chinese were interested in 
obtaining British green technology, which the Chinese would then put 
to use, but were not interested in discussing much else related to 
climate change. Trade and the Doha WTO round were in the PM's 
talking points, but the Chinese only made general comments on the 
topic and treated it as a backseat issue. CBI also raised the issues 
of IPR and market access, but found little traction with their 
interlocutors. 
 
¶4. (SBU) According to Campkin, Brown told the Chinese that the UK is 
open to sovereign wealth fund (SWF) investment, but that 
transparency is crucial. Brown also raised his concern that SWF's 
may have access to funds below the market rate. The PRC lobbied CBI 
hard for participation in the 2010 Shanghai Expo; which CBI declined 
to do as it does not see it as a business event.   Campkin said the 
Chinese frequently raised the issue of the PRC obtaining market 
economy status (MES). He said that some in HMG are more comfortable 
with granting the Chinese MES status than CBI for broad political 
reasons. CBI, along with some in government, argue that the decision 
should be based on economic criteria and that Chinese still have not 
met all the necessary conditions. 
 
INDIA 
------ 
 
¶5. (SBU) Campkin characterized Brown's trip to India also as warm, 
but said there are still concerns. Brown's comments on UN reform 
were favorably received in India. Campkin said no further economic 
reforms are likely to happen before the 2009 elections in India. All 
policy decisions in India are viewed through the prism of 
alleviating poverty, which can make market reform difficult. Campkin 
believes that India will not actively block the Doha round as long 
as they get what they need on special products, but will also not 
push for an agreement. (Ref a) 
 
¶6. (SBU) Campkin said that the Indian approach to climate change is 
similar to the Chinese. They wish to obtain advanced clean 
technologies, but are not flexible in other areas. On a positive 
note, CBI concluded an agreement with their Indian counterpart to 
work to upgrade their abilities to analyze climate change. The 
Indian business association was interested in CBI's report on 
climate change. He also noted that India is becoming more receptive 
to using private public partnerships (PPP's) in the provision of 
services. 
 
 
LEBARON