VZCZCXRO9341
PP RUEHGH RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1166/01 1190649
ZNR UUUUU ZZH
P 280649Z APR 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3813
INFO RUEHBJ/AMEMBASSY BEIJING PRIORITY 3050
RUEHFR/AMEMBASSY PARIS PRIORITY 6068
RUEHNAG/AMCONSUL NAGOYA PRIORITY 5882
RUEHNH/AMCONSUL NAHA PRIORITY 9891
RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 1186
RUEHKSO/AMCONSUL SAPPORO PRIORITY 8107
RUEHGH/AMCONSUL SHANGHAI PRIORITY 0397
RUEHBS/USEU BRUSSELS PRIORITY
RUEHIN/AIT TAIPEI PRIORITY 6996
RUEHGV/USMISSION GENEVA PRIORITY 3299
RUCNDT/USMISSION USUN NEW YORK PRIORITY 9569
RHEHAAA/NSC WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 TOKYO 001166 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR DFA FORE 
STATE FOR EAP/CM SECOR AND CARTIN 
STATE FOR EEB/IFD/ODF WEBSTER 
STATE PASS TO USAID FOR ODP/AA TURNER AND AFRICA/AA ALMQUIST 
NSC FOR SHRIER, TONG 
 
E.O. 12958: N/A 
TAGS: EAID ECON JA PREL CH OECD
SUBJECT: AID ADMINISTRATOR FORE'S MEETING WITH CHINESE VM YI 
 
REF: A. BEIJING 1225 
     ¶B. TOKYO 841 
 
¶1. (SBU) Summary.  While China is interested in learning more 
about U.S. official development assistance (ODA), Chinese 
Commerce Vice Minister YI Xiaozhun declined to commit to a 
bilateral dialogue on development issues during an April 7 
meeting with USAID Administrator Henrietta Fore.   Yi stated 
most Chinese aid is funneled through the Ministry of 
Commerce, but the Health, Agriculture and other Ministries 
also have aid budgets.  China is concerned with the high 
price of agricultural products and Yi believes the G8 
countries should act to stabilize prices.  Yi's designation 
of an individual as point of contact for a possible 
development dialogue suggests China may agree to the idea 
sometime in the future.  End Summary. 
 
¶2. (SBU) The U.S. and China should launch a dialogue to 
discuss development issues of interest to both countries, Aid 
Administrator and Director of Foreign Assistance (DFA) 
Henrietta Fore proposed to Chinese Ministry of Commerce 
(MOFCOM) Vice Minister (VM) Yi Xiaozhun during an April 7 
meeting on the fringes of the G8 Development Ministerial in 
Tokyo.  In particular, the two sides could discuss how ODA is 
structured within the respective governments, successes and 
failures of ODA programs, and how each works with 
multilateral organizations, Fore said.  She suggested the 
dialogue be kicked-off in May or June in Beijing with a 
follow-up meeting in Washington in September.  Alternatively, 
the dialogue could be held in Japan on the fringes of the May 
28-30 Tokyo International Conference on African Development 
(TICAD). 
 
¶3. (SBU) While China would like to learn more about how the 
United States' aid program is structured, how the USG 
provides assistance, and particularly what is the primary 
focus of U.S. ODA, Yi declined to commit to a bilateral 
dialogue stating he would like to consult with colleagues. 
Yi suggested a working-level meeting would be most fruitful 
as these are the individuals most familiar with development 
programming.  "I am more familiar with ODA as a recipient," 
Yi joked.  Yi designated MOFCOM Department of Aid to Foreign 
Countries Director Liu Junfeng to be the point of contact 
going forward.  (Note.  Also accompanying Yi was MOFCOM 
Department of Aid to Foreign Countries Director General Wang 
Shichun.  End Note.)  DFA Fore selected USAID Office of 
Development Partners Director Karen Turner as the U.S. point 
of contact. 
 
¶4. (SBU) DFA Fore stated U.S. ODA policy has benefited from 
input by scholars, non-profit organizations, journalists and 
the private sector.  She suggested the proposed development 
dialogue could also include these groups.  Yi demurred, 
stating while Chinese scholars are knowledgeable in micro and 
macro economics, development economics is not yet a popular 
subject among Chinese academics. 
 
¶5. (SBU) Yi explained most Chinese assistance is channeled 
through MOFCOM, but noted the Health, Agriculture and other 
Ministries also have aid budgets.  The Chinese government has 
not been very focused in providing development assistance and 
has funded projects related to agriculture, light industry, 
public health programs, schools, and even sports stadiums, Yi 
acknowledged. 
 
¶6. (SBU) USAID Africa Bureau Assistant Administrator 
Katherine Almquist noted China's increasing importance on the 
continent and suggested the U.S. and China should share ODA 
strategies to determine if cooperation is possible.  The U.S. 
is working with the European Union and Japan in several 
African countries and believes the combined effort leads to a 
greater impact, Almquist said.  Yi stated China does not have 
any single person overseeing aid to Africa. 
 
¶7. (SBU) Yi indicated China is concerned with current high 
 
TOKYO 00001166  002 OF 002 
 
 
prices for agriculture products.  Many Chinese have just 
risen out of poverty and cannot pay these high prices.  The 
G8 countries should work together to stabilize prices to 
prevent poor people in developing countries from suffering, 
Yi observed. 
 
¶8. (SBU) Comment.  While VM Yi was hesitant to agree to a 
development dialogue at this time, he was open and friendly 
during the meeting.  Yi spoke entirely in English, despite 
having an interpreter at his side.  Yi's designating a point 
of contact for a possible bilateral may be a good sign the 
Chinese could be persuaded to enter into a dialogue, albeit 
with persistent coaxing from the U.S.  End Comment. 
 
¶9. DFA Fore has cleared this cable. 
SCHIEFFER