VZCZCXRO3199
OO RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2415/01 1711232
ZNR UUUUU ZZH
O 191232Z JUN 08
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8079
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 BEIJING 002415 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV KOLY ENRG PHUM KS KN SA JP CH
SUBJECT: JUNE 19 MFA PRESS BRIEFING: EAST CHINA SEA 
AGREEMENT, XI JINPING IN DPRK, SED, FOREIGN JOURNALISTS IN 
TIBET 
 
¶1. Key points at the June 19 MFA press briefing were: 
 
-- Vice Foreign Miniter Wu Dawei briefed journalists on the 
East hina Sea agreement.  The agreement does not undermine 
China's sovereignty claims over the East China Sea, nor does 
it recognize a median line.  China and Japan will work to 
make a "sea of peace" and will jointly develop a block in the 
East China Sea. 
 
-- Japan will cooperate in the Chunxiao gas field in 
accordance with Chinese laws. 
 
-- Vice President Xi Jinping discussed Six-Party Talks and 
the nuclear issue with DPRK leaders during his visit to North 
Korea. 
 
-- The Strategic Economic Dialogue concluded with "good 
results." 
 
-- The "relevant authorities" organized the selection of 
foreign journalists permitted to cover the Olympic torch 
relay in Lhasa. 
 
East China Sea Agreement 
------------------------ 
 
¶2. At the June 19, 2008 regular MFA press briefing, Vice 
Foreign Minister Wu Dawei briefed journalists on the East 
China Sea agreement between China and Japan.  Wu noted three 
major items in the June 18 agreement: First, China and Japan 
will work together to make the East China Sea a "sea of 
peace, cooperation and friendship"; second, without 
prejudicing their respective legal positions, China and Japan 
will select a block to conduct joint development in the East 
China Sea; and third, Chinese enterprises welcome the 
participation of Japanese "legal persons" in the development 
of the Chunxiao gas field, in accordance with Chinese law. 
Chinese laws regulate China's cooperation with foreign 
enterprises in the exploration and exploitation of oil 
resources.  Wu stated that there are two important premises 
to the agreement.  First, the agreement does not undermine 
China's sovereign rights over the East China Sea.  China "has 
never recognized a median line" and there "has never been a 
so-called median line between Japan and China in the East 
China Sea."  Second, the Japanese side will cooperate in the 
Chunxiao gas field in accordance with Chinese laws and 
recognizes that China holds the sovereign rights over 
Chunxiao oil and gas field. 
 
¶3.  Regarding the East China Sea continental shelf, Wu noted 
that both countries have their "respective positions."  China 
believes in the principle of national extension, while Japan 
upholds the notion of the median line.  Such a difference, Wu 
stated, cannot be resolved in a short period of time and 
would "impact the overall interests of China-Japan 
relations."  The East China Sea common understanding is an 
interim arrangement, while the "delineation" of the East 
China Sea will continue to be worked out.  Improved 
China-Japan relations, said Wu, are good for the two 
countries, their peoples, East Asia and the entire world. 
 
¶4.  Asked about the Chinese definition of "joint development" 
as it relates to the Chunxiao gas field, Wu stated that the 
agreement is a temporary arrangement to shelve differences on 
sovereignty and sovereign rights.  Chunxiao will not be 
jointly developed, because exploration in Chunxiao must be in 
accordance with Chinese law and sovereign rights belong to 
China.  In joint development cases, the two governments will 
take the lead, whereas in Chunxiao, enterprises will take the 
lead and governments will only "give some guidance," said Wu. 
 
¶5.  Asked why China and Japan decided to shelve their 
differences at this particular time, Wu responded that the 
two sides did not "choose" this time.  Since 2006, the 
China-Japan bilateral relationship has continuously improved 
and established a "mutual benefit relationship."  Although 
some issues, like the Diaoyu Islands are a historical 
holdover, the two countries should "seek to resolve these 
historical issues, but not rush to a resolution."  Proper 
settlement of sensitive issues like these is important to the 
bilateral relationship. 
 
Xi Jinping DPRK Visit 
--------------------- 
 
¶6. MFA Spokesman Jiang Yu, who briefed on all issues other 
than the East China Sea agreement, said that during Vice 
President Xi Jinping's visit to North Korea, he met with 
relevant DPRK leaders and discussed multiple issues, 
including Six-Party Talks and the nuclear issue.  China hopes 
 
BEIJING 00002415  002 OF 002 
 
 
that the "relevant parties can meet halfway" to make joint 
efforts work on these difficult issues.  When asked about 
talks on China-DPRK bilateral relations, Jiang said that the 
information had already been released in a comprehensive 
manner. 
 
Strategic Economic Dialogue 
--------------------------- 
 
¶7. Asked about the Strategic Economic Dialogue (SED), Jiang 
said that the SED had concluded with "good results."  China 
expanded cooperation with the United States with the 10-year 
cooperation framework document in energy and environmental 
protection.  In the future, China and the United States will 
"translate these documents into reality and promote moving 
forward in terms of economic and energy cooperation."  Vice 
President Xi will attend the June 22 international energy 
meeting in Jeddah.  China hopes this meeting will enhance 
dialogue and coordinate the global response to high oil 
prices. 
 
¶8. Asked to comment on whether it is reasonable to cite 
increased oil demand in China as a factor in the dramatic 
increase in global oil prices, Jiang stated that China is 
both a big consumer and producer of energy.  Jiang noted, 
however, that China relies on domestic sources of energy for 
more than 90 percent of its energy consumption. 
 
Anti-Japanese Protest 
--------------------- 
 
¶9. Asked about the small anti-Japanese protest that took 
place in front of the Japanese Embassy in Beijing on June 18, 
Jiang said she was unaware of the protest.  Regarding the 
Diaoyu Islands, Jiang stated that China has "reiterated its 
position on many occasions." 
 
Torch Relay in Tibet 
-------------------- 
 
¶10. Asked how foreign journalists were chosen to cover the 
Tibetan leg of the Olympic torch relay, Jiang stated that the 
"relevant authorities" had organized the selection of foreign 
news agencies from various countries.  If some foreign 
journalists were not selected, China hopes they understand. 
Jiang referred questions regarding the number of journalists 
permitted to cover the torch relay in Lhasa tothe Beijing 
Organizing Committee of the Olympc Games (BOCOG). 
 
Amnesty International Repor 
---------------------------- 
 
¶11. Asked tocomment on the Amnesty International report 
reeased today, claiming that more than 1,000 Tibetans remain 
unaccounted for since the March riots in Tibet, Jiang replied 
that she had not read the report.  She added that it is 
well-known that Amnesty International "holds a prejudice 
against China."  Jiang said China is a country which follows 
the rule of law and deals with relevant cases in accordance 
with the law.  Jiang referred further questions on this to 
the relevant authorities. 
 
Visits 
------ 
 
¶12.  Japanese destroyer Sazanami will visit Zhanjiang, a navy 
port in Guangdong province, from June 24-28. 
PICCUTA