VZCZCXRO0948
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #3705/01 2682314
ZNR UUUUU ZZH
R 242314Z SEP 08
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 0105
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHMFIUU/DEPT OF HOMELAND SECURITY WASHINGTON DC
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 BEIJING 003705 
 
HHS FOR OGHA/STEIGER AND PASS TO FDA/LUMPKIN 
STATE PASS TO USTR 
STATE PASS TO HOMELAND SECURITY COUNCIL 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: TBIO EAGR PREL HHS CH
SUBJECT: AQSIQ STILL LACKING IN INFANT FORMULA RESPONSE 
 
Ref:  A) 3635 
 
1) (SBU) SUMMARY: On September 22, the informal Beijing Agricultural 
Attach Group (BAAG) met to discuss developments, impacts and 
possible outcomes of the scandal involving melamine in Chinese dairy 
products.  While China's response to this case of contamination is 
better at the central level than past incidents, there are still 
significant gaps in information provided to consumers, trading 
partners, and in local authorities' ability to enforce basic food 
safety regulations. 
 
EC ENGAGES AQSIQ 
----------------- 
2)  (SBU)  On September 22, 2008 AgAtt met with the Beijing 
Agricultural Attach Group (BAAG) to discuss developments, impacts 
and possible outcomes surrounding the scandal involving melamine in 
China's domestic dairy products.  The meeting was hosted by the 
European Union Commission (EC) Beijing office. The EC reported that 
last week an EC Director General visiting Beijing met with AQSIQ 
Vice-Minister Wei Chuangzhong to discuss food safety concerns. 
During the meeting, the EC official requested China implement a 
voluntary ban on all dairy products destined for the European Union 
(EU) market.  China did not respond to that request and has taken no 
action to ban dairy product exports to the EU.  Although the EU does 
not import fresh dairy products for consumption, EC officials 
estimate that roughly 8,000 tons of pastry and 9,000 tons of 
chocolate, which contain processed dairy products, are imported from 
China on a yearly basis.  However, neither the EC nor the EU member 
states have taken action to ban or restrict Chinese exports. 
 
3) (SBU) The EC requested AQSIQ resolve this issue transparently and 
present official findings, testing methodologies, and results in an 
open and timely fashion.  Another issue the EC pointed out was the 
lack of scientific knowledge about the impacts of melamine and the 
need to cooperate with AQSIQ on appropriate testing methodologies. 
 
 
4) (SBU) Most experts believe melamine is frequently added by 
farmers at the regional collection centers in order to raise milk 
products' protein content (Ref. A), but there has been little study 
of direct consumption of melamine.  Other experts believe the 
melamine is added in the final stage of the supply chain, milk 
distribution centers, before dairy products are sourced to the major 
retail or wholesale outlets.  According to a BAAG veterinarian, 
melamine is non water soluble and it requires emulsifying agents, 
such as cynauric acid, in order to dissolve.  When combined with 
melamine, the consumption of these compounds can lead to the 
development of kidney calculus (stones) that can lead to further 
health complications.  Thus, such compounds or other by-products of 
adulterating milk products with melamine might have other, 
unexpected health impacts. 
 
5) (SBU) BAAG representatives had different reactions to the 
scandal.  The group discussed country responses to the food safety 
scandal and discovered every country had a different reaction and 
justification.  The largest melamine producing enterprise in China 
is a Sino-Dutch joint venture.  Given the large foreign investment 
and ongoing joint venture, the representative of the Netherlands was 
concerned about openly admonishing the Government of China or AQSIQ. 
 The Australian and New Zealand representatives believed that 
issuing a broad travel advisory notification warning to expatriates 
and tourists about China's domestically produced dairy products 
represents a de facto statement that all products are tainted with 
melamine and could be interpreted by the Chinese authorities as an 
excessive and unwarranted response. 
 
6) (SBU) Denmark decided to publicly issue a travel notification on 
the Embassy and Foreign Ministry web site advising its citizens to 
"avoid consuming dairy products when visiting China until further 
notice."  According to the representative from Denmark, dairy is a 
staple food and Danes consume a much higher volume of dairy products 
and hence are more susceptible to contamination.  Canada also 
implemented a travel notification warning against dairy consumption 
that referenced a history of food safety scandals involving ethnic 
food imports and Canada's large community of overseas Chinese that 
frequently travel between the two countries. 
 
LACK OF SOLID INFORMATION REMAINS 
--------------------------------- 
7) (SBU) None of the BAAG members felt that they were receiving 
sufficient information about the extent of the contamination or 
 
BEIJING 00003705  002 OF 002 
 
 
possible export-related contamination.  According to various BAAG 
representatives, when pressed about revealing more detailed 
information regarding findings, AQSIQ redirects these inquiries to 
provincial governments.  These provincial officials have not been 
forthcoming in the sharing of any information or updates with any 
outside parties. 
 
BLAME GAME BEGINS? 
------------------ 
8) (SBU) The group agreed that AQSIQ is not providing science-based 
answers in response to this crisis.  AQSIQ has not revealed testing 
methodologies and other technical information and have already 
mounted an offensive campaign in order to deflect criticism by the 
international media.  On September 11 and 12, Shenzhen Quarantine 
and Inspection (CIQ) port officials reportedly detected melamine in 
New Zealand and Dutch fresh dairy imports.  After the press reported 
these detections as official, retesting results later revealed that 
CIQ officials had erred in their evaluation.  Corrections were 
published but the impression that this is a problem outside China 
was created.  Other news articles and editorials have expanded on 
how foreign enterprises will greatly benefit from this national food 
safety scandal. 
 
9) (SBU) During previous food safety scandals, China's officials 
were quick to point out that companies that had joint ventures with 
foreign enterprises should shoulder equal responsibility and 
accountability.  Although government officials took some of the 
responsibility for past contaminations, AQSIQ has repeatedly tried 
to blame other countries in order to make a case that similar food 
safety irregularities are common worldwide, especially in developed 
countries.  This week, FAS Beijing received two separate 
notifications of irregularities with U.S. seafood imports and one 
delisting of a poultry plant.  Both of these notifications came 
immediately following an agreement on meat safety at the JCCT. 
 
RANDT