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Viewing cable 08BEIJING4458, CHINA/G-20/PAKISTAN: CHINA URGES WIDER SCOPE

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Reference ID Created Released Classification Origin
08BEIJING4458 2008-12-06 03:24 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Beijing
VZCZCXRO0049
OO RUEHCN RUEHGH RUEHRN RUEHVC
DE RUEHBJ #4458/01 3410324
ZNR UUUUU ZZH
O 060324Z DEC 08
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1259
INFO RUEHOO/CHINA POSTS COLLECTIVE IMMEDIATE
RHEHNSC/NSC WASHDC IMMEDIATE
RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE
RUEHSS/OECD POSTS COLLECTIVE IMMEDIATE
RUCPDOC/USDOC WASHDC IMMEDIATE
RUEHBS/USEU BRUSSELS IMMEDIATE
RUEHAK/AMEMBASSY ANKARA IMMEDIATE 0382
RUEHBY/AMEMBASSY CANBERRA IMMEDIATE 9644
RUEHLO/AMEMBASSY LONDON IMMEDIATE 3455
RUEHRH/AMEMBASSY RIYADH IMMEDIATE 0646
RUEHRO/AMEMBASSY ROME IMMEDIATE 1021
RUEHIL/AMEMBASSY ISLAMABAD IMMEDIATE 6785
RUEHBUL/AMEMBASSY KABUL IMMEDIATE 0450
RUEHNE/AMEMBASSY NEW DELHI IMMEDIATE 4680
UNCLAS SECTION 01 OF 02 BEIJING 004458 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EFIN ECON EAID IBRD IMF KPAO PREL PGOV
PK, CH 
SUBJECT: CHINA/G-20/PAKISTAN: CHINA URGES WIDER SCOPE 
IN G-20 ACTION PLAN; WILL CONTINUE TO ASSIST PAKISTAN 
THROUGH BILATERAL CHANNELS 
 
(U) This cable is Sensitive But Unclassified.  Please 
protect accordingly. 
 
Summary 
------- 
 
1. (SBU) China believes a United Kingdom-drafted paper 
on follow-up taskings to finance ministers from the 
November 15 Summit on Financial Markets and the World 
Economy, in advance of the next G-20 summit, does not 
adequately address the political dimensions of the 
financial crisis, Chinese Vice Foreign Minister He 
Yafei told Under Secretary Jeffery during a December 4 
pull-aside meeting at the U.S.-China Strategic 
Economic Dialogue.  VFM He called for U.S.-China 
bilateral consultations on the U.K. proposal.  Under 
Secretary Jeffery urged China to contribute meaningful 
support for Pakistan at a donor's conference now 
postponed until January 2009.  VFM He stated that 
China will continue to provide assistance to Pakistan 
through bilateral channels, and given the conference's 
postponement, China will reconsider its level of 
representation to the conference.  End Summary. 
 
 
G-20 Workplan Too Narrow in Focus 
--------------------------------- 
 
2. (SBU) In a December 4 meeting on the margins of the 
U.S.-China Strategic Economic Dialogue, Chinese Vice 
Foreign Minister He Yafei told Under Secretary Jeffery 
that the paper circulated by the United Kingdom for 
following up taskings from the November 15 Summit on 
Financial Markets and the World Economy, in advance of 
the proposed April 2 G-20 Summit the UK will host, 
focuses too exclusively on the role of finance 
ministries.  VFM He noted that the PRC MFA has the 
leadership role for this issue in China, because the 
financial crisis has broad political implications. 
Emphasizing that China does not currently accept the 
U.K. proposal, VFM He suggested the United States and 
China first consult bilaterally on the way forward for 
the next G-20 summit before addressing the elements of 
the United Kingdom proposal. 
 
 
Chinese Participation in Pakistan Donor's Conference 
--------------------------------------------- ----- 
 
3. (SBU) Under Secretary Jeffery highlighted the need 
for international financial support for Pakistan as it 
implements an IMF program to address its external 
financing gap and rebuild international reserves.  In 
aggregate, the IMF loan amounts to USD 7.6 billion 
with USD 3 billion provided initially, an amount more 
than the IMF usually provides up front, Under 
Secretary Jeffery said.  Given that the IMF estimates 
Pakistan will need an additional USD 4 billion to 
support the social safety net, Pakistan is seeking 
donor support from the United States, China, the EU, 
and other countries in the region.  The United States 
hopes donors will provide meaningful support to 
augment IMF and expected World Bank funding. 
 
4. (SBU) Under Secretary Jeffery said the United 
States urges China to make a meaningful contribution 
to Pakistan at a donor's conference, which is now been 
postponed from December 16 to January 2009.  He 
explained that a number of countries advised that they 
cannot make a meaningful commitment in time for the 
December date, and hence, the conference has been 
postponed. 
 
 
BEIJING 00004458  002 OF 002 
 
 
5. (SBU) VFM He stated that Pakistan is a close 
neighbor and China's "all-weather friend."  China has 
already provided Pakistan with USD 500 million in 
balance-of-payment support in cash.  VFM He said China 
believes it can most effectively support Pakistan 
through bilateral channels, but China welcomes 
assistance for Pakistan from the international 
community.  Given the originally proposed timing of 
the December 16 donor"s conference, China would have 
been unable to participate at a high-level, VFM He 
said, but given the postponement, China will 
reconsider its representation at the donor"s 
conference. 
 
6. (U) Under Secretary Jeffery cleared on this cable. 
 
RANDT