ACTION EAP-00

INFO LOG-00 EEB-00 AID-00 AMAD-00 CIAE-00 INL-00 DINT-00
DODE-00 DOEE-00 E-00 UTED-00 VCI-00 TEDE-00 INR-00
IO-00 L-00 VCIE-00 NRC-00 NSAE-00 ISN-00 NSF-01
OES-00 OIC-00 NIMA-00 EPAU-00 PM-00 PRS-00 MA-00
ISNE-00 SP-00 SSO-00 SS-00 T-00 FMP-00 PMB-00
G-00 SCA-00 SAS-00 FA-00 /001W

P 312307Z MAR 09
FM AMEMBASSY BEIJING
TO SECSTATE WASHDC PRIORITY 3206
INFO CHINA POSTS COLLECTIVE
NSF WASHDC
ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
HQ EPA WASHDC
DEPT OF ENERGY WASHINGTON DC
DEPT OF COMMERCE WASHDC
NSC WASHDC

UNCLAS BEIJING 000860 
 
STATE FOR S/SECC 
STATE FOR EAP/CM 
STATE FOR OES, OES/EGC, OES/ENV, EAP/CM and EB 
STATE PASS TO CEQ 
USDOE FOR INTERNATIONAL 
EPA FOR INTERNATIONAL/MKASMAN 
NSC FOR LOI 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: SENV KGHG ENRG CH
 
SUBJECT: NDRC Comments on Proposed Structure of the U.S.-China 
Strategic and Economic Dialogue 
 
Ref: 
 
A) 09Beijing846 
B) 09State27497 
C) Whitehouse 03210807 
 
Summary 
------- 
¶1. (SBU) On March 30, ESTHcouns met with Ma Xin, Director General 
of the Department of International Cooperation at the National 
Development and Reform Commission (NDRC), to hear NDRC's assessment 
of the recent visit to Washington of NDRC Vice Chairman Xie Zhenhua, 
and also learn of NDRC's views on how climate change should be 
handled in the Strategic and Economic Dialogue (S+ED). Ma said that 
NDRC considered Vice Chairman Xie's visit to have been a great 
success and that it had laid a good foundation for future 
cooperation on climate change. Regarding the structure of the S+ED 
and where to put energy and climate cooperation, Ma suggested that 
it could be handled in either the strategic or economic tracks, but 
his office would find it difficult to cover both tracks. Ma 
confirmed NDRC's recognition of the leadership of the Ministry of 
Foreign Affairs (MFA) on the S+ED. He also indicated that since 
both Vice Premier Wang Qishan and State Councilor Dai Bingguo will 
be "Personal Representatives of the President," NDRC could report to 
either one on the energy and climate portion of the S+ED. Ma 
emphasized that energy and environmental cooperation between the 
United States and China should be based on the Ten-Year Framework. 
End Summary. 
 
Xie Visit Laid Foundation 
------------------------- 
 
¶2. (SBU) On March 30, ESTHcouns and Director General Ma Xin of 
NDRC's Department of International Cooperation discussed the recent 
visit to Washington by NDRC Vice Minister Xie Zhenhua and the issue 
of how climate change would be handled in the Strategic and Economic 
Dialogue (S+ED). ESTHcouns also delivered the points from ref B on 
the Major Economies Forum (MEF) on Energy and Climate and provided 
Ma with a copy of the letter from President Obama on the subject 
(ref C). (Note: As reported in ref A, NDRC DG for Climate Change Su 
Wei confirmed that Vice Chairman Xie would be China's representative 
to the MEF. End Note.) Ma stated that NDRC considered Vice 
Chairman Xie's April 14-21 Washington visit to have been a very 
successful exchange of ideas and that the visit laid the foundation 
for future U.S.-China cooperation on climate change. He further 
noted that Xie expects to have more detailed discussions when he is 
in Washington for the MEF preparatory session on April 27-28. 
¶3. (SBU) Regarding the future structure of the S+ED, Ma reported 
that it had been actively debated within the Chinese Government and 
that some had wanted energy and climate to be in the strategic 
track, and some had wanted it placed in the economic track. Ma said 
that NDRC could be flexible, but whether climate is handled in the 
strategic or economic track, he is concerned that his office's 
resources may become over-stretched if it has to cover both tracks. 
Ma also expressed concern about the timing of the S+ED being pushed 
back too far or conflicting with preparations for the G-8 meetings 
in July. 
 
MFA to Lead 
----------- 
 
¶4. (SBU) DG Ma confirmed that the Ministry of Foreign Affairs (MFA) 
will have the lead for the S+ED, not the Ministry of Finance. 
Regarding the potential institutional mismatch of having State 
Councilor Dai, who oversees MFA, lead a climate change discussion in 
the strategic track, Ma noted that both Vice Premier Wang and State 
Councilor Dai have been designated as "Personal Representatives of 
the President," and as such, either could oversee climate change in 
the context of the S+ED and report on to President Hu. He noted, 
however, that NDRC remains the overall lead on climate change for 
China. 
 
Ten-Year Framework the Base 
--------------------------- 
 
¶5. (SBU) Ma stressed that it is important that energy and 
environmental cooperation between the United States and China be 
based on the Ten-Year Framework on Energy and Environment 
Cooperation (TYF), a structure for which China's leadership has 
already expressed strong support. Ma pointed out that since both 
sides have already spent considerable time and effort negotiating 
the TYF, it would make sense to put climate change into this 
existing framework rather than negotiate a new document. 
PICCUTA