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OO RUEHCN RUEHGH RUEHVC
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ZNR UUUUU ZZH
O 240843Z JUN 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4771
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
RUEHRC/USDA FAS WASHDC
RUEHGV/USMISSION GENEVA 2509

UNCLAS SECTION 01 OF 02 BEIJING 001727 
 
SIPDIS 
SENSITIVE 
 
STATE FOR EEB/TPP/MTAA/ABT SPECK, CLEMENTS, MORTON 
USDA FOR ONA/MANNIS, OCRA/RADLER, SHEPPARD 
STATE PASS USTR FOR STRATFORD/SCHWAB 
TREASURY FOR OASIA 
GENEVA PASS TO USTR 
 
E.O. 12958:  N/A 
TAGS: EFIN ETRD ECON WTRO EAGR EAID PREL CH
SUBJECT: Food Security at L'Aquila Summit: China 
Response 
 
REF: A. State 58996 
     ¶B. 08 Beijing 3598, 08 Beijing 3519 
     ¶C. Beijing 1720 
 
¶1. (SBU) Summary:  China is skeptical $15 billion 
can be raised for food security at the L'Aquila 
Summit, according to Guo Xuejun, Deputy Director in 
the Foreign Ministry International Organizations 
Department.  China prefers bilateral and United 
Nations channels for delivering assistance.  Guo 
also said the U.S. proposal does not address broader 
developing country concerns about the global economy, 
and suggested the Summit should make a gesture on 
Doha.  End Summary. 
 
¶2. (SBU) Post delivered reftel demarche (Ref A) to 
Mr. Wang Ying, Director General, International 
Cooperation Department, Ministry of Agriculture (MoA) 
on June 18 and to Mr. Guo Xuejun Deputy Director in 
the International Organizations Department, Ministry 
of Foreign Affairs, on June 19.  MFA's Guo offered 
initial reactions, couched as his "personal 
opinion."  MoA, which has been assigned to draft 
China's position on food security for the L'Aquila 
Summit, has not yet responded.  Post will forward 
any additional information as it becomes available. 
 
Skeptical About Funding Targets 
------------------------------- 
 
¶3. (SBU) Guo commented that food security is a vital 
issue and China has done much to ensure food 
security both domestically (Ref B) and 
internationally by assisting developing countries. 
China appreciates U.S. work to promote food security, 
particularly in Africa.  Guo said developing 
countries will welcome the increased investment in 
country-owned plans (principle #2 in Ref A).  Guo 
was skeptical, however, that the Summit will be able 
to raise $15 billion, and doubted that the necessary 
institutions exist to spend the money effectively. 
Guo noted the U.S. goal to raise $3 billion over the 
next 3-4 years, but questioned where the additional 
$12 billion will come from.  He said he cannot 
imagine developing countries contributing more than 
developed countries, and that developed countries 
are already having a problem meeting their ODA 
commitments. 
 
No Indication of Chinese Financial Support 
------------------------------------------ 
 
¶4. (SBU) Responding to a question, Guo avoided 
directly addressing China's willingness to 
contribute financially to the food security 
initiative, but when discussing the G-20 process 
(Ref C), said the IMF, World Bank and African 
Development Bank had the capacity to do more to help 
poor countries, including on food security.  He 
indicated that G-20 countries, including China, 
could do more individually to assist Africa and the 
developing countries, emphasizing China's bilateral 
initiatives.  Guo said the World Bank has a mandate 
to deliver on L'Aquila, but is "still reforming." 
The UN should play a large role, because it has 
credibility in the developing world.  Guo objected 
to the use of "reformed" in reference to the Food 
and Agricultural Organization (FAO) and said the FAO 
makes important contributions, as does the World 
Food Program (WFP).  Both have performed well in 
recent crises, and China was very satisfied.  Guo 
emphasized that the United Nations (especially the 
FAO and WFP) has credibility in Africa and a 
prominent role for the UN could make the L'Aquila 
Summit more credible among developing countries. 
 
Pushing Developing Country Doha, Economic Concerns 
--------------------------------------------- ---- 
 
¶5. (SBU) Developing countries are also concerned 
about developed countries' trade barriers and 
 
BEIJING 00001727  002 OF 002 
 
 
subsidies, according to Guo.  With agriculture a 
major stumbling block in Doha, he suggested that 
perhaps L'Aquila could "make a gesture" on this. 
Guo also noted that the U.S. proposal did not 
address the issues about which developing countries 
have complaints regarding U.S. policies, including 
currency levels and dollar volatility, and the role 
of speculation in commodity markets and food 
inflation.  He noted global inflation pressures, 
stating that oil prices have gone up, and food 
prices would most likely follow. 
 
Follow-Up 
--------- 
 
¶6. (SBU) Guo also asked if food security will be a 
deliverable at the G8+5+Egypt+Africa meeting and if 
food security was going to be on the agenda at both 
the L'Aquila and the G-20 Pittsburgh Summit. 
Econoff promised to check with Washington. 
 
Comment 
------- 
 
¶7. (SBU) Guo prefaced his comments as his personal 
opinions, but his statements parallel oft-cited 
Chinese Government concerns about food security and 
participation in multilateral economic fora in 
general.  China generally avoids large financial 
contributions to multilateral aid projects, 
preferring bilateral assistance from which China 
accrues more direct goodwill.  Beijing has also 
taken every opportunity possible to raise its 
concerns about the negative impact of Western 
financial speculators in the world economy, as well 
as the possible dangers of inflation and dollar 
instability.  We would not be surprised if China 
tries to raise these points at L'Aquila, but they 
are fundamentally rhetorical vice substantive points. 
 
PICCUTA