VZCZCXRO1119
PP RUEHCN RUEHGH RUEHVC
DE RUEHBY #1012/01 3220708
ZNY SSSSS ZZH
P 180708Z NOV 09
FM AMEMBASSY CANBERRA
TO RUEHC/SECSTATE WASHDC PRIORITY 2246
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHBN/AMCONSUL MELBOURNE 6779
RUEHPT/AMCONSUL PERTH 5045
RUEHDN/AMCONSUL SYDNEY 5047
RUHEMAB/PACOM CCP
RUEKDIA/DIA WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC

S E C R E T SECTION 01 OF 02 CANBERRA 001012 
 
NOFORN 
SIPDIS 
 
E.O. 12958: DECL: 11/10/2019 
TAGS: AS CH PGOV PREL
SUBJECT: VISITS SIGNAL WARMING RELATIONS WITH CHINA 
 
CANBERRA 00001012  001.2 OF 002 
 
 
Classified By: Pol/Econ Counselor Edgard D. Kagan for Reason 1.4(b)(d) 
 
¶1.  (C/NF) SUMMARY: A pair of recent visits by high-level 
Chinese officials signals that China is willing to move past 
recent tensions with Australia.  PLA Chief of Staff General 
Chen Bingde and Vice Premier Li Keqiang both met with Prime 
Minister Rudd and other senior officials during their visits, 
which came just weeks apart.  Chen delivered hard messages on 
some bilateral issues, but both he and Li were generally 
positive about relations with Australia.   Several key 
Australian government officials, including the Prime 
Minister, are planning to visit China early next year. 
Australia's relationship with China is on the upswing after a 
tense six months. 
 
Vice Premier Avoids Tough Issues 
-------------------------------- 
 
¶2.  (C/NF) Chinese Vice Premier Li Keqiang recently visited 
China and met with several of the most senior figures in the 
government.  Deputy Prime Minister Julia Gillard met Li at 
the airport, and he went on to have audiences with Prime 
Minister Kevin Rudd and leader of the opposition Malcolm 
Turnbull during a two day, three city visit to Australia. 
Rudd hosted Li for dinner in Canberra and the two spoke for 
over three hours.  According to Richard Neumann of the China 
Political and External Section at the Department of Foreign 
Affairs and Trade (DFAT), Li was very forward leaning and 
avoided mentioning the more divisive issues that have marred 
the Sino-Australian relationship of late. 
 
¶3.  (C/NF) Though agreed to in principle earlier in 2009, the 
PRC approached Australia to arrange Li's visit on 
comparatively short notice.  It was highlighted by the 
release of the first joint statement from the Australian and 
Chinese governments since 1972.  Li had expressed interest in 
visiting some months back, but did not commit to the visit 
until one week before his scheduled arrival, Neumann said. 
Prior to the trip, China pressed hard to get Australia to 
agree to the joint statement, which expresses a general 
commitment to working closer together.  China was so eager to 
finalize the statement that it readily agreed language that 
Neumann expected to be the contentious, such as the 
reaffirmation of Australia's position on Taiwan and the 
softening of Chinese language asserting Chinese rule over 
Tibet.  A small group of protesters gathered outside Li's 
hotel in Brisbane, but other than that Neumann characterized 
the visit as a success. 
 
PLA Chief of Staff: Don't "Slavishly" Follow America 
--------------------------------------------- ------- 
 
¶4.  (S/NF) The Li visit follows closely the recent visit by 
General Chen Bingde, Chief of Staff of the People's 
Liberation Army (PLA).  During a meeting with Australian 
Department of Defence (ADOD) officials a few weeks prior to 
Li's arrival, Chen was less conciliatory.  Chen came with 
clear talking points, and in a meeting that Defense Minister 
John Faulkner characterized as "an exchange of speeches," 
Chen criticized Australia for "slavishly" following America. 
He also chided Australia for their portrayal of China as a 
potential threat in the Defence White Paper and for several 
high profile cases in which Chinese investments in Australian 
natural resources were blocked over security concerns. 
Still, Chen was generally positive about the future of 
Australian and Chinese relations, reserving his harshest 
QAustralian and Chinese relations, reserving his harshest 
words for criticism of the United States.   Kim Arthur, 
Director of the North Asia Division for ADOD, reported that 
during his own three hour meeting with PM Rudd, Chen asked 
whether recent tensions constituted a change in the 
relationship.  Rudd assured him that nothing fundamental 
about the relationship had changed because of recent events. 
 
Going Forward: Rudd, Others to Visit China 
------------------------------------------ 
 
¶5.  (C/NF) The visit of two officials of such high rank 
within a month shows that China is willing to move past 
recent tensions with Australia.  Neumann said that both 
visits were considered a success from the Australian side, 
and that both Li and Chen left happy.  He believes that the 
Li visit was finalized only after China considered the Chen 
visit a success and that Li was sent here as the "good cop" 
after Chen delivered the hard messages. 
 
CANBERRA 00001012  002.2 OF 002 
 
 
 
¶6.  (C/NF) Within the next six to eight months, many top 
Australian officials plan to visit China.  DFAT,s Neumann 
expects that Prime Minister Rudd will visit China for the 
Shanghai Expo in 2010.  Deputy Prime Minister Julia Gillard, 
Defense Minister John Faulkner and the Chief of the Defence 
Force Angus Houston also plan to visit Beijing during the 
first half of next year. 
 
Foreign Minister to Take Play a Greater Role? 
--------------------------------------------- 
 
¶7.  (C/NF) Foreign Minister Stephen Smith recently gave a 
speech on China policy possibly signaling a growing role for 
him in that arena.  Smith's speech was his first major 
address on China since becoming Foreign Minister.  Rudd, who 
speaks Mandarin and has worked as a diplomat in China, is 
widely seen as the key government player on China policy. 
Neumann says that many within the Australian government are 
taking the speech as a signal that Smith will now take on a 
greater role, possibly the lead role, on China issues. 
 
¶8.  (C/NF) COMMENT: It appears that both China and Australia 
are eager to move past recent tensions and resume their 
normal working relationship.  The fact that Australia managed 
to arrange meetings with the Prime Minister, Deputy Prime 
Minister, and Leader of the Opposition for Li within one week 
signals the level of commitment within the government to 
engagement with China.  Barring another high profile spat, 
the worst of the tension is over and Australia and China will 
continue to increase their economic and political ties.  END 
COMMENT. 
 
CLUNE