US embassy cable - 03BEIJING18021

UNCLAS  BEIJING 018021 
 
 
E.O. 12958: N/A 
TAGS: PREL, PARM, ETRD, CH, KN 
SUBJECT: DECEMBER 9 MFA PRESS BRIEFING HIGHLIGHTS:  WEN'S 
U.S. VISIT, SIX-PARTY TALKS, SINO-GERMAN PLUTONIUM 
REPROCESSING PLANT PURCHASE AND CIRF'S POSTPONED VISIT 
 
Summary 
------- 
 
1.  At the regular semi-weekly press briefing, MFA 
Spokesperson Liu Jianchao reported on statements made 
by Premier Wen Jiabao that the objective of his U.S. 
visit is to "resolve problems" in bilateral relations 
and not to "engage in trade wars."  While asserting 
that common interests have "outweighed" disagreements 
between China and the United States, Liu called on 
Washington to "adhere to its promises" with regard to 
a "one-China" policy and to oppose Taiwan 
independence.  He remarked that the countries involved 
in the six-party talks on the DPRK nuclear issue have 
made "positive statements" aimed at promoting a 
peaceful resolution to the issue but that these 
countries should "do more" to continue the talks. 
Commenting on the reported German agreement to sell a 
plutonium reprocessing plant to China, Liu maintained 
that this project would improve the performance of 
China's nuclear power facilities and that the purpose 
of such a sale is non-military in nature.  He claimed 
that the U.S. Commission on International Religious 
Freedom (CIRF) postponed its visit to China because 
the group proposed "an addition" to the schedule that 
could not be accepted by both the PRC and the United 
States.  Israeli President Moshe Katzav will visit 
China from December 14-20, Liu announced.  End 
Summary. 
 
Wen's U.S. Visit 
---------------- 
 
2.  Questions on Premier Wen Jiabao's visit to the 
United States dominated the press briefing.  MFA 
Spokesperson Liu Jianchao reported that in a speech to 
members of the U.S. business community, Premier Wen 
asserted that U.S.-China trade relations have formed a 
strong basis for the development of bilateral ties. 
Wen stated that the two countries should handle trade 
matters, in particular the RMB revaluation issue, in a 
"strategic way" and should not allow such disputes to 
affect bilateral trade relations, according to Liu. 
Wen stressed that the objective of his U.S. visit is 
to "resolve problems" and not to "engage in trade 
wars," Liu stated.  Wen met with UN Secretary General 
Kofi Annan and discussed UN reform, Iraq, the DPRK 
nuclear issue and the Middle East, Liu observed.  Wen 
plans to meet also with President Bush, Vice President 
Cheney, Congressional representatives and Federal 
Reserve Chairman Greenspan, Liu noted. 
 
3.  Queried by a CNN correspondent about the factors 
behind recent improvements in U.S.-China relations, 
Liu responded that common interests and cooperation in 
a number of areas, such as counterterrorism, AIDS and 
environmental protection, have "outweighed" 
differences between the two countries.  Beijing 
insists, nevertheless, that Washington "adhere to its 
promises" and maintain a "clear stance" with regard to 
a "one-China" policy, the three joint communiques and 
opposition to "Taiwan independence."  Citing Wen's 
recent remarks on Taiwan, Liu said that China would 
make every effort to resolve the issue peacefully. 
 
Six-Party Talks 
--------------- 
 
4.  Responding to a question from a China Daily 
reporter, Liu stated that the countries involved in 
the six-party talks on the DPRK nuclear issue have 
made "positive statements" aimed at promoting a 
peaceful resolution of the issue.  Beijing is making 
efforts to "create conditions" for "substantive" 
discussions during a second round of six-party talks, 
 
Liu asserted.  China has issued a proposal on 
convening a second round of six-party talks, and the 
United States, the ROK, Russia and Japan have 
expressed their views, he said, adding that these 
countries have different views on some issues and 
similar views on others.  Liu remarked, however, that 
setting up six-party talks is a "complicated process" 
and that participating countries should "do more" to 
promote a second round.  Asked by a Japanese reporter 
about dates for a econd round of talks, Liu replied 
that the dates depend on the course of preparations 
for the talks.  In response to a question from AFP, 
Liu confirmed that MFA Asian Affairs Department 
Director General Fu Ying met with an EU delegation in 
Beijing on December 8.  Noting that DG Fu briefed the 
delegation on preparations for a second round of six- 
party talks, Liu remarked that China supports the EU's 
role in promoting a resolution to the DPRK nuclear 
issue. 
 
Sino-German Deal on a Plutonium Processing Plant 
--------------------------------------------- --- 
 
5.  Responding to questions from a German news 
correspondent on a reported German agreement to sell a 
plutonium reprocessing plant to China, Liu remarked 
that the issue has been "exaggerated" by the media. 
He stated that a Chinese company is negotiating with 
the German company Siemens to buy a plant designed to 
extract MOX, an "oxide fuel used by nuclear power 
plants."  Stressing that over 30 countries use MOX in 
their production of nuclear power, Liu maintained that 
this project would improve the performance of China's 
nuclear power facilities and that the proposed deal is 
non-military in nature. 
 
CIRF Visit Postponed 
-------------------- 
 
6.  Asked by VOA about the reported postponement of a 
planned visit by the U.S. Commission on International 
Religious Freedom (CIRF), Liu responded that China 
welcomes the group's visit.  He alleged that prior to 
CIRF's departure, CIRF proposed "an addition" to the 
schedule.  Because the PRC and the United States could 
not agree on the final schedule, CIRF postponed its 
visit to China, Liu claimed.  Beijing "regrets" CIRF's 
decision, he concluded. 
 
Visit by Israeli President 
-------------------------- 
 
7.  Israeli President Moshe Katzav will visit China 
from December 14-20 at the invitation of President Hu 
Jintao, Liu announced.  Katzav will meet with 
President Hu, NPC Chairman Wu Bangguo and Premier Wen 
Jiabao and will also stop in Hong Kong, Liu noted. 
 
MARINE