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S E C R E T SECTION 01 OF 03 BEIJING 010909 

SIPDIS 

SIPDIS 

E.O. 12958: DECL: 06/01/2021 
TAGS: PREL CH
SUBJECT: A/S HILL'S MAY 25 WORKING LUNCH WITH VFM WU DAWEI 


BEIJING 00010909 001.3 OF 003 


Classified By: DCM David S. Sedney. Reasons 1.4 (b) and (d). 

Summary 
------- 

¶1. (S) Visiting EAP Assistant Secretary Christopher R. Hill 
urged VFM Wu Dawei to improve relations with Japan and use 
PRC influence to push the Burmese regime to release Aung San 
Suu Kyi (ASSK) during a May 25 working lunch. A/S Hill also 
noted the negative impact of PRC/Taiwan competition on 
Pacific Island states. Wu stressed that Beijing seeks 
improvement of relations with Tokyo but has no choice in its 
response if Japan does not handle history issues properly. 
He expressed satisfaction with the meeting between Foreign 
Ministers Li and Aso. Wu complained about the Burmese 
regime, noting that the PRC has raised ASSK but that the 
senior military leadership views her as a threat and is 
unlikely to release her. Wu closed by urging U.S. 
participation in the East Asia Summit and saying that China 
will not challenge the U.S. role and our interests in East 
Asia. End Summary. 

¶2. (S) During a May 25 working lunch, visiting EAP Assistant 
Secretary Christopher R. Hill discussed Burma, Japan and East 

SIPDIS 
Asian regional architecture with PRC Vice Foreign Minister Wu 
Dawei. Wu opened by saying he had closely studied A/S Hill's 
recent speech in Singapore, noting his satisfaction with the 
positive characterization of the PRC role in the region as 
well as the potential for greater U.S.-China cooperation. 

Japan 
----- 

¶3. (S) A/S Hill told VFM Wu that we are concerned about 
China-Japan tension and urge both sides to make a serious 
effort to stabilize their relationship. Acknowledging Wu's 
explanation about historical issues, A/S Hill said that 
Americans remember Pearl Harbor but that this has not 
prevented us from welcoming Japan's evolution into a peaceful 
and democratic country that plays a positive role in the 
world. A/S Hill said we are committed to making U.S.-Japan 
relations work for us, for Japan and for the rest of the 
world. 

¶4. (S) Wu said the PRC recognizes that it was the United 
States that defeated Japanese militarism, saying that the PRC 
made a specific effort to call attention to the U.S. role in 
WWII in various commemorations of the 60th anniversary of the 
end of the war in order to remind Chinese of the U.S. 
contribution. Rehashing familiar points, Wu said that if PM 
Koizumi wants to worship class-A war criminals at the 
Yasukuni Shrine, that is his business, but not when he is 
Prime Minister. Wu cautioned that while Japanese officials 
like to say that they share U.S. values, this is not true 
when it comes to history. Urging the United States to talk 
to Japan as a friend about the need to show greater 
sensitivity about the history issue, Wu commented that it is 
in the U.S. interest for Japan to improve relations with the 
ROK as well as China. In addition to the Yasukuni Shrine 
issue, Wu highlighted continuing delays in cleaning up 
abandoned Japanese chemical weapons as a festering problem. 
This is not just a historical issue, as farmers continue to 
stumble on decaying chemical munitions, according to Wu. 
Beijing takes relations with Tokyo very seriously and fully 
understands their importance to both countries as well as to 
the region. The PRC hopes Japan will handle the history 
issue appropriately, Wu said, adding that Beijing has no 
choice in how it responds if Tokyo does not improve the 
situation. 

¶5. (S) Asked about the Doha meeting between Foreign Ministers 
Taro Aso and Li Zhaoxing, Wu expressed guarded satisfaction, 
saying the two had agreed to work together to overcome 
obstacles to better bilateral relations. This includes 
improving cooperation in other fields, according to Wu, who 
noted that he knows Aso well and considers him a "pretty good 
guy" from his time as Ambassador in Tokyo. 

Burma 
----- 

¶6. (S) A/S Hill raised Burma, noting that ASEAN countries 
complain that their leverage over Rangoon is limited because 

BEIJING 00010909 002.3 OF 003 


of Beijing's support for the regime. A/S Hill urged the PRC 
to use its influence to convince the Burmese regime to stop 
isolating itself, release Aung San Suu Kyi (ASSK), and begin 
true reform efforts, noting that continuing along the current 
path is dangerous to Burma, its regime and to the region. 

¶7. (S) Wu responded that there has not been real peace in 
Burma for over 50 years, as no government has been able to 
completely resolve lingering ethnic disputes. Civilian and 
military governments have tried and failed, according to Wu, 
who commented that despite all of the military regime's 
faults, it is possible that they have done better on ethnic 
issues than previous governments. The security situation in 
Burma, particularly in the Northeast, is very volatile. 
Noting that there had been an outbreak of fighting on May 24, 
Wu said that a number of Burmese had fled across the border 
into China. Such incidents threaten stability on the Chinese 
side of the border. In addition, the flow of narcotics from 
the Golden Triangle has an impact on the PRC, according to 
Wu, who said that Beijing is increasingly frustrated with the 
Burmese regime where one person makes every major decision. 
The PRC had been caught by surprise when the regime moved the 
capital to Pyinmana and was once again surprised when it 
changed the capital's name earlier in the week, complained 
Wu. 

¶8. (S) When pushed by A/S Hill, Wu said the PRC has raised 
ASSK on several occasions, explaining to the Burmese that her 
release would send a positive signal of support for national 
reconciliation. Burmese officials made clear that their 
vision for national reconciliation does not include ASSK, 
said Wu, commenting that the most senior leaders fear her and 
are unlikely to release her. Chinese leaders have also 
discussed the need to reach out to political parties and 
change the constitution, but with little response other than 
reiteration of Burmese statements on ethnic reconciliation. 
Wu complained that during a 2005 visit, he held 12 hours of 
talks in which his Burmese counterpart who read from only one 
page of talking points, constantly repeating himself. The 
PRC supports Burma because it is a neighbor, not because 
Beijing likes its policies, stressed Wu, who said China is 
trying to make clear to the Burmese leadership that they must 
open up their country in order to promote economic 
development. The PRC does not like the military regime but 
expects it to continue in power for the near future. 

Pacific Islands 
--------------- 

¶9. (S) Acknowledging that VFM Wu is not directly responsible 
for Beijing's relations with the Pacific Islands, A/S Hill 
stressed our concern that competition between the PRC and 
Taiwan is fueling corruption that weakens already precarious 
island states. Wu agreed that "money diplomacy" is bad, but 
blamed the phenomenon entirely on Taiwan, asserting that the 
PRC does not give money directly to individuals in return for 
diplomatic recognition. A/S Hill pointed out that the PRC 
does provide a variety of assistance projects in Pacific 
Island states that are often identified as providing side 
benefits for local leaders. This can have a similar impact 
to direct payments, commented A/S Hill, who noted that 
Australia and New Zealand have expressed concern about the 
destabilizing impact of PRC/Taiwan competition as took place 
in the Solomon Islands. Wu said Beijing will continue to 
work to improve its ties to the Pacific Island states but 
also recognizes the importance of promoting stability and 
welcomes the Australian and New Zealand roles in the region. 

East Asian Architecture 
----------------------- 

¶10. (S) Raising U.S. concerns about the East Asia Summit 
(EAS), VFM Wu urged the United States to participate in the 
EAS. While ASEAN countries have internal differences on many 
issues, they all want ASEAN to be in the driver's seat, Wu 
stated. Noting that India, Australia and New Zealand do not 
want to be second-class citizens in an evolving East Asian 
architecture, Wu said Beijing hopes they will have equal 
status under the 10 plus three framework. ASEAN countries 
would like to see a U.S. role in the EAS, said Wu, who 
commented that U.S. involvement would be positive for all 
concerned, including China. U.S. investment, market access 
and technology played a major role in developing Japan, South 

BEIJING 00010909 003.3 OF 003 


Korea, Taiwan and Hong Kong. The United States is now 
playing a similar role in China's development as well as with 
most ASEAN states. Wu said the PRC will not challenge the 
U.S. role and interests in East Asia. 

¶11. (U) A/S Hill's party cleared this cable. 
RANDT