Cablegate: December 11 Mfa Press Briefing: Sinopec Iran Deal,

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RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS SECTION 01 OF 03 BEIJING 007449

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E.O. 12958: N/A
TAGS: PREL PGOV ECON EFIN ETRD IR JA RU KN KS VM
TW, PK, IN, CH
SUBJECT: DECEMBER 11 MFA PRESS BRIEFING: SINOPEC IRAN DEAL,
TAIWAN, VIETNAM DEMONSTRATION, JAPAN, DALAI LAMA

1. Key points at the regular December 11 MFA Press
Briefing:

--Sinopec's Iran deal is a "business action" conducted
on bases of equality and mutual benefit. The Chinese
government does not need to comment on such a
commercial deal.

--Chen Shui-bian's UN referendum "seriously threatens
peace and stability across the Straits." Stopping the
referendum serves the common interests of the United
States and China.

--Anti-China demonstrations in Vietnam have undermined
friendly ties. China hopes to solve disputes over the
South China Sea through dialogue and negotiations.

--China denies removing reference to Renminbi
revaluation from its version of a joint statement
released December 1 at the close of the China-Japan
High-Level Economic Dialogue.

Sinopec Iran Investment
-----------------------

2. A Reuters journalist asked Foreign Ministry
Spokesman Qin Gang to comment on Sinopec's recently
announced investment in Iran's Yadavaran oil field and
on State Department statements of concern. Qin
characterized the deal as "business conducted by a
Chinese company on the basis of equality and mutual
benefit with Iran." The Chinese government does not
need to comment on such a "business action."

DAS Christensen Comments on Taiwan Referendum
---------------------------------------------

3. Asked about EAP DAS Thomas Christensen's recent
remarks to Taiwan journalists, Qin said Chen Shui-bian
is disregarding the one-China principle by
"obstinately pushing forward his separatist
activities." The UN membership referendum "seriously
threatens peace and stability across the Straits."
Preventing the referendum, Qin said, will be
"conducive" to stability and "serves the common
interests" of China and the United States.

South China Sea, Vietnam Demonstrations
---------------------------------------

4. Referring to December 9 demonstrations in Vietnam
opposing China's claims in the South China Sea, Qin
said China has "indisputable sovereignty" over these
waters. China is aware of Vietnam's claims and
leaders from the two sides have exchanged views on the
issue. China wants to solve the dispute through
dialogue and negotiation to maintain stability in the
South China Sea and in the interests of bilateral
relations. "Some developments" in Vietnam undermine
friendly relations and China is "deeply concerned."
China hopes that the Vietnamese Government will take a
"responsible attitude and adopt effective measures" to
prevent the "undermining" of bilateral relations.

Wang Yi to Pakistan, No Comment on Nuclear Coop
--------------------------------------------- --

5. Qin confirmed that Vice Foreign Minister and
Special Envoy Wang Yi will visit Pakistan starting
December 11. Wang will meet with President Musharraf
and leaders of Pakistan's caretaker government. Asked
about reports China intends to provide additional
nuclear power plants to Pakistan, Qin said he has not
heard of any such reports.

China-Japan Joint Statement Discrepancy
---------------------------------------

6. Several Japanese journalists asked Qin to comment
on accusations China unilaterally deleted reference to

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Renminbi revaluation from the China-Jpan joint
statement. The statement was issued after completion
of the December 1 China-Japan High-Level Economic
Dialogue. Qin denied the statement was a "joint
document" saying each side released its own version
and it was "natural" that there would be some
differences. He called upon Japan's media to handle
the matter in a "calm and prudent" way. Qin denied
the discrepancies in the Chinese version of the joint
statement went against normal international practice.
China's position on Renminbi revaluation was made
clear by Vice Premier Zeng Peiyan during Zeng's
keynote address at the Dialogue.

Visit of Japan PM
-----------------

7. Asked whether the visit to China by Japanese Prime
Minister Yasuo Fukuda may be delayed due to ongoing
controversy in Japan over anti-terror legislation, Qin
said Fukuda expressed to Chinese Premier Wen Jiabao
during their Sydney meeting his desire to visit China
by the end of 2007 or in early 2008. China welcomes
Fukuda's visit anytime that is convenient for the
Japanese side.

Nanjing Massacre Death Toll
---------------------------

8. A Japanese reporter commented that a Chinese museum
dedicated to the Nanjing massacre quotes a death toll
of 300,000 and that scholars in Japan disagree with
that figure. Qin stated the 300,000 death toll is a
historical figure and reflects the real history of
Japan's aggression in China.

Tibet: Dalai Lama Wants to Restore Serfdom
------------------------------------------

9. A journalist asked Qin to comment on a report
released December 10 by the Tibetan government-in-
exile blaming China for the erosion of Tibetan culture
and economic degradation. Qin said he would not
comment because the Tibetan government-in-exile "has
said so many lies." The "Dalai Lama clique" continues
to try to separate Tibet from China. Social and
economic progress in Tibet is being made "day-by-day"
and the only thing "damaged" is the "cruel and dark"
system of serfdom that the Dalai Lama wants to
restore.

Six-Party Talks
---------------

10. Qin confirmed that members of the Economic and
Energy Working Groups will meet December 11-12 in
Beijing. The ROK is hosting the meetings to discuss
economic and energy assistance to the DPRK. Chinese
Vice Foreign Minister Wu Dawei, Qin later added, will
travel to Pyongyang next week for talks about the Six-
Party process with DPRK Vice Foreign Minister Kim Kye-
gwan.

Russian Presidential Election
-----------------------------

11. Asked for China's comment on Russian President
Vladimir Putin's decision to endorse First Deputy
Prime Minister Dmitry Medvedev to be the next Russia
president, Qin said the election was an internal
affair. Deputy Prime Minister Medvedev is a "good
friend of the Chinese people" who has contributed to
the development of Sino-Russian strategic relations.
China particularly appreciates Medvedev's involvement
in organizing the "Year of China in Russia" program, Qin
said.

EU-Africa Summit
----------------

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12. China welcomes the successful completion of the
EU-Africa summit, Qin said. China has common
interests with the international community, including
the EU, to promote peace, stability and development in
Africa.

Hollywood Movie Ban
-------------------

13. Qin claimed no knowledge of reports that China
would ban Hollywood films for several months starting
in January 2008.
RANDT

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