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Cablegate: March 22 Mfa Press Briefing: Six-Party Talks,

VZCZCXRO2224
OO RUEHCN RUEHGH RUEHVC
DE RUEHBJ #1966/01 0811005
ZNR UUUUU ZZH
O 221005Z MAR 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6098
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHKH/AMEMBASSY KHARTOUM 0063
RUEHFR/AMEMBASSY PARIS 4081
RUEHUNV/USMISSION UNVIE VIENNA 1202

UNCLAS SECTION 01 OF 02 BEIJING 001966

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PREL PHUM MNUC KN KS JP CH FR SU
SUBJECT: MARCH 22 MFA PRESS BRIEFING: SIX-PARTY TALKS,
BANCO DELTA ASIA, OLYMPICS BOYCOTT OVER DARFUR, JAPAN


1. Key points made at the March 22 MFA press conference were:

-- The Six-Party Talks continued with bilateral meetings
despite reports that DPRK VFM Kim Kye-Gwan was at the airport
ready to depart Beijing.

-- The Talks have run into "unexpected" technical and
procedural problems regarding the transfer of funds in
resolving the Banco Delta Asia issue.

-- The Spokesman refuted questions about the feasibility of
meeting deadlines from the February 13 Initial Action
Agreement, stating that there was no reason to lose
confidence.

-- French groups that have proposed a boycott of the 2008
Olympics over Darfur do not understand China's position on
the issue.

-- Premier Wen's upcoming visit to Japan will be
"ice-thawing" in that it will help China and Japan push
forward cooperation, even though some difficult issues
linger.

6PT: Talks Continue Despite Reports About DPRK
--------------------------------------------- -

2. MFA Spokesman Liu Jianchao announced at the opening of
the March 22 regular press briefing that the Six-Party Talks
are continuing with bilateral meetings involving all six
parties, despite media reports that DPRK lead negotiator Kim
Kye-Gwan had been seen at the airport ready to depart Beijing.

3. The spokesman said the Six-Party Talks have run into
"unexpected" technical and procedural problems regarding the
transfer of funds in resolving the Banco Delta Asia issue.
However, Liu said consensus has been reached between the DPRK
and United States from a political perspective, adding that
the resolve of all parties on commitments made in the Joint
Statement and February 13 agreement remains unchanged.
Further, he refused to place blame for the hold-up on any
party, maintaining that all sides must consider some
reasonable concerns of all other parties. Asked if China
would handle the BDA issue outside the framework of China's
new anti-money laundering law in the interests of pushing
forward the Talks, Liu said the solution must be in
accordance with law and reasonable to all parties.

4. Liu deflected questions on the feasibility of meeting
deadlines determined in the February 13 agreement, stating
there was no reason to lose confidence and that all goals are
expected to be met sooner or later. All parties should
continue their positive, joint efforts and honor commitments
made in the February 13 document. Asked if China would
handle the BDA issue outside the framework of China's new
anti-money laundering law in the interests of pushing forward
the Talks, Liu said the solution must be in accordance with
law and reasonable to all parties.

5. Progress has been made at this round of Talks, Liu said,
noting that the first of three unspecified items that VFM Wu
Dawei outlined at the opening of this round of Talks has been
"finished." There has been an initial exchange of views on
the other two items and parties are treating these sensitive
issues seriously, even though the items have yet to be
discussed in depth.

French Athletes to Boycott Olympics, Protest Darfur
--------------------------------------------- ------

6. Asked about recent reports that French athletes preparing
for the 2008 Olympics may boycott the games to protest
China's inaction on Darfur, Liu said China welcomes all
nations to participate in the Olympics and believes the
French parties do not have a clear understanding of China's
position on Darfur. All parties concerned should work
through dialogue and consultation to solve the Darfur issue
while maintaining Sudan's sovereignty and territorial
integrity. China is playing a constructive role in the
issue, including the Four-Point Proposal President Hu
outlined after talks with President al-Bashir. China hopes
Sudan will actively discuss the Darfur issue, Liu said.

Premier Wen's "Ice-thawing" Visit to Japan
------------------------------------------

7. China attaches great importance to PM Wen's upcoming
visit to Japan and sees bilateral relations developing in a
positive direction, said Liu. An increase in Chinese news

BEIJING 00001966 002 OF 002


reports about Japan is normal and unrelated to a change in
government policy, Liu responded when asked about the recent
trend by a Japanese reporter. Liu characterized PM Abe's
recent visit to China as "ice-breaking" and Wen's planned
visit as "ice-thawing." Despite some lingering issues, both
sides must push forward cooperation in all areas to promote
the long-term stable development of bilateral relations.
RANDT

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