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Cablegate: Former Deputy Secretary Zoellick Shanghai Visit

VZCZCXRO5089
RR RUEHCN RUEHGH
DE RUEHGH #0167/01 0850842
ZNR UUUUU ZZH
R 260842Z MAR 07
FM AMCONSUL SHANGHAI
TO RUEHC/SECSTATE WASHDC 5632
INFO RUEHBJ/AMEMBASSY BEIJING 0907
RUEHCN/AMCONSUL CHENGDU 0512
RUEHGZ/AMCONSUL GUANGZHOU 0495
RUEHSH/AMCONSUL SHENYANG 0520
RUEHHK/AMCONSUL HONG KONG 0618
RUEHIN/AIT TAIPEI 0420
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHGH/AMCONSUL SHANGHAI 6006

UNCLAS SECTION 01 OF 03 SHANGHAI 000167

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EAP/CM, EB, AND E
TREASURY FOR ADAMS
USDOC FOR ITA A/DAS MELCHER, MCQUEEN
NSC FOR HUBBARD AND TONG

E.O. 12958: N/A
TAGS: PREL CH
SUBJECT: FORMER DEPUTY SECRETARY ZOELLICK SHANGHAI VISIT


Sensitive but unclassified - please protect accordingly. Not
for dissemination outside USG channels.

1. (SBU) Summary. Former Deputy Secretary of State Robert
Zoellick delivered a well-received speech at the third annual
Barnett-Oksenberg Lecture in Shanghai on March 21. Zoellick
called for China to play a more cooperative role on Korea, Iran,
Sudan and energy security. The text of the speech can be found
on the Consulate website at
http://shanghai.usembassy-china.org.cn. CPC Central Committee
Member Zhao Qizheng responded to the speech by acknowledging
that China was acting responsibly. While developing the economy
continued to be China's main focus, it was an active member of
the UN Security Council, and was playing a more active role on
global issues such as the environment, terrorism, and stopping
the spread of communicable diseases. Zhao also noted that China
was more comfortable working bilaterally rather than
multilaterally on issues. Zoellick's speech received wide and
positive press coverage, with some local papers calling the
"responsible stakeholder" concept "a great legacy" he left to
the U.S.-China relationship. End Summary

---------------
Zoellick Speech
---------------

2. (U) During his speech entitled "China-U.S. Relations: From
Shanghai Communiqui to Global Stakeholders" delivered at the
third annual Barnett-Oksenberg Lecture in Shanghai on March 21,
former Deputy Secretary Robert Zoellick urged China to become a
more active player in the international arena. The
Barnett-Oksenberg Lecture is an annual lecture organized by the
National Committee on U.S.-China Relations and the Shanghai
Association of American Studies to commemorate the anniversary
of the signing of the Shanghai Communiqui. Zoellick said he
introduced the concept of a "responsible stakeholder" because as
China succeeds and its influence grows, it has an interest in
working with other major countries to sustain and strengthen the
international system. The concept of "responsible stakeholder"
did not apply only to China, but other participants that derived
benefits from the international system including the United
States, the EU, Japan, Russia, and India. He identified four
areas in which the United States and China had mutual interests
and should act as "shared stakeholders." These areas were
Korea, Iran, Sudan and energy security. The text of the speech
can be found on the Consulate website at
http://shanghai.usembassy-china.org.cn.

----------------
China's Response
----------------

3. (SBU) CPC 16th Central Committee Member Zhao Qizheng
provided a response to Zoellick's speech at the event. Zhao
agreed that the "responsible stakeholder" concept was a useful
and pragmatic tool that was very popular in China. He said that
China was, indeed, acting responsibly. First, China was acting
responsibly by developing its economy, which was its top
priority. It was also important to resolve domestic problems
such as the gap between the coastal areas and interior and
income disparities. Second, China had become more active in the
United Nations Security Council and had contributed a large
number of peacekeepers to UN missions. Third, China had become
more active in cooperating on global problems such as
environmental disasters, terrorism, and stopping communicable
diseases.

4. (SBU) Zhao agreed that it was important to have more
cooperation between the United States and China. He admitted
that China was a bit defensive in the past, but said that this
was in reaction to the U.S. policy of "congagement," which was a
combination of containment and engagement. He compared the
U.S.-China relationship to a car and said that both drivers (the
United States and China) needed good coordination to smoothly
drive the car. He noted that there were apprehensions on both
sides about the relationship and more should be done to enhance
mutual trust. He noted that there could be more cooperation in
areas such as energy security. He also supported events such as

SHANGHAI 00000167 002 OF 003


the Barnett-Oksenberg lecture which provided people from both
countries the opportunity to exchange ideas.

-----------------
Audience Reaction
-----------------

5. (U) Audience members, which included prominent Shanghai
academics and business leaders, reacted positively to Zoellick's
and Zhao's comments. Questioners asked for views on U.S. policy
towards China and also for views on China's foreign policy. One
audience member noted that as China becomes more active
internationally, it would inevitably begin to interfere in the
domestic affairs of other countries, which would contradict
China's current non-interference policy. Another asked whether
the U.S.-China relationship was at stake because of Taiwan.

6. (U) Zoellick said that U.S. China policy was a general
success, but that both sides needed to carefully manage the
relationship, especially as China continues to become more
influential. He also noted that China has had extraordinary
economic success and had become more skilled in multilateral
diplomacy. He was disappointed, however, that China had not
been very active in the WTO Doha process. In regard to
non-interference, the norms of the international system have
evolved and the UN Charter as well as other international law
allow for interference in the internal affairs of other
countries. In addition, the world had become more integrated
and it was impossible to discuss issues such as migration,
energy, avian influenza, and greenhouse gases without touching
on the internal issues of other nations. He noted that these
types of global issues required policymakers to think beyond
categories and required countries to work as partners.

7. (U) Zhao said that just because China was not as vocal as
the United States on international issues, it did not mean that
China was not interested in international affairs. China and
the United States had different value systems and China did not
like to make too many remarks that were not well thought
through. He added that China also preferred working on issues
bilaterally rather than multilaterally. Turning to the Doha
round and Sudan, he said that China was not speechless. On
Iran, China has taken a strong interest in developments in Iran
and has worked on the issue in both bilateral and multilateral
channels.

-------------------
Academic Roundtable
-------------------

8. (SBU) Prior to his speech, Zoellick participated in a
roundtable with Shanghai academics and business leaders.
Zoellick said there were three major developments that would
shape the future: the struggle for the "soul of Islam", the rise
of China, and how the United States would use its influence to
deal with these changes. He noted that Muslims were now trying
to determine what being a Muslim meant and the United States and
other countries including China could influence this debate. On
the rise of China, China has had phenomenal growth but faces
serious internal challenges including job-creation demands,
energy, environmental, health-care and educational problems.
The "responsible stakeholder" concept was an attempt to help
China, a rising power, to integrate itself in the international
system. Turning to the United States, Zoellick noted that
Americans had anxieties about China's rise. In addition, while
the rest of the world saw the United States as the main catalyst
and prime beneficiary of globalization, many in the United
States had mixed views towards globalization.

9. (SBU) Shanghai Academy of Social Sciences Vice President
Huang Renwei asked for more clarification on the meaning of
"responsible stakeholder", specifically, if China's
responsibilities were internal or global. Fudan University
Center for American Studies Director Shen Dingli said that China
was happy that the United States considered China to be a
stakeholder and thought of China as a friend. However, other
people believed that the United States itself was not a
"responsible stakeholder." Specifically, the United States had

SHANGHAI 00000167 003 OF 003


acted irresponsibly by starting a war in Iraq, not criticizing
former Japanese Prime Minister Koizumi for visiting the Yasukuni
shrine, for putting financial sanctions on North Korea, and
selling weapons to Taiwan. Zoellick noted that the definition
of what a "responsible stakeholder" should come from a discourse
and not be determined by one party. He also defended U.S.
policies in Iraq, Korea, Taiwan and Japan.

---------------------
Glowing Press Reviews
---------------------

10. (U) Zoellick's speech received wide coverage in the local
Chinese press. Local press reports noted Zoellick's emphasis on
the significance of the close connections between the two
countries, call for more international responsibilities to be
borne by China, and positive comments on the Bush
Administration's China policy. Local papers also reported on
Zoellick's decision not to go back into politics. The concept
of "stakeholder" proposed by Zoellick was also viewed by some
papers as "a great legacy" he left to U.S.-China relations.
JARRETT

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