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Cablegate: September 16 Mfa Press Briefing: Iran and Iaea, Kim

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SUBJECT: SEPTEMBER 16 MFA PRESS BRIEFING: IRAN AND IAEA, KIM
JONG-IL, U.S. FINANCIAL WOES, CHAVEZ VISIT TO CHINA

1. Key points at the September 16 afternoon MFA press briefing
were:

-- China "hopes that Iran will keep up cooperation with the IAEA for
the early settlement" of the Iran nuclear issue, however, "sanctions
are not the way to resolve the issue."

-- China and the United States "do not have contact" regarding
contingency planning for post Kim Jong-il Korea.

-- The spokesperson said that "China hopes the United States can
overcome the subprime crisis and stabilize exchange rates."

-- Venezuela President Hugo Chavez will meet Chinese leaders and
sign agreements during his visit to China on September 23-25.

--The spokesperson was unaware of reports claiming Chinese soldiers
are in Angola.

IAEA Report on Iran
-------------------

2. At the September 16 regular MFA press briefing, spokesperson
Jiang Yu said that China has "taken note of the report submitted by
the IAEA Director General" regarding Iran. China "hopes that Iran
will keep up its cooperation with the IAEA for the early settlement
of the issue." Dialogue and negotiation are the only ways to reach
a "comprehensive, lasting and proper settlement," said Jiang. Asked
for China's reaction to possible U.S. sanctions, Jiang said that
"sanctions are not the way to resolve the issue."

Kim Jong-il
-----------

3. Jiang said that she has no information related to reports that
Chinese doctors were sent to North Korea. Jiang also denied reports
that China and the United States has begun making "contingency
plans" for the fall of Kim Jong-il, saying China and the United
States, "do not have contact" on the issue.

U.S. Financial Woes
-------------------

4. Asked for China's reaction to the financial crises in the United
States, Jiang referred the reporter to relevant authorities saying
that "China hopes the United States can overcome the subprime crisis
and stabilize exchange rates."

Chavez China Visit
------------------

5. Asked for more information regarding the visit of Venezuelan
President Hugo Chavez to China on September 23-25, Jiang said that
Chavez will meet with Chinese President Hu Jintao and other leaders
to "exchange views on bilateral relations and other issues of common
interest." China and Venezuela will sign agreements relating to
legal cooperation, sports, and quality inspection, Jiang added.
Asked whether any oil agreements will be signed during Chavez's
stay, Jiang would only comment that "the two sides are keeping
consultations." Jiang noted that oil from Venezuela accounts for
only 4 percent of China's total oil imports. China's bilateral
relationship with Venezuela is based on "equality and mutual
benefit" and is "not directed against any other countries."

Infant Formula Product Safety and New Zealand
--------------------------------------------

6. Asked to confirm whether the New Zealand government has contacted
the MFA regarding quality control allegations at the infant formula
company Sanlu (a New Zealand joint venture linked to sales of
tainted infant formula that has caused sickness in over 1,000
Chinese infants so far), Jiang said that China has been improving
its food safety and quality inspection before referring the reporter
to relevant authorities. Asked whether the Ministry of Foreign
Affairs would be the relevant authority for contact between the
Chinese and New Zealand governments, Jiang said that "other
agencies" also play a role.

Chinese Troops in Angola
------------------------

7. In response to a reporter's question, Jiang said that she had not
heard reports that any Chinese troops are being sent to Angola.

Visits
------

8. Jiang announced that Chinese Premier Wen Jiabao will attend the
UN high-level meeting on the Millennium Development Goals in New

BEIJING 00003585 002 OF 002


York on September 25 and attend the general debate of the 63rd
session of the UN General Assembly. Indian National Security
Advisor MK Narayanan will visit China from September 18-19 to
discuss the China-India border.

RANDT

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