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Cablegate: China/G-20/Pakistan: China Urges Wider Scope

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DE RUEHBJ #4457/01 3401448
ZNR UUUUU ZZH
O 051448Z DEC 08
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1257
INFO RUEHOO/CHINA POSTS COLLECTIVE IMMEDIATE
RHEHNSC/NSC WASHDC IMMEDIATE
RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE
RUCNMEM/EU MEMBER STATES COLLECTIVE IMMEDIATE
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RUEHAK/AMEMBASSY ANKARA IMMEDIATE 0380
RUEHBY/AMEMBASSY CANBERRA IMMEDIATE 9642
RUEHLO/AMEMBASSY LONDON IMMEDIATE 3453
RUEHRH/AMEMBASSY RIYADH IMMEDIATE 0644
RUEHRO/AMEMBASSY ROME IMMEDIATE 1019
RUEHIL/AMEMBASSY ISLAMABAD IMMEDIATE 6783
RUEHBUL/AMEMBASSY KABUL IMMEDIATE 0448
RUEHNE/AMEMBASSY NEW DELHI IMMEDIATE 4678

UNCLAS SECTION 01 OF 02 BEIJING 004457

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: EFIN ECON EAID IBRD IMF KPAO PREL PGOV
PK, CH
SUBJECT: CHINA/G-20/PAKISTAN: CHINA URGES WIDER SCOPE
IN G-20 ACTION PLAN; WILL CONTINUE TO ASSIST PAKISTAN
THROUGH BILATERAL CHANNELS

(U) This cable is Sensitive But Unclassified. Please
protect accordingly.

Summary
-------

1. (SBU) China believes a United Kingdom-drafted paper
on follow-up taskings to finance ministers from the
November 15 Summit on Financial Markets and the World
Economy, in advance of the next G-20 summit, does not
adequately address the political dimensions of the
financial crisis, Chinese Vice Foreign Minister He
Yafei told Under Secretary Jeffery during a December 4
pull-aside meeting at the U.S.-China Strategic
Economic Dialogue. VFM He called for U.S.-China
bilateral consultations on the U.K. proposal. Under
Secretary Jeffery urged China to contribute meaningful
support for Pakistan at a donor's conference now
postponed until January 2009. VFM He stated that
China will continue to provide assistance to Pakistan
through bilateral channels, and given the conference's
postponement, China will reconsider its level of
representation to the conference. End Summary.

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G-20 Workplan Too Narrow in Focus
---------------------------------

2. (SBU) In a December 4 meeting on the margins of the
U.S.-China Strategic Economic Dialogue, Chinese Vice
Foreign Minister He Yafei told Under Secretary Jeffery
that the paper circulated by the United Kingdom for
following up taskings from the November 15 Summit on
Financial Markets and the World Economy, in advance of
the proposed April 2 G-20 Summit the UK will host,
focuses too exclusively on the role of finance
ministries. VFM He noted that the PRC MFA has the
leadership role for this issue in China, because the
financial crisis has broad political implications.
Emphasizing that China does not currently accept the
U.K. proposal, VFM He suggested the United States and
China first consult bilaterally on the way forward for
the next G-20 summit before addressing the elements of
the United Kingdom proposal.


Chinese Participation in Pakistan Donor's Conference
--------------------------------------------- -----

3. (SBU) Under Secretary Jeffery highlighted the need
for international financial support for Pakistan as it
implements an IMF program to address its external
financing gap and rebuild international reserves. In
aggregate, the IMF loan amounts to USD 7.6 billion
with USD 3 billion provided initially, an amount more
than the IMF usually provides up front, Under
Secretary Jeffery said. Given that the IMF estimates
Pakistan will need an additional USD 4 billion to
support the social safety net, Pakistan is seeking
donor support from the United States, China, the EU,
and other countries in the region. The United States
hopes donors will provide meaningful support to
augment IMF and expected World Bank funding.

4. (SBU) Under Secretary Jeffery said the United
States urges China to make a meaningful contribution
to Pakistan at a donor's conference, which is now been
postponed from December 16 to January 2009. He
explained that a number of countries advised that they
cannot make a meaningful commitment in time for the
December date, and hence, the conference has been
postponed.


BEIJING 00004457 002 OF 002


5. (SBU) VFM He stated that Pakistan is a close
neighbor and China's "all-weather friend." China has
already provided Pakistan with USD 500 million in
balance-of-payment support in cash. VFM He said China
believes it can most effectively support Pakistan
through bilateral channels, but China welcomes
assistance for Pakistan from the international
community. Given the originally proposed timing of
the December 16 donor"s conference, China would have
been unable to participate at a high-level, VFM He
said, but given the postponement, China will
reconsider its representation at the donor"s
conference.

6. (U) Under Secretary Jeffery cleared on this cable.

RANDT

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