Cablegate: Under Secretary Hormats, Meeting with Republic of Korea

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RUEHBJ/AMEMBASSY BEIJING PRIORITY 0069
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FOR SYUN/THASTINGS/AWHITTINGTON;EAP/K FORSHOLIDAY-SKLAR;EEB/OMA FOR
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E.O. 12958: N/A
TAGS: CH ECON EFIN KS
SUBJECT: UNDER SECRETARY HORMATS, MEETING WITH REPUBLIC OF KOREA
DEPUTY MINISTER OF STRATEGY AND FINANCE SHIN JE-YOON

1. (SBU) Summary: In his October 5 meeting with Under
Secretary Hormats, Minister Shin said the ROK would welcome
U.S. assistance and advice as Korea prepares to host the G-20
meeting in the fall of 2010. In addition, Shin noted that Korea would
like to be an "honest broker" between China and the rest of the
G-20 on the Framework for Sustainable Growth agreed to in Pittsburgh,
and underlined Chinese sensitivities on the issue of dual G-8
and G-20 Summits, suggesting that the G-8 meet after and not before
the June G-20 Summit in Canada. End Summary.

Korea Welcomes U.S. Advice on G-20
-----------------------------------
2.(SBU) Minister Shin highlighted the importance of the Fall
2010 G-20 Summit in Korea, particularly in the context of Korea's
relatively recent rise to developed country status. He
enthusiastically welcomed the Under Secretary's offer of U.S. help
and advice in the run up to the meeting. According to Shin, the site
of the meeting has yet to be decided, but multiple Korean cities are
vying to host.

Chinese Possibly More Receptive to Framework with Increased IFI Shares
-----------------------------------

3.(SBU) Shin continued the G-20 discussion, noting that Korea's primary
goals for the G-20 Summit will be completion of discussions on
International Financial Institution (IFI) reform and substantial
progress on global financial regulatory reform, in order to keep to the
pre-agreed 2012 implementation timetable.

4.(SBU) Shin reported that Chinese Premier Wen Jiabao asked President
Lee for Korea's help in promoting IFI reform, including an increase in
China's voice and vote in the IMF and the World Bank. Noting China's
discomfort with some elements of the G-20's Framework for Sustainable
Growth, Shin believes that the Chinese would be more amenable to future
discussions on the Framework in return for more representation in the
IFIs. U/S Hormats noted that the U.S. does not normally link the
two issues, but understands the Chinese point. The Under Secretary
added that discussions on rebalancing, had taken place during the
Pittsburgh Summit.

China Wants G-20 before G-8
---------------------------
5. (SBU) Minister Shin also reportedly discussed the June
2010 G-8 Summit in Canada with Chinese officials, who highlighted
Chinese preferences that the G-20 should not be a "side issue."
Shin added that the Chinese requested that the G-20 meet before the G-8
According to Shin, some other BRICs were of the same opinion.
U/S Hormats responded that, while the U.S. is still considering the
issue, there is a good chance the U.S. would concur and he did not want
the G-20 to be a "side issue" either-and in fact the G-20 communiquQ
gave it a preeminent role U/S Hormats noted that the U.S. did not want
the G-8 to be a "caucus" before G-20 summits, and opined that the G-8
would have a discrete agenda and take up issues not discussed at the
G-20.

WIENER

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