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Cablegate: November 10 Mfa Press Briefing: Obama Visit, Exchange Rate,

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SUBJECT: NOVEMBER 10 MFA PRESS BRIEFING: OBAMA VISIT, EXCHANGE RATE,
DALAI LAMA, TAIWAN

1. Key points at the November 10 MFA press briefing:

-- The visit of U.S. President Obama will have a great influence on
the future development of bilateral relations.

-- China will follow a proactive and transparent policy to improve
the Renminbi (RMB) exchange mechanism and give full play to supply
and demand.

-- China is "firmly opposed" to the Dalai Lama's visit to the
disputed border region Arunachal Pradesh.

-- It is important for U.S.-China relations that both sides continue
to follow the three Joint Communiques.

President Obama Visit
---------------------

2. The visit of U.S. President Obama would have a great influence on
the future development of bilateral relations, said Qin Gang at the
November 10 regularly scheduled MFA press briefing. China hoped the
two countries could work together to ensure proactive and
comprehensive bilateral relations. China looked forward to
exchanging views on issues of mutual importance including
international, regional and bilateral topics. China and the United
States continued to consult on the details of the visit and China
hoped the visit would be a positive achievement. There had been no
change in the dates for the President's visit due to the tragedy at
Fort Hood.

Exchange Rate Issue
-------------------

3. China's position on its exchange rate was clear and had been
expressed on many occasions, said the spokesperson. China would
follow a proactive and transparent policy to improve the Renminbi
(RMB) exchange mechanism and give full play to supply and demand.
China would work to ensure the stability of the RMB exchange rate on
the basis of reason and flexibility. The U.S. had the number one
economy in the world and its development would affect the world
financial situation. If the United States could overcome the
difficulties of the financial crisis and maintain the stability of
its economy this would have a positive effect on the U.S. exchange
rate. This would be good for China and the world as a whole.

China-India Relations
---------------------

4. China was "firmly opposed" to the Dalai Lama's visit to the
disputed border region Arunachal Pradesh, said Qin. The visit had
fully exposed the anti-China nature of the Dalai Lama and his
efforts were "doomed to fail." China had expressed strong
dissatisfaction over India's disregard for the Chinese position.

Taiwan Issue
------------

5. The three Joint Communiques were "very clear" regarding the
status of Taiwan, said Qin. It was important for U.S.-China
relations that both sides continued to follow the Communiques.
China's core interests should be respected to ensure the positive
development of relations, said Qin.

Pirates
-------

6. Qin had not heard reports that a Hong Kong cargo ship had
repulsed an attack by pirates. He was, however, relieved to hear
that the crew members were not being held captive. China had
dispatched PLA Navy ships to Somali waters to protect Chinese ships.
Hong Kong was part of Chinese territory and China would also
provide protection to Hong Kong ships as required. China was ready
to cooperate with other nations to combat piracy and ensure the
peace and stability of the region, he said.

U.S.-China Trade
----------------

7. U.S.-China trade had made unprecedented progress in the previous
thirty years, said Qin. The increasing interdependence had brought
the two countries continually closer and brought tangible benefits
to people in both countries. Economic relations between China and
the United States sometimes resulted in "friction and disputes"
mostly because of the different national conditions of each country
and the pressures of globalization. China and the United states
should cooperate on the basis of equality and mutual respect and
should resist trade and investment protectionism. China called on
the United States to work with China to stop trade protectionism,

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said Qin.

Uighur Executions
-----------------

8. The nine Uighurs put to death in Xinjiang were criminals who had
been involved in the July 5 incident, said Qin. The cases had been
handled according to law.

Africa Aid
----------

9. Wen Jiabao mapped out a plan for Chinese aid to Africa for the
next four years during the opening ceremony of the China-Africa
Summit, said the spokesman. The package would include favorable
loans aimed at taking into account Africa's short-term needs and
long-term desire for improved livelihoods and self-development. The
loans would cover areas such as agriculture, healthcare and
education, said Qin. China would continue to listen to the voices
of African countries to map out the plan in more detail.

Foreign Journalists
--------------------

10. Asked whether there were restrictions on the reporting
activities of foreign journalists in Xinjiang, Qin stated that
foreign journalists would have to follow Chinese laws and
regulations. These laws and regulations applied to all regions of
China including Xinjiang.

Visits
------

11. Chinese Vice Premier Hui Liangyu would visit Rome for the World
Summit on Food Security from November 16-18 and would pay a separate
visit to Syria from November 18-20.

HUNTSMAN

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