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Viewing cable 09BEIJING558, CHINA/G-20: MFA DISCUSSES LONDON SUMMIT OBJECTIVES

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Reference ID Created Released Classification Origin
09BEIJING558 2009-03-04 10:18 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Beijing
VZCZCXRO8941
PP RUEHCN RUEHGH RUEHRN RUEHVC
DE RUEHBJ #0558/01 0631018
ZNR UUUUU ZZH
P 041018Z MAR 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC PRIORITY 2649
RUEHBS/USEU BRUSSELS PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY
RUEHSS/OECD POSTS COLLECTIVE PRIORITY
RUEHLO/AMEMBASSY LONDON PRIORITY 3490
UNCLAS SECTION 01 OF 02 BEIJING 000558 
 
SENSITIVE 
SIPDIS 
 
FOR STATE/EEB/OMA WHITTINGTON 
FOR TREASURY/IMB MURDEN, MONROE, BEASLEY 
FOR EAP/EP 
 
E.O. 12958: N/A 
TAGS: ECON EFIN CH
SUBJECT: CHINA/G-20: MFA DISCUSSES LONDON SUMMIT OBJECTIVES 
 
REF: STATE 17502 
 
1. (SBU) SUMMARY.  Chinese Ministry of Foreign Affairs (MFA) 
officials stated that, given worsening conditions, the 
Chinese desire a results-oriented G-20 London Summit.  China 
perceived London pushing three themes for the summit: 
fighting protectionism, promoting employment and green 
recovery.  MFA endorsed anti-protectionism and employment 
promotion, but said green recovery would be better addressed 
in other fora.  The Chinese hope the summit will avoid 
assigning blame for the global economic crisis.  China 
believes that major reserve-currency countries, including the 
United States, should work to stabilize currencies.  END 
SUMMARY. 
 
2. (SBU) EconMinCouns met with MFA International Department 
Deputy Director General Li Junhua on February 27 to discuss 
preparations for the G20 London Summit.  DDG Li said the 
Chinese desire an "action-based and outcome-oriented" summit, 
since the global economic crisis has worsened since December 
and the international community has higher expectations for 
action.  Li said London has proposed enhancing macroeconomic 
cordination and international financial system reform, 
including reform of international financial institutions. 
China generally agrees with these proposals, but noted the 
U.K. hosts have also identified three important sub-themes 
for the summit:  fighting protectionism, promoting employment 
and green recovery. 
 
Supporting Anti-Protectionism, Promoting Employment 
--------------------------------------------- ------ 
 
3. (SBU) China strongly desires world leaders use the summit 
to reaffirm their commitment to refrain from protectionist 
measures, as they promised to do at the December summit.  DDG 
Li said that various Asia-Pacific region and WTO member 
countries have expressed alarm at recent protectionist 
actions and rhetoric, and hope that world leaders will take 
the opportunity to send a stronger message this time. 
 
4. (SBU) China also supports international coordination to 
support employment.  Measures will certainly differ by 
country, as they should, but each state representative should 
at least commit to action, which will help restore public 
confidence in the G-20 economies.  DDG Li noted employment 
will be a subject of "heated debate" at the National People's 
Congress from March 5. 
 
Questioning Green Recovery, Opposing Finger Pointing 
--------------------------------------------- ------- 
 
5. (SBU) China will approach the green recovery or green 
growth initiatives of the U.K. hosts with an open mind, but 
believes that a wide range of international fora already 
exist to address this topic, including the upcoming 
Copenhagen Conference to discuss climate change.  The Chinese 
fear that expanding the G-20 to include such a broad topic 
could limit world leaders ability to deliver convincing 
outcomes in other areas.  They also feared turning the G-20 
into a negotiating forum for climate change issues. 
 
6. (SBU) China hopes the summit will avoid finger pointing 
for the cause of the international economic crisis.  Li 
stated that in the past some had implied China shared 
responsibility for the crisis.  DDG Li said there is no need 
to reopen such issues at the London Summit, but rather the 
world will look to leaders to take positive action which 
restores confidence. 
 
Stable Currencies, FSF Membership 
--------------------------------- 
 
7. (SBU) Commenting on a recent Reuters article regarding the 
responsibility of the reserve currency countries to 
developing nations.  Li said the four major reserve currency 
countries -- the U.S., U.K., E.U. and Japan -- should bear 
primary responsibility for maintaining currency stability, 
since this will make the return to financial stability 
easier.  Li noted that as the largest holder of foreign 
currency reserves in the world, China hopes the "Big Four" 
will do their part.  DDG Li also noted that China wants an 
expanded Financial Stability Forum (FSF). 
 
BEIJING 00000558  002 OF 002 
 
 
PICCUTA