MOFERT COMMENTS ON THE LTA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90B01370R000801110120-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: November 23, 2010
• Sequence Number: 120
• Publication Date: November 27, 1984
• Content Type: CABLE

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TOR: 2709542 NOV 84
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E.O. 12356: DECL: OADR
TAGS: EHGR, ETRD, CH
SUBJECT: MOFERT COMMENTS ON THE LTA
1. (C) SUMMARY: DURING A CALL ON MOFERT VICE MINISTER
JIA SHI BY GODEL DDDD, CODEL RAISED THE ISSUE OF THE LTA,
NOTING THAT NONCOMPLIANCE BY CHINESE COULD HAVE RAMIFICA-
TIGNS BEYOND JUST AGRICULTURE. JIA'S REPLY WAS ESSEN-
TIALLY THE SAME AS CEROILS' STATED POSITION DURING LAST
WEEK'S CONSULTATIONS: NONCOMPLIANCE IN 1983 WAS DUE
TO FACTORS UNRELATED TO GRAIN; AND IN 1984 TO PRICE,
POOR QUALITY AND EVIDENCE OF EDB. JIA PROTESTED THAT
GRAIN WAS UNRELATED TO OTHER ISSUES AND AMBASSADOR
NOTED JIA HIMSELF HAD MADE SUCH A CONNECTION IN 1983.
AMBASSADOR SAID HE WAS PLEASED THAT, AT LEAST THIS YEAR,
CHINA WAS RESTRICTING ITS REASONS FOR NONCOMPLIANCE TO
MATTERS RELATING TO THE AGREEMENT ITSELF. JIA DID NOT
SEEM TO BE AWARE OF THE INVITATION TO CHINESE SCIENTISTS
TO VISIT THE US. CEROILS AND MOFERT NOW APPEAR TO
HAVE COORDINATED POSITIONS ON THIS ISSUE, AND TO HAVE
USED LAST WEEK'S "EMERGENCY CONSULTATION" TO MEET THE
LETTER OF THE AGREEMENT FOR CONSULTING ON NONCOMPLIANCE.
END SUMMARY.
2. (LOU) DURING SENATOR DODO'S CALL ON MINISTRY OF
FOREIGN ECONOMIC RELATIONS AND TRADEVICE MINISTER, JIA
SHI, DODO RAISED THE ISSUE OF THE SING-US LONG TERM
GRAIN AGREEMENT (LTA). HE SAID THAT EVEN THOUGH HE
WAS NOT FROM AN AGRICULTURAL STATE MANY BUSINESSMEN HAD
EXPRESSED CONCERN OVER THE IMPLICATIONS WHICH CHINA'S
NONCOMPLIANCE WITH THE LTA HAD FOR THE BUSINESSMEN'S
OWN PRESENT AND FUTURE CONTRACTS. SEN DODO IMPRESSED
UPON JIA HIS BELIEF THAT SUCH NONCOMPLIANCE HAS RAMIFI-
CATIONS WHICH GO BEYOND AGRICULTURE, AND SAID US
BUSINESSMEN WERE LOOKING CLOSELY AT IT.
3. (LOU) VICE MINISTER JIA REPLIED THAT DURING THE
FIRST 2 YEARS OF THE LTA IMPLEMENTATION HAD PROCEEDED
SMOOTHLY.' HE ARGUED THAT OVER THE ENTIRE LIFE OF THc'
AGREEMENT CHINA HAD MORE THAN FULFILLED THE MINIMUM
~ew~re~ro~+ar
OLL/LD
INCOMING
25X1
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CONFIDENTIAL
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TOR: 2709842 NOV 84
PURCHASE REQUIREMENTS. HE STRESSED THAT CHINA HAS
ALWAYS BEEN VERY SERIOUS ABOUT IMPLEMENTING ALL OF ITS
AGREEMENTS INCLUDING THE LTA. NEVERTHELESS, THERE WAS
A TIME WHEN CHINA DID NOT FULFILL THE LTA (1983) FOR
"REASONS KNOWN TO US ALL" HE SAID THAT WHEN CHINA
RESUMED BUYING GRAIN HOWEVER, IT FOUND IT COULD NOT
CONTINUE BECAUSE OF THE PRICE, LOW QUALITY AND EXISTENCE
OF PESTS. MORE IMPORTANTLY, INSPECTION REVEALED TRACES
OF CANCER CAUSING EDB. THIS WAS WHY URGENT CONSULTA-
TIONS HAD BEEN CALLED WITH FAS LAST WEEK, TO URGE THE
US TO RESOLVE THIS PROLEM. NEVERTHELESS, HE SAID
CHINA HAD PURCHASED CLOSE TO THE MINIMUM AMOUNT RE-
UIRED FOR 1984.
4. (LOU) SENATOR DOOD THEN NOTED US FAS INVITATION
TO CHINESE SCIENTISTS TO VISIT THE US TO STUDY THIS
PROBLEM. HE ASKED JIA IF CHINA PLANNED TO ACCEPT THE
INVITATION SO THAT THE ISSUE COULD BE RESOLVED. JIA
REPLIED SIMPLY THAT DURING THE CONSULTATION 80TH SIDES
HAD AGREED TO KEEP IN TOUCH.
5. (C) JIA THEN WENT ON TO ARGUE THAT THE GRAIN
AGREEMENT SHOULD NOT AFFECT AREAS OTHER THAN GRAIN.
HE SAID IT WAS UNRELATED. HE ALSO ARGUED THAT THE US
HAS NOT LIVED UP TO ITS BILATERAL AGREEMENTS, CITING
FIRST TEXTILES, THEN THE AGRICULTURAL COOPERATION AND
TECHNOLOGY AGREEMENT, AND FINALLY DELAYS IN EXPORT
LICENSING. ON THESE ISSUES THE AMBASSADOR RECOMMENDED
HE STICK MORE CLOSELY TO THE SUBJECT AT HAND, AND
NOTED SPECIFICALLY THAT THE ISSUE OF POTENTIAL DELAYS
DUE TO EXPORT LICENSING IS WRITTEN INTO ALL CONTRACTS
SO US CANNOT BE ACCUSED OF VIOLATING THEM ON THAT
COUNT. AMBASSADOR THEN SAID THAT AT THE VERY LEAST
CHINA HAD MADE SOME PROGRESS BY RESTRICTING ITS
REASONS FOR NONCOMPLIANCE IN 1984 TO MATTERS RELATING
SOLELY TO GRAIN. HE RECALLED THAT IN 1983 VICE MINISTER
JIA HAD PERSONALLY LINKED NONCOMPLIANCE TO UNRELATED
MATTERS AND AMBASSADOR HAD WARNED HIM THAT WAS IN-
APPROPRIATE AND UNWISE.
6. (C) COMMENT: JIA WAS AT LEAST AS UNREPENTENT
ABOUT NONCOMPLIANCE AS WAS CEROILS DURING LTA CONSU-
TATIONS LAST WEEK (REFTEL). CHINA HAS STAKED OUT ITS
POSITION ON EDB AND PROBABLY SEES LAST WEEK'S EMERGENCY
CONSULTATIONS AS MEETING THE LETTER OF THE LTA FOR
CONSULTATIONS ON NONCOMPLIANCE. ALTHOUGH THE ISSUE
E.O. 12356: DECL: OAOR
TAGS: EHGR, ETRD, CH
SUBJECT: MOFERT COMMENTS ON THE LTA
OF A FUTURE AGREEMENT WAS NOT RAISED, IT DOES NOT
APPEAR THAT THERE IS ANY SUBSTANTIAL DIFFERENCE BETWEEN
MOFERT AND CEROILS ON COMPLYING WITH THE LTA,
REGARDLESS OF PREVIOUS HIGH LEVEL ASSURANCES TO THE
CONTRARY.
7. (l0U) JIA'S REPLY TO SENATOR DODO ALSO INDICATED
IGNORANCE OF THE INVITATION TO CHINESE SCIENTISTS TO
VISIT THE US ASAP TO DISCUSS EDB. EMBASSY WILL
FOLLOW-UP WITH APPROPRIATE AUTHORITIES TO ENCOURAGE
RESPONSE TO THAT INVITATION. END COMMENT. RUNNEL
END OF MESSAGE CONFIDENTIAL
CONFIDENTIAL
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