-· 8860 TH E 'W H IT E HO USE 3 r CRE MEMORANDUM OF CONVERSATION • I SUBJECT President Bush's Meeting with Premier Li Peng· of The People's Republic of China PARTICIPANTS U S The President James A Baker III Secretary of State Winston Lord American Ambassador John Sununu Chief of Staff Brent Scowcroft Assistant to the Presiderit for National Security Affairs Andrew Card Deputy Chief of Staff Marlin Fitzwater Assistant to the President and Press Secretary Robert Zoellick Counselor Designate Department of State Gaston J Sigur Assistant Secretary of State for East Asian and Pacific Affairs Margaret Tutwiler Assistant Secretary of State Public Affairs Designate James A Kelly Senior Director Asian Affairs National Security Council J Stapleton Roy Deputy Assistant Secretary of State · Peter Tomsen Deputy Chief of Mission Embassy Beijing Karl Jackson Director Asian Affairs National Security Council Ray Burghardt Political Counselor Embassy Beijing F Maerkle Political Officer Embassy Beijing Notetaker James Brown Department of State Interpreter China Premier Li Peng Vice Premier Wu Xqeqi n Foreign Minister diari Qichen Vice Foreign Minister Zhu Qizhen Han Xu Ambassador to the United States Assistant Foreign Minister Liu Huaqiu MFA Protocol Director Wu Minglian Declassify on OADR DECLASSIFIED IN PART PER E O 12958 AS AMENDED ut GRE T 2COO- b -Z C- - F ®l 61 1 0c' 1 2 MFA Information Director Li Zhaoxing Deputy Director Zha Peixin USA Department Counselor Wang Li USA Department Division Chief Ma Zhengang USA Department Deputy Division Chief Liu Xizheng MFA Protocol First Secretary Zhu Luchang J 1FJ _ Protocol Other Participants 2 Notetakers 2 Interpreter DATE TIME AND PLACE February 26 1989 9 00 a m - 11 00 a m Great Hall of the People Xinjiang Room 1 Beijing China fill MMARY In a cordial an ct relaxed two hour meeting President Bush and Premier Li Peng exchanged views on a wide range-of international and bilateral topics including Sino-u s relations relations with the Soviet Union Cambodia the Philippines the Korean Peninsula Japan the Middle East anti-_terro_rism diplomatic reciprocity 1 science and technology Third World debt the Indian sub-continent Afghanistan Eastern Europe missile sales and the Peace Corps The President began with a statement giving his views on many of the above issues Premier Li Peng then responded with ·his prepared text and additionally commented on issues raised by the President · In the Premier's pre sentation plus the subsequent discussion the Chinese made comments about foreign intervention in Chinese domestic affairs The Premier characterized Soviet domestic political liberalization a topic that lie termed more to the taste of Americans as dangerous and concluded that the Soviets should devote their effort to economic reform a statement with implications for China's domestic policy Later commenting on bilateral relations he pointedly remarked that some Americans such as members of Congress try to influence China's domestic policy and he warned against any such actions by U S executive branch officials In significant ·comments on international affairs L i said that China would improve non-government and trade relations with South Korea in the future Li said China would be very displeased at any increase in the level of official U S contacts with Taiwan He indicated that once current agreements expire the PRC would cease weapons deliveries to the Afghan resistance forces Discussing bilateral affairs the Premier termed Sino-U S relations as good and hoped to see continued development o ------- -- ______________________ _ ···• -OC V f t i 6E · e -- _- - · g · i J 1 3 relations Responding to the President's concerns about proliferation 0£ intermediate range ballistic missiles the Premier made a clear statement that China would no longer sell such missiles END SUMMARY 11 President Bush I am sorry for being a few minutes late Prem e Li I represent the Chinese government in warmly welcoming you to China We want a broad and in-depth exchange of views on bilateral and international questions of mutual interest We think the· talks should be full and frank so that we can get to know each other's viewpoints and thus further the development of Sino-American relations Our talks today_ are brief and some time will be taken by interpretation I see two possible ways to proceed in accordance with our practice you can make an ·opening statement and then we can consider issues one by one or ·we might divide the issues into two categories -bilateral and international -- and first cti·s-cuss all aspects of one category before moving to the second President Bush The first method is agreeable I have some matters to raise and would like to make an opening statement After your opening statementr we could go to a frank exchange of questions and answers so that the meeting will have more substance Premier Li Good I agree Basis of U S Policy Toward China President Bush Thank you for the· lovely banquet that you and President Yang hosted and for the warm welcome back to China From my standpoint this is a very important visit to China and its people The relations between the U S and China are as important as any in the world At the start of my administra tion we are engaging in a total review of many policies including arms control negotiations with the Soviet Union and what to do in the Middle East · China is an exception we already know where we are where we want to go and what we want to do We want to continue strengthening and developing our bilateral relations This relationship stands on its own and - -- - --- 4 will not be affected by rapid changes on the international stage As I said last night I am glad that General Secretary Gorbachev is coming to China We have passed the stage of worrying about this type of event The Joint Communiques of 1972 1979 and 1982 will continue to form the basis of my administratiDn's China policy Admin 1 stration 1 s Firm Commitment to One China Policy We are firmly committed to a policy of one China We have stated so publicly in ways designed to deter separatist elements The future of Taiwan must be worked out by Chinese on both sides of the Taiwan Strait without interference and certainly without our mediation We have big problems with Taiwan in trade areas but we have trouble acting on them be ause we are inhibited in discussing these areas with them because of our arrangement_s with you We will continue these arrangements but we wish we could · find a better way to lean on them in the trade area A solution of the trade problems would benefit ourselves and benefit China This is your business but we welcome your growing contacts with Taiwan Our policy is aimed at fostering further progress in these areas and good relations based on our Communiques Bush Admini tration's nternational Policies On the Sino-soviet-U S front as I have indicated we welcome the recent progress in the Sino-Soviet relationship what appears to us to be progress we· would like to feel that this will result in improved prospects £or durable global and regional stability When I last met Gorbachev when he came to New York City just before I was sworn in as President there had been discussion of his coming to China but there were no firm arrangements at the time I told him I am pleased you are going to China and that you will see Deng Xiaoping who has a broad global view unmatched by other foreign leaders 11 U S -Soviet Relations On U S -Soviet relations my position i s that we want to continue our basic policy toward the Soviet Union but I am cautious Everyone on this side of the table is cautious I have ordered a comprehensive review of our overall relationship and what steps to propose in arms control and in other areas We want to see --·----··-- - --- -· - ----· -·------- - · 5 perestroika continue and be successful To be very candid altho ugh we are pleased with the Soviet withdrawal from Afghanistan and the recent arrangements in Angola there are several areas of Soviet international behavior that disturb us Therefore I view our relationship with hope and caution It is important for the Soviets to understand that our review is not a stalling tactic or foot-dragging I personally made that point to Mr Gorbachev Needless to say we would welcome Chinese views on the Soviet domestic political situation We are watching it and would like to compare notes with you We will continue our standard agenda of emphasizing human rights arms control regional and bilateral issues We want to expand our talks with them on other issues of growing concern such as the global environment anti-terrorism and narcotics Cambogia May I say a few words on C_arnbodia We want to keep the focus on a comprehensive settlement which would include complete and rapid withdrawal of Vietnamese troops from Cambodia a coalition government headed by Prince Sihanouk an international presence with teeth in it effective safeguards against a Khmer Rouge return to dominance including reduction of outside military aid to the Khmer Rouge and arrangements for the relocation of unacceptable Khlner Rouge leaders to a place outside of Cambodia This is the U S position My intention is to step up our support for the Sihanouk forces We hope others will do the same We are pleased that until recently the ASE AN countries have stayed close together though we are concerned at Thai Prime Minister Chatchai' s going it alone in meeting with the puppet government from Phnom Penh PhiliPPines With regard to the Philippines we have a strong historic relationship We are committed to its economic recovery and are working closely with Japan in this regard I must confess to a certain wo ry about the Philippines but we will work with Mrs afCBET · '- U --·-·------- ·------·-·· ······-----·- t 6 ii t'· 6 Aquino to try to achieve economic recovery Korean Peninsula On the Korean peninsular we are encouraged by recent overall trends there Of course I recognize that no one has great influence over Kim 11-sung But to the extent that China has greater influence there than we do we hope you will encourage the North Koreans to engage in a meaningful dialogue with South Korea From our standpoint we believe that the links China has developed with Seoul help reduce tensions on the Korean peninsula We welcome that Trade of·fices would be a good further step and would help I also want to express my appreciation to China for its help in arranging U S diplomatic contacts with North Korea Japan We think our relations ·with Japan have a xey role to play in maintaining regional stability We will keep working at these relations 1 but we have some major trade problems with Japan that disturb us and Congress We feel that increased China-Japan ties would also be good for Asian stability I have wondered whether Japan might at some time in the future try to shift its interest toward the Soviet Union by stressing economic relations but I feel that until the Northern Islands issue is solved such a move is most tinlikely Middle East the PLO TnternatiQpal Terrorism I know that we have had differences with you on the Middle East and that they will continue to some degree We are committed to pursuing a comprehensive peace and will try to engage in dialogue with all regional parties to that end I welcome Arafat's recent statement which resulted in our dialogue with the PLO To the degree that China has close ties to the PLO I hope that you will urge the PLO toward moderation I worry very much about elements to the left or radical side of Arafat We continue to be concerned about international terrorism In ·countering terror ism we would like to see China as actively · involved as possible To the extent that Chit1a has influence - with Pyongyang I hope that you could encourage them to take some positive steps Incidentally with regard to the radical elements in the PLO Secretary Baker has asked me to ex press our -- ·- ·----- -·- -- ----- - - 7 ·' ' t · f concern that certain anti-Arafat elements in the PLO will try to disrupt our dialogue with him through radical action We recognize that we have a unique role to play in helping in the Middle East but we do not want to move so precipitously that the move goes up in smoke and nothing happens Having said that the recent steps with the PLO offer some promise We will not stall but we are not now ready to move forward and get out front with a new American plan U S -CHINESE BILATER L ISSUES DiPlamat c Reciproc ty There are a couple of other ma tters I would like to raise more on the bilateral side I strongly urge you to consider our recent request for reciprocity for diplomats on such matters as communications systems · offices housing travel and ability to meet with officials Back in 1974 on instructions from Washington I made a pitch that we be allowed to use the Skylink communications system I hope that our Embassy can ·soon ain the ability to- use that system · China's Economic Reform Achievements In connection with our bilateral eco·nomic and S T issues let rne say that we continue to be impressed very impressed by China 1 s bold initiatives on economic reform It is amazing how people in the United States -- Ambassador Han Xu can confirm this -- are aware of these changes and are impressed by them We are not unaware of pending problems r but the results in terms of increased output expanded trade increased investment and improved living standards represent major achievements for which we have great respect Need for Increased Reliance on Markets Yesterday I had an agonizing talk with President Sarney of Brazil about the Third World debt issuer another major question that concerns us I urged market reform on him -- that is that he base his economy as much as possible on markets This is true not just for Brazil 1 but for all countries -- that there should be an increased role for markets I have great respect for your achievements in stimulating economic growth and incr asing trade and investment with the U S and Europe I congratulate China for its progress in this regard · 8 Flght Against Protection sm I will continue to resist protectionist pressure in the U S and· will do my best to insure that U S markets remain open But · trade has to be a two-way street I and my administration oppose protectionist pressure but I cannot overemphasize the pressure ris_ing in the country and in _the Congress for reciprocity Many powerful elements which previously were anti-protectionist are now willing to go that ro·ute I will resist these pressures and the U S will resist them but the pressures are great · and the answer is greater access to foreign markets I hope to enlist the help of Chinese leadeis to increase protection of intellectual property rights reduce import duties and improve implementation of contracts with foreign firms In turn we will do our best to liberalize export controls and to act favorably on issues of interest to China such as GATT membership It would also be worthwhile to study intensively the possibility o·f a bilateral investment treaty Mr Premier you are expert on this but I like to think that U S firms have made a contribution to China's development especially in the fields of energy and transportation I hope that you will support continued cooperation with U S firms in these areas and _also in telecommunications Renewal of the Science and Technolocry Aareement In science and technology we have got to work 'together in coming weeks to resolve differences and renew the S T cooperation agreement It is an important agreement and should be renewed without interruption to permit the continuation of cooperative activities under it Eurooean Issues There are many other areas that I have not touched on I have just touched the top of tbe iceberg with respect to Third World debt We are very concerned about coming up with a plan for sharing the debt with other significant lenders that will be helpful I don't want to bore you with my · opinion on West European developments in Germany and elsewhere But I do want to say that I intend to keep the alliance as strong as possible We nave some problems there because of Gorbachev' s ability· to appeal to the West with his peace offensive which is very attractive to people there · SECRET 9 South sian Sub-cont 1 nent You probably are more closely identiiied with issues in the sub-continent I am optimis ic about the new leadership in India and Pakistan Rajiv Gandhi and Prime Minister Bhutto seem to be of£ to a good start We have some special concerns about Pakistan which I mentioned last night but we are pleased with Pakistan 1 s help in Afghanistan Eastet n Europe My last point relates to Eastern Europe As the Soviet policies 0£ perestroika and glasnost move forward they create new challenges and opportunities for all of us in our relations with the East European countries There is enormous potential for progress but also enormous potential for danger Thank you for the opportunity to present my views I would be glad after your presentation to take any questions you may have -PRESENT F--TIOtl OF PREMIER LI PENG General Remarks Premier Li Mr President I have listened carefully to your presentation on the international situation and our bilateral relations China is pleased with the relaxation of tensions in the world recently With the signing of the INF treaty between the u S and the Soviet Union some hot spots in the world have been settled and others are in the process of being settled we hope to see a continuation of this trend and that the two big countries wll reach a further agreement on the reduction of strategic nuclear weapons and other types of·nuclear weapons China is now engaged in the four modernizations but we still have a poor and backward economy We need modernization and put modernization at the center of our efforts We need a peaceful international environment and stability at home So we will work for relaxation worldwide Normalization of Sino-soviet Relations It can be said that the p rocess of Sino-Soviet normalization has ------ - -- --- --- -------------------------- - - --- · i w L _ 10 already bequn and will be furthered at the high-level meeting this May -This is all based on the premise that significant progress has been made in the three major obstacles posed by the Soviet Union The Soviet Union has agreed to China's conditions or most of our conditions on the three major obstacles What we want to restore is normal state relations -- that is the situation was abnormal before For a long time China and the Soviet Union were locked in confrontation but now we want relations to be normal again A higher goal is for China and the Soviet Union to become good neighbors but not to have an alliance relationship Proceeding from China's own security interests we do not want an alliance with any country in the world To be frank to what extent the Soviet Union changes its policy we will have to wait and see oviet Problem in Implementing Perestro ka As I discussed with you at dinner last night there is a possibility that to develop its economy the Soviet Union will · -have to decrease its military expenditures This would be conducive to the relaxation of tensions in the world But the Soviet Union is encountering enormous difficulties in implementing perestroika We feel that the Soviet difficulties have occurred because the Soviet people have not gained any practical benefits from perestroika there has been more rhetoric than benefits so the people are not enthusiastic about perestroika For a time the Soviets emphasized economic reform but now they are emphasizing political reform and the process of democratization This latter emphasis may suit the taste of the U S · However the effect of the latter approach may be rather limited and may provoke ethnic problems in the Soviet Union At best it may only arouse the enthusiasm of the intellectuals for perestroika In my view the Soviet Union should mainly concentrate on the economic problems of the country Party-to-Party Relations You might be concerned at the possibility that China will restore party-to-party relations with the Soviet Union In fact we have established party relations with a great many countries in the world which is no more than having contact with party delegations That's what we mean As a matter of· fact we intend to establish such relations with the Republican and Democrati·c parties in the U S that is there will be relations petween your parties and the Chinese Communist Party's International Liaison Department SEGRET - ------ ----- - -- ·- - - - --· - - ------ -- ·- -------- SECRET 11 During his visit to Beijing Gorbachev will meet Party General Secretary Zhao Ziyang Both are Party General Secretaries and that will accomplish restoration of party-to-party relations They will talk but you don't have to worry about that We will not emphasize party-to-par y relations That aspect is not so important Relations Are Indeoendent of Social system Ideology One of China's basic views on inter ational relations is that the st te of relations between countries does not decerid on similarities or differences in social systems or ideologies Of course in approaching Sino-Soviet relations we will also consider possibilities for expanding science and technology and economic cooperation with the soviet Union However the potential in that respect for expansion of these relations is much less than between our two countries After these general remarks point you raised I would like to respond to the Afghanistan We welcome the Soviet withdrawal but are concerned about the possibility that civil war will break out after Soviet troop b 1 withdrawal Pakistani Prime Minister Bhutto told me that the resistan6e forces in Afghanistan have firm determination and are optimistic in their outlook that is that feel they can defeat the Kabul regime by force in a few months While China is not entirely clear about the situation there we think the above estimate is too optimistic we feel that after the Soviet troop withdrawal China has lost' t he basis _Q L continuinq militarv assistance to the resistance forces · b 1 b 1 ------- - ----------- --- --- ··---- -- --- ·-- ------ ----- - - - - ·-·------- SECRET 12 Kampuchea Question- On the Kampuchea question there are two core questions First withdrawal of Vietnamese troops b 1 1 · b 1 Second a quadripartite co lition government headed by Prince Sihanouk Such a govern ent should be established after Vietnamese withdrawal and everyone should support Sihanouk China will not support a monopoly of power by the Khmer Rouge China has made three proposals that explain our approach to this issue All candidates for positions in the new coalition government should be submitted for approval to the other parties If another party objects then that candidate cannot participate in the governmen If there is disagreement on ol Pot then obviously he _cannot participate Troop reductions should be made on a reciprocal basis Each faction should reduce its armed forces to 10 000 soldiers thus c eating a unified national defense force of 40 000 troops There should be international control and supervision and the dispatch of an international peacekeeping force to Kampuchea · All of these moves show support for Prince Sihanouk and will not only restrain the Phnom Penh regime but also the Khmer Rouge But we should also address another tendency i e the possibility of a monopoly 0£ power by the Phnom Penh regime to the exclusion of the other three parties If the Kroner Rouge is excluded then there is no force available to restrain the fbrces of the Phnom Penh reoime in that case the Phnom Penh reairne b 1 ··--- ------------------------------------- --- 13 Actually it does not have much of an independent say but is rather at the beck and call of Vietnam Korea Policy -- North Korea We attach great importance to developments on the Korean peninsula because they are directly related to China It is a good proposal to encourage direct dialogue between North and South Korea China 1 s relations with North Korea are good but our influence is rather limited Our friend over there has great confidence in himself Now Nort-h Korea is somewhat isolated in the international community So we think that they should be allowed to have more contacts with the international community which might encourage them to adopt more flexible policies The more that North Korea is isolated the worse the consequences For instance North Korea is very sensitive to joint military exercises between the U S and South Korea In our view why should such exercises be held to irritate North Korea Korea Polic -- south Koreg For all practical purposes we have already achieved a breakthrough in our relations with Seoul in South Korea in the non-official and commercial area For example we attended the Seoul Olympics With the expansion of economic ties between China and South Korea to protect our economic interests and to make representations it is appropriate and necessary for us to set up a trade office in South Korea However this has not been done up to now But we are not prepared to let relations with South Korea develop into normal official relations Rather relations will remain at a non-governmental level Jauan we know that you are on excellent terms with Japan although we are aware of a number of problems On the whole Sino-Japanese relations are not bad Japan remains our number one trading partner if you exclude the _JfQng Konq area Japan has outstripped the U S in that regard b 1 I b 1 b 1 I ---- ------------ ------ - ee---Japanese military expenditures now exceed one percent of GNP and the actual figure exceeds U S $30 billion a figure that is much greater than China's military expenditures SFQBlt •· • · ····· i1 r E r -·- ·--·--·-·-·· ---------------- 14 Middle East and the PLO We express appreciation for the recent U S announcement of its readiness to enter into dialogue with the PLO The Middle East is a big hot spot which should be settled Recently r Mr Khadumi the chief of the political office of the PLO a person who is equivalent to their foreign minister visited China In our talks with him we encouraged the PLO to take a more flexible policy He is a top PLO official He indi6ated readiness to go along that line The U S has a big influence on Israel You should encourage Israel to change its intransigent policy One should give people a way out The PLO is still an exile government BTLATERAL RELATTONS s 1 no-U S Relations Are Good Sino u s relations are good Relations are developing steadily China's leaders are pleased and hope to see continued development of relations The problems you have mentioned -- reciprocity housing communications travel -- are of secondary importance They can be solved by the Departments concerned under the coordination of the Ministry of Foreign Affairs and on the basis of mutual understanding I have confidence in thes e departments 5ino-U S Economic Trade and Investment Relations You also talked about the need to strengthen Sino-U S relations through the conclus•ion of agreements in the economic area We also attach importance to a bilateral investment treaty and to intellectual property rights We already have a patent law in China and are now drafting a copyright law which will soon be submitted for discussion We would also like to continue improving the investment climate in China We hope to see increased U S investment The percentage of U S investment in comparison to total investment is quite high We appreciate that and want more We are improving China's investment climate to protect the ability of lJ S inv estor s to exercise their normal i ights under bilate-ral agreements ------ - - ·-- -------- - 15 Qopo sition to T2 iwan's Elast-ic Diolomacy We attach great importance to the Taiwan issue We listened to your reiteration of the importance of the three Communiques and we express our appreciation Recently Taiwan has relaxed its policy to an extent and there has been increased interchange of people across the Taiwan Strait This is a good thing On the other hand there is also a trend toward independence in Taiwan which is also developing For instance Taiwan is now practicing its so-called elastic diplomacy which is a bid to return to the international community which in essence is trying to create two Chinas We are very much concerned about that We hope that the O S will not support the so-called elastic foreign policy on the part of the Taiwan authorities u s Contacts with Taiwan Should Be Unofficial The U S has many economic and trade ties with Taiwan and this we understanq Since the ties are already there there must be·contacts but the contacts should be non-governmental This is stipulated in the_Sino-U S agreements But if such contacts should be revised to a level of an official nature i e contacts involving high-ranking offici e3-ls of the Q S including even department secretaries and cabinet members then we would be most displeased Opposition to u s Interference in Domestic Politica Another question is that some Americans try in one way or another to influence China's policy To be more blunt this smacks of interference in China's internal affairs and·we are not happy about it Of course in the past this phenomenon came mainly not from the U S Government but from various walks and circles including members of Congress and others who make trouble on this or that question We are not pleased We would be even more unhappy if this were raised to the level where there was interference by government officials We have no business to interfere if the U S observes developments in China from its own point of view but if it tries to impose this view on us we will oppose this · Reform Requires a Strong Chinese Government As you know Chinese society is entirely different from U S -----··· - s cm 16 socie y We are at entirely different development levels China is a developing country and is still very poor One should not look at Beijing ·rn other areas there is real poverty Some people do not have enough food to eat China is engaged in economic development and reform Reform itself is a big transformation and the situation is very complicated We thank you for your support of our reform On·the other hand we hope that you will also support our view that to improve the domestic economic environment we need a strong government in China We hope to see the continuation of a good trend in the development of relations between our two countries so I particularly stress the above points As old friends I feel I can talk in this very frank way With others I might not approach the question in this manner Anti-Protectionist Position We know that the Reagan administration and you have resisted U S trade protectionist pressures in the U S Regardless of whether one says that Sino-U S trade was U S $14 billion as you asserted or U S $10 billion as China asserts the point is still the same that Sino-u s trade is a small percentage of total U S trade In the final analysis our dollars earned from trade with you go back to the U S when we buy advanced American technology and equipment including military equipment All these things cost money including the military equipment the prices of which in the U S are very high So it is really an exchange of money 1 and ultimately the money from the U S goes back to the U S China to AdoPt Measures to Protect u s Hiah Technology On the question of transfer of sensitive high technology to China we understand that the U S has concerns The Chinese government will adopt even stricter measures to ensure that there is no proliferation sic Le no further dissemination of such technology Perhaps we should set aside some time for deeper discussion of these questions r REf No --· - _ • 17 5 FiCRM-- Agreement on the Peace cor9s in China President Bush Thank you for your full and frank presentation There are a couple of items which I forgot to mention in which I have a personal interest One is the Peace Corps We are very pleased that China has agreed to receive Peace Corps representatives I strongly urge that we get on with the practical details and the exchange of letters We would like a response to our draft proposal The whole concept of teaching English in Sichuan is good China is so big that it is a drop in the bucket but it is a good symbol of our improved relations So I hope that we can get on with that I have a couple of more comments on what you said I made some notes as you were speaking so with your permission I will make some comments in no particular order · Afghanistan Resupply On the question of Afghan resupply the Soviet Union said they were not happy with my recent statement on Afghanistan in which I said that they had left a large amount of military equipment behind in Afghanistan I said that we could not permit an imbalance in military strength to result We have incontrovertible evidence that after the Soviets left they are resupplying the Najibullah government So I am pleased China will do what you said it would do I listened very carefully to what you said We don't want to throw a lot of arms into Afghanistan and to undermine peace But we do not want to allow an imbalance to develop that would cause the resistance to lose in peace what they gained through fierce fighting Cambodia Vietnam One comment on Cambodia and Vietnam Some in the u s· feel that we should dramatically improve relations with Vietnam but I am very wary of that action Even if Vietnam does the right thing in Cambodia we will still proceed very caut _ously with Vietnam I -lust wanted vou to know that I b 1 b 1 1 b 1 b 1 we· think we should all stay together as much as possible and not go off on separate tracks aECRBI QC'D PCT •• •• -• • r f • '•-- - ·--------------·------- 18 Premier Li Incidentally from March 15 Prime Minister Chatchai will visit Beijing at ·my invitation President Bush Good He is a good man we have good relations with him But we are worried about that step he took The North Korean Leader w1th Great Confidence Forgive me for smiling when you said that the leader of North Korea has great confidertce in himself That is a classic understatement Amused laughter among both the American and the English-speaking members of the Chinese delegation But I want to say that the U S sees no use in a direct dialogue with _North Korea on this question The dialogue must be direct North-South dialogue Renewed Imperialist Designs in Japan On Japan and its military expenditures I am curious whether you worry about military expenditures as a step toward renewed imperialism or imperialist designs Some in the U S say that Japan is rich and got extraordinarily rich off of one-sided trade with the U S so we should make them do more in the military sphere I do not share that feeling I am cautious We are torn because for the common good we would like to-see as much cooperation as possible but we are sensitive to concerns 1 particularly in Asia about possibilities for future military expansionism Commitment to Three communiques Position on Ta 1wan On Taiwan let me reiterate that we will do nothing to encourage an independence movement or discussion or rhetoric with regard to this que·stion that so concerns China I noted your response regarding official contacts We will live by the three Communiques But I repeat that we are _in less good shape than if we could make clear to Taiwan our dissatisfaction with their enormous trade surplus But nonetheless I have made my point and we will live by what I said we would do They are clearly taking advantage of a lot of their trading partners If you need examples Secretary Baker would be happy to provide them We are fighting with ·one hand·tied behind our back but we will live by w hat we said I just want to reiterate our commitment to the three Communiques - ·-----·-- SFQRE t 19 Chinese Missile sales The last matter concerns the question of missile sales I wonder if it would be useful to form some kind of group to discuss this sensitive matter I think you know hat we are concerned about missile proliferation We have been discussing it in meetings between delegations from both sides but if you think that this small group would be useful we could organize something We are very concerned about this Premier Li On the missile question last year Chairman Deng Xiaoping assured then-U S Secretary of Defense Carlucci that China would no longe -5 ell intermed_i_ te-i aD ge ballistic missiles to other countries I b 1 b 1 b 1 I You are aware or the fact that except for 1 China has not provided such m ssiles to any country n er sue circumstances __ __ perhaps it is not necessary to have a special group set up to discuss this question We can discuss this topic at any timer whenever you have any new ideas President Bush This question is not just one with China We have problems with other nations as well But we can leave it at that It is not just Chinese missiles but that is agreeable with us Peace corps to Be Called Sino-u s Friendship Volunteers Premier Li You mentioned tbe Peace Corps Agreement has been reached for these people to be called ttsino-u s Friendship Volunteers This name sounds better in China We will respect the agreement The technical details can be solved After the initial small group of volunteers has worked to gain credibility among the Chinese people then we can consider expansion of the· program The Chinese have a saying The beginning is the hardest part This afternoon you will meet Communist Party General Secretary Zhao z yang Now there is no time to discuss economic reform and development but he will brief you as you suggested last night At 11 00 a m you will be meeting Deng Xiaoping ---'----- --- ·- ·- - That will be - ---··- ·- ______ ---·--------- ·- ----- ----- - ----- ·-------------------- 20 the climax of your visit He remains China's paramount leader His habit is to talk about his subjects such as the international scene and the norms governing bilateral relations but he leaves the details to us The -President's A ppreciat-lon of Deng x aopinc President Bush I would not say this to him directly because he would think that it is excessive flattery but the respect level for Deng Xiaoping around the world is high People do not agree with him of course on all issues But the way he addresses broad issues has gained him tremendous respect at least among the countries we deal with It is funny how little courtesies are long remembered When Barbara and I left China I was not an ambassador because we did not have diplomatic relations Though we did not meet on a dayto-day basis I think that he sensed our deep friendship for China and the Chinese people So when we were leaving we came in through a side door of the Great Hall of the People where he gave an unprecedented small luncheon for us which he hosted· himself This was a very significant gesture In the U S we have a saying What goes around comes around So I have come back as President and in my heart is the memory of this extraordinary couriesy Premier Li There is a long-term friendship between you and Chairman Deng The news media in China has already reported that While expressing general appreciation for the President's remarks Premier Li then stood up and escorted President Bush to the door of the Xinjiang Room --------- ----- ·- --- --