U.S. Asia Pacific Council Washington REPORT News and analysis from Washington, D.C. about key issues in U.S.-Asia Pacific Relations Volume 1 January 2008 Top-Level Communications Are Key To Managing Challenges In U.S-Asia Pacific Ties USAPC Interview with Ambassador J. Stapleton Roy The United States faces a number of challenges in its rela- USAPC: In late November 2007, the Chinese Navy tions with the nations of the Asia Pacific owing to important refused to allow U.S. naval vessels to enter the port of changes in the nations themselves as well as in the dynamics Hong Kong on two occasions.1 The U.S. Navy respond- between them. China’s rise economically, diplomatically, and ed in a manner that the Chinese government viewed as militarily will continue to cause tensions and misunderstand- provocative. ings between Washington and Beijing. India’s emergence as an What are the implications of these episodes on U.S.- important player in East Asia likely will fuel competition with China military exchanges and U.S. perceptions of China, which, in turn, may pose new problems for the U.S. China’s military strategy? diplomacy. And Washington’s erstwhile Asian ally, Japan, is striving to grow beyond its “junior partner” status, which cre- Roy: These types of incidents really illustrate what ates “enormous conceptual problems” for the United States, can happen to U.S.-China relations and U.S. relations according to Ambassador J. Stapleton Roy. with East Asia if the relationship between the United The key to managing these fluid developments, according States and China is not handled properly. With good to Roy, is to maintain open channels of communication and management, even sharp, substantive disagreements establish regular contacts at the highest levels of government. between the two sides can be handled without causing continued on page two U.S.-China Talks Continue Inside This Issue 2 Official Washington To Disappoint Congress State Department Personnel 3 Congressional Watch The United States and China successful. They produced agree- Burma Human Rights held two high-level economic dia- ments on issues as wide-ranging as Product Safety China Review Commission Report logues in Beijing on December 11−13, the safety of food, consumer prod- the Joint Commission on Commerce ucts, drugs and medical devices, 6 USAPC/EWC on the Hill tourism promotion, environmental China-Taiwan Prospects and Trade (JCCT) followed by and U.S.-Southeast Asia Trade the U.S.-China Strategic Economic management, and energy efficiency. Dialogue (SED). The former focuses “The SED has proven to be an effec- 7 Asia Pacific Dialogue APEC Informal SOM on resolving specific, pressing trade tive forum for progress, and I look APEC Finance SOM issues, while the latter serves as an forward to continuing progress in CSCAP Steering Committee Meets Official Meetings: January− overarching framework to consider managing our economic relation- February 2008 longer term issues in U.S.-China eco- ship,” Treasury Secretary Henry 8 USAPC in the Region nomic relations. Paulson said following the SED. PECC State of the Region Report Judging by the statements and No Currency Agreement—Key PECC Project: Asia Pacific fact sheets issued by the Bush Members of Congress appeared Education Market PECC Project: Demographic Administration, the dialogues were unimpressed by these results. They Change and Labor Mobility continued on page three published by the East-West Center U.S. Asia Pacific Council 1819 L Street, N.W., Suite 200, Washington, D.C. 20036 Ph: 202.293.3995 Fax: 202.293.1402 www.usapc.org/ continued from page one Official Washington Roy Interview In each issue, Washington Report will provide the names and contact information for selected executive friction. But if relations are not managed well, incidents branch officials with jurisdiction over economic, political, such as the ones involving the U.S. naval vessels tend to and security issues important to U.S.-Asia Pacific rela- enflame a difficult situation even further. They create ten- tions. This issue will focus on pertinent personnel from the sions and potential dangers that may reverberate State Department. throughout the region and even globally. These incidents, in and of themselves, are trivial. In Mailing Address (unless otherwise indicated): their symbolic importance, however, they are not the Department of State slightest bit trivial. If the U.S. and Chinese militaries can- Harry S. Truman Building (HST) not resolve matters such as a Hong Kong port call, how 2201 C Street, N.W., Washington, D.C. 20530 can they handle larger, more complex issues that will be generated as China continues to rise economically and Bureau of East Asian and Pacific Affairs: militarily? Christopher R. Hill - Assistant Secretary for East China’s rise will pose challenges not just for the Asian and Pacific Affairs - HST 6205, 202.647.9596 United States, but also for China’s neighbors. And China Glyn Davies - Deputy Assistant Secretary (Australia, lives in a neighborhood where its neighbors include not New Zealand, and Pacific Islands) - HST 6205, only small and middle-sized countries, but also global 202.647.8929 powers. Thomas J. Christensen - Deputy Assistant Secretary Japan certainly is a global economic power. And in (China, Taiwan, and Mongolia) - HST 6205, conventional military terms, Japan also is a very powerful 202.647.6910 country. India, of course, is a nuclear power. And Russia Alex A. Arvizu - Deputy Assistant Secretary (Japan, still maintains a significant military capability. So China Korea) - HST 6205, 202.736.8929 has neighbors that are important countries in their own Scot Marciel - Deputy Assistant Secretary (Southeast rights. Asia) - HST6205, 202.647.6904 Patricia H. Haslach - U.S. Senior Official for the Asia- USAPC: How do we improve the management of Pacific Economic Cooperation (APEC) forum - HST U.S.-China relations so these sorts of incidents do not 6205, 202.647.7266 recur? James Zumwalt - Director, Office of Japanese Affairs - HST 4206, 202.647.1311 Roy: The irony is that these incidents occurred short- Sung Y. Kim - Director, Office of Korean Affairs - ly after the United States resumed military exchanges HST 4206, 202.647.7719 with the Chinese military. After the EP-3 incident in April C. Steven McGann - Director, Office of Australia, 2001,2 the U.S. Defense Department essentially froze mili- New Zealand, and Pacific Island Affairs - HST 4312, tary exchanges with China. In my judgment, that was 202.736.4659 extremely unwise. John Norris - Director, Office of Chinese and The more problems we have with China, the more Mongolian Affairs - HST 4318, 202.647.6787 exchanges we should have because we need to know the Blair P. Hall - Director, Office of Regional and other side and the other side needs to know us. That is Security Policy Affairs - HST 5313, 202.647.2278 the best way to resolve disagreements. I have yet to read Clifford A. Hart, Jr. - Director, Office of Taiwan a marriage manual that says you should freeze all com- Coordination - HST 4312, 202.647.7712 munications if you are having problems with your part- ner. This applies in the international sphere as much as it Office of the Under Secretary for Public Diplomacy does to personal relationships. and Public Affairs: We need open channels of communication. The more James Glassman (nominated) - Under Secretary for serious the problems are, the more important it is to Public Diplomacy and Public Affairs - HST 7261, maintain open channels of communication. 202.647.9199 Goli Ameri (nominated) - Assistant Secretary for USAPC: What about the role of Russia in the Asia Educational and Cultural Affairs - SA-44, 301 4th Pacific? The Russians have not really distinguished Street, S.W., Washington, D.C. 20547, 202.203.5118 themselves in the Six-Party Talks aimed at ending North Korea’s nuclear program. continued on page four 2 January 2008 Congressional Watch Legislative Activity: Potential China-targeted elements of the bills were In the closing days of the first session of the 110th were a provision that would place U.S. inspectors at for- Congress, lawmakers acted on several bills relevant to eign ports and a provision that would impose tougher U.S.-Asia relations. penalties on foreign and domestic entities that sell Burma Human Rights— On December 10, unsafe products. 2007, the House unanimously passed the “Block Burmese Junta’s Anti-Democratic Efforts (JADE) Act,” Special Reports: sponsored by Representative Tom Lantos (D., U.S.-China Economic and Security Review California), chairman of the House Foreign Affairs Commission Annual Report to Congress—On Committee. The bill would freeze the assets of the November 15, 2007, the U.S.-China Economic and Burmese military elite, but also prohibit U.S. banks Security Review Commission presented its 2007 annual from maintaining accounts used by a foreign banking report to Congress. The 12-member, bipartisan body entity on behalf of these officials. In addition, the bills made 42 recommendations to Congress for further clarify that the prohibition on Burmese imports encom- action. passes gemstones and hardwoods. Nine days later, the In the economic area, the Commission recommend- Senate passed an amended version of the Lantos bill, ed that Congress urge the administration to bring a sponsored by Senator Joe Biden (R., Delaware), chair- World Trade Organization case against China for man of the Senate Foreign Relations Committee. The manipulating its currency to gain unfair trade advan- House adjourned shortly thereafter, however, without tage. The panel also expressed support for legislation to voting on the amended version. define currency manipulation as an illegal export sub- On December 17, the House also passed legislation sidy and allow the subsidy to be taken into account that would award the Congressional Gold Medal to when determining punitive tariffs.