U.S. Relations With the People's Republic of China (2008)

U.S. Department of State

Daily Press Briefing

Tom Casey, Deputy Spokesman
Washington, DC
February 27, 2008

12:48 p.m. EST

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QUESTION: CNOOC, China's national oil company has just signed a $16 billion gas deal with Iran -- South Pars development. Can you comment on whether you will be talking with China? I don't know if Hill is still in Beijing or not. Will there be an investigation of potential sanctions, any other comments you may have?

MR. CASEY: Is this something other than what they've been talking about for the last four or five months?

QUESTION: Well, now it's -- there's been a lot of talk. This is actual -- the signing of the deal.

MR. CASEY: Well, I'm not familiar with what they may or might not have signed today. Oftentimes as not, these are agreements to cooperate in the future or to do something --

QUESTION: It's not an MOU.

MR. CASEY: Well, again, I haven't seen it. Certainly any time there are any -- first of all, as a matter of general policy, we don't believe that now is the time for any country to be making new investments in Iran, whether that's in the energy sector or any place else.

As you know, there is specific legislation that does cover and potentially sanction investments made in Iran's oil and gas sector. There are specific legal standards set to that. Certainly, to the extent that this deal raises any questions about it, I'm sure people will look at it. A small portion of that review would take place here. But of course, the vast majority of that would be over at the Department of Treasury and you might want to check with them to see if they have anything more on it.

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QUESTION: A readout on the six-party talks.

MR. CASEY: Yeah.

QUESTION: Assistant Secretary Hill is staying in Beijing right now. And has he met with his counterpart Kim Gye Gwan of North Korea or if he hasn't yet, has he any plan to meeting with him?

MR. CASEY: You know, he met with Kim Gye Gwan I guess it was last week -- yeah, I guess it was last week -- in his preliminary travels to China in part as the setup or lead up to the Secretary's visit here. As you know, the Secretary asked him to stay on in China after she departed because she felt it would be useful for him to continue some of the discussions about how we would like to try and move the six-party process forward. As far as I know at this point -- I certainly haven't spoken to Chris -- there's no plans for him to meet with Kim Gye Gwan there. I'm sure if he believes it useful and the North Koreans believe it would be useful as well, they could arrange a meeting, but I don't think there's anything planned at this time.

QUESTION: Thank you.

(The briefing was concluded at 1:18 p.m.)