Cable Viewer

Currently released so far... 25416 / 251,287

### Articles

Brazil Sri Lanka United Kingdom Sweden 00. Editorial United States Latin America Egypt Jordan Yemen Thailand

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05 2011/06 2011/07 2011/08
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05 2011/05/06 2011/05/07 2011/05/08 2011/05/09 2011/05/10 2011/05/11 2011/05/12 2011/05/13 2011/05/14 2011/05/15 2011/05/16 2011/05/17 2011/05/18 2011/05/19 2011/05/20 2011/05/21 2011/05/22 2011/05/23 2011/05/24 2011/05/25 2011/05/26 2011/05/27 2011/05/28 2011/05/29 2011/05/30 2011/05/31
2011/06/01 2011/06/02 2011/06/03 2011/06/04 2011/06/05 2011/06/06 2011/06/07 2011/06/08 2011/06/09 2011/06/10 2011/06/11 2011/06/12 2011/06/13 2011/06/14 2011/06/15 2011/06/16 2011/06/17 2011/06/18 2011/06/19 2011/06/20 2011/06/21 2011/06/22 2011/06/23 2011/06/24 2011/06/25 2011/06/26 2011/06/27 2011/06/28 2011/06/29 2011/06/30
2011/07/01 2011/07/02 2011/07/04 2011/07/05 2011/07/06 2011/07/07 2011/07/08 2011/07/10 2011/07/11 2011/07/12 2011/07/13 2011/07/14 2011/07/15 2011/07/16 2011/07/17 2011/07/18 2011/07/19 2011/07/20 2011/07/21 2011/07/22 2011/07/23 2011/07/25 2011/07/27 2011/07/28 2011/07/29 2011/07/31
2011/08/01 2011/08/02 2011/08/03 2011/08/05 2011/08/06 2011/08/07 2011/08/08 2011/08/09 2011/08/10 2011/08/11 2011/08/12 2011/08/13 2011/08/15 2011/08/16 2011/08/17 2011/08/18 2011/08/19 2011/08/21 2011/08/22 2011/08/23

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/05 1985/06
1986/05 1986/08 1986/12
1987/06
1988/01 1988/03 1988/04 1988/07 1988/08 1988/09 1988/12
1989/01 1989/06 1989/12
1990/01 1990/07 1990/08 1990/10
1991/05 1991/06 1991/07 1991/11
1992/01 1992/03 1992/06 1992/09 1992/11 1992/12
1993/01 1993/02 1993/04 1993/10 1993/12
1994/05 1994/11 1994/12
1995/01 1995/04 1995/06 1995/11
1996/07 1996/08 1996/09 1996/11
1997/02 1997/03 1997/05 1997/06 1997/08 1997/10 1997/11 1997/12
1998/05 1998/12
1999/01 1999/09 1999/12
2000/04 2000/05 2000/06 2000/09 2000/11 2000/12
2001/02 2001/03 2001/04 2001/05 2001/06 2001/07 2001/09 2001/10 2001/11 2001/12
2002/01 2002/02 2002/03 2002/04 2002/06 2002/07 2002/08 2002/09 2002/11 2002/12
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Alexandria Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Belfast Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chiang Mai Consulate Chennai Consulate Chengdu Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai Consulate Dhahran
Embassy Freetown Consulate Fukuoka
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guangzhou Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Hong Kong Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Izmir Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata Consulate Karachi
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy Libreville Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Mission Geneva Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maseru Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne Consulate Matamoros
Embassy Nouakchott Embassy Nicosia Embassy Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Nuevo Laredo Consulate Naples Consulate Naha Consulate Nagoya
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sapporo Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana Consulate Thessaloniki
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE UN Rome Embassy Ulaanbaatar
Embassy Vilnius Embassy Vientiane Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ASEC AEMR AMGT AR APECO AU AORC AJ AF AFIN AS AM ABLD AFFAIRS AMB APER AA AE ADM ACOA AID ASEAN AMED AORG APEC AY AL AGOA ATRN AG ALOW AND ADB ABUD ASPA ADPM ADANA AFSI ARABL ADCO AFSN ACABQ AO ANARCHISTS AZ ANET AMEDCASCKFLO AADP AGRICULTURE AINT ARR ARF AINF APRC AFSA AX AINR AODE APCS AROC AGAO ASUP AIT ARCH AEMRASECCASCKFLOMARRPRELPINRAMGTJMXL AMEX ARM AQ ATFN AMBASSADOR ARAS ACBAQ AC AOPR AREP ASIG ASEX ASCE AER AGR AVERY ASCH AEMRS AFU AMG ATPDEA ASECKFRDCVISKIRFPHUMSMIGEG AORL AN AGMT ACS AMCHAMS AECL AUC AFGHANISTAN ACAO
BR BB BG BEXP BY BA BRUSSELS BU BD BK BL BE BMGT BO BTIO BX BC BH BM BN BAIO BUSH BRPA BILAT BF BOEHNER BOL BIDEN BP BURNS BBG BBSR BT BWC BEXPC BTIU
CPAS CA CASC CS CBW CIDA CO CODEL CI CROS CU CH CWC CMGT CVIS CDG CG CF CHIEF CJAN CBSA CE CY CB CW CM CHR CD CT CTERR CVR CDC CN CONS CR CAMBODIA CACS COUNTRY CFIS CONDOLEEZZA CEN CZ CLEARANCE CARICOM COM CICTE CYPRUS CITES CV CBE CMGMT COE CIVS CFED COUNTER CAPC COPUOS CARSON CTR CKGR CLINTON COUNTERTERRORISM CITEL CQ CSW CIC CITT CARIB CAFTA CACM CDB CJUS CTM CAN CAJC CONSULAR CLMT CBC CIA CNARC CIS CEUDA CHINA CAC CL
DR DJ DB DA DHS DAO DCM DO DEFENSE DK DOMESTIC DISENGAGEMENT DAC DOD DCG DE DOT DPRK DEPT DEA DOE DTRA DS DEAX
ECON ETTC EFIS ETRD EC EMIN EAGR EAID EFIN EUN ECIN EG EWWT EINV ENRG ELAB EPET EN EAIR EUMEM ECPS ES ELTN EIND EZ EU EI ER ET EINT ENGR ECONOMIC ENIV EFTA ESTH EET EUREM ENV EAG EAP ECONOMY ELECTIONS ETRO ECIP EPEC EXIM ERNG ENERG ED EREL ELAM EK EDEV ENGY ETRDEC ECCT EPA ENGRD ECLAC ETRAD ENVR ELTNSNAR ELAP ETRC EPIT EDUC EFI EEB EETC EIVN ETRDEINVECINPGOVCS ETRDGK ENVI EXTERNAL ELN EAIDS ECOSOC EDU EPREL EINVEFIN EAGER ECA ETMIN EIDN EINVKSCA EFINECONCS ETC EINN EXBS ECONOMICS EIAR EINDETRD ECONEFIN EURN ETRDEINVTINTCS EFIM EINVETC ECONCS EDRC ENRD EBRD ETRA ESA EAIG EUR EUC ERD ETRN EINVECONSENVCSJA EEPET EUNCH ESENV ENNP ECINECONCS ETRDECONWTOCS ECUN
FR FI FOREIGN FAO FARM FARC FAS FJ FREEDOM FINANCE FBI FTAA FM FCS FAA FTA FK FT FAC FDA FINR FOR FOI FO FMLN FISO
GM GERARD GT GA GG GR GTIP GE GH GY GB GJ GLOBAL GEORGE GCC GC GV GAZA GL GOV GOI GF GTMO GANGS GAERC GZ GUILLERMO GASPAR
HR HA HYMPSK HO HK HUMAN HU HN HHS HUD HUMANR HSTC HURI HILLARY HI HUM HEBRON HUMOR
IZ IN IAEA IS IMO ILO IR IC IT ITU IV IMF IBRD IWC IPR IDB ID IRAQI ISRAELI ITALY ITPGOV ITALIAN IADB ICAO ICRC INR ICJ ICCAT IFAD IO ITRA INL IAHRC IRAQ INMARSAT INRA INTELSAT INTERNAL ILC IRS INDO IIP IND IEFIN IQ ISCON ICTY IA INTERPOL IEA INRB ISRAEL IZPREL IRAJ IF ITPHUM IL IACI IDA ISLAMISTS IGAD ITF INRO IBET IDP ICTR IRC
JA JO JM JP JOHN JUS JN JAMES JOSEPH JOHNNIE JML JIMENEZ
KMDR KPAO KOMC KNNP KFLO KDEM KSUM KIPR KFLU KE KCRM KJUS KAWC KZ KSCA KDRG KCOR KGHG KPAL KTIP KMCA KCRS KPKO KOLY KRVC KVPR KG KWBG KTER KS KN KSPR KWMN KV KTFN KFRD KSTH KISL KGIC KSEP KFIN KTEX KTIA KUNR KCMR KMOC KCIP KTDB KBIO KSAF KU KHIV KNNNP KSTC KNUP KIRF KIRC KNUC KHLS KTDD KMPI KIDE KMFO KSEO KJUST KPIR KIVP KICC KCFE KSCS KGLB KPWR KCUL KPOP KPALAOIS KR KTTB KCOM KESS KWN KCSY KREL KTBT KRFD KFLOA KPOL KIND KBCT KSKN KOCI KHUM KPRP KREC KICCPUR KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KGIT KMCC KPRV KAUST KPAS KPAOPREL KIRP KLAB KHSA KPAONZ KICA KCRIM KHDP KNAR KSAC KCRCM KINR KGHA KIIP KPAOY KTRD KTAO KWAC KACT KSCI KNPP KMRS KNNPMNUC KBTS KERG KLTN KTLA KNDP KO KAWK KVRP KPOA KVIR KENV KAID KX KRCM KFSC KCFC KNEI KCHG KPLS KFTFN KTFM KLIG KDEMAF KRIM KRAD KBTR KGCC KPA KSEC KPIN KDEV KWWMN KOM KWNM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KRGY KIFR KWMNCS KFPC KPAK KOMS KDDG KCGC KPAI KID KMIG KNSD KWMM
LY LE LABOR LH LAB LTTE LT LO LI LU LA LVPR LG LR LOG
MARR MX MASS MOPS MNUC MCAP MTCRE MRCRE MTRE MASC MY MK MCC MO MAS MG MC MCA MZ MI MIL MU MR MT MTCR ML MN MURRAY MEPP MP MINUSTAH MA MD MAR MAPP MOPPS MTS MLS MILI MEPN MEPI MEETINGS MERCOSUR MW MIK MAPS MV MILITARY MARAD MDC MACEDONIA MASSMNUC MUCN MEDIA MQADHAFI MPOS MPS
NZ NATO NI NO NU NG NL NPT NS NSF NP NA NANCY NRR NATIONAL NASA NC NDP NIH NIPP NK NSSP NEGROPONTE NGO NAS NE NATOIRAQ NR NAR NZUS NARC NCCC NH NSG NAFTA NEW NT NUIN NOVO NATOPREL NEA NSC NV NPA NSFO NW NORAD NPG NOAA
OPRC OTRA OECD OVIP OREP ODC OIIP OPDC OAS OSCE OPIC OMS OEXC OPCW OIE OSCI OFDP OPAD ODPC OCEA ODIP OMIG OM OFFICIALS OEXP OPEC OVIPPRELUNGANU OSHA OSIC OHUM OTR OSAC OBSP OFDA OVP ON OCII OES OCS OIC
PGOV PREL PARM PINR PHUM PM PREF PTER PK PINS PBIO PHSA PE PBTS PA PL POL PAK POV POLITICS POLICY PKO PNAT PELOSI PP PRE PUNE PALESTINIAN PAS PO PROV PH PLAB PCI PERM PETR PRELBR PETERS PROP PBS POLITICAL PMIL PJUS PG PREZ PGIC PAO PRELPK PGOVENRG PATTY PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PAIGH PROG PMAR PU PTE PDOV PGOVSOCI PY PETER PGOR PBTSRU PRAM PARMS PINL PSI PPA PTERE PREO PERL PGOF PINO PRGOV PORG PS PGVO PKFK PSOE PEPR PDEM PINT PRELP PREFA PNG PTBS PFOR PGOVLO PHUMBA POLINT PGOVE PHALANAGE PARTY PECON PLN PHUH PEDRO PF PHUS PARTIES PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PHUMPREL POGOV PEL PBT PINF PRL PSEPC POSTS PAHO PHUMPGOV PGOC PNR
QA QI
RS RP RU RW RFE RCMP RIGHTSPOLMIL RO ROBERT RM ROOD RICE REGION RGY RELFREE RELAM RSP RF RELATIONS RIGHTS RUPREL REMON RPEL REACTION REPORT RSO
SZ SENV SOCI SNAR SO SP SU SY SI SMIG SYR SA SCUL SW SR SYRIA SNARM SPECIALIST SG SF SENS SEN SENVEAGREAIDTBIOECONSOCIXR SN SC SECRETARY SNA ST SK SL SANC SMIL SCRM SENVSXE SE SAARC STEINBERG SCRS SWE SARS SENVQGR SNARIZ SUDAN SAN SM SIPDIS SFNV SSA SPCVIS SOFA SENVKGHG SHI SEVN SHUM SH SNARCS SPCE SNARN SIPRS
TW TRGY TBIO TSPA TU TPHY TI TX TH TIP TSPL TNGD TS TRSY TC TINT TZ TN TT TR TA TIO TF TK TRAD TNDG TWI TD TWL TERRORISM TL TV TP THPY TO TURKEY TSPAM TREL TRT TFIN TAGS TWCH TBID
UK UNSC UNGA UN US UZ USEU UG UP UNAUS UNMIK USTR UY UNSCR UNRCR UNESCO USAID UNHRC USAU UNICEF UV USPS UNFICYP UNDP UNCITRAL UNHCR UNCSD UNEP USCC UNMIC UNTAC USUN USDA UNCHR UR UNCTAD USGS UNFPA USOAS USNC UA UE UNVIE UAE UNO UNODC UNCHS UNDESCO UNC UNPUOS UNDC UNCHC UNFCYP UNIDROIT UNCND
VM VE VT VZ VEPREL VN VTEG VOA VTIZ VTPREL VISIT VENZ VAT VC VI
WHTI WIPO WTRO WTO WHO WEET WCL WFP WS WHA WA WZ WI WMD WBG WILLIAM WWARD WITH WTRQ WCO WEU WMO WB
XA XX XK XL XM XS XF XR XY XG XT XI XE XW XC XH XD XU XV XB XZ XQ XTAG
YI YM YE YL YMCS
ZU ZI ZOELLICK ZP ZR ZK ZA ZO ZF ZL ZB ZN ZH ZT ZJ ZEALAND ZANU

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 07BEIJING6936, CHINA/ENERGY: TENSION AMID SHORTAGES AND PRICE HIKES

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07BEIJING6936.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07BEIJING6936 | 2007-11-01 09:06 | 2011-08-23 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Beijing

`

    VZCZCXRO5111
    PP RUEHCN RUEHGH RUEHVC
    DE RUEHBJ #6936/01 3050906
    ZNR UUUUU ZZH
    P 010906Z NOV 07
    FM AMEMBASSY BEIJING
    TO RUEHC/SECSTATE WASHDC PRIORITY 3194
    RHMFIUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
    INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY
    RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
    RUCPDOC/USDOC WASHDC PRIORITY
    RHEHNSC/NSC WASHDC PRIORITY

` `

    UNCLAS SECTION 01 OF 02 BEIJING 006936

    SIPDIS

    SIPDIS
    SENSITIVE

    STATE FOR EAP/CM PSECOR, AND EB/ESC SIMONS AND HAYMOND
    DOE OEA FOR CUTLER, NAKANO
    TREASURY FOR OASIA DOHNER, CUSHMAN
    USDOC FOR 4420
    USTR FOR STRATFORD/WINTER/ALTBACH/MCCARTIN

    E.O. 12958: N/A
    TAGS: ECON ENRG EINV PGOV EPET EFIN CH
    SUBJECT: CHINA/ENERGY: TENSION AMID SHORTAGES AND PRICE HIKES

    REF: Beijing 1734

    -------
    SUMMARY
    -------

    ¶1. (SBU) Amidst fuel shortages and even the death of a line-jumper
    at a gas station in Henan Province, China's National Development and
    Reform Commission (NDRC) has raised refined oil prices by USD
    9/barrel and gasoline/diesel prices at the pump by 20 US cents per
    gallon.  The goal is to encourage domestic oil refiners to increase
    production.  Oil refiners, unable to pass through increased costs
    for imports, have recently faced significant losses.  Government-run
    refiners have continued to produce under pressure, but the
    independents, which account for around 15 percent of the country's
    refining capacity, have moved away from gasoline/diesel and will
    likely find today's price hike insufficient to resume production.
    Another headache for the government may be consumer outrage at
    paying higher prices amid continued shortages.  END SUMMARY.

    --------------------------------------
    BEIJING UNEXPECTEDLY RAISES OIL PRICES
    --------------------------------------

    ¶2. (U) Late evening October 31, the NDRC unexpectedly announced an 8
    percent price increase effective today for refined petroleum
    products: RMB 500 per metric ton, or approximately USD 9/barrel
    (converted at USD 1 = RMB 7.5).  This rolled back a 4 percent price
    reduction from January and came as gasoline and diesel shortages,
    the worst in two years, have been spreading throughout China's
    coastal provinces and recently showed signs of moving inland, with
    anecdotal reports of diesel shortages even in Beijing.  Media quoted
    local police in Henan Province as reporting that a customer was
    killed at a service station on October 30 in Xinyang after angering
    another customer by jumping in line.

    ¶3. (SBU) The government action is meant to encourage refineries to
    produce more gasoline and diesel in response to the shortages.  A
    Citibank analyst estimated that the oil companies recently have lost
    approximately USD 10/barrel of oil they refine due to the large gap
    between China's regulated prices and international oil prices.  The
    price increase addresses about half of this loss, but will still
    leave refiners losing USD 4-5/barrel of oil they refine, said our
    contacts.  (Comment: The firms do not benefit from the full price
    increase because not all of their output is sold at regulated prices
    as detailed below.  Also of note, to the extent that the price
    change leads to increased refinery activity, it may in the
    short-term raise China's demand for imported oil, adding to global
    price pressures.  End Comment.)

    --------------------------------------------- --
    NATIONAL FIRMS PRODUCING UNDER PRESSURE, BUT...
    --------------------------------------------- --

    ¶4. (U) Prior to the price increase, Beijing had been cajoling
    China's national oil companies (NOCs) into maintaining refining
    production levels despite sharp increases in the international price
    of oil.  (Note: China is second to the US in petroleum use and
    imports around half of its consumption.  End Note)  In September,
    the NDRC resisted calls by the NOCs to raise prices, noted that the
    NDRC was closely monitoring retail prices nationwide to ensure
    compliance with price controls, and publicly warned the NOCs not to
    decrease their refinery production rates, even as their losses
    mounted.  Although this largely kept the NOCs in line, Beijing has
    been unable to force the country's independent refiners to maintain
    production levels, a direct cause of the current shortages at the
    pumps.

    --------------------------------------
    ... INDEPENDENTS HAVE NOT PLAYED ALONG
    --------------------------------------

    ¶5. (U) Industry experts estimate that China's independent oil
    refiners, with around 1 million barrels per day of refining
    capacity, produce 10-20 percent of the country's gasoline and
    diesel.  They have cut production in the face of high international
    prices.  In many cases, they have also increased production of
    products unaffected by price controls, such as naphtha (often used
    for chemical and fertilizer production) or have simply shut their
    plants down to avoid losses.  These products, free of price
    controls, in general account for an estimated 40 percent of refinery
    output.  The NOCs have relied on unregulated products as well to

    BEIJING 00006936  002 OF 002

    soften the blow from losses on price-regulated production.  Industry
    analysts told clients today that it is unclear if the NDRC's price
    increase is enough to change this dynamic.

    ---------------------------------
    PRICE PRIMER IN DOLLARS AND CENTS
    ---------------------------------

    ¶6. (U) Chinese media suggests that the price increase will raise
    consumers' gasoline and diesel prices at the pump by around 20 US
    cents per gallon.  Prior to the price increase, consumers in Beijing
    paid USD 2.40/gallon for premium gasoline and USD 2.00/gallon for
    diesel.  The reports also indicate that the NDRC estimates China's
    monthly consumer price index (CPI) will increase by .05 percentage
    points as a result of the price increase.  Some of our contacts
    maintain that many Chinese consumers already feel they pay too much
    for gasoline and diesel.

    -------------------------------
    TOUGH LESSON FOR THE LEADERSHIP
    -------------------------------

    ¶7. (SBU) JP Morgan China Economist Grace Ng commented in a research
    note that Premier Wen had just last week announced after a State
    Council meeting that China would not raise any prices over the rest
    of the year that would affect the CPI.  Ng believes the NDRC was
    looking to reform prices for a long time but was blocked by senior
    officials who were waiting for oil prices to fall.  The lesson for
    them, in her view is that "they cannot time the market and the
    government has to do what is inevitable if it is serious on energy
    conservation, market based mechanisms, and staying on the course of
    reform."

    ----------------------------
    PRICING WAS ALREADY AN ISSUE
    ----------------------------

    ¶8. (SBU) As we reported in reftel, China has been looking to
    integrate domestic and global petroleum prices.  Concerns about
    harming consumers, rural residents, taxi drivers, and oil refiners
    have slowed this process.  Consequently, the NDRC has continued to
    rely on administrative pricing, forcing it to subsidize the oil
    companies' refinery losses while at the same time incurring public
    and media wrath when gasoline prices do not fall during periods when
    global prices decline.  Our contacts have told us that a new pricing
    mechanism is pending that will guarantee domestic refiners a profit
    while shielding consumers from major fluctuations.  It will
    supposedly incorporate elements of market-based pricing but remain
    highly controlled overall and potentially vulnerable to
    speculation.

    --------------------------------------------- ---
    COMMENT: TOO EARLY TO TELL IF MOVE IS SUFFICIENT
    --------------------------------------------- ---

    ¶9. (SBU) The NDRC's price increase is probably insufficient to
    immediately abate current gasoline and diesel shortages.  Our
    contacts tell us that the move's most immediate effect will be to
    reduce NOC refining losses, but for now, it may fall short of
    reenergizing the independents.  To address the shortfall in the
    short term, the NOCs will have to ramp up their refining production
    and go abroad in search of refined products for direct sale into
    China.  Meanwhile, consumer outrage at lining up for even more
    expensive fuel is possible, and this makes further price increases
    needed to return independents to the market unlikely.  Bottom line:
    Beijing now has a new reason to hope for a fall in international oil
    prices to bring the independents back into the market.

    RANDT

`