Interviewer: Thank you Dr. Sutter. Dr. Sutter has shared with us a lot of different and unique perspectives on the rise of China issue and how the US views China. The powers and the strength and the weaknesses in the Asia, area, region. And in this topic I have [IB] as a student. And also I think I have a privilege to ask the first question. To my point of view I personally believe that China is still a developing country. That’s how we positions ourselves globally and we still have a lot of problems to deal with. But know we are taking as many possibilities as possible to establish good relations with Asian countries. And like you mentioned that China is still receiving loans from the World Bank but China also increased its share of their donation to the World Bank too. And I think we also believe that the growing and the developing of China is also beneficial to the world and the regional security and development. And then we can, I think to my understanding I think dealing with Asian countries we have three priorities. The first of all we want to establish a very effective and consistent channel to you know, to have developed with an all the Asian countries. Like we are very actively participating in the Eastern Asian summit and develop a lot of programs with Austrian countries and the second priority I believe is dealing with border issues with our neighbors. As you know that we still have border issues with India and some other Asian countries. And a third issue, our third priority is which is more noticeable is we are developing the trade and economic co-operation with Asian countries. And I’m not going to elaborate on that it’s just my own understanding. So I want to ask doctor Sutter, do you think , the foreign policies that China has adopted to improve the relations with Asian countries have been effective, have effectively removed the people’s, Asian countries concerns about the threat of China?

Dr. Sutter: I think that’s a very good question, I think it has been very effective as I tried to mention. I think the diplomacy of China and the economic relationships are a real plus for the Chinese administration in dealing with the region. Some of the issues you mention that just had to get in the way. Sovereignty issues and so today the Chinese have had three interventions with the Japanese over the [IB] Islands. There was a fishing camp there that was being held by the Japanese for doing some thing with, in the area. And so the Chinese are very upset with it and this has now gotten to the state council level [IB] is a very senior official. He has called in the Japanese ambassador; this is the third time this has happened. And so these kinds of things just get in the way. The Japanese are very nationalists and so the Chinese. And so we have a South China Sea dispute where there are other lots of claimants, China is not the only one. And so this gets to, this makes it hard to, and they can’t compromise with India. They can’t compromise with those border issues very well. So nationalism just gets in the way. It reminds me of a senior Chinese official who I talked with I guess its four years ago now. I said, you know, some people think China wants to dominate Asia; do you think China wants to dominate Asia? He said, ‘China can’t dominate Asia there are too many governments in Asia’. And it’s those governments really get in the way, it’s very [pesky] because they are very independent minded very nationalistic. So there’s a lot of progress is made, do they trust China? ‘Not really’, yah I mentioned this first and I said you know these governments don’t really trust you on the one hand they are very positive, on the other hand they are[hedging] and they are having all these contingency plans incase China is assertive. What are you going to, ‘I know that, I know that.’ I say what are you going to do about it? And he says, ‘well we have to keep re-assuring them’. So what you said is very true. I think this has to continue and it has to continue without big interruptions. And we’ve had a few interruptions in south China city and then in these [IB] Islands and of course in the yellow sea regarding South Korea. So it’s on again, off again, I think progress is being made but I think it’s slow, that’s my basic point.

Interviewer: Well I have a warm up question. I said I have seen from the report of Chinese media which has adopted interview with you, you’ve mentioned you believe that people believe US powers is declining in Asia and [IB] was because of the Bush administration’s policies towards Asia.