SUMMARY: In an October 13 meeting with EAP A/S Kurt Campbell, MFA Asian Affairs Department Director General Yang Yanyi said that China saw many positive aspects in the U.S. review of its Burma policy and suggested proceeding based on its conclusion, despite PRC concern over continuing sanctions. Yang asserted that the junta was committed to building a peaceful, modern, democratic Burma, but stability remained paramount to them "for now." She claimed the regime was committed to a fair election in 2010 and was renewing efforts on developing the economy. DG Yang cautioned that the regime could not be replaced, and counseled patience on development and democratization efforts given the complexity of Burmese society. Chinese officials had told the Burmese to consider China?s legitimate interests in dealing with the situation in Kokang, but also stressed that China would not interfere in the internal affairs of Burma. A/S Campbell cautioned that steps by the regime toward progress on nuclear technology would make dialogue more difficult and the U.S. and China had a shared interest in partnering to prevent such progress. END SUMMARY.