Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

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

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
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 06SANTIAGO774, GROWING TRADE BETWEEN CHILE AND CHINA

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. #06SANTIAGO774.
Reference ID Created Released Classification Origin
06SANTIAGO774 2006-04-13 16:51 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Santiago
VZCZCXYZ0034
RR RUEHWEB

DE RUEHSG #0774/01 1031651
ZNR UUUUU ZZH
R 131651Z APR 06
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 8885
INFO RUEHAC/AMEMBASSY ASUNCION 2537
RUEHBJ/AMEMBASSY BEIJING 0174
RUEHBR/AMEMBASSY BRASILIA 3144
RUEHBU/AMEMBASSY BUENOS AIRES 2988
RUEHLP/AMEMBASSY LA PAZ APR LIMA 4530
RUEHMN/AMEMBASSY MONTEVIDEO 3247
RUEHQT/AMEMBASSY QUITO 1556
RUEHUL/AMEMBASSY SEOUL 0151
RUEHKO/AMEMBASSY TOKYO 0194
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHIN/AIT TAIPEI 0043
UNCLAS SANTIAGO 000774 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
COMMERCE FOR SARA MCDOWELL 
 
E.O. 12958: N/A 
TAGS: ECON EMIN ETRD EINV CI CH
SUBJECT: GROWING TRADE BETWEEN CHILE AND CHINA 
 
REF: 05 SANTIAGO 01794 
 
1. (U) Summary. Chile's economic ties with China are 
increasing.  In 2005, China became Chile's number two trading 
partner, consuming over 12 percent of Chile's exports, and 
the two countries signed a partial trade agreement.  Chinese 
companies are increasing their investment in Chile, with the 
focus likely to be on Chile as a source of copper.  Chinese 
goods are beginning to appear on the Chilean market, as the 
market share of Chinese vehicles imported to Chile jumped to 
over 10 percent of the imported vehicle market in 2005.  End 
Summary. 
 
Trade Paves the Way 
------------------- 
 
2. (SBU) Ten years ago, China bought just 1.4 percent of 
Chile's exports.  Between 1994 and 2003, Chile's exports to 
China grew by 1,299 percent.  In 2005, China became Chile's 
number two trading partner, consuming nearly 12.5 percent of 
Chile's total exports.  Despite the public perception that 
China is buying only Chilean copper, copper comprised just 20 
percent of what China bought from Chile in 2005.  The other 
main Chilean exports to China were fish and paper products. 
In November 2005, Chile and China signed a partial trade 
agreement that is likely to boost bilateral trade further. 
Chile is the first Latin American country to sign a trade 
agreement with China.  Chilean trade officials are very proud 
of this and openly express the conviction that Chile's future 
is fundamentally tied to trade with Asia, with China seen as 
the linchpin in Asia. 
 
Huge Joint Venture in Copper 
---------------------------- 
 
3. (SBU) In 2005, while copper comprised just under 20 
percent of Chile's trade with China, that percentage did 
represent a 34 percent increase in Chilean copper exports to 
China over 2004.  China's interest in Chile as a source of 
copper is evident in the USD 2 billion joint venture signed 
in February 2006 between MinMetals Corporation and Chile's 
state-owned copper producer, Codelco.  Codelco currently 
accounts for 40 percent of Chile's copper production but has 
ambitious plans for the future.  Over the next fifteen years, 
it hopes to almost double annual production and needs to 
invest an estimated USD 1.7 billion to accomplish that goal. 
The joint venture with China provides Codelco a guaranteed 
market and new financing options. 
 
4. (SBU) On February 22, the Executive Director of Chile's 
state mining company Codelco, Juan Villarzu, and the 
Undersecretary of Mining , Mario Cabezas, signed the final 
papers to formalize the joint venture with China's MinMetals 
Corporation.  As the first part of the USD 2 billion sales, 
finance and investment agreement, Codelco and MinMetals will 
set up a joint venture with an initial Chinese investment of 
USD 550 million.  In exchange for this Chinese investment, 
Codelco will guarantee MinMetals a total of 836,250 metric 
tons of copper over the next 15 years.  MinMetals can also 
exercise an option in 2009 to purchase 25-29 percent of the 
shares in Codelco's newly developed Gaby copper mine. 
 
5. (SBU)  To finalize the deal, Chilean and Chinese officials 
resolved two key issues: 
 
- The PRC Government authorized the China Development Bank 
(CDB) to play a role in the joint venture.  CDB will act as 
the guarantor agent and loan provider in a CDB-designed 
financing structure.  CDB will provide USD 330 million of the 
total USD 550 million for the first part of the joint venture. 
 
- There had been some debate about the valuation of the joint 
venture, given dramatic increases in worldwide copper prices. 
 Villarzu stated that for the purposes of the joint venture 
copper was valued at USD 1.20 per pound, which reflected the 
nominal price estimate from May 2005 - February 2006.  Viewed 
over the 15-year period of the deal, both sides agreed that 
this price was above the long-term guaranteed market price 
for copper.  However, China appears to value access to a 
long-term steady supply of copper over benefiting from 
fluctuations in the market price. 
 
Smaller Ventures -- A Mall and More Chinese Cars 
--------------------------------------------- --- 
 
6. (SBU) February 2006 also saw the opening of Chile's First 
"Chinese Mall" in downtown Santiago.  The "Centro Commercial 
China" comprises about 80 shops selling textiles, jewelry, 
clothing and shoes.  According to the Chinese merchants 
manning the shops, they are all from the Chinese city of Wen 
Zhou, in Zhejiang province south of Shanghai.  The shop 
owners told econoff the commercial center is reserved only 
for Chinese products produced in Wen Zhou and is being 
facilitated by a Chinese businessman, Ji Rubin, who has been 
working in Chile for the past nine years.  Many of the 
merchants complained about the Chilean tax requirements. 
They were under the impression that once the basic licensing 
fees had been paid to the Chilean government there would no 
need for further formal interaction with the government. 
 
7. (U) The Chilean press has described the mall's opening as 
the most visible impact of the November 2005 Chile-China 
trade agreement.  The catch to that description is that the 
trade agreement has not been ratified by the Chilean Congress 
and thus is not yet in effect.  Total investment in the mall 
is estimated at USD 20 million.  While not a significant 
amount, the Chinese and Chileans working at the "Chinese 
Mall" clearly feel they have taken the first small step 
toward making Chile the platform for China's business 
presence in South America. 
 
8. (U) While easily overlooked in the mass of imported 
Japanese cars on Chile's roads, vehicle imports from China 
jumped in 2005 by over 70 percent.  For 2005, Chilean vehicle 
imports from China totaled USD 187 million in total value. 
Motorcycle imports from China doubled, industrial vehicles 
imports rose 75 percent and Chile began importing 
Chinese-made buses.  The value of Chilean vehicle imports in 
2005 totaled USD 1.71 billion, meaning Chinese vehicle 
imports to Chile comprised just under 11 percent of that 
total. 
 
Comment 
------- 
 
9. (SBU) Comment. While a large part of China's interest in 
Chile is obviously copper, China likely also sees Chile for 
what it is -- a politically stable country with an open 
economy.  As such, Chile can serve as a platform for trade 
with the rest of Latin America.  From Chile's perspective, 
with only 20 percent of its annual copper production going to 
China, it does not feel particularly beholden to China. 
Chile sees China as the key to Asia, and it would like to use 
the new trade agreement to sell more to its biggest market in 
Asia than just copper.  Given the rise in Chinese goods from 
textiles to cars now entering Chile, it's also clear China 
has diversification on its mind and intends to do more in 
Chile than just buy copper. 
KELLY