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Viewing cable 06DARESSALAAM1065, CHINESE PREMIER JIABAO VISIT FOCUSED ON TRADE AND

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Reference ID Created Released Classification Origin
06DARESSALAAM1065 2006-06-28 19:33 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Dar Es Salaam
VZCZCXRO3903
PP RUEHDU RUEHJO RUEHMR
DE RUEHDR #1065/01 1791933
ZNR UUUUU ZZH
P 281933Z JUN 06
FM AMEMBASSY DAR ES SALAAM
TO RUEHC/SECSTATE WASHDC PRIORITY 4237
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY PRIORITY
RUEHBJ/AMEMBASSY BEIJING PRIORITY 0329
RUEHJB/AMEMBASSY BUJUMBURA PRIORITY 2383
RUEHKM/AMEMBASSY KAMPALA PRIORITY 2788
RUEHLGB/AMEMBASSY KIGALI PRIORITY 0832
RUEHLO/AMEMBASSY LONDON PRIORITY 0254
RUEHNR/AMEMBASSY NAIROBI PRIORITY 0142
RUEHFR/AMEMBASSY PARIS PRIORITY 0163
UNCLAS SECTION 01 OF 02 DAR ES SALAAM 001065 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EB, AF/EPS FOR T HASTINGS AND AF/E FOR B YODER 
BEIJING, LONDON, PARIS FOR AFRICA WATCHERS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EAID ETRD ECON CH TZ
SUBJECT: CHINESE PREMIER JIABAO VISIT FOCUSED ON TRADE AND 
REVITALIZING TANZANIA-ZAMBIA RAILWAY 
 
REF: 05 DAR ES SALAAM 01904 
 
Summary 
-------- 
1. (SBU) The Chinese Premier Wen Jiabao's overnight visit, 
June 22 to 23, in Tanzania centered on improving trade and 
revitalizing construction projects between the two countries 
rather than military or strategic issues.  While President 
Jakaya Kikwete hurried back from the legislative capital of 
Dodoma after bidding farewell to Irish President, Dr. Mary 
McAleese, at the conclusion of her well-publicized State 
visit, to host Premier Jiabao at a State House dinner, the 
official discussions were conducted with the Premier's 
counterpart, Prime Minister Edward Lowassa.  Jiabao announced 
that the Peoples' Republic of China (PRC) has lifted the 
duties on all products imported into China from Tanzania. 
Five pre-negotiated technical agreements were signed in the 
health, transport and communications sectors.  The press on 
Jibao's visit was primarily photographic coverage and short 
standard texts, as opposed to the visit of the Irish 
President, that was covered with front-page stories for four 
days including the publication of the full text of her speech 
to the Parliament in Dodoma.  END SUMMARY. 
 
Seven African Nations in as Many Days 
------------------------------------- 
2.(U) Welcomed at the airport by President Kikwete and with a 
modest banner declaring "Long live the Friendship Between 
China and Tanzania," Premier Jiabao's short stay in Dar es 
Salaam was his sixth stop on a one-week seven country tour 
including also Egypt, Ghana, the Republic of Congo, Angola, 
South Africa and Uganda.  His entourage of officials, 
businessmen and his own entertainment troop reached 185 
persons all arriving in one official plane.  The headline 
news of the Jibao visit was the announcement that China has 
scrapped import taxes for all Tanzanian goods sent into 
China.  The Premier urged Tanzania to exploit the "great 
Chinese market" by exporting quality goods; for his part, he 
would encourage Chinese tourists to visit Tanzania. 
 
3. (U) Jiabao had discussions with President Kikwete at the 
State House, just prior to the State diner in his honor.  The 
Chinese provided an entertainment troupe of dancers and 
acrobats to enliven the event.  On June 23 Prime Minister 
Edward Lowassa presided at the official meetings between the 
two governments and escorted Jiabao around the World Cup 
class (60,000 seat) national stadium that the Chinese are 
constructing.  The total cost of the 2 1/2 year long stadium 
construction is approx. USD 48 million (Tsh 56.4 billion) 
with Tanzania contributing USD 22 million and the PRC the 
balance of USD 26 million.  The stadium should be completed 
in early 2007 in time for some "friendly matches" in the 
run-up to the World Cup Finals in South Africa in 2010. 
 
Five Technical Agreements Signed 
-------------------------------- 
4. (U) On June 23, Tanzania's Minister for Foreign Affairs 
and International Cooperation, Hon. Asha-Rose Migiro, and the 
PRC Minister of Trade, Bo Xilai, signed a loan agreement for 
USD 10 million (Yuan 80 million) to finance various technical 
assistance projects including an agricultural training 
center, a center for the prevention and treatment of malaria, 
provision of anti-malarial medications and construction of 
primary schools in one or more villages.  An agreement was 
also signed between Trade Minister Xilai and Zanzibar's State 
Minister of Economy and Finance to carry out restoration work 
on the Amani Stadium in Stonetown and to provide Zanzibar's 
CCTV-9 with television equipment and a 50 KW transmitter. 
The two governments also initialed a special loan agreement 
worth approximately USD 6.25 million to revitalize the 
Tanzania-Zambia Railway (TAZARA). 
 
5. (U) Just before his departure, Premier Jiabao visited the 
Chinese Experts Cemetery to lay a wreath at the graves of 49 
Chinese experts who lost their lives during the construction 
of the Tanzania-Zambia Railway (TAZARA) in the late 1960's 
and/or during other major construction projects in Tanzania. 
 
Two-way Trade between Tanzania and PRC holding steady 
--------------------------------------------- ----- 
 
DAR ES SAL 00001065  002 OF 002 
 
 
6. (U) The two-way trade between Tanzania and China reached 
approximately USD 210 million in 2005 as compared to USD 245 
million in 2004.  In 2004, China exported to Tanzania USD 
173.3 million worth of goods (vehicle parts, tires, footwear, 
fishing nets, data processing machines and railway goods and 
wagons, etc.) while Tanzania sold USD 71.16 million worth of 
primarily metals, ores, sisal and carded or combed cotton to 
China.  In 2002, the two-way trade between the two countries 
was only USD 128 million, but began a steady rise since that 
year (reftel). 
 
Comment 
------- 
7. (SBU) Compared to the "same week" visit (June 19 to 22) of 
the Irish President, Premier Jiabao's visit was relatively 
low key.  It appeared that many of the technical agreements 
were prearranged and close to what were signed in several of 
the other six countries he visited.  While announcing the 
elimination  of import duties on Tanzanian goods makes good 
headlines, similar to the problems Tanzania faces in trying 
to increase its exports to the U.S. under the African Growth 
and Opportunity Act (AGOA), the country overall has few 
processed or semi-processed goods ready to be sold to China, 
Europe or the U.S.  The two-way trade between Tanzania and 
China is primarily raw materials heading East--wood, sisal, 
minerals, ores and gemstones--and Chinese light manufactured 
goods flooding East African markets.  Ms. Inger Tveit, First 
Secretary at the Norwegian Embassy, expressed the view of 
 
SIPDIS 
many Western observers:  it is clearly in China's interest to 
revive the TAZARA railway to ensure that inexpensive Chinese 
goods can reach landlocked countries of East and Southern 
Africa and that sought-after raw materials to fuel the 
Chinese economy, can arrive at the port of Dar es Salaam more 
quickly. 
WHITE