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Viewing cable 07MAPUTO1471, INDIA HOPING TO "CHECKMATE CHINA" IN MOZAMBIQUE

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Reference ID Created Released Classification Origin
07MAPUTO1471 2007-12-17 14:12 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Maputo
VZCZCXRO3601
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHTO #1471 3511412
ZNR UUUUU ZZH
R 171412Z DEC 07
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC 8367
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHBJ/AMEMBASSY BEIJING 0222
RUEHLO/AMEMBASSY LONDON 0101
RUEHNE/AMEMBASSY NEW DELHI 0028
UNCLAS MAPUTO 001471 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EMIN KDEM PGOV PREL IN MZ CN
SUBJECT: INDIA HOPING TO "CHECKMATE CHINA" IN MOZAMBIQUE 
 
1. (SBU) SUMMARY: The Charge recently paid a courtesy call on 
the India's High Commissioner to Mozambique, Rajinder Bhagat. 
 The High Commissioner related his country's primary 
interests in Mozambique, focusing on commercial sector 
development, agricultural development, and coal mining, while 
recognizing the growing competition with China for 
Mozambique's market and natural resources.  The Charge and 
Bhagat identified several areas of potential cooperation in 
Mozambique between the USG and India, including fighting 
HIV/AIDS and implementing water/sanitation projects.  END 
SUMMARY. 
 
2. (U) According to the High Commisioner, India contributed 
$40 million for aid projects in Mozambique in 2007.  These 
projects include installation of 600 water pumps in Zambezia 
and Nampula and rural electrification in Gaza.  He said India 
also provided a $25 million line-of-credit to build a 
technological park in Moamba in 2008.  Noting the increase in 
Indian investment in the coal sector, Bhagat would like to 
encourage Indian companies to invest in the Nacala Corridor 
and in hydroelectric power.  He said that several Indian 
ministers visited Mozambique in 2007 to promote commercial 
relations. 
 
3. (SBU) The High Commissioner repeatedly noted the expanding 
presence of the Chinese in Mozambique, adding "they are 
everywhere you turn."  He predicted an inevitable competition 
for markets and resources between India and China, but was 
confident that in Mozambique, India will be able to 
"checkmate China" given the strong and historical presence of 
Indians in Mozambique, the positive relations with several 
influential Mozambican Ministers (including the Minister of 
Defense), and the fact that in contrast to Chinese 
contractors, Indians hire local workers.  Bhagat acknowledged 
that the competition was natural considering the two 
country's large, growing populations and need for additional 
natural resources, particularly sources of energy, such as 
oil and coal. 
 
4. (U) The Charge related USG priorities in and financial 
contributions to Mozambique highlighting two areas where 
India and the USG share interests:  HIV/AIDS and 
water/sanitation projects.  Bhagat responded that India is 
very interested in building a pharmaceutical plant to produce 
anti-retroviral drugs either in Mozambique or Swaziland. 
Concerning water/sanitation, India has already installed some 
600 water pumps in northern Mozambique and has plans to 
install more in 2008.  The Charge noted that water/sanitation 
in the northern provinces was a major component of the MCC 
and that India and the USG could work together to ensure 
there was no overlap in towns receiving pumps. 
 
5. (SBU) COMMENT:  Though India receives little attention as 
a donor nation in Mozambique, India's involvement here is 
growing rapidly.  India and Mozambique are due to soon sign a 
cooperation agreement to increase commercial and political 
ties.  Tata Steel recently announced an US$88 million 
investment in an Australian-owned coal venture in Mozambique. 
 According to India,s Economic Times, several other major 
Indian companies are also concluding major investments in 
Mozambique.  While China continues to trumpet infrastructure 
projects, look for India to continue a more quiet diplomacy 
in its quest to, in the High Commissioner's words, "checkmate 
China" in Mozambique.  END COMMENT. 
Chapman