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Viewing cable 08ADDISABABA194, STRENGTHENING CHINA TIES, FOREIGN MINISTER YANG JIECHI IN

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Reference ID Created Released Classification Origin
08ADDISABABA194 2008-01-25 06:23 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Addis Ababa
VZCZCXRO0804
PP RUEHROV
DE RUEHDS #0194/01 0250623
ZNR UUUUU ZZH
P 250623Z JAN 08
FM AMEMBASSY ADDIS ABABA
TO RUEHC/SECSTATE WASHDC PRIORITY 9296
RUEHBJ/AMEMBASSY BEIJING 0448
INFO RUCNIAD/IGAD COLLECTIVE PRIORITY
RHMFISS/CJTF HOA PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY
RUEKDIA/DIA WASHINGTON DC PRIORITY
RHMFIUU/HQ USCENTCOM MACDILL AFB FL PRIORITY
RUEKJCS/JOINT STAFF WASHINGTON DC PRIORITY
RUEHJB/AMEMBASSY BUJUMBURA 0028
RUEHKI/AMEMBASSY KINSHASA 0405
RUEHSA/AMEMBASSY PRETORIA 4658
UNCLAS SECTION 01 OF 02 ADDIS ABABA 000194 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL EAID EINV ET CH
SUBJECT: STRENGTHENING CHINA TIES, FOREIGN MINISTER YANG JIECHI IN 
ETHIOPIA 
 
1. (U) Summary:  Chinese Foreign Minister Yang Jiechi visited 
Ethiopia at the end of a four country tour of Africa.  During a 
quick one-day stop, Yang met with Prime Minister Meles and Foreign 
Minister Seyoum on Somalia, Sudan, Eritrea, bilateral programs, and 
China's outreach to Africa.  The largest investor in Ethiopia, 
primarily through soft loans amounting to over USD 2 billion, China 
has focused on the telecommunications, energy, and construction 
sectors.  Relations have been close with Prime Minister Meles 
serving as the first co-chair of the China-Africa Cooperation Forum 
from 2000-2006.  Meles and the Ethiopian leadership have often told 
the U.S. Ambassador that the U.S. needs to follow China's lead in 
providing critical financing for projects quickly without 
conditions, limitations, or bureaucratic red tape.  The U.S. Mission 
has held close discussions with our Chinese counterparts on various 
areas of cooperation and plan to expand our contacts and pursue 
areas of possible cooperation.  End Summary. 
 
QUICK VISIT 
----------- 
 
2. (U) Ambassador received readouts from Chinese Ambassador Lin Lin 
and Foreign Minister Seyoum and State Minister Tekeda on the January 
10 visit by China's newly appointed Foreign Minister, Yang Jiechi. 
Yang visited South Africa, Democratic Republic of the Congo, 
Burundi, and Ethiopia.  It has become a tradition for China's 
foreign minister to visit Africa after the New Year, according to 
Ambassador Lin Lin, who added that Yang's predecessor visited 
Eritrea last January.  The visit was more to demonstrate China's 
growing interest and understanding of the continent than to pursue 
any specific agenda in Ethiopia.  Referred to as "tiger," a nickname 
opposite his soft spoken and proper approach, Foreign Minister Yang 
impressed the Ethiopians with his command of the issues and 
understanding of Ethiopia's challenges against counter insurgents 
in-country and extremists in Somalia, as well as for his 
appreciation of Ethiopian efforts in Sudan, and acknowledgement of 
tensions with Eritrea.  Yang was praised highly by the Prime 
Minister as well as his interlocutors at the Ministry of Foreign 
Affairs. 
 
CHINA'S FOCUS ON INFRASTRUCTURE DEVELOPMENT 
------------------------------------------- 
 
3. (U) During discussions with Prime Minister Meles and Foreign 
Minister Seyoum, Yang reportedly reviewed China's interest in Africa 
in general and in Ethiopia in particular.  According to Ambassador 
Lin Lin, China provides over USD 2 billion to Ethiopia, almost 
exclusively in soft loans, in the telecommunications, energy and 
construction sectors.  China's ZTE has a USD 1.5 billion contract 
for upgrading Ethiopia's entire telecom sector, including cell 
phone, fiber optic connections, broadband expansion, and internet 
service.  On energy, China provided a USD 500 million loan for 
construction of a hydroelectric power plant, called the "fan" 
project.  Finally, China is instrumental in constructing roads in 
Addis and throughout the country.  China is also constructing cement 
factories to meet the booming and highly speculative real estate 
development projects, including housing and office buildings. 
 
4. (U) According to Tekeda, the Prime Minister and Foreign Minister 
were impressed with China's rapid inroads into Africa and viewed 
China as a critical engine for rapid infrastructure development, 
especially roads, housing, and office buildings.  Ethiopia's 
leadership stressed to us that China provides financing, albeit soft 
loans, quickly and without the human rights and other types of 
conditions or limitations imposed by the U.S.  In previous 
conversations, Ethiopian officials have lauded Chinese firms' 
accountability to the Chinese Embassy -- a productive avenue through 
which the Ethiopian Government could raise, and have resolved, 
disputes with Chinese companies -- as a model which the U.S. Embassy 
and private sector should follow should we wish to increase our 
success rate in securing Ethiopian Government contracts.  Ethiopia's 
military leadership has noted to us in painful detail the slowness 
of delivery of materials to Ethiopia, at times years, waiting for 
delivery, while the Chinese have been quick, though quality of 
materials is not always desirable. 
 
CLOSE TIES 
---------- 
 
5. (U) Ambassador Lin Lin noted that Ethiopia was the first 
co-chair, with China, from 2000 to 2006 of the China-Africa Forum. 
Egypt is now the co-chair.  Ethiopia, Lin Lin noted, helped China 
 
ADDIS ABAB 00000194  002 OF 002 
 
 
make inroads into Africa and increase interaction and trade between 
China and the continent.  During the visit, Yang committed USD 4 
million in grant-in-aid to cover construction of three new schools 
and other projects to be designated later.  The Foreign Ministry was 
also being provided computer upgrades and new office equipment. 
Ethiopia was the first country in Africa to receive Chinese 
volunteers to teach in schools, work in factories and agricultural 
areas. 
 
SOMALIA, SUDAN, ERITREA 
----------------------- 
 
6. (SBU) Ambassador Lin Lin and Minister Tekeda separately noted 
that China agreed with Ethiopia on the primacy of the Comprehensive 
Peace Agreement (CPA) as the basis for resolution of problems in 
Sudan.  Foreign Minister Seyoum praised China's constructive 
dialogue with Sudanese President Bashir.  On Somalia, Lin Lin noted 
China's understanding of the threat of extremism to the security of 
Ethiopia.  China will not return to drill for oil in Ethiopia's 
troubled Ogaden region along the Somali border where seven Chinese 
oil workers were killed by rebels last spring.  (Note: For the 
present, Iran has expressed an interest in seeking oil in the Ogaden 
region. End note.)  On Eritrea, Ambassador Lin Lin noted that the 
visit by Yang was to counter balance the visit to Asmara last year 
by Yang's predecessor.  Lin Lin noted that China was avoiding siding 
or commenting, in private or public, on the border dispute between 
Eritrea and Ethiopia because of their expressed neutrality on the 
border. 
 
U.S. EMBASSY SEEKS CLOSER TIES 
------------------------------ 
 
7. (U) The U.S. has held meetings by section chiefs with our Chinese 
Embassy counterparts.  Our Peace Corps Director is discussing with 
China's volunteers on possible coordination.  China soon plans to 
send its third group of volunteers to Ethiopia, bringing to 15 the 
number of volunteers that will be in-country for the next year. 
China plans to bring agricultural experts to Ethiopia and promises 
to coordinate with the U.S. Mission's trade promotion and 
agricultural development teams.  The U.S. Embassy is arranging to 
bring China's agricultural experts to visit our experimental farms 
which are training Ethiopian farmers on raising yields, quality, and 
productivity. 
 
COMMENT 
------- 
 
8. (U) China has expanded its operations in Ethiopia, but can 
complement U.S. mission programs.  China's stress on building roads 
and schools, which the U.S. does not do, strongly complement the 
Ethiopian Government's emphasis on building infrastructure to spur 
development.  Such efforts can be coordinated with the U.S. 
Embassy's capacity building programs to train teachers, work on 
education initiatives dealing with English training, and other types 
of programs.  Further, given Ethiopia's important potential role in 
facilitating efforts between the northern and southern Sudanese 
officials, China can play a positive role supporting dialogue. 
 
YAMAMOTO