CHINESE TIES TO ZIMBABWE

S E C R E T HARARE 000048

SIPDIS

LONDON FOR CGURNEY
PARIS FOR CNEARY
NSC FOR SENIOR AFRICA DIRECTOR JENDAYI FRAZER

E.O. 12958: DECL: 01/07/2012
TAGS: PREL ZI CI
SUBJECT: CHINESE TIES TO ZIMBABWE

REF: 02 STATE 219948

Classified By: POLITICAL SECTION CHIEF MATT HARRINGTON. REASONS: 1.5 (
B) AND (D).


1. (S) The ruling ZANU-PF party has long maintained a close
diplomatic and military relationship with China, dating back
to the liberation war in the 1970's. Since independence in
1980, the Government of Zimbabwe (GOZ) has purchased a range
of military hardware from China, including aircraft,
armaments, air defense radars, and medical equipment. The
two countries frequently exchange senior-level visits by
military delegations, and China regularly sends technical
military advisors to work with their Zimbabwean counterparts.
Zimbabwe sends significant numbers of military officers to
Chinese training courses each year. We understand that China
was considering the possibility of establishing a facility in
Harare to refurbish Chinese military equipment in the region,
but it is unclear whether these discussions have moved beyond
the exploratory stage. China has also provided cellular
telephone intercept equipment to Zimbabwe's Central
Intelligence Organization, a move that will significantly
increase the ruling party's capacity to monitor those who
oppose it.


2. (U) China maintains one of the largest embassies in
Harare, with eighteen diplomats on the diplomatic list,
including seven officers in the economic/commercial section
alone. In addition, three military officers serve in the
Defense Attache's office. Two correspondents with China
Radio International -- a bureau chief and one other
journalist -- are assigned to Harare, along with one or two
correspondents with the Chinese news network.


3. (C) The private Chinese community in Zimbabwe is, by
comparison, relatively small, comprising only several hundred
citizens who run restaurants, foreign exchange bureaus, and
small-scale import-export businesses. Chinese DCM Zheng
Zhuqiang told us private trade between China and Zimbabwe is
fluorishing, and reported that China imports significantly
more from Zimbabwe than it exports (Note: about three times
more, according to GOZ trade statistics. End Note.) In
2002, approximately 30 percent of Zimbababwe's tobacco
exports went to China. At the same time, Zheng lamented the
deteriorating macroeconomic environment in Zimbabwe and
predicted that the situation would only worsen. The GOZ, he
said, was currently unable to repay large loans from Beijing.
Regarding government-supported investment, the picture was
not encouraging, either. For instance, the GOZ's imposition
of price controls recently forced the closure of a profitable
joint venture cement production company formed only in 2000.
Zheng also implied that a Chinese parastatal construction
company -- which in the past has built major infrastructure
projects such as roads and dams -- is struggling. In a
gesture of goodwill, the PRC recently donated 4,500 tons of
yellow maize directly to the Government of Zimbabwe and
provided some cash assistance to the GOZ for food purchases.



4. (C) The PRC is beginning to reach out to the opposition
MDC, in an apparent sign of growing realization that the
political and economic crises in Zimbabwe are unsustainable.
The Chinese Ambassador recently hosted several senior MDC
leaders for dinner. According to one of the MDC attendees,
the Ambassador expressed serious concern about the
deterioriating political crisis in Zimbabwe and took his
guests by surprise with his outspoken criticism of Mugabe's
unwillingness to relinquish power. He reportedly offered to
arrange a visit to China by a senior MDC delegation.


SULLIVAN