Identifier
Created
Classification
Origin
03RANGOON116
2003-01-29 08:47:00
CONFIDENTIAL
Embassy Rangoon
Cable title:  

BURMA SEEKS CLOSER CHINA TIES

Tags:  PREL ECON BM 
pdf how-to read a cable
R 290847Z JAN 03
FM AMEMBASSY RANGOON
TO SECSTATE WASHDC 9180
INFO ASSOCIATION OF SOUTHEAST ASIAN NATIONS
AMEMBASSY BEIJING 
AMEMBASSY DHAKA 
AMEMBASSY NEW DELHI 
AMEMBASSY SEOUL 
AMEMBASSY TOKYO 
AMCONSUL CALCUTTA
DEPT OF COMMERCE WASHDC
DEPT OF TREASURY WASHDC
USMISSION GENEVA 
CDR USPACOM HONOLULU HI
C O N F I D E N T I A L SECTION 01 OF 02 RANGOON 000116 

STATE FOR EAP/BCLTV, EB
BEIJING PASS CHENGDU
COMMERCE FOR ITA JEAN KELLY
TREASURY FOR OASIA JEFF NEIL
USPACOM FOR FPA

E.O. 12958: DECL: 01/28/2013
TAGS: PREL ECON BM
SUBJECT: BURMA SEEKS CLOSER CHINA TIES

REF: BEIJING 1078

CLASSIFIED BY: DCM RON MCMULLEN FOR REASONS 1.5 (B,D)

C O N F I D E N T I A L SECTION 01 OF 02 RANGOON 000116

STATE FOR EAP/BCLTV, EB
BEIJING PASS CHENGDU
COMMERCE FOR ITA JEAN KELLY
TREASURY FOR OASIA JEFF NEIL
USPACOM FOR FPA

E.O. 12958: DECL: 01/28/2013
TAGS: PREL ECON BM
SUBJECT: BURMA SEEKS CLOSER CHINA TIES

REF: BEIJING 1078

CLASSIFIED BY: DCM RON MCMULLEN FOR REASONS 1.5 (B,D)


1. (C) SUMMARY: BILATERAL TIES BETWEEN THE CHINESE AND
BURMESE GOVERNMENTS SEEM TO BE STRENGTHENING AT ALL LEVELS
AND ON MANY FRONTS. FROM THE BURMESE SIDE, THE RECENT
EXCHANGE WITH THE PRC OF HIGH-LEVEL VISITS EMPHASIZES THE
FACT THAT BURMA IS BANKING ON DEVELOPING AN ENDURING SPECIAL
RELATIONSHIP WITH CHINA. FROM EMBASSY BEIJING'S REPORTING,
IT APPEARS THAT THE PRC HAS A SIMILAR OBJECTIVE. END SUMMARY.

GRANTS, LOANS, AND BOATS


2. (C) FOLLOWING UP ON EMBASSY BEIJING'S READOUT OF THE
HIGH-LEVEL EXCHANGE OF VISITS BETWEEN BURMA AND CHINA, WE
SPOKE WITH MINISTRY OF FOREIGN AFFAIRS EAST ASIA AND PACIFIC
DIVISION DIRECTOR DAW YIN YIN MYINT. HER ACCOUNT OF THE
VISITS CORROBORATED BEIJING'S REPORT REGARDING THE EMPHASIS
ON TECHNICAL COOPERATION, ECONOMIC DEVELOPMENT AID, AND DEBT
RELIEF. ACCORDING TO DAW YIN YIN MYINT, THE TOTAL DEBT
FORGIVEN BY THE PRC DURING THE RECENT VISITS WAS ABOUT 640
MILLION RMB (ROUGHLY $80 MLN). THIS IS SLIGHTLY HIGHER THAN
THE CALCULATION OF $65 MILLION WE MADE BASED ON COPIES WE
OBTAINED OF THE DEBT RELIEF AGREEMENT.


3. (C) DAW YIN YIN MYINT ALSO DISCUSSED WITH US THE QUESTION
OF CHINESE DEVELOPMENT AND USE OF THE IRRAWADDY RIVER AS AN
OUTLET TO THE SEA FOR CHINESE MERCHANT VESSELS. ACCORDING TO
DAW YIN YIN MYINT, THIS PROJECT WAS FIRST DISCUSSED DURING
CHINESE PRESIDENT JIANG ZEMIN'S VISIT TO RANGOON IN DECEMBER

2001. HOWEVER, SINCE THEN THERE HAS BEEN NO PROGRESS MADE
BECAUSE OF FUNDAMENTAL DISAGREEMENTS OVER WHETHER THE RIVER
WOULD BE CONSIDERED AN INTERNATIONAL WATERWAY (ALLOWING
CHINESE SHIPS TO FLY THE CHINESE FLAG),OR SIMPLY A CARGO
TRANSIT ROUTE (REQUIRING THE USE OF BURMESE VESSELS). A
CHINESE DIPLOMAT STATIONED HERE ADDED THAT THE MATTER HAD
BEEN STUCK OVER WHO WOULD PAY FOR THE NECESSARY DREDGING AND
IMPROVEMENTS NECESSARY TO MAKE THE RIVER FULLY NAVIGABLE FROM
BHAMO IN SOUTHERN KACHIN STATE ALL THE WAY DOWN TO THE DELTA
REGION.

CHINA SEEKS ITS SOUTHWEST PASSAGE


4. (C) ACCORDING TO DAW YIN YIN MYINT AND OTHER GOB
OFFICIALS, SENIOR GENERAL THAN SHWE AND THE SPDC ARE
PARTICULARLY FOCUSED ON DEVELOPING TIES WITH CHINA'S YUNNAN,
AND TO A LESSER DEGREE SICHUAN, PROVINCES. SINCE DECEMBER,
MOFA HAS HOSTED THREE DELEGATIONS FROM YUNNAN PROVINCE TO
DISCUSS CLOSER ECONOMIC AND INVESTMENT TIES, IMPROVED
INFRASTRUCTURE IN THE BORDER AREA, AND ALSO "BORDER
MANAGEMENT" CONCERNS (SUCH AS IMMIGRATION AND CUSTOMS AND
COUNTERNARCOTICS).


5. (C) IT IS CLEAR THAT BURMA VIEWS CHINA AS ITS MOST
IMPORTANT ALLY IN THE REGION RIGHT NOW. ALTHOUGH THE SPDC IS
CURRENTLY COURTING GOOD TIES WITH INDIA, DAW YIN YIN MYINT
SAID THAT THE BURMESE REGIME IS CULTIVATING A "SPECIAL"
RELATIONSHIP WITH THE PRC IN HOPES THAT THESE TIES WILL
STRENGTHEN AND CONTINUE TO BEAR FRUIT FOR FUTURE GENERATIONS.
ON THE OTHER SIDE, THE BURMESE GOVERNMENT BELIEVES THAT THE
PRC IS VERY INTERESTED IN CLOSER TIES WITH BURMA AS AN
ECONOMIC OUTLET TO THE SEA AND INTO THE REST OF SOUTHEAST
ASIA. THE BURMESE MOFA INSISTS, THOUGH, THAT FROM ITS POINT
OF VIEW CHINA'S RECENT ATTENTIONS ARE NOT "AGGRESSIVE" IN
NATURE, AND THAT THERE IS NO QUID PRO QUO EXPECTED IN
EXCHANGE FOR THE NEW SOFT LOANS AND ECONOMIC AID.

COMMENT


6. (C) THE FREQUENT OF HIGH-LEVEL VISITS, THE AMOUNT OF
CHINESE ASSISTANCE AND LENDING TO BURMA, AND THE INCREASING
BILATERAL CONTACTS AT THE WORKING LEVEL INDICATE A MATURING
OF THE BURMA-CHINA RELATIONSHIP. ALTHOUGH AMONG AVERAGE
BURMANS THERE IS STILL STRONG SUSPICION, AND SOME RESENTMENT,
OF CHINESE INVESTMENT AND INFLUENCE IN THE COUNTRY, THE TWO
GOVERNMENTS SEEM FOR THE TIME BEING TO BE FORGETTING OLD
RIVALRIES AND BUILDING VERY STRONG ECONOMIC, POLITICAL, AND
MILITARY TIES. SIMILARLY, BURMESE TIES WITH INDIA, THAILAND,
AND BANGLADESH ARE RAPIDLY EXPANDING IN A NETWORK OF REGIONAL
SUPPORT THAT HAS HELPED DEFLATE WESTERN EFFORTS AT PRESSURE.
ONE BURMESE OBSERVER HYPOTHESIZED THAT THE SPDC WAS
REDOUBLING ITS EFFORTS AT REGIONAL FENCE-MENDING IN PART TO
BUILD A BUFFER AGAINST WESTERN PRESSURE AND SANCTIONS. PUT
SIMPLY, BURMA IS NO LONGER ISOLATED AS IT ONCE WAS. ON THE
CONTRARY, EVERY ONE OF ITS NEIGHBORS APPEARS TO BE WORKING
HARD TO REBUILD TRADE, INVESTMENT, AND INFRASTRUCTURE TIES
WITH BURMA. THIS IS AN IMPORTANT POINT TO REMEMBER AS
WESTERN STATES CONSIDER WAYS OF DIRECTING THE GOB TOWARDS
CHANGE. END COMMENT.


MARTINEZ