DRC VISIT TO CHINA, N. KOREA - HYDROELECTRICITY

C O N F I D E N T I A L SECTION 01 OF 02 KINSHASA 002122

SIPDIS

E.O. 12958: DECL: 11/18/2014
TAGS: PREL PINR ECON ENRG EINV EMIN ETRD PGOV CG CH KN
SUBJECT: DRC VISIT TO CHINA, N. KOREA - HYDROELECTRICITY
AND ROOF TILES MAJOR PROSPECTS

REF: REFTEL: KINSHASA 1958

Classified By: PolCouns MSanderson, reasons 1.4 b/d.


1. (C) Summary: Presidential advisor Andre Kapanga, the
second-ranking official on the DRC delegation to China and
North Korea, told PolCouns November 17 that meetings focused
on investment opportunities in the DRC, particularly
hydroelectrical generation and production of roof tiles.
China offered the DRC a $3 million line-of-credit, in
addition to $1.5m to purchase office supplies for the
Congolese Foreign Ministry. A second visit to China is
planned in March or April, although Kapanga said he didn't
think the Congolese would go back to North Korea, given that
the Koreans are "even worse off" than the Congolese. Kapanga
said that although the Congolese delegation met in both
countries with military elements there was no discussion of
trade in minerals, nor will Congo be receiving military
assistance from either China or North Korea. End Summary.


2. (C) A six-person Congolese delegation led by Foreign
Minister Ramazani Baya and Presidential advisor Andre Kapanga
visited China and North Korea at Chinese and Korean expense
November 3-13. In China the Congolese visited Beijing,
Shanghai and Chenji (a free trade zone on the mainland across
from Hong Kong); in North Korea they were limited to the
capital city. According to Kapanga, the Congolese delegation
made clear the DRC's interest in attracting investment,
particularly for assembly operations which could employ
unskilled Congolese labor.

Chinese Offer Line of Credit


3. (C) Kapanga said that during a meeting with the Chinese
Deputy Foreign Minister, the Chinese government offered the
DRC a $3 million line-of-credit which the DRC can use for
purchasing Chinese goods or equipment. In addition, China
will give the DRC $1.5m worth of office supplies and
equipment to support the Congolese Foreign Ministry's
operations, and up to 20,000 military uniforms. Kapanga
seemed puzzled himself as to what good 20,000 uniforms would
be for a military current numbering roughly 300,000 soldiers,
but said that the DRC had accepted the offer. (Note: China
has a history of assisting the DRC Foreign Ministry, and
China also built the Congolese Parliament in the 1970's. End
Note.) Kapanga said that although the Congolese delegation
did have a "courtesy meeting" with some Chinese military
officials, no military training or assistance was offered nor
sought, and there was no discussion with the Chinese of
exploiting Congo's uranium, coltran or other mineral
deposits. Instead, China noted that possibility of building
micro-dams to provide electricity to underserved areas of the
Congo, using either hydro or thermo technology, as
appropriate. While enthusiastic over this prospect, Kapanga
wryly noted that financing these projects, which the Chinese
initially estimated at about $50 million, would be a
challenge.

North Korea Could Produce Roofing Tiles


4. (C) Kapanga emphasized how struck he was with the
regimentation of North Korea (his driver, for instance, never
spoke to him nor looked directly at him during the entire
three-day stay, although he did quickly pocket the $50
gratuity that Kapanga offered). He spoke with some
resentment of being forced to visit Kim's tomb, and of the
delegation's being shown on Korean television bowing to the
well-preserved icon. He noted, with revulsion, that all the
officials repeated constantly the "party line" extolling the
brilliance of Kim and all their leaders, and virtually
refused to engage in any real conversation. He said the
poverty and malnutrition visible on the trip into the city
from the airport was in shocking contrast to the opulent
marble palaces in which the government officials conducted
business, and said the entire Congolese delegation was
appalled by this contrast. Although they met with two firms
interested in producing roofing tiles in the Congo, Kapanga
said he didn't think this would likely bear fruit, since
neither North Korea nor the Congo has the financing necessary
to found such a business. Again, the Congolese met with a
military delegation, but Kapanga said that there was no offer
of military assistance, and particularly there was no
discussion of accessing the DRC's uranium at Shinkolobwe mine
in Katanga.


5. (C) Kapanga said that the Congolese likely will return to
China for a second visit in March or April 2005 to explore
more concrete ideas related to the line-of-credit offered by
China, but stated categorically that they would not be going
back to North Korea.

Comment


6. (C) Visiting China at least has some logic, given that
the Chinese do have financial capacity, political and
economic links to the DRC, and a number of Chinese
businessmen currently in the Congo, particularly in Katanga
and Oriental Provinces. However, North Korea remains a
stretch and leaves us thinking, if not of uranium -- and we
don't doubt Kapanga when he says the delegation didn't
discuss uranium sales with the North Koreas -- at least of
conventional arms. The DRC could be seeking to upgrade its
armaments to better defend itself -- although better arms in
the hands of untrained and incompetent military is more
frightening than effective. In any event, there are things
which just don't ring true about this visit; for instance,
another Presidential advisor told the Ambassador that
President Kabila had not been fully informed about this trip
in advance, and hadn't even known that Kapanga would be going
along. We will try to get the Foreign Minister's perspective
on the trip when he returns to the DRC from his current
travels in early December.
MEECE