BRAZIL: CHINESE ACTIVITIES IN LATIN AMERICA AND

C O N F I D E N T I A L SECTION 01 OF 03 BRASILIA 002317

SIPDIS

E.O. 12958: DECL: 08/29/2025
TAGS: PREL PHUM EAIR MARR CH BR
SUBJECT: BRAZIL: CHINESE ACTIVITIES IN LATIN AMERICA AND
THE CARIBBEAN

REF: A. STATE 138041

B. BRASILIA 2295

Classified By: Political Officer Bisola Ojikutu for reasons 1.4
(B) and
(D).


1. (C) In response to reftel request, post provides the
following information regarding Chinese activities in Brazil.
Economic, trade, investment, and science and technology
information will be provided septel. Ref B outlines recent
developments on environmental cooperation between China and
Brazil.

WHAT, IF ANY, ASSISTANCE IS CHINA PROVIDING TO HOST COUNTRY?
WHAT IS THE BREAKDOWN BETWEEN GRANTS AND LOANS? DOES THE
CHINESE GOVERNMENT TYPICALLY PROPOSE AID OR DOES THE HOST
COUNTRY REQUEST IT? WHO PROPOSES SPECIFIC PROJECTS? DO THE
CHINESE PUSH CERTAIN TYPES OF PROJECTS AND SHY AWAY FROM
OTHERS EVEN IF THE HOST COUNTRY HAS REQUESTED
THEM?


2. Post could not find substantive information on the amount
of assistance that China is providing or has provided to
Brazil.

WHAT IS THE FREQUENCY OF HIGH-LEVEL POLITICAL CONTACT BETWEEN
HOST-COUNTRY OFFICIALS AND CHINESE OFFICIALS? IS THERE
EVIDENCE OF POLITICAL DISCUSSION ON GLOBAL POLICY ISSUES OR
CHINESE PRESSURE TO SUPPORT CHINA'S VIEW ON HOT BUTTON ISSUES?


3. (C) High level political contact between GOB and PRC
officials has been moderate in recent years. Brazilian
President Lula da Silva visited China May 22-27, 2004 to
discuss trade, investment, defense, and other regional and
international issues of common concern (Post will provide
trade and investment discussions septel). The GOB and the
PRC also agreed to create a China-Brazil Committee on
High-level Coordination and Cooperation between the Chinese
Vice Premier and the Brazilian Vice President.


4. (SBU) In China, President Lula's Workers' Party (PT)
developed political ties with the Chinese Communist party.
On April 23, 2004 in Beijing, former PT President Jose
Genoino signed an agreement of collaboration between the
Chinese Communist Party and the PT. According to press
reports, Genoino affirmed that the GOB sought to construct a
"diplomatic, political, and economic axis" among India, South
Africa, Brazil, and China. Genoino praised China's
integrated public administration and said it was important
for the PT to study what has occurred in China over the last
twenty years.


5. (SBU) President Hu visited Sao Paulo, Rio de Janeiro, and
Brasilia, November 11-15, 2004. In Rio de Janeiro, Hu met
with Rio State Governor Rosinha Garotinho and underscored the
"friendly" cooperation between China and Brazil that has
produced "satisfactory results." Hu hoped that the government
of Rio de Janeiro State and Chinese local governments could
enhance mutual understanding, jointly discuss new approaches
and trade developments, and expand cooperation. Hu also
mentioned that the recently signed Tourism Cooperation
Agreement between Brazil and China could increase exchanges.


6. (U) During a speech to Brazilian legislators at Brazil's
National Congress in Brasilia on November 12, 2004, Hu
announced China's new Latin American policy, and hoped to
begin "a new era of friendship" with Latin American and
Caribbean countries. Hu proposed launching cultural centers
in each other's countries, encouraging tourism, improving
mass media and student exchanges, and organizing Sino-Latin
American youth festivals.


7. (U) In Sao Paulo, Hu met with Sao Paulo State Governor
Geraldo Alckmin and held in-depth talks on strengthening
further friendly exchanges and economic and trade cooperation
(to be reported septel).


8. (C) UN Reform: Chinese officials told the GOB that the
PRC supports greater participation by developing countries in
the international arena, including the UN. The GOB believed
that this stance implied support for a Brazilian permanent
UNSC seat, and was surprised when the PRC refused to support
Brazil publicly earlier this year.


9. (C) Human Rights: According to the MRE, the GOB and the
PRC have agreed to "not politicize" the human rights issue.
During UN Commission on Human Rights (UNCHR) meetings in
Geneva, Brazil is careful not to favor resolutions critical
of China's human rights record (Note: In general, Brazil
rarely supports single country resolutions in the UNCHR. End
Note). In support of the GOB's position, Ministry of
External Relations (MRE) officials claim they are not
ignorant of China's human rights situation, and believe that
human rights in China are "serious but improving."


10. (C) In 1997, Brazil voted against China on a human rights
resolution in Geneva. This vote caused serious bilateral
problems between the two countries, and led to the
development of an annual Sino-Brazilian Human Rights
Commission. Since the creation of the commission in 1997,
the two sides have only met twice, but MRE officials claim
that Brazil and China "theoretically" hold human rights
discussions every year. During these "talks," Brazilian
officials do not raise specific cases or press for specific
systemic reforms. Instead, Brazil shares its human rights
experiences with China.

11. (C) An MRE official opined in late 2004 that the
Sino-Brazilian Human Rights Commission was all but dead and
believed that Brazil could not influence China on human
rights. Human Rights were not discussed during Hu's visit,
but the GOB offered China expert assistance in penal,
judicial, and other areas of reform. The PRC rebuffed all
GOB efforts and ignored proposed exchange visits. In the
interest of the "strategic partnership" and Brazil's UNSC
bid, the MRE will likely not vote in favor of a China human
rights resolution. Instead, Brazil will continue to abstain
on any UN effort to criticize China's approach to human
rights.


12. (C) IBSA: There is some speculation that China will join
the India-Brazil-South Africa Dialogue Forum (IBSA),
sometimes called the G-3, however; MRE officials have denied
speculation claims. MRE officials believe that IBSA is in
its infancy and must focus on concrete bi- and tri-lateral
projects and unify the three countries before adding new
partners.

-- WHAT IS THE EXTENT OF MILITARY CONTACT AND ASSISTANCE
BETWEEN CHINA AND THE HOST COUNTRY?


13. (C) China recently sent a large multi-service delegation
to the Latin America Air Defense show held in Rio de Janeiro
in April 2005 and a senior member of the Chinese delegation
participated in one of the show's defense panels. A
delegation from the Chinese National Defense University
visited Rio de Janeiro in late July 2005. Hu visited
Brazil's National Institute for Space Exploration (INPE) in
Sao Paulo on November 15, 2004. China and Brazil have been
cooperating on the development of Earth observation
satellites since 1998.

-- WE ALSO WELCOME ADDITIONAL INFORMATION ON CHINA'S
ENGAGEMENT WITH HOST COUNTRY, CULTURAL TIES, EDUCATION
EXCHANGE, ETC.


14. (U) Despite Brazil's multi-ethnic makeup, citizens of
Chinese descent represent a tiny fraction of Brazil's
population, compared, for example, to Brazilians of Japanese
ancestry. Illegal immigration and extradition may yet become
an issue between the two countries. The majority of the
estimated 50,000 Chinese in Brazil, mostly residing in Sao
Paulo, are believed to be in-country illegally.


15. (C) Our contacts report a lack of understanding among
Brazilians, even among so-called experts of China. Within
Brazilian academia, only a few Chinese Studies programs
exist, most notably at the University of Sao Paulo and the
University of Brasilia. Academic exchanges are very few, due
in part to the strong desire among the youth in both
countries to seek English-speaking programs, according to the
MRE, although interest in exchanges could increase in the
future.


16. (SBU) The Public Affairs Section plans to include
questions related to China in future polling exercises.

-- HOW DOES BEIJING'S EFFORT TO CONSTRAIN TAIWAN'S
INTERNATIONAL SPACE PLAY INTO CHINESE LOCAL ACTIVITIES AND
ITS RELATIONSHIP WITH HOST GOVERNMENT?


17. (C) The GOB continues to support a one China policy and
reaffirmed this position with the Chinese during the November
2005 visit. The PRC has kept subtle pressure on the GOB to
not recognize Taiwan, and Brazil is not prepared to lobby
another country on China's behalf. During Lula's May 2004
visit to China, Brazil reiterated its adherence to the
one-China policy, and agreed that Taiwan and Tibet are "an
inseparable part of China." Moreover, the GOB opposed any
unilateral action aimed at separating Taiwan from China,
increasing tensions across the Taiwan Straits, or leading to
Taiwan independence.


18. (U) In a speech before the Brazilian Congress in
Brasilia, Hu reiterated China's stance on the Taiwan issue
and hoped that Latin America would continue to "fully support
the just cause of the Chinese people." National Congress
President and Senate President Jose Sarney and Chamber of
Deputies President Joao Paulo Cunha stated that the Brazilian
Congress supports the Chinese Government's stance on Taiwan,
and acknowledged that Taiwan is an inseparable part of
Chinese territory.
-- DESCRIBE CHINESE MILITARY-TO-MILITARY CONTACTS AND EFFORTS
TO SELL WEAPONS IN YOUR HOST COUNTRY.


19. (C) During his visit to China, Lula praised GOB/PRC
cooperation on satellite programs. Post believes that the
GOB will continue to explore opportunities to expand military
to military cooperation. Military contacts indicate that
while the military relationship is growing via
familiarization visits and training exchanges, military sales
between the two countries are unlikely. Hence, it appears
that defense is not a driving force in the relationship.
Remote sensing application cooperation will expand existing
achievements and provide third parties with services related
to satellite programs.


20. (C) GOB/PRC satellite cooperation has been described as
"very successful" by the MRE. Brazil and China are in a
joint satellite venture known as China Brazil Earth Resource
Satellite Program (CBERS). CBERS I and II have been launched
from a Chinese facility on Long March Rockets. Brazil will
finance 30 percent of CBERS IIB, an interim measure between
CBERS II and III, and the PRC will finance the remaining 70
percent. During Hu's visit, the two governments signed an
agreement to market the CBERS-II satellite images to third
countries. The third satellite, CBERS-III has an anticipated
launch date of 2008 and an expected budget of US $85 million.
CBERS-III will be financed in equal parts by Brazil and
China. There are plans to launch as many as five CBERS
satellites. CBERS-series satellites can capture images from
Mongolia to Argentina.


21. (C) Hu visited Embraer, the Brazilian aircraft
manufacturer, on November 15 in Sao Paulo. In 2002, the
company cooperated with the Chinese Hahang Group to establish
Harbin Embraer Aircraft Industry Co., LTD. Embraer recently
posted 185 Brazilian employees to China to create the
aircraft manufacturing plant in Harbin. This plant will
produce regional jets specifically for the Chinese market and
not for any other export market.

DANILOVICH