Identifier
Created
Classification
Origin
05DJIBOUTI995
2005-10-05 13:48:00
CONFIDENTIAL
Embassy Djibouti
Cable title:  

CHINA'S INFLUENCE IN DJIBOUTI

Tags:  PREL ECON ETRD EFIN EMIN EINV ENRG ETTC PHUM SENV AF CH DJ 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 DJIBOUTI 000995 

SIPDIS

STATE FOR AF PDAS MICHAEL RANNEBERGER; STATE ALSO FOR AF/E
AND AF/RSA;
LONDON, PARIS FOR AFRICA WATCHER

E.O. 12958: DECL: 10/03/2015
TAGS: PREL ECON ETRD EFIN EMIN EINV ENRG ETTC PHUM SENV AF CH DJ
SUBJECT: CHINA'S INFLUENCE IN DJIBOUTI

REF: STATE 153199

Classified By: Pol/Econ Erinn C. Stott for reasons 1.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 02 DJIBOUTI 000995

SIPDIS

STATE FOR AF PDAS MICHAEL RANNEBERGER; STATE ALSO FOR AF/E
AND AF/RSA;
LONDON, PARIS FOR AFRICA WATCHER

E.O. 12958: DECL: 10/03/2015
TAGS: PREL ECON ETRD EFIN EMIN EINV ENRG ETTC PHUM SENV AF CH DJ
SUBJECT: CHINA'S INFLUENCE IN DJIBOUTI

REF: STATE 153199

Classified By: Pol/Econ Erinn C. Stott for reasons 1.4 (b) and (d).


1. (C) The Republic of Djibouti and the People's Republic of
China have had diplomatic relations for 26 of the 28 years
Djibouti has been independent. Over those 26 years, China has
given a substantial amount of aid to Djibouti in the form of
loans, grants, building projects and cooperative trade
agreements. The Chinese influence in Djibouti is nowhere near
as strong as the French or the U.S. influence, but it is
visible, continuous and growing. Chinese influence is
prevalent in both private and public sector projects. On the
government-government level, each year in July/August the
Chinese government invites officials from different
departments of the Djiboutian Government for a 15-day tour in
China. Travel and accommodations are paid for by the Chinese
government. To Post's knowledge, members of the Defense
Ministry, Parliament, the Presidency, and the Ministry of
Foreign Affairs have visited China on these trips.


2. (U) Prime Minister Dileita Mohamed Dileita recently
concluded a 6-day visit to China that took him and his
delegation to Beijing, Shanghai and Xian. He described
Djibouti-China relations as excellent and exemplary in a
recent interview with the State-run newspaper, La Nation. He
said over the past 26 years relations had been developed
under a sign of confidence and could be characterized by
depth, vitality and concrete accomplishments. Since President
Guelleh's visit in 2001, China has given not only
non-reimbursable financing and implementation of projects but
technical assistance in the area of health, youth, sports and

professional training of Djibouti's workers. Dileita
described the economic partnership between China and Djibouti
as equally of large growth, including the Chinese company ZTE
equipping Djibouti Telecom over the last few years through a
project totaling $10 million dollars. Djibouti has also had
talks with the Shanghai port authorities.


3. (U) Dileita further commented that his 6-day visit was
centered around reinforcing political dialogue and
cooperation between Djibouti and China. Minister of
International Cooperation in the Ministry of Foreign Affairs,
Hawa Ahmed Youssouf, presided over the signing of an
agreement giving Djibouti a 440 million Djibouti Franc
(nearly $2.5 million dollars) grant for development projects.


4. (U) During Dileita's visit, Djiboutian and Chinese
officials agreed to maintain and augment economic cooperation
with assurances that the Chinese government will continue to
give financial aid for development projects, encourage and
favor commercial exchanges and the importation of Chinese
products, increase the number of high-level visits between
China and Djibouti, and expand and intensify cooperation and
visits between political parties, parliaments, chambers of
commerce, media and other associations. Dileita also
discussed Chinese financing and construction of a road in the
Northern districts of Tadjourah and Obock. Also discussed
were international and regional issues such as IGAD's role in
Somalia. Djibouti also renewed its commitment to support
China at the United Nations and pursue its one-China policy.


5. (U) Dileita also reportedly had meetings with the Chinese
Company, Hurricane Technologies, regarding a desalination
project. Dileita said in the coming months Djibouti's Office
National des Eaux (ONED) will discuss ultimate steps needed
to advance the project, specifically financing. Dileita also
met with the Chinese company, Huawei Technologies, where he
visited their training center and discussed the possibility
of assistance in reinforcing the infrastructure of Djibouti
Telecom. Huawei Technologies has been invited the company to
visit Djibouti and meet with the Djibouti Telecom officials.


6. (C) During President Guelleh's 2001 visit to China,
accompanied by a large delegation of Djiboutian business
owners, the Djiboutian Chamber of Commerce and the Chinese
Chamber of Commerce signed a cooperation and trade agreement.
While this agreement did not result in concrete cooperation
between the two Chambers of Commerce, it produced business
ties on individual levels. Mr. Gamil Abdoulkarim Ali, who
heads the Al Gamil group - one of Djibouti's largest
importers, and who accompanied President Guelleh in 2001, was
able to establish ties with several Chinese counterparts. He
now imports cars and a wide variety of products from China.


7. (C) In January 2005, the Chinese Government agreed to
offer tax exemption for 190 different commodities to 25 least
developed African countries, including Djibouti. This tax
exemption is similar to the USG AGOA program and is aimed at
helping African countries develop their economies. Djibouti
has not taken advantage of this opportunity to date because
of a lack of products to export. Recent statistics show that
the Government of Djibouti imported from China $1.53 million
dollars in 2001, $1.14 million in 2002 and $1.33 million in

2003. Imported commodities for 2003 were mainly chemical
products, textiles, shoes and equipment. There are also
several Chinese companies present in Djibouti, mainly in the
construction industry.

Past Projects with the Government of China
--------------

8. (C) Below is a list of projects paid for by the Chinese
government since the early 1980s. This list does not include
minor projects, feasibility studies, or renovation costs.
- 1983-1985 Construction of the Palais du Peuple, a
convention center in the capital city, financed by a $10
million dollar loan.
- 1991-1993 Construction of the Stadium in the capital city,
financed by an $11 million dollar loan.
- 1994 A grant for Food Aid totaling $0.5 million dollars.
- 1996-1998 Construction of 55 social housing units, financed
by a $2.6 million dollar loan.
- 1997 Construction of a medical wing for Peltier Hospital in
the capital city, financed by a grant of $0.45 million
dollars.
- 1981 and 2000 Various types of military, sports and
computer equipment, financed by a grant of $5 million dollars.
- 2001-2003 Construction of the Ministry of Foreign Affairs,
financed by a grant of $2.41 million dollars.
- 2001 China and Djibouti sign an agreement with Djibouti
Telecom for a fiber optics project, financed by a loan of
$12.048 million dollars. Expected completion date is 2007.
- 2003 Donation of sanitation trucks and equipment, financed
by a grant of $0.678 million dollars.
- 2004 Construction of an Omnisport Center in Dikhil
district, financed by a grant of $0.91 million dollars.
- 2004 Grant of $0.622 million dollars to the Girls'
Orphanage for the construction of an Art Center.
- 2004 Donation of education material, financed by a grant of
$0.120 million dollars
RAGSDALE