PRC/SOUTH AFRICA: MBEKI IN CHINA

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 024316

SIPDIS

SIPDIS

DEPT FOR AF, EAP, EAP/CM
INR FOR GILLES AND KNIGHT
USUN FOR PHEE

E.O. 12958: DECL: 12/06/2026
TAGS: PREL PGOV EAID UN CH
SUBJECT: PRC/SOUTH AFRICA: MBEKI IN CHINA

REF: A. BEIJING 22370

B. PRETORIA 4790

Classified By: Political External Unit Chief Edgard Kagan. Reasons 1.4
(b/d).

Summary
--------------


1. (C) Beijing's decision to give President Mbeki one of the
limited number of state visits following the recent Beijing
Summit of the Forum for China-Africa Cooperation (FOCAC, Ref
A) reflects Beijing's view of South Africa's importance and
the "very friendly" relations between the two countries,
according to MFA African Department Officer Ma Xiaolin.
Mbeki's "cordial" meetings with President Hu Jintao, National
People's Congress Chairman Wu Bangguo and Premier Wen Jiabao
(the trifecta of top leaders) focused on bilateral issues,
with Mbeki courting increased Chinese investment. Mbeki also
pitched for close coordination with China when South Africa
assumes a non-permanent seat on the UN Security Council in
January, Ma said. South Africa is also pushing for greater
support the New Partnership for Africa's Development (NEPAD),
a South African Embassy contact told us. End Summary.


2. (C) Poloff discussed Mebki's State Visit to China and
South Africa's participation in the FOCAC Beijing Summit with
MFA African Department Officer Ma Xiaolin, responsible for
South Africa, and separately with South African Counsellor
Schoeman du Plessis (protect).

Bilateral Relations Sound
--------------


3. (C) Beijing's decision to give President Mbeki one of the
limited number of state visits ollowing the recent Beijing
Summit reflects Bijing's view of South Africa's importance
and the "very friendly" relations between the two countries,
according to Ma. President Mbeki met with President Hu
Jintao, Premier Wen Jiabao and National People's Congress
Chairman Wu Bangguo in Beijing during a brief State Visit
following the recent Beijing Summit, Ma said. The Hu and Wen
meetings covered the same substantive ground, while the
meeting with Wu was more of a courtesy call. During his
meeting with Hu, Mbeki spoke positively about China's
presence in Africa and said the African National Congress had
much to learn from the Chinese Communist Party (CPC) about
how to transition from a revolutionary party to a long-term
governing party. Mbeki noted that South Africa seeks more
investment from China and expanded bilateral trade, Ma said.
Du Plessis separately observed that South Africa wants more
than it is receiving from bilateral economic ties and faces
considerable pressure from trade unions on textiles. Mbeki
and Chinese leaders did not engage in serious discussion on
trade, du Plessis added, noting that neither side tends to
raise complaints in diplomatic settings.

RSA Seeks PRC Guidance For UNSC
--------------


4. (C) Ma noted that Chinese leaders were prepared to discuss
international and regional issues but that Mbeki stuck mainly
to bilateral topics. Mbeki did not raise United Nations
Security Council expansion or reform but did solicit China's
guidance and procedural tips on operating in the Security
Council, which South Africa joins as a non-permanent member
in January. Mbeki said he wants to ensure South Africa's
views are heard. South Africa appreciates PRC support on
Cote d'Ivoire, Mbeki added. President Hu said China supports
anything that contributes to African stability and
prosperity, Ma said. Mbeki noted that South Africa believes
China should continue to engage the African Union on regional
issues and support the New Partnership for Africa's
Development (NEPAD),Ma added. Du Plessis separately offered
much the same readout as Ma on both the Hu and Wen meetings,
adding that Mbeki told his hosts that South Africa will have
to pay closer attention to North Korea when South Africa
joins the Security Council. Hu agreed to cooperate and
coordinate with South Africa on Security Council matters, du
Plessis added.

Trade Frictions Glossed Over
--------------


5. (C) Premier Wen told Mbeki that China seeks to balance

BEIJING 00024316 002 OF 002


bilateral trade with South Africa, according to Ma. Wen said
China will try to import more South African products and
train more South African professionals. Wen noted that
because exports to South Africa are only a fraction of
China's global textile exports, the PRC can afford to abide
by the voluntary restrictions it agreed to. Wen told Mbeki
that Beijing considers this matter resolved, according to Ma.
Ma noted that South Africa brought a fairly large business
delegation to Beijing, but only two Ministers (Foreign
Affairs and Trade and Industry). As Wen recently traveled to
South Africa the two sides did not sign any new contracts of
note, Ma said, but Mbeki raised concerns about implementation
of existing agreements. Du Plessis said that most prominent
South African companies and entrepreneurs traveled to China
for the Beijing Summit, including Patrice Motsepe, Andile
Ngcaba, Reuel Khoza and mining executives from Sasol and
Anglo American. The Beijing Summit served to create greater
awareness among Chinese State Owned-Enterprises and
government agents of Africa's viability for business, du
Plessis remarked, but created high expectations on the Africa
side that China must now meet.

Few Bilateral Obstacles
--------------


6. (C) Speaking more generally about PRC-South Africa
relations, Ma said that the Sino-South African strategic
partnership reflects the global importance of both countries.
South Africa seeks a larger role in Africa while China needs
South Africa as a source of high technology (especially
related to mining) and for political support for its
objectives in Africa. Trade frictions that have arisen are
to be expected given South Africa's outspoken media and
strong trade unions, Ma said, noting that free trade
agreement negotiations have slowed for the moment due to
internal disagreements in South Africa and the fact that the
issue is not of vital importance to China given the
proportionally low bilateral trade volume. Ma said China
believes South Africa's ambitions for a permanent UN Security
Council seat could be a potential issue in bilateral
relations, but it is not a present concern.

South Africa Serious About NEPAD
--------------


7. (C) Du Plessis said that South Africa generally sees few
barriers to improving ties with China aside from the
aforementioned trade frictions and UNSC issues. The Chinese
Communist Party has good relations with most significant
political parties in South Africa. China is another global
player, not a threat, and South Africa maintains strong ties
with the European Union and the United States. While Beijing
and South Africa have not had many opportunities to cooperate
on regional security initiatives, du Plessis noted that this
may change with South Africa's new non-permanent seat on the
UN Security Council. South Africa will continue to press for
greater Chinese support for NEPAD, du Plessis said, noting
that few results have flowed from a memorandum of
understanding between the PRC and the NEPAD Secretariat
signed by PRC MFA African Department Director General Xu at
the NEPAD Summit. South African diplomat Dave Malcomsen, who
has spent the past five years working on NEPAD in various
capacities, will assume a Minister position in South Africa's
Embassy in Beijing in January and will continue to press
China for NEPAD support, du Plessis added.
Randt