CHINESE AMBASSADOR TO BARBADOS WELCOMES U.S.-PRC

C O N F I D E N T I A L SECTION 01 OF 03 BRIDGETOWN 001139

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NOFORN
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CARACAS PASS DAO
SOUTHCOM AND PACOM FOR POLADS

E.O. 12958: DECL: 07/03/2016
TAGS: PREL PGOV PINR EAID EINV ETRD BB CH XL
SUBJECT: CHINESE AMBASSADOR TO BARBADOS WELCOMES U.S.-PRC
SUBDIALOGUE

REF: A. BRIDGETOWN 1095

B. BRIDGETOWN 005

C. 05 BRIDGETOWN 515

D. STATE 70035

E. BEIJING 7116

F. OTTAWA 1996

G. QUITO 1578

H. SANTIAGO 1224

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Classified By: DCM MARY ELLEN T. GILROY; REASONS 1.4 (B) AND (D)


1. (C) SUMMARY: In two separate conversations with
Ambassador and DCM, Chinese Ambassador to Barbados Liu
Huanxing discussed WHA A/S Shannon,s trip to Beijing,
possible U.S.-PRC consultations on hemispheric cooperation,
the recent visit of Chinese Vice Foreign Minister Yang Jiechi
to the Eastern Caribbean, and the problem China faces as a
&small shareholder8 in the Venezuelan state oil company
which recently diverted from Barbados to China all its
production of Orimulsion, a patented heavy fuel used for
cement production. The American-educated PRC ambassador
foresees a regional embassy in the Eastern Caribbean on the
U.S. model, following the eventual consolidation of PRC
representation throughout the region. END SUMMARY.


2. (C) In response to ref D, para 7, post solicited the views
of Ambassador of the People,s Republic of China to Barbados
Liu Huanxing on the April 8-15 visit of WHA Assistant
Secretary Thomas Shannon to Beijing. (The Ambassadors of

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Japan and Korea are resident in Port of Spain and Caracas,
respectively.)

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SHANNON IN BEIJING; FUTURE U.S.-CHINA CONSULTATIONS
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3. (C) When first approached about A/S Shannon,s trip to
Beijing, Ambassador Liu was unaware of the visit. However,
in response to a subsequent query, the Chinese envoy said
that he had read Beijing,s report on the meetings. He
expressed the view that the U.S.-PRC sub-dialogue on Latin
America was a positive initiative that he hoped would
continue, perhaps following the model of annual bilateral
consultations held between China and other nations, such as
Russia and Spain. (NOTE: The Chinese ambassador declined to
provide further details. END NOTE.) He suggested that such
a consultation should be a broad look at the Western
Hemisphere, including Latin America and the Caribbean. He
thought an annual consultation would be a very useful
exchange, and might even lead to coordination and/or
collaboration on some types of assistance. He also expressed
cautious enthusiasm for consultations within the Barbados
diplomatic donor community. (NOTE: The diplomatic presence
in Barbados consists of the U.S., UK, Brazil, Canada, China,
Cuba, Venezuela, the EU, and UNDP. The Ambassador of Costa
Rica departed on June 10, and its Embassy will close
permanently in late July. END NOTE.)


4. (C) Using Barbados as an example, Liu said that his
embassy received a constant stream of requests for equipment
and training from various GOB ministries. Recently, the
Royal Barbados Defence Force (RBDF) asked for training in
martial arts, disaster relief coordination, and
communications. Liu said he was aware through media reports
of training given to the RBDF by the U.S. and the UK. He
wondered if some of the training provided under various
bilateral auspices might not be duplicative. He also
speculated that the donor nations might have different
philosophies of training and execution that could confuse the
recipients if they had to decide which style to adopt.
Coordination among the donors could lead to different nations
specializing in certain areas, which would eliminate
duplication.


5. (C) COMMENT: Liu,s comments on GOB requests for
assistance from China were surprising. The only approaches
made to the USG by the GOB for assistance were for
emergencies (the destruction by fire of the Glendairy Prison)
or big-ticket items (the entry/exit swipe card for Cricket
World Cup 2007). Our UK and Canadian colleagues report

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similar large requests from the GOB. END COMMENT.)

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VIP VISITOR
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6. (C) Chinese Vice Foreign Minister Yang Jiechi visited
several nations in the Eastern Caribbean in late May-early
June. (NOTE: Per ref E, A/S Shannon met with VFM Yang in
Beijing on April 14. END NOTE.) Heading a six-member
delegation, the VFM arrived in Grenada May 30 and signed a
Cultural Cooperation Agreement there on June 1. The Chinese
delegation proceeded to Dominica where the VFM reportedly
signed the financial agreement for the rehabilitation of the
Roseau to Portsmouth Highway, the second of four projects
China agreed to finance when Dominica established diplomatic
relations with the PRC on March 23, 2004. The VFM is said to
have inspected the first of these projects, the USD50 million
Windsor Park Sports Stadium, during his two-day stopover on
the &Nature Island.8


7. (C) According to the Chinese Ambassador, VFM Yang and his
party spent seven (7) nights in Barbados. Yang reportedly
signed two agreements providing USD 8 million to Barbados.
In addition to official meetings, which received extensive
media coverage, the VFM conducted in-house sessions at the
PRC Embassy. Liu provided no further information on the
internal meetings. The Chinese ambassador said he was very
proud to have hosted the VFM, but expressed relief that his
visitor had finally departed. Liu observed that it was
extremely difficult to get the GOB to commit to meetings in a
timely way, and, once the visit was underway, to stick to
schedule as GOB officials were uniformly late to arrive and
talked longer than anticipated by the Chinese organizers.
(COMMENT: It was oddly comforting to post to hear the
Chinese diplomat express frustrations similar to our own.
END COMMENT.)


8. (C) Ambassador Liu commented that President Hu Jintao
recognizes that he has little background in foreign affairs
and has surrounded himself with knowledgeable and experienced
people to get up to speed on international matters. The
Chinese ambassador explained that the VFM had spent many
years in Washington. VFM Yang accompanied President
Hu on his recent trip to the U.S. and was present for the
meetings with President Bush and Bill Gates.

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THE PROBLEMS OF A &SMALL SHAREHOLDER8
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9. (C) Liu observed that the VFM spent considerable time
discussing energy issues with GOB officials, especially the
abrupt cut-off of sales of Orimulsion fuel oil to the sole
cement factory in Barbados, Arawak (ref A). The Venezuelan
company is government-run, and the GOB discovered that the
PRC is one of its shareholders. This resulted in extensive
lobbying of the VFM by the GOB, in spite of his protests that
the PRC was a small shareholder. Liu commented that the
China State Construction Company (CSCC),which is licensed as
a construction contractor in Barbados, and has several major
projects underway, would also be negatively impacted by the
anticipated significant rise in price of locally produced
cement.


10. (C) COMMENT: The Chinese Ambassador,s version of
events may be disingenuous. Press reports indicate that the
Chinese and Venezuelan state oil companies started producing
Orimulsion in Venezuela via a joint venture in April 2006.
(Venezuela is the world,s sole producer of Orimulsion.)
According to Arawak Cement,s production manager, in early
June the Venezuelan state oil company abruptly cut off the
supply of Orimulsion to Barbados with a year left in the
contract. Reportedly, the entire Venezuelan output of
Orimulsion will be redirected to China, meaning other
consumers of the fuel will likely have their contracts
canceled as well. END COMMENT.


11. (C) On a related note, discussion of the performance of
CSCC led Liu to observe that the Chinese economy was

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overheated, and there was a need for the government to slow
it down and focus on infrastructure development and education
to ensure that China continued to move forward.

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BIO NOTE
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12. (C) Ambassador Liu Huanxing appears to be in his mid- to
late forties. He is more outgoing than his predecessor and
speaks excellent, albeit heavily accented, English. He
received a master,s degree in international relations from
School of Advanced International Studies (SAIS) of Johns
Hopkins University. He previously served as Ambassador to
Trinidad and Tobago. The Chinese envoy commented, with some
wistful regret, that as a senior diplomat he had less control
over his choice of posting than junior officers; at his
level, the Foreign Ministry directed his assignments. He
did, however, express a preference for working overseas,
dealing with only one country. If he were at the MFA in
Beijing, he would have a considerably heavier workload
directing an office dealing with several countries and
governments.

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COMMENT
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13. (C) Ambassador Liu is a thoughtful diplomat who appears
happy to talk with U.S. Embassy staff. His portfolio is
limited to Barbados as China (both Beijing and Taipei)
maintains an embassy in each of the independent countries of
the Organization of Eastern Caribbean States (OECS). He
cautiously acknowledges Beijing,s diplomatic efforts to
persuade St. Kitts and Nevis and St. Vincent and the
Grenadines to transfer diplomatic relations from Taipei to
Beijing. The Chinese ambassador allowed that this is a
long-term process and declined to speculate on a time frame
for displacing Taiwan in the region. He did, however,
suggest that once all six independent OECS members have
established diplomatic ties with Beijing, the PRC,s
diplomatic representation would probably be consolidated in
one embassy, located in Barbados, with regional
responsibilities, following the U.S. model.
KRAMER