C O N F I D E N T I A L SECTION 01 OF 02 ABIDJAN 000234

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/02/2017
TAGS: PGOV PREL ECON ENRG EFIN XA IV
SUBJECT: CHINESE INFLUENCE IN COTE D'IVOIRE - AN UPDATE

REF: STATE 024937

Classified By: EconChief EMassinga, Reasons 1.4 (d)


1. (SBU) Summary. China plays a passive role in the
political scene in Cote d'Ivoire, and typically proffers the
rhetoric of non-interference in national affairs with regards
to the Ivorian political crisis. China is not a supplier of
military hardware or training to either faction. China is
not a major aid donor, either bilaterally or multilaterally,
but has built several high-profile projects around the
country. On the energy front, Chinese firms are not major
players, but one large firm in which a Chinese company has a
major stake could be a serious producer here should seismic
studies underway pan out. China is a significant exporter to
Cote d'Ivoire, rivaling the U.S. in overall exports, but
lagging substantially behind the E.U. The U.S. and China
could potentially expand humanitarian cooperation via our
engagement with international NGOs and multilateral
institutions and China's penchant for building
infrastructure. Politically, China can and should be drawn
into the international community's efforts to bring peace to
a greater degree. End Summary.

Diplomatic, Political and Military Activities
--------------

2. (C) China plays a discrete role on the political front,
particularly in the context of the ongoing political crisis
and division of the country. China is not a contributor to
UNOCI, nor does it participate in high-level UNOCI meetings
such as the International Working Group. China does,
however, wield its influence on the UNSC, where it
consistently expresses its oft-heard insistence on
non-interference in a country's internal affairs. Most
recently China has stood with Russia to block consideration
of sanctions against several prominent Ivorians identified by
UNOCI (supported by France and others) as impediments to
peace. China also stood with Russia in our position against
an overly expansi

ve formulation for UNSCR 1721 during the
late October 2006 debate on renewing the U.N.'s mandate.
Aside from its role in New York, Beijing is not a visible
player on the scene.


3. (C) To the best of Post's knowledge, China respects the
the arms embargo and does not provide either side of the
conflict military equipment or training. China does not
maintain meaningful cooperation with Cote d'Ivoire.

Aid
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4. (SBU) According to the Government of Cote d'Ivoire's
statistical research arm BNET, which compiles and publishes
an annual report on bilateral development assistance, China
is a very small donor in Cote d'Ivoire. China is not a major
contributor via multilateral mechanisms either. However,
China has provided Cote d'Ivoire a number of buildings and
roads as gifts, contributions which are not counted as
official development assistance. China has built the
enormous and impressive new Cultural Palace in Abidjan and
the new Parliamentary Office building in Yamoussoukro, and is
financing the new Presidential Palace and Parliament there.
China built the main national road between Abidjan and the
western port of San Pedro, and the wide, well-lit boulevards
in Grand Lahou and Yamassoukro. In the field of
democratization and rule of law, China is not known to be
active.

Energy
--------------

5. (SBU) China's state-owned energy firm Sinopec is a 27%
owner of VANCO-Cote d'Ivore. Vanco is a major independent
producer of oil and gas in the African continent. VANCO-Cote
d'Ivoire produces little oil currently, but has two large
offshore blocks with potentially large deposits; a major
detailed seismic survey of the contiguous areas is scheduled
to begin early in 2007. The blocks cover one area of
potential deposits close to the Canadian firm CNR's Babobab
Field, which was recently brought on stream and currently
produces more than half of Cote d'Ivoire's oil. Post has
seen press reports of interest by Chinese firms in building a
new gas turbine for electricity generation, but this notional
plan does not appear to be in the active planning stage.

Trade
--------------

6. (SBU) As of 2005, according to WTO statistics, China was
Cote d'Ivoire's fourth largest trading partner, accounting
for 3.2 percent of the latter's total imports, just behind
the U.S., which had 3.5 percent. This stands in contrast
with trade with the European Union, which has more than 50
percent of both Ivorian imports and exports. Chinese firms
export shoes, textiles, apparel, electronics, consumer goods
and auto parts. Cote d'Ivoire exports to China are mainly

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foodstuffs.

Areas for Cooperation
--------------

7. (SBU) The U.S. and China could potentially cooperate
fruitfully in the humanitarian field, particularly if we can
encourage China to work with the multilateral institutions
and partners with whom we engage closely. China's ability to
build infrastructure could be twinned with the capacity
building and service delivery expertise of international
institutions that deliver health, nutrition, education and
other services. If Demobilization Disarmament and
Reintegration (DDR) programs proceed, China could be
approached to upgrade and expand the infrastructure of the
bases where DDR activities will be based. Similarly, as
PEPFAR expands its presence, in partnership with competent
partners, in the North, China could be engaged to provide the
upgraded infrastructure a currently weak healthcare system
will need.


8. (C) On the political front, China should be engaged to
play a more constructive role. China has greater political
influence here than it currently uses. Should it be willing
to work more closely with the international community's
efforts, the latter's message will be clearer and its weight
more telling.
Hooks