SETTING THE RECORD STRAIGHT: CHINESE AID TO

C O N F I D E N T I A L BEIJING 006159

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/19/2017
TAGS: PREL PGOV EAID CH ZI XA
SUBJECT: SETTING THE RECORD STRAIGHT: CHINESE AID TO
ZIMBABWE


Classified By: Classified By: Political Minister Counselor
Aubrey Carlson. Reasons 1.4 (b/d).


1. (C) Summary: China's aid policy toward Zimbabwe has not
changed, and the current spate of reports regarding Chinese
aid to Zimbabwe are all the result of a misunderstanding, MFA
Zimbabwe Desk Officer Wang Xiao told PolOff September 19.
The rumors re-ignited following a September 18 press
conference (septel),in which PRC Special Envoy for Darfur
Liu Guijin noted the inefficiency of development aid to
Zimbabwe because of the economic situation there. In recent
meetings with us, German and Canadian Embassy colleagues
agreed that it is unlikely that China has shifted its aid
policy significantly. End Summary.

RUMORS IN THE WAKE OF MALLOCH-BROWN
--------------


2. (U) The rumor that the PRC would cut all assistance to
Zimbabwe except humanitarian aid first surfaced on August 31,
during British Minister for Africa and Asia Lord
Malloch-Brown's visit to China, following his meeting with
Special Envoy for Darfur Liu Guijin. The Chinese Embassy in
Zimbabwe was first to deny these rumors, stating that they
were "simply not true," according to press reports. The
rumor was revived during a September 18 press conference
(septel) held by Liu Guijin following his recent trip to the
United States, when a reporter asked about any shifts in aid
policy toward Zimbabwe.

LIU GUIJIN: DEVELOPMENT AID TO ZIMBABWE IS INEFFICIENT
-------------- --------------


3. (U) Liu Guijin's response to the reporter, given via
simultaneous interpreter, was as follows: "I haven't really
followed the situation. But as far as I know, in recent
days, China's assistance to Zimbabwe is mainly humanitarian,
because in terms of development assistance, we still have
some difficulties. In the past, China has provided
substantial development assistance to Zimbabwe but now, as
the devaluation of the currency and the deterioration of the
situation there, the efficiency of the assistance is not very
good, so I don't think there are any major projects that are
underway." This response led to a press report that China
has "turned its back" on Mugabe (see www.timesonline.co.uk).

MFA: THIS IS ALL A MISUNDERSTANDING
--------------


4. (U) Wang Xiao, the Zimbabwe Desk Officer at the Chinese
MFA, told PolOff September 19 that all of the current hype is
occurring because of "a misunderstanding" that first took
place during Malloch-Brown's visit. When asked if there were
any changes in policy to Zimbabwe, she responded that the
policy is "exactly the same as before." When asked if China
continues to provide development aid to Zimbabwe, she
repeated that the policy toward Zimbabwe has not changed.

Canadian and German EmbOff Comments
--------------


5. (C) A Canadian EmbOff commented to us recently thatwhile
China miht be attempting to change the ituation in Zimbabwe
through subtle diplomati maneuvers, cutting off development
aid as a eans of instigating change would be a radical
deviation from China's current aid policies in Africa. A
German colleague likewise recently agreed that Chinese aid
policy in Africa had not likely changed significantly.
Randt