Identifier
Created
Classification
Origin
07DAKAR1727
2007-08-22 16:53:00
CONFIDENTIAL
Embassy Dakar
Cable title:
CHINESE INVOLVEMENT IN SENEGAL'S NATURAL RESOURCES
how-toVZCZCXRO7302 PP RUEHPA DE RUEHDK #1727 2341653 ZNY CCCCC ZZH P 221653Z AUG 07 FM AMEMBASSY DAKAR TO RUEHC/SECSTATE WASHDC PRIORITY 9042 INFO RUEHZK/ECOWAS COLLECTIVE PRIORITY RUEHBJ/AMEMBASSY BEIJING PRIORITY 0115 RUDKIA/AMCONSUL CHIANG MAI PRIORITY 0001
C O N F I D E N T I A L DAKAR 001727
SIPDIS
SIPDIS
STATE FOR OES:JMIOTKE AND ACOVINGTON, EAP:JYAMAMOTO,
EEB:TSAEGER, AF/W, AF/EPS, AND AF/RSA
E.O. 12958: DECL: 08/13/2017
TAGS: ECON EINV SENV CM SG
SUBJECT: CHINESE INVOLVEMENT IN SENEGAL'S NATURAL RESOURCES
REF: A. A. STATE 93848
B. B. DAKAR 1523
Classified By: Jay T. Smith, Charge d'Affaires, a.i. Reason 1.4 (b),(
d)
C O N F I D E N T I A L DAKAR 001727
SIPDIS
SIPDIS
STATE FOR OES:JMIOTKE AND ACOVINGTON, EAP:JYAMAMOTO,
EEB:TSAEGER, AF/W, AF/EPS, AND AF/RSA
E.O. 12958: DECL: 08/13/2017
TAGS: ECON EINV SENV CM SG
SUBJECT: CHINESE INVOLVEMENT IN SENEGAL'S NATURAL RESOURCES
REF: A. A. STATE 93848
B. B. DAKAR 1523
Classified By: Jay T. Smith, Charge d'Affaires, a.i. Reason 1.4 (b),(
d)
1. (C) To date, China is not heavily invested in Senegal's
natural resources sectors. China's presence in Senegal
currently focuses on the importation of Chinese consumer and
industrial goods, including automobiles, and Chinese
assistance for public works projects. China does not have a
fishing agreement with Senegal, although Chinese firms do buy
some Senegalese seafood, mostly "yet" (a large shellfish) and
octopus. Likewise, China is not currently a large purchaser
of Senegal's forest or mineral resources. Over the past year
there was significant speculation that a Chinese firm would
become a major investor in Senegal's troubled and
under-producing phosphates company, ICS, but this week the
original Indian investor, IFFCO signed an agreement to become
the company's majority stakeholder. It is our understanding
that the majority of the ICS output is exported to Indian
interests.
2. (U) During a July 12-13 visit to Senegal (Ref B),Chinese
Vice Minister of Commerce Wei Jianguo expressed an interest
in increasing Senegal's exports of fish, wood, minerals, and
other items which are allowed to enter China on "preferable
terms." Senegalese officials, for their part, complained
about the huge trade imbalance between the two countries.
Senegal Foreign Minister Gadio also claimed to have requested
"reciprocal" treatment for Senegalese traders and merchants
in China just as Chinese merchants are "welcomed" in Senegal.
3. (C) Regarding other Ref A questions, Senegal has, in
theory, sufficient laws and regulations to effectively manage
trade and investment in the country's natural resources.
However, Senegal has a limited capacity to enforce its laws
or halt illegal exploitation or export of resources. Post
does not believe this is currently a significant problem. It
is more likely that the Wade administration would grant
waivers to existing regulations, or promulgate new laws, in
order to encourage new Chinese investment.
SMITH
SIPDIS
SIPDIS
STATE FOR OES:JMIOTKE AND ACOVINGTON, EAP:JYAMAMOTO,
EEB:TSAEGER, AF/W, AF/EPS, AND AF/RSA
E.O. 12958: DECL: 08/13/2017
TAGS: ECON EINV SENV CM SG
SUBJECT: CHINESE INVOLVEMENT IN SENEGAL'S NATURAL RESOURCES
REF: A. A. STATE 93848
B. B. DAKAR 1523
Classified By: Jay T. Smith, Charge d'Affaires, a.i. Reason 1.4 (b),(
d)
1. (C) To date, China is not heavily invested in Senegal's
natural resources sectors. China's presence in Senegal
currently focuses on the importation of Chinese consumer and
industrial goods, including automobiles, and Chinese
assistance for public works projects. China does not have a
fishing agreement with Senegal, although Chinese firms do buy
some Senegalese seafood, mostly "yet" (a large shellfish) and
octopus. Likewise, China is not currently a large purchaser
of Senegal's forest or mineral resources. Over the past year
there was significant speculation that a Chinese firm would
become a major investor in Senegal's troubled and
under-producing phosphates company, ICS, but this week the
original Indian investor, IFFCO signed an agreement to become
the company's majority stakeholder. It is our understanding
that the majority of the ICS output is exported to Indian
interests.
2. (U) During a July 12-13 visit to Senegal (Ref B),Chinese
Vice Minister of Commerce Wei Jianguo expressed an interest
in increasing Senegal's exports of fish, wood, minerals, and
other items which are allowed to enter China on "preferable
terms." Senegalese officials, for their part, complained
about the huge trade imbalance between the two countries.
Senegal Foreign Minister Gadio also claimed to have requested
"reciprocal" treatment for Senegalese traders and merchants
in China just as Chinese merchants are "welcomed" in Senegal.
3. (C) Regarding other Ref A questions, Senegal has, in
theory, sufficient laws and regulations to effectively manage
trade and investment in the country's natural resources.
However, Senegal has a limited capacity to enforce its laws
or halt illegal exploitation or export of resources. Post
does not believe this is currently a significant problem. It
is more likely that the Wade administration would grant
waivers to existing regulations, or promulgate new laws, in
order to encourage new Chinese investment.
SMITH