U.S. AND CHINESE AMBASSADORS EXPLORE BILATERAL

UNCLAS SECTION 01 OF 02 LUANDA 000326

SIPDIS

SIPDIS

FOR AF/S
PRETORIA FOR USDA/FAS
STATE PASS USAID FOR AFR/SA (ELOKEN, IMACNAIRN),HCHA/FFP
(GEILERTS) EGANT/AG (JRTHOMAS)
USDA FOR FAS/ITP (SHEIKH)
EMBASSY GABORONE FOR USAID (JBROWN)

E.O. 12958: N/A
TAGS: EAID EAGR ETRD AO
SUBJECT: U.S. AND CHINESE AMBASSADORS EXPLORE BILATERAL
AGRICULTURE ASSISTANCE IN ANGOLA

REF: A. STATE 39116

B. LUANDA 311


1. (U) Summary. On April 3, 2007, the Chinese and U.S.
Ambassadors met to discuss potential areas for coordinated
agricultural assistance to Angola. They reviewed their
countries, respective engagement in agricultural assistance
in Angola in an effort to find synergies for future
cooperation. The Ambassadors agreed to identify a small,
well-focused project with meaningful contributions from each
country, and acceptable to the GRA. Chinese agricultural aid
to Angola has been limited, until now, to visits by experts
and gifts of agricultural machinery, training and tools. End
Summary.


2. (U) On April 3, 2007, Ambassador Efird met with Chinese
Ambassador to Angola Zhang Beisan at his residence to discuss
potential areas of cooperation to assist Angola,s
agricultural sector. The meeting followed informal
discussions the week of March 27 at social events. During
those encounters the Chinese Ambassador confirmed that he had
received reports from Beijing on the U.S. suggestion for
agricultural bilateral cooperation in Angola. Besides
Ambassador Zhang, the Chinese Economic-Commercial Counselor
and a translator attended the meeting. USAID Deputy General
Development Officer, Economic-Commercial Assistant and
Econ-Commercial officer (notetaker) joined the Ambassador at
the Chinese Residence.

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U.S. Agricultural Assistance Programs
--------------

3. (U) USAID Deputy General Development Officer briefly
introduced USAID,s programs in Angola, explaining that USAID
implements its projects through NGOs, private corporations,
or universities. A USD 1 million per annum agricultural
development and finance program is currently exploring
marketing of bananas, potatoes, vegetables and coffee. The
first banana project was launched this year, and market
research on potatoes has begun. Work on vegetables and
coffee will follow. Aidoff mentioned a number of areas where
China might be able to offer valuable assistance, such as
providing agronomists, advice on crops adapted to humidity
and heat, irrigation, and providing agricultural equipment.
Embassy also gave Zhang copies of Embassy-drafted papers
suggesting potential areas for coordinated work. Zhang said
he and his staff would study the papers.

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Chinese Agricultural Aid to Angola
--------------

4. (SBU) Ambassador Zhang told us that China,s aid to
Angola, up until now, has been limited to sending
agricultural tools and machinery, several visits by
agricultural experts who have studied the agricultural
potential of various provinces, and providing training for
employees in the Ministry of Agriculture. Angolans do not
have a highly-developed agricultural economy and that
complicates Chinese efforts to extend assistance, Zhang
continued. Efird concurred, suggesting that Angola fell 30
years behind during its civil war. She said that during her
recent meeting with Minister of Agriculture Afonso Pedro
Canga (Reftel B),they identified Angola,s global
agricultural challenges as: commercialization of
agriculture; seed production; increased use of fertilizer,
and demining, in order to make more land available for
agriculture.

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Finding a Project
--------------

5. (U) Ambassador Zhang proposed that the two embassies
together identify a project and hoped that a successful
bilateral project in Angola might serve as a model for
U.S.-Chinese cooperation in other parts of Africa. Both
ambassadors agreed that they should start with a small,
well-focused project with meaningful participation from both
nations, especially because funding issues have yet to be
addressed. Ambassador Efird envisioned a Chinese-American
project jointly presented to the GRA for its buy-in.


6. (U) Ambassador Efird also referenced the fact that the

LUANDA 00000326 002 OF 002


petroleum companies working in Angola carry-out social
responsibility programs, and cited the work that a few of the
US petroleum giants already conduct in the field of
agriculture. She suggested that another possibility for
US-Chinese cooperation would be for one of USAID,s corporate
partners to design a project jointly with Chinese oil company
Sinopec. The two corporations could then jointly present
their project to the Angolan petroleum parastatal Sonangol
for its approval. (Note: Sonangol must review and approve
all petroleum company social responsibility projects. End
note.) Ambassador Efird also suggested a meeting between
Embassy staff and the Chinese agricultural team visiting in
April in order to identify areas where both countries can
work together. Zhang said he would consider all the
suggestions and respond to the Embassy. He said this kind of
trilateral cooperation (U.S.-China-Angola) was an innovation
but one that could be a model in Africa if successful.

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Comment
--------------

7. (SBU) Although Chinese agricultural assistance has been
less structured than U.S. assistance, Ambassador Zhang seemed
prepared to work with the U.S. side to create a small program
suitable for meaningful contributions by both sides. He did
not indicate a timetable, although he clearly plans to
consult with his MFA before meeting with us again.
EFIRD