CHINA'S RETURN TO CHAD: ENVIRONMENTAL ASPECTS

UNCLAS NDJAMENA 000666 SIPDIS SENSITIVE SIPDIS DEPT OF STATE/OES - FOR JEFF MIOTKE AND ANN COVINGTON; EAP - FOR JOY YAMAMOTO; EEB - FOR TED SAEGER; DEPT OF ENERGY - FOR CAROLYN GAY; PARIS AND LONDON - FOR AFRICA WATCHERS; ACCRA - FOR GEOFFREY HUNT (REO) E.O. 12958: N/A TAGS: CD CH ECON EINV SENV PHUM SUBJECT: CHINA'S RETURN TO CHAD: ENVIRONMENTAL ASPECTS REF: A. A) STATE 93848 ¶B. B) NDJAMENA 419 ¶1. (SBU) SUMMARY: After a nine-year hiatus, China (PRC) and Chad renewed diplomatic relations in 2006. According to the Chinese Embassy's Economic and Commercial Counselor, China is adhering to all Chinese and Chadian environmental and social laws as it enters the energy and agricultural sectors. China has started exploring for oil and is discussing an oil refinery project with the Chadian government. As China has only recently returned to Chad, it is too soon to assess the environmental impact of its commercial activities in Chad. END SUMMARY. ¶2. (SBU) Econoff met with Huang Mingyuan, Economic and Commercial Counselor at the Chinese Embassy in N'djamena, to discuss Chinese activities in the natural resources sector. Mr. Huang arrived in Chad eight months ago (shortly after China and Chad restored diplomatic relations.) Mr. Huang said the Chinese oil company, CMPC, purchased the oil field ("H") previously owned by the Canadian firm Encana. CMPC is doing seismic studies of the area and expects an analysis of the results to be ready in 2008. He said the company's management routinely meets with the local residents when starting such projects, to explain the project and to listen to their concerns. He said they also often give out donations such as cement and school supplies (books, pens, etc.). ¶3. (SBU) According to Mr. Huang, an independent Chinese company is discussing with the Chadian government a joint-venture to build an oil refinery. He said they would first do a feasibility study for the refinery which would produce one million tons of refined oil per year. The company has identified an area for the project on the outskirts of N'djamena. Mr. Huang pointed out the company had studied the location and the prevailing wind direction and believed it would be good from an environmental standpoint as it would not affect the nearby residents. ¶4. (SBU) China is also working in the agricultural sector in Chad with a focus on rice production. In Bongor (southern Chad) and outside N'djamena, the Chinese are providing new farming equipment, repairing irrigation systems, training, and technical assistance to improve the rice yields. ¶5. (SBU) When asked how Chinese firms comply with environmental laws, Mr. Huang replied all Chinese companies must respect Chinese and Chadian laws. All Chinese companies are officially registered in Chad. He commented that China is often accused of "colonizing" Africa and exploiting the continent for its own benefit. He said these critics don't understand Chinese policies. The goal of China's assistance is to improve Africans' quality of life. Econoff asked about criticisms of China's human rights record and Mr. Huang answered China had met its own goal of meeting the basic needs of its huge population, including the right to food and shelter. China does not interfere in other country's internal affairs. -------------- COMMENT -------------- ¶6. (SBU) As China has only recently returned to Chad, it is too soon to assess the environmental impact of its commercial activities in Chad. Our interlocuteur, Mr. Huang, had his talking points well-prepared and was aware of the prevailing critiques of China's role in Africa from an environmental and human rights perspective. It is probably true that Chinese firms are abiding by Chad's environmental laws currently on the books. However, given the weakness of the rule of law here, this claim does not mean much in practice. TAMLYN