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.

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COMMENT
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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