ETHIOPIA/CHINA: WU BANGGUO'S VISIT TO ETHIOPIA

C O N F I D E N T I A L ADDIS ABABA 003142 SIPDIS E.O. 12958: DECL: 11/17/2018 TAGS: PGOV PREL ECON CH ET SUBJECT: ETHIOPIA/CHINA: WU BANGGUO'S VISIT TO ETHIOPIA Classified By: Ambassador Donald Yamamoto. Reasons 1.4 (b) and (d). China Provides Budget Support to Ethiopia -------------- ¶1. (C) People's Republic of China (PRC) Chairman of the Standing Committee of the National People's Congress (NPC) Wu Bangguo met separately with Prime Minister Meles Zenawi, Speaker of the House of Federation Degfie Bula, Speaker of the House of People's Representatives (Ambassador) Teshome Toga, and African Union (AU) Commission Chairman Jean Ping, during a November 7-10 visit to Ethiopia, according to a PRC Embassy contact who called to debrief us. Wu's entourage numbered more than 100, and included Vice Commerce Minister Gao Hucheng and 17 Chinese journalists. Our contact described Wu's visit as part of China's continuing efforts to enhance mutual trust and cooperation with African countries, but otherwise "not very substantive." Wu attended the groundbreaking for the Chinese-funded African Union Conference Center and witnessed, with Speaker Teshome, the signing of an (annual) pledge by the PRC for direct budgetary support for the Ethiopian government in the amount of RMB 50 million (approximately USD 7.3 million). Ordinarily, the PRC pledges money generally and then the Ethiopian government must follow-up with specific requests to draw on the funds for specific purposes, our contact explained. Meles Raises Investment, Somalia -------------- ¶2. (C) In a brief meeting, Meles and Wu exchanged views on international and regional issues, our contact said, adding that Meles thanked China for its assistance and willingness to strengthen further bilateral relations. Meles and Wu also discussed China's projects in Ethiopia, such as an industrial park under development and the Chinese stake in Ethiopia's telecommunications sector via the contract awarded to Zhong Xing Telecommunication Equipment Company Limited (ZTE). Our contact explained that ZTE borrows money from a Chinese government facility to invest in Ethiopia. Meles raised the necessity to support Ethiopia's agricultural development, and Wu said that China would prioritize the development of model farms. Separately, both Meles and Ping asked China to support actively in the United Nations Security Council a United Nations peacekeeping operation in Somalia, as soon as possible. Wu underscored that China understood Ethiopia's concerns, but did not commit China to any actions. China to Continue Assistance to Africa -------------- ¶3. (C) In separate meetings with the Speakers of Ethiopia's parliamentary houses, Wu discussed China's experience with "enhancing national unity" and Ethiopia's own brand of ethnic federalism. Both Speakers, and separately Ping, expressed their concern that the global financial crisis might adversely impact China's rising assistance to Ethiopia and Africa; Wu assured all three that China's economy is strong enough to weather the current crisis and that China would continue its support for Africa and not reduce assistance. Ping said that the G20 meetings are important for global financial reform but emphasized that Africa should be more represented, according to our contact. Wu responded that China understood the AU's concerns and supported a greater voice for Africa in international economic matters, but did not commit to any specifics, our contact said. YAMAMOTO