RESPONSE - CHINA'S ENGAGEMENT IN GUINEA

UNCLAS SECTION 01 OF 02 CONAKRY 000154 SIPDIS SIPDIS E.O. 12958: N/A TAGS: PGOV EAGR ECPS EFIN MARR PREL SENV TRGY XA XE, GV SUBJECT: RESPONSE - CHINA'S ENGAGEMENT IN GUINEA REF: STATE 41697 ¶1. The below information is in response to reftel request regarding China's engagement in Guinea. -------------- CHINESE FOCUS -------------- ¶2. China's interest in Guinea is primarily economic with significant investment in the following sectors: energy, mining, agriculture, infrastructure, community development, and health. Some projects represent development assistance as they are generally done as "gifts" to the people of Guinea, meaning that Chinese companies and workers are used to build the project, but the project is then gifted to the Guinean Government upon completion. Other projects represent direct investment by Chinese companies. The Chinese Government trained a battalion of Guinean "Ranger" soldiers in 2001, and has provided periodic military training since then. On the security front, the Chinese Government has donated motorcycles to Guinean police in the past, and has promised to provide communication equipment. The following serve as examples of some of China's specific activities in Guinea: - Through Syno-Hydro and Eximbank of China, China has committed to build a hydroelectric dam, at a cost of about $1 billion, in exchange for a bauxite concession. Syno-Hydro is conducting preliminary feasibility studies. - The Guinean Government granted Henan-Chine a license for bauxite exploration in the region of Boffa. It is expected that Chinese interest in the mining sector will continue to grow. - Henan-Chine recently completed a major road construction project, which was funded by the Kuwaiti and Saudi Development Funds, as well as the African Development Bank, for about $80 million. - The Guinean Ministry of Health recently granted a license to a Chinese company (Societe Chinoise Sodong Pharmgui) to manufacture generic medicines such as amoxicillin, aspirin, and paracetamol for local hospitals and clinics. - The Russian company Rusal and China Power Investment plan to build a new bauxite and alumina refinery complex in the near future. The project is currently in the feasibility study stage and is expected to be one of the biggest mining projects in the country. - The Chinese Government recently renovated the building housing Radio Television Guinean, which was damaged when a MIG Jet crashed into it in 2007. The Chinese Government sent technicians to investigate the crash site, and to help replace and/or repair damaged equipment. - In 2007, the Chinese Government started building a modern stadium facility in Conakry, which is expected to seat 50,000 people. - The Chinese Government initially built the People's Palace in Conakry, which houses the national parliament. They are currently renovating the building as Guinea prepares for its 50th Anniversary Celebration later in the year. China is also expected to replace old equipment and furniture. - The Chinese Government has reportedly promised to build and equip a modern hospital in Conakry. China made the commitment during the China-Africa Summit in Beijing in 2007, but the current status of the project is unclear. -------------- EMBASSY TO EMBASSY ENGAGEMENT -------------- ¶3. The Embassy has regular contact with Chinese diplomats in Guinea, and Embassy officials continue to develop contacts through periodic meetings with Chinese counterparts. We are not currently coordinating with the Chinese Embassy on any specific project or initiative. -------------- --- OPPORTUNITIES FOR ENHANCED BILATERAL COOPERATION CONAKRY 00000154 002 OF 002 -------------- --- ¶4. The most likely opportunities for bilateral cooperation would be for infrastructure or community development projects. China may see the U.S. as a competitor with respect to investment opportunities, especially in the mining sector, and therefore less willing to coordinate bilateral programs. They have not expressed an interest in defense coordination efforts. ¶5. The U.S. may also want to explore bilateral cooperation in law enforcement. The Government of Guinea has a very ambitious plan in place, which includes opening a new police academy and recruiting up to 10,000 new police officers. China is already engaged in law enforcement and Guinea was recently accepted into the U.S. ILEA program. ¶6. A third possibility involves promoting good governance. China may be initially reluctant to engage on this issue, but a good first step would be simply aiming to inform China about our programs in Africa in order to help them comprehend the motives and methods of western donors. CARTER