POSSIBLE HU JINTAO VISIT TO LUANDA AT THE END OF

UNCLAS LUANDA 000510 SENSITIVE SIPDIS FOR AF/S AND EAP/CM E.O. 12958: N/A TAGS: ELTN EMIN ETRD AO CH SUBJECT: POSSIBLE HU JINTAO VISIT TO LUANDA AT THE END OF THIS MONTH ¶1. (SBU) The Chinese Embassy in Angola has begun preparing for a high level visit to Luanda in late June and early July, possibly by President Hu Jintao, according to an employee of a private Chinese company contracted to make preparations for the upcoming visit. Post has verified that Luanda's Alvalade Hotel is holding a bloc of four rooms for the Chinese Embassy from June 30 to July 4. This would be Hu's first visit to Angola. However, he is scheduled to attend G-8 meetings in Tokyo on July 8, and so scheduling problems could make a visit to Angola doubtful. ¶2. (SBU) If the visit takes place, President Hu's deliverables would likely be connected to work by Chinese State-owned Enterprises (SOEs) on Angolan infrastructure projects. On June 20, Angolan President Jose Eduardo dos Santos received the vice president of NORINCO, an SOE owned by the Chinese People's Revolutionary Army. Published reports on the meeting said a number of NORINCO's subsidiaries were eager to take on projects in Angola. Angolans, including dos Santos, have severely criticized the quality of Chinese work, especially on roads. NORINCO's overtures to the GOA may be an effort to position itself ahead of some of the Chinese companies now working here. ¶3. (SBU) Financing for Chinese projects was delayed during 2007, and a number of projects, especially the Luanda International Airport, remain stalled. If the airport is to be financed from Angolan sources, bidding for the airport contract would no longer be restricted to Chinese SOEs, as would be the case if Chinese funding were utilized. ¶4. (SBU) Comment. If Hu visits, Post would expect him to announce Chinese financial support for additional funding for GRA infrastructure projects, highlighting the selection of a Chinese firm to construct the new international airport. The visit would also reinforce the impression of an improved relationship since 2007, when President dos Santos publicly criticized the poor quality of Chinese construction. MOZENA