Identifier
Created
Classification
Origin
09BEIJING529
2009-03-02 09:39:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Beijing
Cable title:
China/Forex Energy Fund: Still "Just an Idea"
how-toVZCZCXRO6439 PP RUEHCN RUEHGH RUEHVC DE RUEHBJ #0529 0610939 ZNR UUUUU ZZH P 020939Z MAR 09 FM AMEMBASSY BEIJING TO RUEHC/SECSTATE WASHDC PRIORITY 2589 RHMFIUU/DEPT OF ENERGY WASHINGTON DC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY RHEHNSC/NSC WASHDC PRIORITY
UNCLAS BEIJING 000529
SIPDIS
SENSITIVE
TREASURY FOR OASIA/DOHNER
USDOC FOR 4420
STATE PASS USTR FOR STRATFORD
E.O. 12958: N/A
TAGS: ECON ENRG EINV EPET EFIN CH
SUBJECT: China/Forex Energy Fund: Still "Just an Idea"
UNCLAS BEIJING 000529
SIPDIS
SENSITIVE
TREASURY FOR OASIA/DOHNER
USDOC FOR 4420
STATE PASS USTR FOR STRATFORD
E.O. 12958: N/A
TAGS: ECON ENRG EINV EPET EFIN CH
SUBJECT: China/Forex Energy Fund: Still "Just an Idea"
1. (SBU) Begin Summary. Official Chinese media reported
that China's National Energy Administration (NEA) had in
early February submitted a proposal to use foreign
exchange reserves to help Chinese companies acquire
overseas resource assets. NEA's Oil and Gas Division
Director, however, said NEA had not yet proposed
establishment of such a fund, and China's Director
General for Reserve Management professed no knowledge of
the plan. End Summary.
Media Reports Plans for Forex Resource-Buying Fund
--------------
2. (SBU) Chinese official media reported last week that
China's NEA had submitted a proposal to use foreign
exchange reserves to establish a fund that would support
Chinese oil and gas companies' acquisition of overseas
assets. The reports all cited a February 20 article in
the industry journal "China Petroleum Daily" and stated
that the plan was submitted during the NEA's National
Work Conference in early February. According to the
articles, the fund would be used to offer low-interest
loans and capital injections to state-owned oil and gas
companies aiming to expand as the global recession lowers
share prices of foreign firms.
Official Claims Fund "Just an Idea"
--------------
3. (SBU) Dr. Yang Lei, Director of the Oil and Gas
Division at the NEA, told econoff on February 26 that he
had read the same media reports and he quickly dismissed
them as misrepresentative. Yang acknowledged that the
concept of a fund had come up in internal discussions
during the NEA's National Work Conference, but the NEA
had not formally proposed establishment. "It is nothing
more than an idea at this point," he explained.
4. (SBU) The Chinese State Administration for Foreign
Exchange (SAFE) Director General for Reserve Management
told FinAtt that although he had heard rumors of such
proposals, he did not know any details.
PICCUTA
SIPDIS
SENSITIVE
TREASURY FOR OASIA/DOHNER
USDOC FOR 4420
STATE PASS USTR FOR STRATFORD
E.O. 12958: N/A
TAGS: ECON ENRG EINV EPET EFIN CH
SUBJECT: China/Forex Energy Fund: Still "Just an Idea"
1. (SBU) Begin Summary. Official Chinese media reported
that China's National Energy Administration (NEA) had in
early February submitted a proposal to use foreign
exchange reserves to help Chinese companies acquire
overseas resource assets. NEA's Oil and Gas Division
Director, however, said NEA had not yet proposed
establishment of such a fund, and China's Director
General for Reserve Management professed no knowledge of
the plan. End Summary.
Media Reports Plans for Forex Resource-Buying Fund
--------------
2. (SBU) Chinese official media reported last week that
China's NEA had submitted a proposal to use foreign
exchange reserves to establish a fund that would support
Chinese oil and gas companies' acquisition of overseas
assets. The reports all cited a February 20 article in
the industry journal "China Petroleum Daily" and stated
that the plan was submitted during the NEA's National
Work Conference in early February. According to the
articles, the fund would be used to offer low-interest
loans and capital injections to state-owned oil and gas
companies aiming to expand as the global recession lowers
share prices of foreign firms.
Official Claims Fund "Just an Idea"
--------------
3. (SBU) Dr. Yang Lei, Director of the Oil and Gas
Division at the NEA, told econoff on February 26 that he
had read the same media reports and he quickly dismissed
them as misrepresentative. Yang acknowledged that the
concept of a fund had come up in internal discussions
during the NEA's National Work Conference, but the NEA
had not formally proposed establishment. "It is nothing
more than an idea at this point," he explained.
4. (SBU) The Chinese State Administration for Foreign
Exchange (SAFE) Director General for Reserve Management
told FinAtt that although he had heard rumors of such
proposals, he did not know any details.
PICCUTA