Identifier
Created
Classification
Origin
09CHENGDU284
2009-12-03 07:38:00
CONFIDENTIAL
Consulate Chengdu
Cable title:  

BURMA'S CG IN SOUTHWEST CHINA DISCUSSES RISING TRADE,

Tags:  ETRD EINV PREL SNAR SENV KTIP CH BM 
pdf how-to read a cable
VZCZCXRO6089
PP RUEHGH RUEHVC
DE RUEHCN #0284/01 3370738
ZNY CCCCC ZZH
P R 030738Z DEC 09
FM AMCONSUL CHENGDU
TO RUEHC/SECSTATE WASHDC PRIORITY 3592
INFO RUEHGO/AMEMBASSY RANGOON 0055
RUEHOO/CHINA POSTS COLLECTIVE
RUEHCN/AMCONSUL CHENGDU 4303
C O N F I D E N T I A L SECTION 01 OF 02 CHENGDU 000284 

SIPDIS

E.O. 12958: DECL: 12/3/2019
TAGS: ETRD EINV PREL SNAR SENV KTIP CH BM
SUBJECT: BURMA'S CG IN SOUTHWEST CHINA DISCUSSES RISING TRADE,
INFRASTRUCTURE, BORDER TRAVEL, AND TRAFFICKING ISSUES

REF: A. A) CHENGDU 203; B) CHENGDU 206; C) CHENGDU 171;

B. D) CHENGDU 169; E) CHENGDU 165

CHENGDU 00000284 001.2 OF 002


CLASSIFIED BY: David E. Brown, Consul General, U.S. Consulate
General Chengdu, Department of State.
REASON: 1.4 (b)
C O N F I D E N T I A L SECTION 01 OF 02 CHENGDU 000284

SIPDIS

E.O. 12958: DECL: 12/3/2019
TAGS: ETRD EINV PREL SNAR SENV KTIP CH BM
SUBJECT: BURMA'S CG IN SOUTHWEST CHINA DISCUSSES RISING TRADE,
INFRASTRUCTURE, BORDER TRAVEL, AND TRAFFICKING ISSUES

REF: A. A) CHENGDU 203; B) CHENGDU 206; C) CHENGDU 171;

B. D) CHENGDU 169; E) CHENGDU 165

CHENGDU 00000284 001.2 OF 002


CLASSIFIED BY: David E. Brown, Consul General, U.S. Consulate
General Chengdu, Department of State.
REASON: 1.4 (b)

1. (SBU) SUMMARY: According to Burma's Consul General in
Kunming, July-August unrest on the border with China's Yunnan
province did not significantly affect overall bilateral trade,
which continues to increase. Trade between China and Burma
increased annually by: 11-18 percent between 2005 and 2007, and
20 percent between 2007 and 2008. The soon-to-start ASEAN-
China FTAA should further boost cross-border trade. Burma
welcomes expanded road and rail links to Yunnan, with
discussions on-going; border passes already make travel easy for
local residents. Win made perfunctory remarks regarding Burma's
efforts with Yunnan to combat trafficking in drugs, persons, and
endangered species. END SUMMARY.



Increasing China-Burma Trade; Not Affected by Unrest in Kokang?

-------------- --------------




2. (SBU) Burmese Consul General Zaw Phyo Win, who has been in
Kunming for five months, told Chengdu CG and Conoff November 20
that trade between China and Burma increased annually by: 11-18
percent between 2005 and 2007, and 20 percent between 2007 and

2008. Win stated that total trade volume between China and
Burma had reached over one billion USD in 2008, up from 500
million USD in 2005, and that the bulk of this trade was along
the border between Burma and Yunnan province. Win said that
Burma and Yunnan have had no problems in their commercial
relations, as illustrated by the continual increase in trade.
(Note: Win's statistics on the rate of increase in trade between
China and Burma roughly correspond with published Chinese
statistics, while his information about the total trade volume
is much less than these statistics. China's total trade volume

with Burma in 2007 reached 2.625 billion USD according to "China
Statistical Yearbook 2009," a 26 percent increase from a 2007
trade volume of about 2 billion USD. End Note.)




3. (SBU) Win stated that trade between Burma and China was not
affected by the July and August 2009 unrest in Burma's Kokang
region. When pressed further, Win insisted that: the unrest had
only had a small impact on trade; problems were only short-term;
and normal trade had already resumed. (Note and Comment: We
have heard unconfirmed reports that the Chinese side recently
placed a ban on gambling trips into Kokang, which had been
particularly popular among local Chinese officials and
businessmen. If true, this may suggest that the border region
has not fully returned to normal. End Note and Comment.)



Composition of Trade; ASEAN-China FTAA Will Expand Trade

-------------- --------------




4. (SBU) Win stated that China imports from Burma agricultural,
marine, and forest products, and gems including jade. Burma
imports from China machinery, fabrics, and "daily necessity
products." (Note: A recent NGO report said that as much as 90
percent of the timber trade between Burma and Yunnan may be
illegal, which would not be counted in official statistics. End
Note.)




5. (SBU) Win said that economic cooperation between Burma and
China was entering a "new phase" with the upcoming ASEAN-China
Free Trade Area Agreement (FTAA),which will go into effect in

2010. Win stated that ASEAN-China FTAA (ref C) would create
advantages and disadvantages for Burma's trade with China, but
should expand trade significantly. Win added that trade
barriers in "sensitive and highly-sensitive items" not covered
by the ASEAN-China FTAA would have to be reduced "step-by-step,"
but did not elaborate on what these items were.



Pipeline, Road, and Rail Links: In the Works, but No Specifics

-------------- --------------




6. (C) CG and Win also discussed Burma's oil and gas pipelines,

CHENGDU 00000284 002.2 OF 002


road, and rail links with Yunnan. According to western press
reports, in April 2009, China and Burma signed an agreement to
develop oil and gas pipelines from Burma's Arakan coast to
Yunnan. According to a Yunnan academic, the start of the
project had been delayed to next year, and the recent conflict
in the Kokang region (refs A and B) could compel China to
re-visit its agreement with Burma on the pipelines. Win claimed
the project "had been started," but could not tell CG when it
would be completed.




7. (SBU) CG also inquired about the economic impact of China's
increasing road and rail links with Southeast Asia. Win stated
that he believed the new highway running between Kunming and
Bangkok would have no significant effect on trade between Burma
and China - but gave no explanation for this assertion. When
asked whether Burma was attempting to develop additional highway
and railway links with Yunnan, Win stated that Burma looked
positively on such planning, and that discussions with the
Yunnan Provincial Government were on-going on. (Note: According
to western news reports, negotiations have stalled on re-opening
the 1,079 mile Stillwell Road (aka "Burma Road'),which runs
from northeast India, through Northern Burma, and ends in
Yunnan's provincial capital of Kunming. End Note.)



Border Traffic: Travel Easy for Local Residents

-------------- --




8. (SBU) CG and Win also discussed cross-border travel between
Burma and China. According to Win, Burmese citizens can apply
for border passes that allow them to cross into Chinese border
areas for trade and investment. These border passes, Win
continued, allow Burmese citizens to cross at specific border
checkpoints, and also allow them to travel into China for
medical treatment. Burmese citizens can travel to China from
1-12 months, depending on the type of border pass. Win also
stated that Chinese businessmen can acquire border passbooks
that allow travel into Burma for up to one year, but that most
Chinese businessmen tend to return to Yunnan after a short stays
in Burma border areas.



Vague on China-Burma Cooperation: Drug Trafficking, TIP, CITES

-------------- --------------




9. (SBU) When asked about the drug trade between Burma and
China, Win gave vague answers, and stated that Burma authorities
often seize and destroy illegal drugs in border cities. Win
continued by describing an event where the Burma government
invited diplomats stationed in Rangoon to the Yunnan-Burma
border to observe the destruction of seized drugs, adding that
"seeing is believing." (Ref D describes border anti-drug
efforts from the perspective of Yunnan police officials.)




10. (SBU) Win stated that China and Burma were cooperating on
preventing trafficking in persons, and that both Yunnan and
Burma had opened offices to coordinate their response to the
problem. Win stated that the cooperation was going well, and
work was still ongoing to combat the problem. (Ref E describes
anti-TIP efforts in Yunnan Province, and also suggests progress
on TIP.)




11. (SBU) CG also raised the issue of trafficking in endangered
species with Win, who simply stated that Burma had signed an
international agreement banning the trade of endangered species
(CITES),and that there was no such illegal trade between China
and Burma.
BROWN