Identifier
Created
Classification
Origin
09DHAKA402
2009-04-23 07:35:00
CONFIDENTIAL
Embassy Dhaka
Cable title:
NEW CHINESE AMBASSADOR WANTS IMPROVED INVESTMENT
how-toVZCZCXRO7159 OO RUEHMR DE RUEHKA #0402 1130735 ZNY CCCCC ZZH O 230735Z APR 09 FM AMEMBASSY DHAKA TO RUEHC/SECSTATE WASHDC IMMEDIATE 8680 INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY RUEHBJ/AMEMBASSY BEIJING PRIORITY 0685 RUEHSB/AMEMBASSY HARARE PRIORITY 0038 RUEHLO/AMEMBASSY LONDON PRIORITY 2059 RUEHSAM/AMEMBASSY MASERU PRIORITY 0002 RUEHGO/AMEMBASSY RANGOON PRIORITY 2823 RUEHIN/AIT TAIPEI PRIORITY 0129
C O N F I D E N T I A L DHAKA 000402
SENSITIVE
SIPDIS
E.O. 12958: DECL: 04/22/2019
TAGS: PREL PINR BG CH
SUBJECT: NEW CHINESE AMBASSADOR WANTS IMPROVED INVESTMENT
CLIMATE IN BANGLADESH
------
SUMMARY
-------
C O N F I D E N T I A L DHAKA 000402
SENSITIVE
SIPDIS
E.O. 12958: DECL: 04/22/2019
TAGS: PREL PINR BG CH
SUBJECT: NEW CHINESE AMBASSADOR WANTS IMPROVED INVESTMENT
CLIMATE IN BANGLADESH
--------------
SUMMARY
--------------
1. (C) The new Chinese ambassador to Bangladesh told
Ambassador Moriarty on 4/21 Bangladesh should improve its
climate for foreign investors. Although Bangladesh was
seeking nuclear energy assistance from China and Russia, the
Chinese ambassador said, less expensive power sources were
more appropriate for one of the world's poorest countries. He
hoped the Awami League government would bring much-needed
stability to Bangladesh.
--------------
SEEKING A MORE STABLE INVESTMENT CLIMATE
--------------
2. (C) Chinese Ambassador Zhang Xianyi, who arrived in March
2009 after ambassadorial postings in Lesotho and Zimbabwe,
said Chinese investment in Bangladesh in 2008 was about $30
million, primarily in textiles and, to a lesser extent,
porcelain. He expressed a desire to promote Chinese
investment in Bangladesh, but added that the environment for
foreign investment could be much improved. For example, he
noted that the Bangladesh Export Processing Zones Authority
had ordered 14 foreign investors, including two Taiwanese
companies that had subsequently complained to him, to suspend
construction of factories because the Food Ministry claimed
it had rights to the land. He also said government
instability after the February 25-26 border guard mutiny and
unfocused policy-making had dampened investor enthusiasm.
--------------
NOT ENTHUSIASTIC ABOUT NUCLEAR ENERGY AID
--------------
3. (C) Although the Chinese have expressed a willingness to
help Bangladesh develop peaceful nuclear energy (most
recently when former Chief Adviser Fakhruddin Ahmed visited
Beijing in September),Zhang indicated he thought other
energy sources were more appropriate for Bangladesh. He noted
nuclear power plants were relatively expensive and
technology-intensive, adding that traditional energy sources
such as coal and some alternative sources such as solar and
sea waves would be a better fit for an impoverished
developing country such as Bangladesh. He added that Russia,
tolo, did not appear serious about helping Bangladesh develop
nuclear power plants.
--------------
COMMENT: COMMON THEMES
--------------
4. (C) China and the United States have at least some areas
of common interest in Bangladesh, the most obvious being to
improve treatment for foreign investors and to promote
government stability. Ambassador Zhang said he looked forward
to maintaining contact with Ambassador Moriarty to exchange
notes and to support Government of Bangladesh policies that
not only serve U.S. and PRC interests but in so doing boost
Bangladesh's development prospects. Although he spoke
English, he obviously enjoyed the opportunity to speak
Chinese with U.S. diplomats.
MORIARTY
SENSITIVE
SIPDIS
E.O. 12958: DECL: 04/22/2019
TAGS: PREL PINR BG CH
SUBJECT: NEW CHINESE AMBASSADOR WANTS IMPROVED INVESTMENT
CLIMATE IN BANGLADESH
--------------
SUMMARY
--------------
1. (C) The new Chinese ambassador to Bangladesh told
Ambassador Moriarty on 4/21 Bangladesh should improve its
climate for foreign investors. Although Bangladesh was
seeking nuclear energy assistance from China and Russia, the
Chinese ambassador said, less expensive power sources were
more appropriate for one of the world's poorest countries. He
hoped the Awami League government would bring much-needed
stability to Bangladesh.
--------------
SEEKING A MORE STABLE INVESTMENT CLIMATE
--------------
2. (C) Chinese Ambassador Zhang Xianyi, who arrived in March
2009 after ambassadorial postings in Lesotho and Zimbabwe,
said Chinese investment in Bangladesh in 2008 was about $30
million, primarily in textiles and, to a lesser extent,
porcelain. He expressed a desire to promote Chinese
investment in Bangladesh, but added that the environment for
foreign investment could be much improved. For example, he
noted that the Bangladesh Export Processing Zones Authority
had ordered 14 foreign investors, including two Taiwanese
companies that had subsequently complained to him, to suspend
construction of factories because the Food Ministry claimed
it had rights to the land. He also said government
instability after the February 25-26 border guard mutiny and
unfocused policy-making had dampened investor enthusiasm.
--------------
NOT ENTHUSIASTIC ABOUT NUCLEAR ENERGY AID
--------------
3. (C) Although the Chinese have expressed a willingness to
help Bangladesh develop peaceful nuclear energy (most
recently when former Chief Adviser Fakhruddin Ahmed visited
Beijing in September),Zhang indicated he thought other
energy sources were more appropriate for Bangladesh. He noted
nuclear power plants were relatively expensive and
technology-intensive, adding that traditional energy sources
such as coal and some alternative sources such as solar and
sea waves would be a better fit for an impoverished
developing country such as Bangladesh. He added that Russia,
tolo, did not appear serious about helping Bangladesh develop
nuclear power plants.
--------------
COMMENT: COMMON THEMES
--------------
4. (C) China and the United States have at least some areas
of common interest in Bangladesh, the most obvious being to
improve treatment for foreign investors and to promote
government stability. Ambassador Zhang said he looked forward
to maintaining contact with Ambassador Moriarty to exchange
notes and to support Government of Bangladesh policies that
not only serve U.S. and PRC interests but in so doing boost
Bangladesh's development prospects. Although he spoke
English, he obviously enjoyed the opportunity to speak
Chinese with U.S. diplomats.
MORIARTY