CUBA AND CHINA: THE BEST OF TIMES

UNCLAS SECTION 01 OF 02 HAVANA 000551 SENSITIVE SIPDIS STATE FOR WHA/CCA E.O. 12958: N/A TAGS: PREL PGOV ECON CU CH SUBJECT: CUBA AND CHINA: THE BEST OF TIMES REF: A. 08 HAVANA 878 ¶B. NASSAU 526 -------------- SUMMARY -------------- ¶1. (SBU) Bilateral relations between China and Cuba are at their historic best, according to China's top legislator Wu Bangguo. China and Cuba traded high level visitors this week as Wu visited Havana and Cuban Foreign Minister Bruno Rodriguez visited Beijing to commemorate the 49th anniversary of relations between the socialist brethren. The press reported that China agreed to USD 600 million in loans, credits, and grants, but it is unclear how much of it is new money versus a reiteration of past commitments (Ref A). END SUMMARY -------------- Wu in Havana -------------- ¶2. (U) Wu Bangguo, Chairman of the Standing Committee of the National People's Congress and China's second highest ranking party official, arrived in Havana on September 1 to meet with his Cuban counterpart, Ricardo Alarcon, President of the Cuban National Assembly. According to the press, Wu and Alarcon oversaw the signing of a series of agreements on September 2, including: USD 260 million credit from the Chinese ExIm Bank for the purchase of 10 grain ships; USD 300 million credit from the Chinese ExIm Bank for the continuation of an info-communications program and the implementation of a project to produce radio and television transmitters and satellite receptors; a new line of credit from the China-Caribbean Fund to invest in television and the modernization of Cuban ports; and USD 19 million dollars (nine million donated, nine million credit, and one million preferential line of credit) for investment projects to be identified by the Cubans. The agreements, actually signed by Chinese Deputy Trade Minister Ma Xiu Hong and Cuban Council of Ministers Vice President Ricardo Cabrisas, also included the Chinese donation of 60 traffic lights and "high tech" office equipment for the Cuban National Assembly. Finally, both sides agreed to evaluate the feasibility of cooperation on building a slaughter house and a fruit and vegetable canning factory in the eastern province of Guantanamo. ¶3. (SBU) Wu visited with Cuban President Raul Castro later on September 2, and then reportedly had a two-hour conversation with former president (and still Communist Party leader) Fidel Castro on September 3. According to the Cuban press, Wu and Fidel discussed bilateral relations, the financial downturn, and climate change. Wu said bilateral relationship between the two countries was at its best point in history. This talking point was repeated by both parties at various meetings. Little to no substance from Wu's meetings with each Castro has surfaced. Rather, the international press has mainly focused on the photo released from the meeting showing Fidel outside and dressed in regular civilian clothing, instead of his traditional track suit. Raul Castro escorted Wu and his delegation to the airport on September 3. From Cuba, Wu was headed to The Bahamas September 3-6 and then Phoenix, Arizona on September 6 (Ref B) at the invitation of House Speaker Nancy Pelosi. -------------- Bruno in Beijing -------------- ¶4. (SBU) Also from September 1-3, Cuban Foreign Minister Bruno Rodriguez Parrilla visited Beijing where he met with his counterpart Yang Jiechi, Vice President Xi Jinping, Council of State member Dai Bingguo, and Director of International Relations for the Chinese Communist Party Wang Jiarui. No agreements were signed, and the official press agencies in both countries only highlighted a litany of mutual praise and support from all parties. Rodriguez concluded his visit by delivering a speech to a conference at HAVANA 00000551 002 OF 002 the Academy of Social Sciences on "Cuba: Native and Viable Socialism." From China, Rodriguez traveled to North Korea September 3-5 to meet with Choe Thae Bok, secretary of the Central Committee of the Worker's Party, Minister of Foreign Affairs Pak Ui Chun, and Vice Minister of Foreign Affairs Kim Hyong Jun. The Cubans and North Koreans praised their historic ties and historic leaders. According to North Korean official press, Rodriguez emphasized that the Cuban people are following with keen interest how the Korean people are foiling the moves of the U.S. imperialists for aggression, true to the military-first politics. ¶5. (SBU) Following these meetings, Cuban Vice President Ricardo Cabrisas traveled to Beijing on September 6 to participate in the 22nd Session of the Intergovernmental Commission for economic and commercial relations and attend the Investment and Trade Fair in Xiamen September 8-9. The Cuban press reported that Cabrisas would sign a memorandum of understanding on biotechnology cooperation with his Chinese counterparts. -------------- COMMENT -------------- ¶5. (SBU) Unlike the November Hu Jintao visit to Cuba (Ref A),this week's activities received relatively standard press coverage. Very few details were published, and at least a few of the deals "negotiated" appear to be the continuation of previous agreements, in particular regarding telecommunications and ports. Cuba's overall trade with China fell slightly in 2008 (from approximately USD 2.4 billion to USD 2.1 billion),mostly due to the price of nickel. However, China clearly remains at the forefront, along with Brazil, of Cuba's efforts to diversify its main partners (read: benefactors) outside of Venezuela. END COMMENT WILLIAMS