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

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SUMMARY
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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

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Wu in Havana
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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.

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Bruno in Beijing
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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

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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.

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COMMENT
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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