JAMAICA INKS DEAL WITH CHINA

UNCLAS SECTION 01 OF 02 KINGSTON 000122

SENSITIVE

SIPDIS

STATE FOR WHA/CAR (ACADIEUX)(VDEPIRRO)(WSMITH)
WHA/EPSC (MROONEY) (FCORNEILLE)
EEB/ESC/IFD/EPC (McMANUS)

SANTO DOMINGO FOR FCS AND FAS
TREASURY FOR ERIN NEPHEW

E.O. 12958: N/A
TAGS: ECON PREL ENRG EFIN EINV ETRD EAID IADB IBRD IMF
TRYS, KCOR, KIPR, CH, JM, XL
SUBJECT: JAMAICA INKS DEAL WITH CHINA


1. (SBU) Summary: Jamaica continues to be a beneficiary of Chinese
generosity, with the country receiving over USD 118 million in loans
and grants. Under the agreements signed between Prime Minister
Bruce Golding and Vice-President of China, Xi Jinping, who is on an
official visit, Jamaica will receive trade financing and assistance
in the areas of water, agriculture and education. During his visit,
the Chinese official also will participate in the ground breaking
ceremony for a Chinese-financed convention center in the tourist
resort of Montego Bay. In welcoming the assistance, Golding said
that Jamaica has benefited tremendously in the past from China and
the new agreements would strengthen relations between both
countries. For his part, Jinping said China highly values its
relations with Jamaica. End summary.

Chinese Benevolence
--------------


2. (SBU) The governments of Jamaica and the People's Republic of
China have formalized a number of technical and economic agreements
amounting to USD 118 million. Under the agreements signed by
Jamaican Prime Minister Bruce Golding and China's Vice President, Xi
Jinping, Jamaica will receive a USD 100 million line of credit for
trade financing. The island also will receive (1) USD 10 million in
concessionary financing from the Chinese National Development Bank;
(2) USD 7.3 million for technical and economic support; and, (3) USD
1.1 million for the provision of agricultural equipment and
machinery. In addition, agreements were reached on technical and
economic support for the establishment of: (1) a Chinese garden in
the country's main botanical gardens; (2) the expansion of a water
supply system previously financed by China; (3) road repairs; and,
(4) the establishment of a Confucius institute at the University of
the West Indies (UWI) for the teaching of Chinese language as well
as a collaboration between the UWI and the Confucius Institute in
China.

Convention Center
--------------


3. (SBU) The Chinese VP also will be participating in a ground
breaking ceremony for a 50,000 square foot Convention Center to
house 7,000 people. The facility, which will be funded by the
Chinese to the tune of USD 45.2 million, was negotiated by former
Prime Minister P.J. Patterson in 2007, but had languished on the
books. To be situated on 35 acres of prime real estate in the
tourist resort of Montego-Bay, the convention center will consist of
an exhibition area, banquet space, and meeting rooms. Upon
completion of the center, Jamaica is expected to diversify its
product offerings by making a foray into the USD 150 billion
meetings-and-incentives market.

Golding Welcomes Aid
--------------


4. (SBU) In welcoming the aid, Golding said Jamaica has benefited
tremendously in the past from China, and the current benevolence
would only serve to strengthen the relationship between both
countries. "Those relationships have existed for 36 years and they
have grown stronger with every passing year", Golding is reported to
have said. Jamaica always has maintained a One-China policy and I
have conveyed to the vice-president the assurance that Jamaica will
remain unswervingly committed to one China", Golding added.
Referencing the testing global economic climate, Golding stated that
the aid was provided at a time when the capital markets are closed
to countries like Jamaica. He said the provisions will enable
Jamaica to weather the global economic and financial storm. Golding
also disclosed that based on discussions with Jinping, there were no
limits to the extent to which cooperation between Jamaica and China
can grow and expand.

Moots Reform Agenda
--------------


5. (SBU) Golding also referenced discussions he had with the Chinese
official on the global economic landscape, confirming that there was
consensus on the need for significant reform to the multilateral
infrastructure. "We share the view that the international financial
and economic architecture will have to be reformed, in order to
recognize the importance of developing countries, and the
significant role that a country like China is playing in the global
economic dynamics", Golding added. It is clear that cooperation
between both countries will move beyond just the parameters of

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bilateral arrangements, to seek meaningful change to the global
financial and economic arrangements, Golding concluded.

Also Lauds China
--------------


6. (SBU) Golding also heaped praises on China for the strides it has
made in becoming the second largest economy in the world, 31 years
after launching a reform and modernization program. He said the
world has watched in amazement the success of that program and the
impressive rates of growth it has produced. The Jamaican PM said
China continues to be a valued friend of Jamaica, and he was
encouraged by the fact that China focuses not only on the present
but plans and builds for the future. We are encouraged by your
assurance that strengthening and expanding the partnership with
Jamaica is part of China's plans for the future, Golding continued.
He also advised that he will take up an official invitation extended
by China to visit that country at a mutually convenient time later
this year. For his part, Vice President Jinping responded by saying
that China highly values its relations with Jamaica, a major partner
of his country in the Caribbean. Jinping said the new agreements
would serve both countries and provided an opportunity to deepen
ties. "We are ready to work with Jamaica to build on the current
progress and pioneering efforts so as to inject new vigor and
vitality into the friendly partnership for communal development
between our two countries", he concluded.

HEG