CHINESE VICE PREMIER'S VISIT BRINGS $150 MILLION

C O N F I D E N T I A L NASSAU 000107 SIPDIS STATE FOR WHA/CAR E.O. 12958: DECL: 02/19/2019 TAGS: ECON EFIN ETRD BF SUBJECT: CHINESE VICE PREMIER'S VISIT BRINGS $150 MILLION LOAN TO THE BAHAMAS REF: NASSAU 041 Classified By: Charge d'Affaires, a.i.Elmo for reasons 1.4 (b) and (d). ¶1. (U) Summary: Chinese Vice Premier Hui Langyu arrived in Nassau on February 17 for an official two-day visit to The Bahamas. The Government of the Commonwealth of The Bahamas (GCOB) and the Government of the People's Republic of China (GOC) signed four memorandums of understating on February 17, including an agreement with China's Eximbank to loan $150 million to the GCOB for infrastructure projects. Other agreements include a grant of approximately $10 million from the GOC to the GCOB for development projects, a visa waiver program for Chinese and Bahamian diplomats, and an Agricultural Cooperation agreement focusing on the exchange of technical assistance and scientific expertise in the area of agriculture and fisheries. End summary. -------------- CHINESE RECEIVE WARM WELCOME -------------- ¶2. (U) Chinese Vice Premier Hui Langyu and a delegation of four cabinet members arrived in Nassau on February 17 for an official two-day visit to The Bahamas. Deputy Prime Minister (DPM) and Minister of Foreign Affairs Brent Symonette, accompanied by other Bahamian officials and a lively Junkanoo band, gave the delegation a warm welcome upon arrival at Lynden Pindling International Airport. Hui and his delegation paid a courtesy call on Governor General Arthur Hanna and Prime Minister Hubert Ingraham shortly after arrival and had dinner with senior GCOB officials at the Atlantis Resort the evening of February 17. The delegation traveled to Freeport on February 18 for a one-day visit before leaving The Bahamas for the United States. -------------- CHINESE ARRIVE BEARING GIFTS -------------- ¶3. (U) During the second China-Caribbean Trade Economic Forum in 2007 the GOC promised to make more than US$5 billion in low interest loans available to countries in the Caribbean in the future. The GCOB announced during this visit that they would take advantage of the offer by signing four memorandums of understanding with the GOC on February 17, the most important of which is an agreement with China's Eximbank to loan $150 million to the GCOB for infrastructure development projects such as a new airport highway. Other agreements include a grant of approximately $10 million from the GOC to the GCOB for development projects, a visa waiver program for Chinese and Bahamian diplomats, and an Agricultural Cooperation agreement focusing on the exchange of technical assistance and scientific expertise in the area of agriculture and fisheries. In addition, Symonette said construction on the stadium that the GOC presented to The Bahamas in 2003 will begin as soon as possible. -------------- NO ANNOUNCEMENT ON RESORT PROPERTIES -------------- ¶4. (C) There was much speculation in advance of the visit concerning Chinese investment in the Baha Mar Resort project (reftel). Privately, GCOB officials are concerned that the Chinese would demand the right to bring upwards of 4000 Chinese workers to complete the project. The GCOB hopes that the project would bring needed jobs to Bahamians and are willing to grant work permits to only senior management officials. However, lack of alterative funding and a continued economic decline may force concessions from The Bahamas. ¶4. (C) COMMENT: The GCOB rolled out the red carpet for this visit and the country received a much needed economic boost. The GCOB has worked hard in recent months to increase foreign investment in The Bahamas and China has been a willing partner. It is clear that China's presence in The Bahamas is increasing and will likely continue to grow as projects begin and investment continues. ELMO