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.

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CHINESE RECEIVE WARM WELCOME
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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.

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CHINESE ARRIVE BEARING GIFTS
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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.

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NO ANNOUNCEMENT ON RESORT PROPERTIES
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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