UNCLAS VALLETTA 000095

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: CH MT PGOV PM PREL
SUBJECT: MALTA: VISIT OF CHINESE VP UNDERSCORES CLOSE TIES
AND RESULTS IN GRANT FOR PURCHASE OF CHINESE GOODS AND
SERVICES


1. (SBU) Chinese Vice President Xi Jinping arrived in Malta
February 21 for an official two day visit during which he met
with Prime Minister Lawrence Gonzi and announced a grant of
580,000 euros for Malta to purchase Chinese products and
services. Paul Sant, MFA Desk Officer for China, told PolOff
the grant was "a gesture of China,s appreciation" for the
close historic relations between Malta and China, which date
back to the 1972 when Malta, under a Labor government,
recognized China. Sant indicated that the grant would go into
a fund that would be created to foster economic and technical
cooperation; he said that there were no specific projects
under consideration thus far, and that all projects would
need to be agreed to by both parties.


2. (U) Prime Minister Lawrence Gonzi told the press that
"strengthening Malta,s cooperation with China is one of the
government,s main foreign policy goals." During the visit,
the Maltese and Chinese governments also signed five
cooperation agreements on law and order, commerce, and
culture. Gonzi highlighted an agreement facilitating
business and trade between investors in Malta and China, and
referred to one collaboration, whereby the University of
Malta will open a Confucius Institute, as a "milestone in
cultural cooperation."

3. (SBU) Malta has historically maintained strong relations
with China. In the 1970s, the GOM was one of the first
European governments to recognize China and, in doing so, it
forged a close relationship, including significant Chinese
invested in Malta,s port infrastructure, and a long-term
loan to build factories in Malta. China maintains two large
and active Chinese Cultural Institutes in Malta, one in Paris
and the second in Valletta. Just last month Malta,s Chief of
Military, Brigadier General Vassallo went to Beijing for a
five-day visit at the invitation of China,s Chief of
Military. Vassallo told Charge, February 21 that his visit
was unrelated to the visit of China,s Vice-President, and
did not result in the signing of any agreements or arms
sales. Vassallo added that he had been "amazed" by the
red-carpet treatment he was given during the visit, including
multiple-gun salutes normally "reserved for heads of state."
DAVIS