Identifier
Created
Classification
Origin
10NOUAKCHOTT97
2010-02-15 13:41:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Nouakchott
Cable title:
CHINESE ENGAGEMENT IN MAURITANIA
how-toVZCZCXRO3795 RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMA RUEHMR RUEHPA RUEHRN RUEHTRO DE RUEHNK #0097 0461341 ZNR UUUUU ZZH R 151341Z FEB 10 FM AMEMBASSY NOUAKCHOTT TO RUEHC/SECSTATE WASHDC 9105 INFO RUEHZO/AFRICAN UNION COLLECTIVE RUEHZK/ECOWAS COLLECTIVE RUCNMGH/MAGHREB COLLECTIVE RUEHBJ/AMEMBASSY BEIJING 0183
UNCLAS NOUAKCHOTT 000097
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EAID PREL MR CN
SUBJECT: CHINESE ENGAGEMENT IN MAURITANIA
REF: STATE 10152
UNCLAS NOUAKCHOTT 000097
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EAID PREL MR CN
SUBJECT: CHINESE ENGAGEMENT IN MAURITANIA
REF: STATE 10152
1. (U) China maintains a prominent and active presence in
Mauritania. China is the largest destination for Mauritanian
exports. As of 2009, nearly 40% of Mauritanian exports were
destined for China. After France, China is the second
largest importer of products into the Mauritanian market. In
addition to Chinese activities in the Mauritanian commercial
realm, China is actively engaged in a number of
infrastructure investment projects in Mauritania. At the
moment the Chinese are financing a USD 300 million expansion
of the Autonomous Port of Nouakchott, a railway line linking
Mauritania's third largest city of Kaedi with Nouakchott, the
construction of a new Ministry of Foreign Affairs and offices
for the Prime Minister. These are large and high profile
projects in Mauritania. A majority of the Chinese projects
are financed through a combination of long-term, low-interest
loans provided through the Export-Import bank of China,
grants from the Chinese government and private Chinese
investment. Many of the projects, such as the railway line
and port, will facilitate transportation of Mauritania's
natural resources, many of which are exported to the Chinese
market.
2. (U) The railway link between Kaedi and Mauritania is an
example of the creative financing of Chinese infrastructure
investments in Mauritania. About 70% of the total cost of
the railway line (USD 970 million) will be financed by
low-interest loans from the Chinese Export-Import bank, with
the remainder 30% being financed by a parastatal Mauritanian
mining partner. China also has large amounts of private
investment in Mauritania. The Mauritanian government
recently granted a private Chinese company a USD 200 million
contract to equip a number of Nouakchott's neighborhoods with
their first sewage systems, while China Minmetals Corporation
announced that they are in the process of purchasing an iron
ore mine in Mauritania. Another private Chinese company is
working on the construction of a road linking the southern
city of Selibaby to Kaedi. There is currently no roadway
linking these cities, making it a challenge for the
agricultural products of Selibaby to be transported to
markets in Nouakchott and abroad.
3. (SBU) China has become a particularly important trade
partner for Mauritania. In meetings at the largest
Mauritanian parastatal company, SNIM, which exports nearly 9
million metric tonnes of iron ore per year, the director of
operations noted that because of the financial crisis, all
orders of iron ore from European trade partners had been
canceled, but China not only continued their purchases, but
stepped in to purchase the exports that normally would be
destined for Europe, making China almost the exclusive buyer
of Mauritanian iron ore. Not all Chinese-Mauritanian trade
endeavors have been successful. After commencing oil
exploration in 2006, the China National Petroleum Corporation
ceased further oil exploration activities in 2009 citing
rising costs and a lack of substantive reserves.
4. (U) China conducts most of their assistance programs in
the form of infrastructure development, but they do have
small teams of scientific researchers working with the
Ministry of Fisheries and the Food Security Commission to
strengthen Mauritania's capacity to produce food. China also
has medical teams working throughout Mauritania in a number
of humanitarian health programs. Similar to the U.S. African
Growth and Opportunity Act (AGOA),since 2004 China has
maintained an agreement with Mauritania that permits duty and
customs free entry of certain Mauritanian exports into the
Chinese market.
5. (U) The American and Chinese Embassies in Nouakchott
enjoy good relations, but at the moment there are no joint
U.S.-Chinese projects. The Chinese Embassy is open to the
idea of collaborative U.S.-Chinese projects. The Chinese are
mostly active in infrastructure building and have expressed
interest in learning more about how the USG conducts
developmental assistance, particularly how we collaborate
with local NGO partners.
BOULWARE
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EAID PREL MR CN
SUBJECT: CHINESE ENGAGEMENT IN MAURITANIA
REF: STATE 10152
1. (U) China maintains a prominent and active presence in
Mauritania. China is the largest destination for Mauritanian
exports. As of 2009, nearly 40% of Mauritanian exports were
destined for China. After France, China is the second
largest importer of products into the Mauritanian market. In
addition to Chinese activities in the Mauritanian commercial
realm, China is actively engaged in a number of
infrastructure investment projects in Mauritania. At the
moment the Chinese are financing a USD 300 million expansion
of the Autonomous Port of Nouakchott, a railway line linking
Mauritania's third largest city of Kaedi with Nouakchott, the
construction of a new Ministry of Foreign Affairs and offices
for the Prime Minister. These are large and high profile
projects in Mauritania. A majority of the Chinese projects
are financed through a combination of long-term, low-interest
loans provided through the Export-Import bank of China,
grants from the Chinese government and private Chinese
investment. Many of the projects, such as the railway line
and port, will facilitate transportation of Mauritania's
natural resources, many of which are exported to the Chinese
market.
2. (U) The railway link between Kaedi and Mauritania is an
example of the creative financing of Chinese infrastructure
investments in Mauritania. About 70% of the total cost of
the railway line (USD 970 million) will be financed by
low-interest loans from the Chinese Export-Import bank, with
the remainder 30% being financed by a parastatal Mauritanian
mining partner. China also has large amounts of private
investment in Mauritania. The Mauritanian government
recently granted a private Chinese company a USD 200 million
contract to equip a number of Nouakchott's neighborhoods with
their first sewage systems, while China Minmetals Corporation
announced that they are in the process of purchasing an iron
ore mine in Mauritania. Another private Chinese company is
working on the construction of a road linking the southern
city of Selibaby to Kaedi. There is currently no roadway
linking these cities, making it a challenge for the
agricultural products of Selibaby to be transported to
markets in Nouakchott and abroad.
3. (SBU) China has become a particularly important trade
partner for Mauritania. In meetings at the largest
Mauritanian parastatal company, SNIM, which exports nearly 9
million metric tonnes of iron ore per year, the director of
operations noted that because of the financial crisis, all
orders of iron ore from European trade partners had been
canceled, but China not only continued their purchases, but
stepped in to purchase the exports that normally would be
destined for Europe, making China almost the exclusive buyer
of Mauritanian iron ore. Not all Chinese-Mauritanian trade
endeavors have been successful. After commencing oil
exploration in 2006, the China National Petroleum Corporation
ceased further oil exploration activities in 2009 citing
rising costs and a lack of substantive reserves.
4. (U) China conducts most of their assistance programs in
the form of infrastructure development, but they do have
small teams of scientific researchers working with the
Ministry of Fisheries and the Food Security Commission to
strengthen Mauritania's capacity to produce food. China also
has medical teams working throughout Mauritania in a number
of humanitarian health programs. Similar to the U.S. African
Growth and Opportunity Act (AGOA),since 2004 China has
maintained an agreement with Mauritania that permits duty and
customs free entry of certain Mauritanian exports into the
Chinese market.
5. (U) The American and Chinese Embassies in Nouakchott
enjoy good relations, but at the moment there are no joint
U.S.-Chinese projects. The Chinese Embassy is open to the
idea of collaborative U.S.-Chinese projects. The Chinese are
mostly active in infrastructure building and have expressed
interest in learning more about how the USG conducts
developmental assistance, particularly how we collaborate
with local NGO partners.
BOULWARE