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Cablegate: China's Engagement in Tanzania

VZCZCXRO5105
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHDR #0284/01 1260831
ZNR UUUUU ZZH
R 050831Z MAY 08
FM AMEMBASSY DAR ES SALAAM
TO RUEHC/SECSTATE WASHDC 7519
INFO RUEHNR/AMEMBASSY NAIROBI 0948
RUEHKM/AMEMBASSY KAMPALA 3154
RUEHLGB/AMEMBASSY KIGALI 1099
RUEHJB/AMEMBASSY BUJUMBURA 2663
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0350
RUEHIN/AIT TAIPEI 0086
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS SECTION 01 OF 02 DAR ES SALAAM 000284

SIPDIS

SIPDIS

DEPT AF/E FOR JLIDDLE

E.O. 12958: N/A
TAGS: PGOV EAGR ECPS EFIN MARR PREL SENV TRGY XA XE TZ
SUBJECT: CHINA'S ENGAGEMENT IN TANZANIA

REFS: (A) STATE 41697
(B) DAR ES SALAAM 1552

1. Per ref A, Post submits the following response. Focus areas of
Chinese engagement in Tanzania include infrastructure investments
and bilateral Tanzania-China business engagements, primarily in the
tourism sector (see ref B). Some of the highlights of Chinese
investment in Tanzania include:

-- In 2001, China pledged to continue financial and technical
support for the repair and development of the Tanzania-Zambia
Railway (TZR), which was originally built by the Government of China
in the 1970s.

-- In 2005, the Chinese government donated to the GOT agricultural
machinery worth 141 million Tanzanian shillings (approximately USD
123,615). This machinery included three heavy-duty tractors with
their implements, seven power tillers with their implements, two
milling machines, and two water pumping systems.

-- On June 23, 2006, Chinese Prime Minister Wen Jiabao and President
Jakaya Kikwete signed five agreements to boost diplomatic ties and
provide economic and technical assistance to Tanzania. The
Government of China will: provide Tanzania with anti-malaria drugs
and construct a malaria prevention and treatment center, explore the
possibility of setting up a joint-venture factory of anti-malaria
drugs with Tanzania, and provide a loan to the Tanzania-Zambia
Railway Authority (TAZARA) to rehabilitate passenger cars which
China helped construct approximately 30 years ago. The Government
of China also pledged assistance for the renovation of the Amaan
Stadium in Zanzibar, Radio Tanzania Zanzibar, STZ, broadcasting
station, and for some projects in the transport and communications
sectors.

-- In November 2006, Chinese President Hu Jintao and Premier Wen
Jiabao met with President Kikwete and pledged assistance with
generators to use coal mined from Kiwira and Mbeya regions for the
production of electricity. Chinese President Jintao also pledged to
continue Chinese assistance in the Chalinze water project, which is
a USD 11.73 million project aimed at supplying 7,200 tons of clean
water per day to 105,000 people in the Sangasanga and Ngerengere
areas.

-- China donated funds, and a Chinese firm (Beijing Construction
Engineering Company Limited) built a new national stadium in Dar es
Salaam, which opened in 2007. The stadium meets Federation of
International Football Association (FIFA) and Olympic standards and
can accommodate 60,000 spectators.

-- Through Chinese support the Government of Tanzania is
rehabilitating the Tanzania Zambia Railway Authority (TAZARA), a key
project whose construction between 1970 and 1975 was financed by an
interest-free loan from the People's Republic of China. The rail
link is critical to the economies of the two countries, with Zambia
mainly utilizing it for transporting its copper exports to the port
of Dar-es-Salaam.

-- The Chinese firm Guangdong Construction Engineering Group Company
Limited plans to set up a giant hydro-electric power plant that
could reduce persistent power problems in Tanzania.

-- In August 2007, Chinese civil aviation officials traveled to
Tanzania to discuss the possibility of a Chinese contract to build a
new international airport at Bagamoyo, approximately 40 miles north
of Dar es Salaam. The delegation also signed agreements with
Tanzania establishing direct flights between China and Tanzania,
plans to improve the infrastructure at the airport in Dar es Salaam
and on several roads and ports, and training for Tanzanian civil
aviation officials.

2. Currently, while EmbOffs maintain contacts within the Chinese
Embassy and meet with them occasionally for social events, there is
not much coordination and cooperation between the American and
Chinese Missions.

3. The areas that would benefit from increased U.S.-China bilateral
cooperation and coordination in Tanzania include the transportation,
energy, and agriculture sectors. Especially in light of Tanzania's
recently signed $698-million Millennium Challenge (MCC) compact,
these are the sectors in which China and the U.S. could undertake
complementary projects that would have the largest impact on
economic development and growth in Tanzania.

DAR ES SAL 00000284 002 OF 002

GREEN

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