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Cablegate: Chinese Growing Investments in Samoa

VZCZCXRO9520
PP RUEHAP RUEHKN RUEHMJ RUEHNZ
DE RUEHWL #0773 2981904
ZNR UUUUU ZZH
P 251904Z OCT 07
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC PRIORITY 4825
INFO RUEHAP/AMEMBASSY APIA PRIORITY 0406
RUEHBJ/AMEMBASSY BEIJING PRIORITY 0369
RUEHBY/AMEMBASSY CANBERRA PRIORITY 5004
RUEHKN/AMEMBASSY KOLONIA PRIORITY 0015
RUEHMJ/AMEMBASSY MAJURO PRIORITY 0117
RUEHSV/AMEMBASSY SUVA PRIORITY 0665
RUEHNZ/AMCONSUL AUCKLAND PRIORITY 1510
RHHMUNA/CDR USPACOM HONOLULU HI PRIORITY

UNCLAS WELLINGTON 000773

SIPDIS

SENSITIVE
SIPDIS

EAP/ANP, EEB/IPC, INR, PACOM FOR J01E/J2/J233/J5/SJFHQSTATE

E.O. 12958: N/A
TAGS: ECON ETRD PGOV PREL NZ XV
SUBJECT: CHINESE GROWING INVESTMENTS IN SAMOA

1. (SBU) Wellington based Econoff recently had a chance to
serve as acting Charge' in Apia, Samoa, affording the
opportunity to represent the U.S. and meet with
representatives of the Samoan Government, the local business
community and members of the Diplomatic Corps at a reception
hosted by the Chinese Ambassador, Longzhuang Shi at the
Chinese Embassy on Sept 28, 2007 to celebrate the 58th
anniversary of the founding of the People's Republic of China.

2. (SBU) The theme of the evening was the very close
relationship between Samoa and the PRC. The speeches given by
the Chinese Ambassador and the Samoan Deputy PM Retzlaff
stressed the largess of the Chinese which Samoan officials
claim contributed to the success of the 13th South Pacific
Games hosted in Apia from 25 August to 8 September. These
sporting events included 770 athletes from 22 Pacific Island
nations and territories who competed in some 32 events. There
were estimates of approx. 4000 visitors from the Pacific
region attending the games. The stated objective of these
games is to "create bonds of kindred friendship and
brotherhood amongst people of the countries of the Pacific
region through sporting exchange without any distinctions as
to race, religion, or politics." The PRC provided low
interest loans and economic grants for construction of the
main sporting venues, especially a large swimming complex. In
April 2007 new development projects valued at $2.6 million
were concluded and in September 2007, the PRC begun
construction of two office complexes for the Samoan
Parliament and Justice Department, with another multi-million
dollar ministry building in the pipeline.

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3. (SBU) In a frank exchange with the President of the Samoa
Chamber of Commerce, Papalii Grant Percival, acting Charge'
learned that the Chinese had since forgiven the loans for the
construction of the sports complexes and were in the process
of supplying two new turbo jets to the Samoan national
airline to increase inter-island flights. The acting Charge'
also had an opportunity to also meet with Rudolf Keil, the
owner of Samoa's 5 private radio stations and the island only
commercial cinema theater owner. We discussed the problems of
IP protection and the growing number of pirated products
entering the market especially from China. He asked for
assistance in supporting cases brought to the attention of
the Attorney General in the hope of beginning a crack down on
the growing number of shops selling counterfeit items. Upon
returning to Wellington, Econoff contacted industry
representatives in Auckland to apprise them of the situation
and was told that the Motion Picture Assoc. (MPA) would be in
touch with Mr. Keil and the Samoan AG to support the
enforcement of the IP regime against the growing instances of
piracy.
McCormick

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