US embassy cable - 05MINSK956

C O N F I D E N T I A L MINSK 000956 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 08/09/15 
TAGS: PREL, PINR, BO, CH 
SUBJECT: Minsk's Deepening Relations with China 
 
 
Classified by Ambassador George Krol for Reasons 1.4 (B,D) 
 
1. (U) Summary: Belarus' relationship with China continues 
to strengthen.  China has invested and plans to invest 
millions of dollars in Belarusian companies while Belarus 
is contemplating opening a bank in China.  Both countries 
have exchanged military delegations and have signed 
military accords.  It is clear that Belarus sees China as a 
cash cow with enough international power to counter the 
world's negative opinion of Belarus.  It is not clear what 
China wants, although it does not hurt to have a "loyal" 
friend in Europe.  As Belarusian officials continue to meet 
their Chinese counterparts, including Lukashenko's planned 
visit in September, post expects the Belarusian-Chinese 
relationship to continue to grow.  End Summary. 
 
2. (U) Leaders of Belarus and China have been publicly 
flirting with each other for the last several months. 
Lukashenko often states how much Belarus values its 
friendship with the "powerful" and "prosperous" China and 
how he agrees with China's policies in the international 
arena.  China's Vice President Zeng Qinghong likewise has 
stated that the Chinese government values its cooperation 
with Belarus and would like to bring bilateral relations to 
a new height.  On July 27, Chinese Ambassador to Belarus Yu 
Zhenqi expressed China's respect for Belarus' independent 
way of development and guaranteed China's support to the 
GOB for strengthening Belarus' independence and 
sovereignty.  He stated that though geographically remote, 
China and Belarus are "spiritually close". 
 
Military Mutual Aid 
------------------- 
 
3. (U) In the past two years, Belarus has sent and received 
several military delegations to and from China.  During a 
recent trip to China on June 3, Defense Minister Colonel- 
General Leonid Maltsev met with his Chinese counterpart, 
Colonel-General Cao Gangchuan, to agree on "friendly", 
"cooperative", and "multi-level" military ties.  Not long 
after their meeting, China announced that it would provide 
USD 600,000 worth of medical equipment to the Belarusian 
Defense Ministry and would send military personnel to the 
Belarusian Military Academy for training.  [Note: Students 
from North Korea and Vietnam also study at this academy.] 
Likewise, during a visit to Beijing on July 22, Chief of 
Communications Major-General Alexander Sokolov announced 
that the Belarusian military is studying the structure and 
organization of China's military communication system. 
 
Political Partnership 
--------------------- 
 
4. (U) Foreign Minister Sergei Martynov announced on March 
3 that China is Belarus' most important political partner 
in Asia.  Ties are based on political trust and a "wide- 
ranging consensus on major international issues".  In May 
2004, both countries reduced consular fees by half to 
promote tourism and business travel.  In October 2004, 
Belarus' upper chamber of parliament renewed an agreement 
with China exempting each country from paying rent for 
premises provided for embassies and embassy staff.  In June 
2005, representatives from the pro-Lukashenko Communist 
Party of Belarus (CPB) met with the visiting Communist 
Party of China members, who expressed their respect for the 
CPB for "preserving the party" following the collapse of 
the Soviet Union.  On July 27, Chinese Ambassador to 
Belarus Yu Zhenqi emphasized the Chinese parliament's 
eagerness to develop contacts with their Belarusian 
counterpart. 
 
5. (U) Belarus frequently asserts its support for the One- 
China Policy and views China's anti-secession laws as 
"conducive to regional and world peace and stability". 
[Note: Belarus is not against playing both sides; there is 
a small Taiwanese trade mission in Minsk, but Beijing 
definitely gets preference.]  China has noted Belarus' 
support and would likewise assist Belarus in the 
international arena.  On July 25, head of the Upper Chamber 
of the National Assembly Gennadi Novitski thanked China for 
its support by counteracting the adoption of resolutions 
"biased" against Belarus. 
 
Academic Affiliation 
-------------------- 
 
6. (U) According to the first deputy rector of Belarusian 
State University, cooperation with China in economics, 
science, technology, and other education has strengthened. 
Approximately 1,000 Chinese citizens currently study at 
Belarusian educational institutes. In 2004, the Belarusian 
National Academy of Sciences signed cooperation accords 
with Chinese research and development laboratories and 
industrial enterprises while representatives of Belarus' 
National Technology Transfer Center attended an 
international fair and conference in Ningbo to study modern 
Chinese technology and investment. On June 26, China 
announced plans to donate USD 1.2 million worth of 
equipment, including computers, monitors, televisions and a 
desktop publishing system to Belarus' National Library.  On 
July 11, the Belarusian State University signed a 
memorandum of understanding with the Harbin Science and 
Technology Office to create a scientific-technical 
cooperation center and a joint laboratory with branches in 
Minsk and Harbin, China. 
 
Economic Association 
-------------------- 
 
7. (U) In 2004, trade with China reached record levels.  In 
January, the Belarusian Chamber of Trade and Commerce 
(BCCI) met with Zhenqi to discuss a consolidated action 
plan to increase cooperation between the BCCI and 
subcommittees of China's Committee for Assistance to 
International Trade.  On May 17, Lukashenko stressed that 
the USD 460 million in bilateral trade with China in 2004 
was "only the beginning" and predicted trade would greatly 
increase.  On June 3, the Belarusian Embassy in Beijing 
asked the National Bank of Belarus (NBB) to "request" a 
Belarusian bank open a branch in China to represent the 
Belarusian banking system in Chinese financial markets, 
increase bilateral trade, monitor the markets, and advise 
other Belarusian banks and companies.  The NBB publicly 
stated this was a great idea, and that a "volunteer" bank 
would soon be found. 
 
9. (U) Belarusian companies are searching for investment 
opportunities in the technological development of western 
and northeastern China while Chinese companies have hired 
Belarusian chemists, engineers and other experts from the 
National Technology Transfer Center.  In 2004, Belarusian 
Steel Works (BMZ) and China signed an agreement to 
establish a factory in Shanghai. 
 
Loans and Aid 
------------- 
 
10. (U) Since 2003, China has given Belarus millions of 
dollars in aid to the National Library project and the 
Defense Ministry, such as USD 1.2 million in humanitarian 
aid for Belarus to participate in joint projects with China 
and USD 1.2 million to purchase equipment for the Ministry 
of Emergency Situations.  In September 2004, China gave 
Belarus USD 600,000 to send experts to China for training 
in the areas of trade, economy, finance, banking, taxation 
and customs.  In December 2004, the Belarusian-Chinese 
Commission on Trade and Economic Cooperation signed an 
agreement on China's gratuitous aid to Belarus.  Other 
Chinese help includes a USD 150 million loan to Belarusian 
Telecommunication Network to buy equipment, a USD 40 
million loan to reconstruct Minsk heat power plant No. 2, 
and a USD 20 million loan to launch medical-pill production 
facilities at a Belarusian pharmaceutical plant. 
 
Culture, Tourism and Sport 
-------------------------- 
 
12. (U) In November 2003, Beijing hosted the Days of 
Belarusian Culture.  The Culture Ministries of China and 
Belarus afterwards signed a 2004-2006 cooperation protocol 
to hold Days of Chinese Culture in Belarus in 2004 and 2006 
and Days of Belarusian Culture in China in 2005.  In March 
2005, a book called 'The Republic of Belarus', edited by 
the Institute of Russia, East Europe and Central Asia 
Studies of the Chinese Academy of Social Sciences, was 
published to inform the Chinese population of the history, 
politics, economy and culture of Belarus.  During the 2003 
Days of Belarusian Culture, the Belarusian embassy in China 
published a Chinese-language tourist magazine to promote 
Belarus as a holiday destination.  The two governments plan 
to sign an agreement on tourism when Lukashenko visits 
China in December.  Belarusian national airline Belavia 
plans to initiate regular passenger service from Minsk to 
Beijing soon, and in September the GOB hopes to organize a 
tour of Belarus for Chinese travel agencies, aimed at 
adding Belarus to Chinese citizens' list of places to 
visit.  Moreover, in August the Belarusian Ministry of 
Sport and Tourism signed a deal with its Chinese 
counterpart to send Belarusian Olympic athletes to China to 
train. 
 
Taiwanese Perspective 
--------------------- 
 
14. (C) On July 26, poloffs met with the first secretary of 
the Taipei Economic and Trade Mission in Minsk, Chin Feng, 
who noted the increasing relationship between Belarus and 
China.  Feng stressed China's interest in Belarusian fiber 
optics technology for use in China's rapidly growing 
military.  According to Feng, Belarus sees China as an 
economically and politically powerful friend who could 
throw strong support behind Belarus at international 
organizations, particularly the UN Security Council. 
China, according to Feng, sees a friendship with Belarus as 
a way to have some fingers in Europe.  Belarus' growing 
interest in China has caused Feng's organization's 
relationship with the government to cool.  GOB officials 
now hesitate to meet with Feng and will no longer accept 
gifts from the Taiwanese Mission. 
 
15. (C) The Chinese ambassador, Yu Zhenqi (a colleague of 
the ambassador in Moscow) informed ambassador at a private 
dinner that he is leaving Belarus shortly and will become 
the Chinese ambassador to Bulgaria.  Yu has been a good 
contact.  He admits that China values Belarus largely as a 
political foothold in the region, but doesn't expect much 
in the way of trade profits emerging from the relationship. 
He noted that the presence of the Taiwanese trade office in 
Minsk is a big irritant, but it seems Minsk has reduced its 
interaction with that office.  Yu indicated he did not 
think Lukashenko would fall from power soon.  China takes a 
long-term perspective in building its ties with Belarus as 
part of its general policy of expanding its fiscal 
influence where it is welcome.  While Yu did not say so, it 
seems China is using Belarus' hostility to the West and 
coolness to Russia to build up a relationship that might be 
beneficial to Chinese interests. 
 
Comment 
------- 
 
16. (C) Belarus has seen large economic benefits in having 
a close relationship with China.  As from its relationships 
with Iran, Syria, and Sudan, Belarus is receiving millions 
of dollars of investment, aid, and sales from China while 
not having to spend much of its own money in return. 
Unlike Belarus' Middle Eastern partners, China is an 
economically and politically powerful giant with much 
influence in the international arena.  Lukashenko has 
little to lose and much to gain from continued cooperation 
with China, and he is not asked to give much in return.  We 
expect this friendship to continue. 
 
KROL