US embassy cable - 05KINSHASA1614

C O N F I D E N T I A L SECTION 01 OF 02 KINSHASA 001614 
 
SIPDIS 
 
E.O. 12958: DECL: 09/28/15 
TAGS: ECON, EMIN, ETRD, PREL, CG, CH 
SUBJECT: CHINA'S INFLUENCE IN AFRICA: EXPANDING IN THE DRC 
 
REF: A. STATE 138041 
     B. STATE 153199 
 
Classified By: PolCouns MSanderson, reasons 1.4 b/d. 
 
1. (C) As is the case in many African nations, China is 
working hard to expand its ties with the DRC.  Chinese 
interest in the DRC comes at a moment when the GDRC is itself 
searching for significant investment to assist with social 
and economic development, as well as equipment (such as boots 
and uniforms) for the Congolese military. 
 
2. (C) Congolese-Chinese ties are being encouraged by the 
Israeli business community in the DRC, particularly the 
Gertler and Weisenblom families who have themselves 
significant investments in various sectors of the Conglese 
economy, particularly the diamond industry.  For instance, in 
September 2005 GDRC officials (accompanied by Dan Gertler, an 
Israeli diamond dealer) made their third official visit to 
China in les than a year.  (President Kabila headed a trade 
delegation which visited China early this year, and 
subsequently senior members of the Congolese government 
visited China again.  In addition, senior Presidential 
advisors have made at least two "unofficial" visits in recent 
months.) 
 
3. (C) During the September 2005 visit, the GDRC began 
negotiations on a Chinese bid for a cobalt concession and 
refinery.  The bulk of current Chinese investment is in the 
mining sector, concentrated in Katanga province, which is 
rich in copper, cobalt, heterogenite, gold, uranium and other 
minerals.  Some Congolese officials have indicated that, in 
exchange for mining concessions, China is willing to provide 
20,000 uniforms, boots, tents and other equipment to the 
Congolese military. 
 
4. (C) China reportedly is also considering building several 
new hospitals throughout the DRC, in addition to the 150-bed 
facility currently nearing readiness in Kinshasa.  This 
teaching hospital will have 16 resident Chinese physicians 
training Congolese health professionals and providing 
specialized health care. 
 
5. (C) According to the Chinese Embassy's economic and 
commercial counselor, Congolese exports to China total about 
$100 million, and primarily consist of natural resources 
including copper, cobalt, and timber.  Again according to the 
Chinese, the DRC imports about $40 million worth of products 
from China -- primarily cheap manufactured goods, household 
appliances, shoes, medicine, and a significant quantity of 
textiles.  In fact, inexpensive Chinese textile imports have 
almost wiped out the Congo's once viable domestic textile 
industry.  (Comment:  We are not confident that the figures 
cited by the Chinese are accurate.  End comment.) 
 
6. (C) Both the GDRC and the Congolese business community are 
interested in expanding ties with China to maximize trade 
opportunities and capitalize on no-strings economic 
assistance loans.  Members of the business community in 
eastern Congo, for instance, say that they have increased 
trade with China and other Asian countries because of lower 
costs and ease of accessibility to markets.  Unit prices and 
export duties are lower on Asian goods than on goods produced 
in Europe and other developed countries.  Furthermore, 
transportation expenses on Asian goods are no higher than on 
those which arrive in eastern Congo from Europe or the U.S. 
via Kinshasa, because these goods must be flown in from 
Kinshasa, whereas Asian goods can be brought via rail from 
the East African coast. 
 
7. (C) China is also involved in several infrastructure 
projects in the DRC.  The World Bank is funding two Chinese 
road construction projects, one in Bas Congo province 
(western DRC), and another in North Kivu (eastern DRC).  In 
addition, a Chinese engineering brigade is attached to the 
United Nations Mission to the Congo (MONUC) group in Bukavu, 
South Kivu (eastern Congo), and supposedly is responsible for 
maintaining the road linking the city to the distant airport. 
 (Comment:  This road, perennially in varying stages of 
disrepair, does not seem to actually attract much attention 
from the Chinese engineering brigade.  End Comment.) 
 
8. (C) A company known as China-Hydro International 
reportedly is planning to invest $60 million to construct a 
new electricity line from the Inga Dam in western Congo to 
Katanga.  The Chinese Embassy's Commercial Section in 
Kinshasa says there are about 100 private Chinese businesses 
and approximately 800-1000 Chinese citizens in the DRC. 
(Comment:  We believe this number to be potentially much 
higher, particularly in Katanga province.  End Comment.) 
 
9. (C) Besides its economic interests, China has political 
and military interests in the DRC.  China is a member of the 
CIAT, the International Committee to Accompany the 
Transition, an Ambassadorial-level body which meets regularly 
to monitor the progress of the Congo's transitional 
government and help guide it forward on the basis of a common 
policy approach.  The newly-arrived Chinese Ambassador speaks 
very little French, however, and must either be accompanied 
by an interpreter, or more often be represented by a 
subordinate, limiting his contacts and effectiveness. 
 
10. (C) On the military side in addition to the engineering 
brigade, China also contributes a Level II military field 
hospital (also in Bukavu) to MONUC.  This month, 33 Congolese 
soldiers went to China for technical instruction  in a 
training program lasting six months.  In October, an 
additional 60 Congolese officers are scheduled to go for 
training at various Chinese military academies (again, for 
six months).  This training is a natural extension of a 
long-standing military cooperation relationship, as President 
Joseph Kabila himself received some military training in 
China. 
MEECE