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### Viewing cable 10YAOUNDE95, China's Growing Presence in Cameroon

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
10YAOUNDE95 | 2010-02-18 08:08 | 2010-12-08 21:09 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Yaounde
Appears in these articles: http://www.spiegel.de/

`

    VZCZCXYZ0003
    RR RUEHWEB

    DE RUEHYD #0095/01 0490843
    ZNR UUUUU ZZH
    R 180843Z FEB 10
    FM AMEMBASSY YAOUNDE
    TO RUEHBJ/AMEMBASSY BEIJING 0001
    INFO RUEHYD/AMEMBASSY YAOUNDE

` `

    UNCLAS SECTION 01 OF 03 YAOUNDE 000095

    SENSITIVE
    SIPDIS
    THIS MESSAGE IS BEING RESENT AS INFO BEIJING. ORIGINAL IS YAOUNDE 91.

    E.O. 12958: N/A
    TAGS: PGOV PREL CM ECON EFIS EINV CH ETRD ENRG EPET EAGR
    SUBJECT: China's Growing Presence in Cameroon

    ¶1. (SBU) Summary: China has a long bilateral friendship with
    Cameroon, reflected in the 2007 visit to Cameroon by President Hu
    Jintao. The Chinese government has provided grants or concessional
    loans to fund a number infrastructure projects (hospitals, schools,
    roads, and stadiums). China provides military training, equipment,
    and technical assistance. Chinese engagement has increased over
    the past year, with new infrastructure projects and broader
    commercial ties, including a 34% jump in bilateral trade from 2008
    to 2009. Cameroonians appear increasingly suspicious of China's
    engagement. Despite China's growing importance in Cameroon, we and
    other major donors see no real opportunities for cooperation. This
    cable responds to reftel request for information in advance of a
    U.S.-China sub-regional dialogue in March. End summary.

    A History of Engagement

    ¶2. (SBU) China sees Cameroon as a longtime friend, with relations
    established in 1971. Cameroon has consistently supported the One
    China policy. China sees Cameroon as a linchpin in the Central
    African region, with a port and economy of regional importance.
    Chinese President Hu Jintao's January 30 - February 1, 2007 visit
    to Cameroon (and Cameroon President Biya's four visits to China)
    reflect this historical friendship and regional importance.

    ¶3. (U) President Hu Jintao signed eight bilateral accords during
    his 2007 visit worth over $129 million, nearly a quarter of which
    ($30.7 million) was debt forgiveness. The accords awarded
    concessional loans to build and equip a gynecological, obstetric
    and pediatric hospital in Douala, construct two rural primary
    schools, and increase technical and economic cooperation. The
    money also funded projects of the GRC's choosing, which included
    wireless (CDMA) phone technology for CAMTEL (developed by Huawei
    Technologies), a potable water project for Douala, and several
    small agricultural projects.

    ¶4. (U) China has funded other construction and infrastructure
    projects. The Lagdo hydroelectric dam was built by a Chinese
    construction company in the 1980s. China built the Guider Hospital
    in North Province, the Mbalmayo Hospital, the Yaounde
    Gyno-Obstetric Hospital, and the Yaounde Conference Center. China
    has also built a number of roads in Douala. Some small towns in
    Cameroon, such as Guider with a population of about 70,000 in North
    Region, benefit from resident Chinese doctors funded by the Chinese
    government. The Chinese are active in the fishing sector,
    including in Limbe.

    ¶5. (SBU) In other areas, China provides some scholarships for
    studying in China and has built a Confucius Institute at the
    Institute of International Relations (IRIC) for the study of
    Chinese language and culture. China has an ongoing
    military-military relationship with Cameroon, which includes
    training for Cameroonian military students each year in China,
    technical advisors to assist in repairing Cameroonian military
    vehicles and naval vessels, and Chinese military sales.

    New Initiatives: Cultural and Political

    ¶6. (U) Chinese engagement has intensified over the past year. The
    Embassy hosted high profile cultural events in Yaounde and Douala
    to mark the sixtieth anniversary of the Chinese Revolution,
    followed by an even higher profile opening of a major indoor sports
    stadium in Yaounde, funded by a Chinese government grant and built
    by a Chinese construction firm. China recently donated 510 books
    to the University of Maroua in the Far North Region as the basis of
    a local Confucius Institute. The Chinese Communist Party donated
    computers to the ruling Cameroon People's Democratic Movement
    (CPDM). Cameroon's President of the National Assembly, Caveye
    Yegui Djibril, made a widely publicized visit to China in December
    ¶2009.

    New Economic Ties

    Yaounde 00000095 002 of 003

    ¶7. (U) In August, 2009 the government awarded Chinese firm
    SinoHydro Corporation Ltd. a $302 million contract on a Build Own
    Operate basis to construct the Memve'ele hydroelectric dam in South
    Region. The project had previously been under negotiation with
    British firm Globelecq. In January 2010, China signed a $49
    million preferential loan with Cameroon for the construction of the
    Mekin hydroelectric power plant in the South Region. In November
    2009, Exim Bank China contributed financing worth more than $180
    million for various projects, including the second phase of a
    Douala water project, the construction of two stadiums in Bafoussam
    and Limbe, and the construction of the Douala Gyno-Obstetric
    Hospital.

    ¶8. (U) Also in the past year, Chinese companies have gotten
    agreements to explore for iron ore near Kribi and oil in the Far
    North region. With the collapse of the timber market in Europe as
    a result of the global financial crisis, sources tell us that more
    Cameroonian timber has been exported to China. Chinese nationals
    have also been given large tracts of land for agricultural
    production, including rice, mushrooms and corn. Other Chinese road
    projects are also in the works.

    ¶9. (U) China and Cameroon signed a trade agreement in 2002 giving
    each other "most favored nation" trading status. According to
    Chinese government trade statistics for the first three quarters of
    2009, Chinese trade with Cameroon totaled $1.5 million in 2009 (up
    34%), with 916 million in Chinese exports to Cameroon (up 17%) and
    $5.9 million in imports from Cameroon to China (up 71%). According
    to 2008 WTO data, China is Cameroon's third largest source of
    imports (9.1%); according to the Chinese Embassy here, China is
    Cameroon's sixth largest export market. Cameroon's main Chinese
    imports are building materials, chemicals, machinery, textiles, and
    electronics. Cameroon's main exports to China are oil, timber,
    rubber, cotton and agricultural products.

    ¶10. (U) China's commercial presence in Cameroon ranges from
    restaurants, small shops and vending operations, to at least 15
    Chinese public works companies with business totaling over $16
    million. According to Xinhua News Agency, the number of Chinese in
    Cameroon doubled from 2006 to 2008 to around 2,000. We would guess
    this has increased significantly since 2008, with Chinese citizens
    much more evident in the country over the past year.

    Cameroon's Views of China

    ¶11. (SBU) Cameroonians seem increasingly suspicious of China's
    presence and intentions in Cameroon. There is concern about the
    growing activity of small-scale businesses and the larger numbers
    of Chinese in Yaounde and Douala. There is also frustration with
    competition from cheap Chinese goods, problems with counterfeit
    Chinese imports, and the small number of Cameroonians employed in
    Chinese projects. China's image was damaged when Chinese were
    discovered smuggling ivory from Cameroon to China in 2006 and 2007.
    Many Cameroonians also resent illegal Chinese fishing in
    Cameroonian waters. Pol/Econ LES witnessed this fishing when
    accompanying visiting NOAA officials on a boat trip off the coast
    of Kribi. In October 2008, the Cameroonian Navy also made a very
    high profile and well-publicized seizure of a Chinese fishing
    trawler that was illegally operating near Kribi. Traditional
    Cameroonian fishermen are especially antagonistic towards
    large-scale Chinese fishing operations. The Cameroonians believe
    that the Chinese are over-harvesting the coastal areas and making
    it difficult for traditional fishermen to survive.

    ¶12. (SBU) The GRC seeks to benefit from a full range of partners
    and sees its relationship with China as a way to balance its
    friendly relations with France and the United States. It
    appreciates China's infrastructure support. No doubt some in
    government also appreciate the Chinese willingness to look the
    other way on corruption, democracy and human rights. However,
    there is also a certain degree of caution among government
    contacts. In a recent meeting with Ambassador, President Paul Biya
    expressed frustration with China's global role.

    Yaounde 00000095 003 of 003

    Areas for Cooperation

    ¶13. (SBU) We are friendly with Chinese diplomats on a personal
    level and invite them to many of our events. The Chinese invite us
    to their large diplomatic receptions and occasionally to smaller
    events. However, there are no areas in which we formally
    coordinate or cooperate. Both the USG and the Chinese government
    support often complementary efforts in the health, energy and
    agriculture sectors, and in principle we and other donors believe
    it would be positive to have a more collaborative relationship.
    However, we see little scope for this at the moment. Our
    approaches to development and attitudes toward corruption and
    acceptable business practices are on opposite ends of the spectrum.
    These divergences are compounded by differences in language and
    working styles, as well as lingering mutual suspicions.

    ¶14. (SBU) Other donor embassies also see little room for
    cooperation with the Chinese. The recently departed EU Chief of
    Mission privately discouraged engaging the Chinese as they were not
    "like-minded." The Multi-Donor Committee, established to
    coordinate aid pursuant to the Paris Declaration, rarely sees
    Chinese participation. French development officials, who carry
    great weight in the development community in Cameroon, recently
    said they too saw no prospect for cooperation with China.
    Garvey

`