VZCZCXRO5363
RR RUEHROV
DE RUEHNR #5376/01 3621021
ZNR UUUUU ZZH
R 281021Z DEC 06
FM AMEMBASSY NAIROBI
TO RUEHC/SECSTATE WASHDC 6223
INFO RUCNIAD/IGAD COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0297

UNCLAS SECTION 01 OF 02 NAIROBI 005376 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958 
TAGS: PGOV PREL ETRD CH SO KE
SUBJECT:  FOREIGN MINISTER TUJU & TRADE MINISTER KITUYI 
DISCUSS CHINA, AFRICA?S IMAGE AND U.S.-KENYA RELATIONS 
WITH SENATOR FEINGOLD 
 
REF:  A. NAIROBI 05165 
      ¶B. NAIROBI 05269 
 
¶1.  (U) Summary:  Foreign Minister Tuju characterized 
Kenya's growing relations with China as a case of 
"diversifying our portfolio." Trade Minister Kituyi 
lauded China's price and quality competitiveness in 
infrastructure projects.  Senator Feingold spoke of the 
necessity of improving Africa's image in the world and 
the progress on governance reforms required to make that 
happen.  Finally, the Senator and the ministers discussed 
U.S.-Kenya relations as regards foreign policy and trade 
issues and the strong links between the two countries. 
End Summary. 
 
¶2.  (U) During an hour-long conversation with Senator 
Feingold and Ambassador Ranneberger, Foreign Minister 
Rafael Tuju and Trade Minister Mukhisa Kituyi discussed a 
wide range of topics.  Their views on governance issues, 
Somalia and Iraq are reported in reftels.  This final 
reporting message from that discussion covers China, 
Africa's image, and U.S.-Kenya relations. 
 
China:  We're Diversifying Our Portfolio 
 
¶3.  (SBU) Senator Feingold asked the two ministers to 
comment on China's growing presence in Africa.  Tuju said 
that he was very involved in managing Kenya's relations 
with China.  For him, it is a matter of "diversifying our 
portfolios of creditors, suppliers and trading partners." 
He noted that China is a fast rising world power and its 
world trade is increasing with everyone, not just Africa. 
"China just placed the largest order ever for Boeing 
Aircraft.  It's Development Bank has more money than the 
World Bank!"  (Note:  We are not in a position to 
validate either statement.  End Note.)  ?We realize that 
China is motivated by self interest.  Who isn't?  They 
want to conquer more markets and secure more resources. 
We know there is no free lunch.  But the allegation that 
African nations are turning to China for development 
assistance to avoid governance criteria is ludicrous and 
false.  You can deal with the West without governance 
criteria as well.  Look at Equatorial Guinea!" 
 
¶4.  (U) Trade Minister Kituyi added, "We and our 
consumers know that China and India market sub-standard 
products, but they are very competitive in infrastructure 
projects in terms of both quality and price.  The 
Nairobi-Mombasa road is a good example!"  (Note:  Two 
long stretches of this road were recently rehabilitated; 
one by China and one by the EU.  Initial reaction to the 
upgrades are quite positive, but time will tell how the 
roads stand up to the rains and heavy traffic.  End 
Note.) 
 
Improving Africa's Image in the World 
 
¶5.  (SBU) Senator Feingold spoke of the relatively low 
status of the Africa subcommittee within the U.S. Senate 
and his enthusiasm for serving on a subcommittee that 
some of his peers disdain.  He also spoke of the attitude 
he often hears expressed by his constituents and business 
leaders.  "Isn't it hopeless?" they ask.  Feingold 
stated, "America must learn to think of Africa as a place 
of hope and progress."  To change Africa's image in the 
world, progress must be achieved in combating terrorism 
and AIDS, and in ending the continent?s conflicts.  An 
important part of changing world attitudes about Africa 
will be success of a new generation of African leaders in 
promoting democratic and anti-corruption values. 
 
U.S.-Kenya Relations 
 
¶6.  (SBU) Feingold asked the ministers to identify the 
two greatest mistakes the U.S. has made in its Africa 
policy.  Kituyi replied, "You were too hesitant in 
supporting the TFG (Somalia's Transitional Federal 
Government).  You made the error of supporting Somalia's 
very unpopular warlords on the basis that the enemy of 
your enemy is your friend.  That miscalculation cost us 
all dearly."  He continued ?The second major error is 
your refusal to end cotton subsidies for your farmers. 
This stance hurts poor farmers in some of the poorest 
countries in the world and it undermines your pro- 
competition stance in world trade talks.  Your farmers 
are known to be the most subsidized in the world.? 
(Comment:  We suspect that EU farmers deserve that title. 
End Comment.) 
 
 
NAIROBI 00005376  002 OF 002 
 
 
¶7.  (SBU) Tuju commented, "We value the help of the U.S., 
especially in combating AIDS and terrorism.  We have more 
areas of convergence than divergence."  Tuju continued, 
"Kenyans immigrate to the U.S. and serve in the U.S. 
military.  That is the greatest possible vote of 
confidence.  Our links to the U.S. are stronger than 
anyshere else.  We are a young democracy and you are our 
model.  Ours is a transitional government, taking the 
country's politics from a one-party state to multiparty 
pluralism.  We need your understanding and support." 
RANNEBERGER