VZCZCXYZ0000
PP RUEHWEB

DE RUEHLGB #0304 1211415
ZNR UUUUU ZZH
P 301415Z APR 08 ZDK
FM AMEMBASSY KIGALI
TO RUEHC/SECSTATE WASHDC PRIORITY 5272
INFO RUEHBJ/AMEMBASSY BEIJING 0031
RUEHJB/AMEMBASSY BUJUMBURA 0298
RUEHDR/AMEMBASSY DAR ES SALAAM 1113
RUEHKM/AMEMBASSY KAMPALA 1881
RUEHKI/AMEMBASSY KINSHASA 0433
RUEHLO/AMEMBASSY LONDON 0220
RUEHNR/AMEMBASSY NAIROBI 1200
RUEHFR/AMEMBASSY PARIS 0476
RUEHTC/AMEMBASSY THE HAGUE 0181

UNCLAS KIGALI 000304 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV EAGR SENV RW
SUBJECT: CHINESE ENGAGEMENT IN RWANDA 
 
REF: A. STATE 41697 
     ¶B. 07 KIGALI 529 
     ¶C. 07 KIGALI 218 
 
¶1.  (SBU)  The Chinese and Rwandan governments continue their 
cooperative relations on a number of fronts, with Chinese 
parastatals and private companies active in Rwanda, a number 
of development projects underway, and discussions continuing 
on various soft loans.  As noted in refs B and C, China 
agreed to construct a new Foreign Affairs building, and this 
project is now nearing completion.  A pilot rice production 
project has just finished, and will be followed up with a 
rice plantation project south of Butare.  Approximately 60 
percent of Rwanda's national roads have been constructed by 
Chinese companies, and Chinese companies continue to bid 
aggressively for road projects funded under World Bank and 
African Development Bank auspices. 
 
¶2.  (SBU)  Zonghua Yi, Econ/Commercial Counselor at the 
Chinese embassy in Kigali, told pol/econ chief April 25 that 
China recently agreed to fund a hospital and two primary 
schools in Rwanda.  It will also begin work in the near 
future on a silkworm and mulberry tree plantation -- a 
feasibility study is now underway -- and a bamboo plantation 
and processing center.  Discussions continue on a new 
football stadium, and on various other soft loan projects. 
Two Chinese telecommunications companies are working closely 
with Rwandatel, the formerly state-owned telephone and 
internet company.  The CCECC (China Civil Engineering 
Construction Corporation), a Chinese parastatal, is also 
active in Rwanda, bidding on various construction projects 
(it will build the two schools mentioned above). 
 
¶3. (SBU)  Two-way trade between China and Rwanda, according 
to Yi, rose from thirty-four million dollars in 2006 to 
approximately sixty million dollars in 2007 (although he 
cautioned that accurate figures were difficult to obtain). 
Rwanda's exports consisted mainly of tea, coffee and animal 
skins, while China's exports to Rwanda covered a variety of 
household goods, telecommunications equipment, construction 
equipment and services, and other items. 
 
¶4.  (SBU)  By all accounts, China does not offer donor 
assistance to Rwanda in the areas of peacekeeping or security 
assistance.  We are not aware of any areas where USG programs 
intersect with Chinese assistance, although given the 
wide-ranging activities of our HIV/AIDS programs, some 
interactions may result following completion of the hospital 
the Chinese have pledged to build.  Chinese government 
representatives are largely missing from the many donor 
coordination mechanisms that Rwanda employs as it seeks to 
rationalize and harmonize its development assistance.  One 
area in which Economic/Commercial Counselor Yi said China 
would be ready to cooperate would be in the proposed 
construction of a rail link from Isaka in western Tanzania to 
Kigali -- on a strictly commercial basis, said Yi. 
 
 
ARIETTI