VZCZCXRO4077
PP RUEHMA RUEHPA
DE RUEHRY #0154/01 1231140
ZNR UUUUU ZZH
P 021140Z MAY 08
FM AMEMBASSY CONAKRY
TO RUEHC/SECSTATE WASHDC PRIORITY 2465
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0057
RHEFDIA/DIA WASHINGTON DC
RUEAIIA/CIA WASHDC
RHMFISS/HQ USEUCOM VAIHINGEN GE
RHMFISS/HQ USAFRICOM STUTTGART GE

UNCLAS SECTION 01 OF 02 CONAKRY 000154 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV EAGR ECPS EFIN MARR PREL SENV TRGY XA
XE, GV 
SUBJECT: RESPONSE - CHINA'S ENGAGEMENT IN GUINEA 
 
REF: STATE 41697 
 
¶1.  The below information is in response to reftel request 
regarding China's engagement in Guinea. 
 
------------- 
CHINESE FOCUS 
------------- 
 
¶2.  China's interest in Guinea is primarily economic with 
significant investment in the following sectors:  energy, 
mining, agriculture, infrastructure, community development, 
and health.  Some projects represent development assistance 
as they are generally done as "gifts" to the people of 
Guinea, meaning that Chinese companies and workers are used 
to build the project, but the project is then gifted to the 
Guinean Government upon completion.  Other projects represent 
direct investment by Chinese companies.  The Chinese 
Government trained a battalion of Guinean "Ranger" soldiers 
in 2001, and has provided periodic military training since 
then.  On the security front, the Chinese Government has 
donated motorcycles to Guinean police in the past, and has 
promised to provide communication equipment. 
 
The following serve as examples of some of China's specific 
activities in Guinea: 
 
 - Through Syno-Hydro and Eximbank of China, China has 
committed to build a hydroelectric dam, at a cost of about $1 
billion, in exchange for a bauxite concession.  Syno-Hydro is 
conducting preliminary feasibility studies. 
 
 - The Guinean Government granted Henan-Chine a license for 
bauxite exploration in the region of Boffa.  It is expected 
that Chinese interest in the mining sector will continue to 
grow. 
 
 - Henan-Chine recently completed a major road construction 
project, which was funded by the Kuwaiti and Saudi 
Development Funds, as well as the African Development Bank, 
for about $80 million. 
 
 - The Guinean Ministry of Health recently granted a license 
to a Chinese company (Societe Chinoise Sodong Pharmgui) to 
manufacture generic medicines such as amoxicillin, aspirin, 
and paracetamol for local hospitals and clinics. 
 
 - The Russian company Rusal and China Power Investment plan 
to build a new bauxite and alumina refinery complex in the 
near future.  The project is currently in the feasibility 
study stage and is expected to be one of the biggest mining 
projects in the country. 
 
 - The Chinese Government recently renovated the building 
housing Radio Television Guinean, which was damaged when a 
MIG Jet crashed into it in 2007.  The Chinese Government sent 
technicians to investigate the crash site, and to help 
replace and/or repair damaged equipment. 
 
 - In 2007, the Chinese Government started building a modern 
stadium facility in Conakry, which is expected to seat 50,000 
people. 
 
 - The Chinese Government initially built the People's Palace 
in Conakry, which houses the national parliament.  They are 
currently renovating the building as Guinea prepares for its 
50th Anniversary Celebration later in the year.  China is 
also expected to replace old equipment and furniture. 
 
 - The Chinese Government has reportedly promised to build 
and equip a modern hospital in Conakry.  China made the 
commitment during the China-Africa Summit in Beijing in 2007, 
but the current status of the project is unclear. 
 
----------------------------- 
EMBASSY TO EMBASSY ENGAGEMENT 
----------------------------- 
 
¶3.  The Embassy has regular contact with Chinese diplomats in 
Guinea, and Embassy officials continue to develop contacts 
through periodic meetings with Chinese counterparts.  We are 
not currently coordinating with the Chinese Embassy on any 
specific project or initiative. 
 
--------------------------------------------- --- 
OPPORTUNITIES FOR ENHANCED BILATERAL COOPERATION 
 
CONAKRY 00000154  002 OF 002 
 
 
--------------------------------------------- --- 
 
¶4.  The most likely opportunities for bilateral cooperation 
would be for infrastructure or community development 
projects.  China may see the U.S. as a competitor with 
respect to investment opportunities, especially in the mining 
sector, and therefore less willing to coordinate bilateral 
programs.  They have not expressed an interest in defense 
coordination efforts. 
 
¶5.  The U.S. may also want to explore bilateral cooperation 
in law enforcement.  The Government of Guinea has a very 
ambitious plan in place, which includes opening a new police 
academy and recruiting up to 10,000 new police officers. 
China is already engaged in law enforcement and Guinea was 
recently accepted into the U.S. ILEA program. 
 
¶6.  A third possibility involves promoting good governance. 
China may be initially reluctant to engage on this issue, but 
a good first step would be simply aiming to inform China 
about our programs in Africa in order to help them comprehend 
the motives and methods of western donors. 
CARTER