VZCZCXRO5105
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHDR #0284/01 1260831
ZNR UUUUU ZZH
R 050831Z MAY 08
FM AMEMBASSY DAR ES SALAAM
TO RUEHC/SECSTATE WASHDC 7519
INFO RUEHNR/AMEMBASSY NAIROBI 0948
RUEHKM/AMEMBASSY KAMPALA 3154
RUEHLGB/AMEMBASSY KIGALI 1099
RUEHJB/AMEMBASSY BUJUMBURA 2663
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0350
RUEHIN/AIT TAIPEI 0086
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS SECTION 01 OF 02 DAR ES SALAAM 000284 
 
SIPDIS 
 
SIPDIS 
 
DEPT AF/E FOR JLIDDLE 
 
E.O. 12958: N/A 
TAGS: PGOV EAGR ECPS EFIN MARR PREL SENV TRGY XA XE TZ
SUBJECT: CHINA'S ENGAGEMENT IN TANZANIA 
 
REFS: (A) STATE 41697 
 (B) DAR ES SALAAM 1552 
 
¶1.  Per ref A, Post submits the following response.  Focus areas of 
Chinese engagement in Tanzania include infrastructure investments 
and bilateral Tanzania-China business engagements, primarily in the 
tourism sector (see ref B).  Some of the highlights of Chinese 
investment in Tanzania include: 
 
-- In 2001, China pledged to continue financial and technical 
support for the repair and development of the Tanzania-Zambia 
Railway (TZR), which was originally built by the Government of China 
in the 1970s. 
 
-- In 2005, the Chinese government donated to the GOT agricultural 
machinery worth 141 million Tanzanian shillings (approximately USD 
123,615).  This machinery included three heavy-duty tractors with 
their implements, seven power tillers with their implements, two 
milling machines, and two water pumping systems. 
 
-- On June 23, 2006, Chinese Prime Minister Wen Jiabao and President 
Jakaya Kikwete signed five agreements to boost diplomatic ties and 
provide economic and technical assistance to Tanzania.  The 
Government of China will: provide Tanzania with anti-malaria drugs 
and construct a malaria prevention and treatment center, explore the 
possibility of setting up a joint-venture factory of anti-malaria 
drugs with Tanzania, and provide a loan to the Tanzania-Zambia 
Railway Authority (TAZARA) to rehabilitate passenger cars which 
China helped construct approximately 30 years ago.  The Government 
of China also pledged assistance for the renovation of the Amaan 
Stadium in Zanzibar, Radio Tanzania Zanzibar, STZ, broadcasting 
station, and for some projects in the transport and communications 
sectors. 
 
-- In November 2006, Chinese President Hu Jintao and Premier Wen 
Jiabao met with President Kikwete and pledged assistance with 
generators to use coal mined from Kiwira and Mbeya regions for the 
production of electricity.  Chinese President Jintao also pledged to 
continue Chinese assistance in the Chalinze water project, which is 
a USD 11.73 million project aimed at supplying 7,200 tons of clean 
water per day to 105,000 people in the Sangasanga and Ngerengere 
areas. 
 
-- China donated funds, and a Chinese firm (Beijing Construction 
Engineering Company Limited) built a new national stadium in Dar es 
Salaam, which opened in 2007.  The stadium meets Federation of 
International Football Association (FIFA) and Olympic standards and 
can accommodate 60,000 spectators. 
 
-- Through Chinese support the Government of Tanzania is 
rehabilitating the Tanzania Zambia Railway Authority (TAZARA), a key 
project whose construction between 1970 and 1975 was financed by an 
interest-free loan from the People's Republic of China. The rail 
link is critical to the economies of the two countries, with Zambia 
mainly utilizing it for transporting its copper exports to the port 
of Dar-es-Salaam. 
 
-- The Chinese firm Guangdong Construction Engineering Group Company 
Limited plans to set up a giant hydro-electric power plant that 
could reduce persistent power problems in Tanzania. 
 
-- In August 2007, Chinese civil aviation officials traveled to 
Tanzania to discuss the possibility of a Chinese contract to build a 
new international airport at Bagamoyo, approximately 40 miles north 
of Dar es Salaam.  The delegation also signed agreements with 
Tanzania establishing direct flights between China and Tanzania, 
plans to improve the infrastructure at the airport in Dar es Salaam 
and on several roads and ports, and training for Tanzanian civil 
aviation officials. 
 
¶2.  Currently, while EmbOffs maintain contacts within the Chinese 
Embassy and meet with them occasionally for social events, there is 
not much coordination and cooperation between the American and 
Chinese Missions. 
 
¶3.  The areas that would benefit from increased U.S.-China bilateral 
cooperation and coordination in Tanzania include the transportation, 
energy, and agriculture sectors.  Especially in light of Tanzania's 
recently signed $698-million Millennium Challenge (MCC) compact, 
these are the sectors in which China and the U.S. could undertake 
complementary projects that would have the largest impact on 
economic development and growth in Tanzania. 
 
DAR ES SAL 00000284  002 OF 002 
 
 
 
GREEN