VZCZCXRO4105
OO RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0557 1871027
ZNR UUUUU ZZH
O 061027Z JUL 09 ZDS
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4693
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHAR/AMEMBASSY ACCRA 2934
RUEHDS/AMEMBASSY ADDIS ABABA 3052
RUEHBJ/AMEMBASSY BEIJING 0098
RUEHRL/AMEMBASSY BERLIN 1481
RUEHBY/AMEMBASSY CANBERRA 2315
RUEHDK/AMEMBASSY DAKAR 2682
RUEHKM/AMEMBASSY KAMPALA 3100
RUEHNR/AMEMBASSY NAIROBI 5543
RUEAIIA/CIA WASHDC
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHMFISS/EUCOM POLAD VAIHINGEN GE
RHEFDIA/DIA WASHDC
RUEHGV/USMISSION GENEVA 2230
RHEHAAA/NSC WASHDC

UNCLAS HARARE 000557 
 
C O R R E C T E D COPY - CORRECTING CLASSIFICATION 
TO UNCLAS SENSITIVE 
 
SENSITIVE 
SIPDIS 
 
AF/S FOR B.WALCH 
DRL FOR N. WILETT 
ADDIS ABABA FOR USAU 
ADDIS ABABA FOR ACSS 
STATE PASS TO USAID FOR J. HARMON AND L. DOBBINS 
 
E.O. 12958: N/A 
TAGS: PGOV EAID ASEC PHUM CH ZI
SUBJECT: CHINESE ASSISTANCE TO ZIMBABWE 
 
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SUMMARY 
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¶1.  (U) Over the past couple of weeks, both President Robert 
Mugabe and Prime Minister Morgan Tsvangirai have claimed 
credit for obtaining $US950 million in lines of credit from 
China.  There were also reports that Zimbabwe would receive a 
$5 billion loan in exchange for platinum mining rights.  At a 
press conference on July 3, Minister of Finance Tendai Biti 
categorically denied both loans.  END SUMMARY. 
 
¶2.  (U) On June 30, Tsvangirai issued a statement summarizing 
his recently-concluded trip to the U.S. and Europe.  After 
claiming pledges of humanitarian and transitional assistance 
of $500 million, he commented that Zimbabwe was not 
restricted to a "look west" or "look east" policy and averred 
that in his absence Biti had secured lines of credit from 
China totaling $950 million.  On July 2, the Zimbabwe 
Independent reported that Biti had signed a Memorandum of 
Understanding with China's Eximbank for a $5 billion loan in 
exchange for platinum rights. 
 
¶3.  (U) At a press conference on July 3, Biti denied that 
Zimbabwe had reached any agreements with China for loans. 
Speaking to The Standard after Biti's conference, 
Tsvangirai's spokesman, James Maridadi, addressed the alleged 
$950 million loan and said it represented pledges; he could 
not understand why Biti was insisting there was no money 
coming from China. 
 
¶4.  (U) The Herald's banner headline on July 6 was "President 
hails China aid."  The lead paragraph read, "President Mugabe 
has applauded China for unconditionally extending a US$950 
million credit facility to help Zimbabwe's economic recovery 
program and blasted the West for insisting on conditions even 
as they render bits and pieces of aid to their agencies under 
the guise of assisting the people of Zimbabwe."  The article 
quoted Mugabe as saying the loan was the first tranche in a 
$5 billion bridging package that had been negotiated four 
years ago and it was "nonsense" that the MDC had secured any 
loans from China. 
 
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COMMENT 
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¶5.  (SBU) For years, ZANU-PF has trumpeted assistance from 
China--assistance that never materializes.  What is 
disconcerting is that Tsvangirai, who returned from his 
western trip with less concrete assistance than hoped for, 
now appears to be playing the same game.  The lack of 
coordination between Tsvangirai and Biti is also troubling. 
The bottom line is that until China can get investment 
guarantees--non-existant in the current environment--material 
Chinese assistance is extremely unlikely. 
DHANANI