
Along a scenic beach where fishermen mend their nets by hand, an endless row of storefronts stretches into the distance, all selling the same thing. Not sunscreen, umbrellas or cold drinks. Land.
Never mind that the area is home to a violent separatist movement, or that foreigners are regarded with suspicion by police. A property boom has hit this formerly sleepy town in southwest Pakistan because of the latest addition to Gwadar8217;s modest charms: a strategic new port on the Arabian Sea, almost all of it paid for by China.
The deepwater port has the potential to become a major shipping hub for Central Asia and China, particularly for the oil that China is sucking up to fuel its explosive growth. Gwadar, near the border with Iran, sits close to the entrance to the Persian Gulf, China8217;s biggest source of crude.
But officials in countries such as India and the United States are eyeing the port warily, seeing more there than mere commercial value. They fear its possible future use as a base for Chinese ships and submarines, given the close ties the governments of China and Pakistan have enjoyed for decades. From Gwadar, analysts note, China could project its growing economic and military might westward, toward the Middle East, western India, eastern Africa, and the Indian Ocean.
An internal Pentagon report leaked two years ago concluded that China was trying to establish a 8220;string of pearls8221; along the rim of the Indian Ocean, ports that it eventually could use for military purposes. Besides Gwadar, Beijing has invested in ports in Myanmar, Bangladesh and Sri Lanka.
8220;At the moment, these are just fears,8221; Ashley Tellis, an Asia expert at the Carnegie Endowment for International Peace, said of potential Chinese military use of Gwadar8217;s new port. 8220;But there is no logical reason why the Chinese would not contemplate the military benefits of such a facility for the long term.8221;
That Beijing considers the port in its national interest is amply demonstrated by the fact that it put up 80 per cent of the 250 million in construction costs, is funding a new airport here and dispatched its transport minister to witness Pakistani President Pervez Musharraf inaugurate the port last month, with great fanfare. 8220;It is the friendship between China and Pakistan that made my dream of Gwadar come true,8221; Musharraf said. 8220;We thank you. We thank China.8221;
The idea of building a port at Gwadar has floated around in Pakistan for decades. It took on added urgency after the Indian navy blockaded Karachi, Pakistan8217;s largest port, during a war between the two rival countries in 1971. Optimists hope that bringing prosperity might drain away some support for a militant secessionist movement in Baluchistan that has given the government headaches for years. This region is rich in resources that the government in Islamabad would like to tap.
For China, the advantages are obvious. Gwadar would provide a more secure corridor for China8217;s fuel and energy supplies in the face of instability in the Persian Gulf and the Strait of Malacca, by Indonesia, through which 80 per cent of China8217;s oil imports now pass. From Gwadar, imports could travel overland up through Pakistan and into China. Trade out of China8217;s own restive western region of Xinjiang would also be easier and faster. The distance from Kashgar, on the edge of Xinjiang, to Gwadar is 1,250 miles, versus twice that distance to reach Shanghai.
Some see a more strategic interest in Gwadar. They say it could play host to Chinese vessels, or an outpost from which Beijing could monitor the Persian Gulf and Indian Ocean, including the US Navy base on Diego Garcia, a key launching pad for operations in the Persian Gulf.
8211;Henry Chu