Identifier
Created
Classification
Origin
05KINGSTON2680
2005-12-09 12:28:00
CONFIDENTIAL
Embassy Kingston
Cable title:  

PRC ACTIVITIES IN JAMAICA

Tags:  ECON PREL ETRD ETTC EINV ENRG PHUM CH JM 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 04 KINGSTON 002680 

SIPDIS

STATE FOR EAP/CM KAYE LEE; WHA/PCP JEFF BISCHOFF; AND
WHA/EPSC LAWRENCE GUMBINER

E.O. 12958: DECL: 12/05/2015
TAGS: ECON PREL ETRD ETTC EINV ENRG PHUM CH JM
SUBJECT: PRC ACTIVITIES IN JAMAICA

REF: A. SECSTATE 138041

B. SECSTATE 143649

C. KINGSTON 00386

Classified By: CHARGE Thomas C. Tighe, for reasons 1.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 04 KINGSTON 002680

SIPDIS

STATE FOR EAP/CM KAYE LEE; WHA/PCP JEFF BISCHOFF; AND
WHA/EPSC LAWRENCE GUMBINER

E.O. 12958: DECL: 12/05/2015
TAGS: ECON PREL ETRD ETTC EINV ENRG PHUM CH JM
SUBJECT: PRC ACTIVITIES IN JAMAICA

REF: A. SECSTATE 138041

B. SECSTATE 143649

C. KINGSTON 00386

Classified By: CHARGE Thomas C. Tighe, for reasons 1.4 (b) and (d).


1. (U) This message responds to Ref A Tasking. Post regrets
the lateness of submission.

--------------
Overview
--------------


2. (SBU) It is not surprising that both economic and
political calculations underlie the GOJ's efforts to enhance
ties with the People's Republic of China (PRC),while Beijing
seems interested more in the economic aspects of the
relationship. To the extent he has political principles,
Prime Minister Patterson looks to steer as "independent" a
course in foreign policy by enhancing ties with Beijing and
Venezuela (and maintaining cordial relations with Cuba) as a
means of counterbalancing Jamaica's heavy reliance on, inter
alia, tourists, remittances, cultural influences, disaster
and counternarcotics assistance from the U.S. Though the GOJ
also views Chinese investment in Jamaica as an important
source of employment opportunities, it has not taken
advantage of the momentum created by the February 2005
China-Caribbean Economic Trade Cooperation Fair and Forum nor
other investment opportunities the Chinese have offered. The
GOJ and PRC enjoy very good bilateral relations, but for now,
only the PRC appears poised to capitalize on the relationship.


3. (U) Jamaica became independent in 1962, and Kingston and
Beijing established full diplomatic relations in 1972.
Unofficial ties, however, pre-date that development by more
than a century, as the first Chinese immigrants arrived in
Jamaica as indentured servants in 1854. Jamaicans of Chinese
descent have periodically faced backlash and/or heightened
resentment from other Jamaicans. Today, ethnic Chinese make
up only about one percent of the population but they play a
significant role in Jamaica's economy. Though it is still not

uncommon to hear other Jamaicans refer off-handedly to
Jamaicans of Chinese descent with unfortunate terms such as
"Mr. Chin", "Chineyman" or "Chinaman", Chinese-Jamaicans (and
their "Jamaican-ness") are now widely accepted.

-------------- --
Jamaica Looks to Tap into China's Economic Boom
-------------- --


4. (SBU) In February 2005, amid great (Jamaican) fanfare, a
high-level Chinese trade delegation visited Jamaica touting
mutually beneficial - though largely unspecified - trade
opportunities (Ref C). Prime Minister P.J. Patterson
announced that Beijing had named Jamaica an "approved
destination" for Chinese tourists, raising the tantalizing
prospect of throngs of sun-seeking, money-spending Chinese
visitors arriving to help boost the island's tourism sector.
Privately, however, local business sector contacts reacted
with skepticism, noting that Jamaica is unprepared to
accommodate any significant number of Chinese tourists due to
a lack of Mandarin linguistic capacity, as well as general
unfamiliarity with Chinese needs and preferences. Beijing
has provided a Mandarin language lab to the University of the
West Indies, and a Beijing-funded language instructor
reportedly is being arranged.


5. (C) According to Courtenay Rattray, Director for Bilateral
Affairs at the Ministry of Foreign Affairs and Foreign Trade
(MFAFT),Beijing's interest in Jamaica centers mainly on the
Port of Kingston as a potential trans-shipment hub for
Chinese goods. With nine percent economic growth
undergirding China's ascent as an economic power, he said,
Beijing seeks a geographically centralized point of access to
the Western Hemisphere for its cargo ships and goods. Both
Jamaica and China would benefit from Chinese interest in
Jamaica as a trans-shipment point. Rattray observed that the
Port Authority of Jamaica (PAJ) has made great strides in
modernizing its operations and in positioning itself as an
attractive hub. China, he continued, provided several large
gantry cranes to the PAJ as part of the latter's upgrade
process.


6. (C) In recent years, the GOJ initiated several
unsuccessful efforts to rehabilitate Jamaica's dilapidated,
colonial-era railroad system, which had been allowed to fall
into utter disrepair and which ceased operations in the
mid-90s. The system requires a complete overhaul, and the
Patterson administration opened talks with the Chinese
government, the Jamaican Railroad Corporation (JRC) and
Jamaica's National Commercial Bank (NCB) to re-establish
passenger rail service between Kingston and May Pen,
Clarendon. A team of Chinese railroad engineers recently
visited Jamaica to conduct feasibility studies. In addition
to infrastructural investment, the railroad rehabilitation
project would probably also require Chinese rolling stock.
-------------- --------------
GOJ Struggles to Capitalize on Investment Opportunities
-------------- --------------


7. (C) Dalton Yap, President of Jamaica's Chinese Benevolent
Association (CBA) and a member of the Prime Minister's
twenty-person delegation that visited China in July, 2005 for
the opening of Jamaica's new embassy in Beijing, described
the visit to China as "extraordinary", and claimed that the
GOC "really rolled out the red carpet." Yap stated that
although the visit went well and Chinese investment in
Jamaica is welcomed by the GOJ, the GOJ has been slow to take
advantage of the opportunity. He lamented that the PRC is
getting much more out of this relationship and stated that
"We should not fool ourselves. We know the Chinese want one
thing, and that's why they're here. The sourcing of raw
materials, mainly bauxite."


8. (C) Yap explained that the Prime Minister has two main
projects that are close to his heart and that he specifically
asked President Hu Jintao for assistance: the redevelopment
of downtown Kingston and "telemedicine" (Note: Yap described
telemedicine as the ability for patients to receive a
clinical diagnosis remotely from a licensed nurse. End
note.) Yap expressed, however, serious reservations about
the GOJ's ability to make the most of the relationship with
the PRC and the PM's ability to lobby successfully for the
funding needed to see the two projects through. Yap noted
that of all the projects that have been discussed between the
GOJ and PRC, his view is that the telemedicine project is the
least feasible for Jamaica.


9. (C) Referring to the February 2005, China-Caribbean
Economic Trade Cooperation Forum and Trade Fair, Yap stated
that at that time Jamaica had "China fever", and projects
such as the rehabilitation of the island's railway system, a
feasibility study for further development of the
transshipment terminal, a language laboratory as well as
sports complexes received much publicity, and were touted as
opportunities that would provide employment for Jamaicans.
Yap stated that to date, most, if not all projects have been
put on hold. In addition, he commented that the GOJ does not
have a "strategy or plan" as to the way forward and that no
one within the GOJ is "responsible" for any of the projects.
He stated that as a businessman, he could not understand how
a government functions without having someone responsible for
following through on such important opportunities.

--------------
The Chinese Population in Jamaica
--------------


10. (C) Despite the PRC's certification of Jamaica as an
approved tourist destination for its nationals, Yap contended
the GOJ and the private sector have no idea how to entice the
Chinese to travel to Jamaica. He stated that not only is
there a language and food barrier, but no research has been
done or is even being contemplated to determine exactly what
the Chinese want in a tourist destination. Yap also said
that he expressed his concerns to Prime Minister Patterson
and China's Vice-Minister of Tourism about issuing Jamaican
visas to Chinese citizens. Yap warned that illegal Chinese
migrants were already a problem, contributing to a high level
of fraud and straining Jamaica's poor immigration controls,
creating what he described as a "recipe for disaster." Labor
Minister Horace Dalley told Poloff separately that Chinese
immigrants to Jamaica tend to come from Hong Kong, rather
than mainland China. He said that individuals are generally
able to secure genuine visitor's visas by presenting valid
credentials at the Jamaican Consulate in Hong Kong. However,
he suspected that those credentials - a healthy bank account,
for example -- might be shared by many individuals, and used
repeatedly to support visa applications by intending
immigrants.


11. (C) According to Dalley, there is a problem with illegal
Chinese migration. In particular, he said that Chinese
nationals often arrive in Jamaica with valid visitor's visas,
but then remain in the country illegally. In some cases, he
said they marry Jamaicans of Chinese descent to gain Jamaican
citizenship. He further speculated that many Chinese then
apply for visitor's visas to travel to (and remain in) the
U.S. Dalley characterized the situation as beyond the
control of the GOJ. He said that raids by immigration
authorities might be a solution, but implied that this was
highly unlikely, presumably due to resource constraints.


12. (C) The CBA's Dalton Yap observed that Chinese-speaking
immigrants have distanced themselves from the
Chinese-Jamaican community and that this was due to the
perception that third and fourth generation Chinese in
Jamaica have largely assimilated into Jamaican society, with
many unable to speak any Chinese. Yap admitted that the CBA
has not been successful in reaching out to Chinese-speaking
immigrants and claimed this was due to the small number of
volunteers that work at the CBA. Most of the services that
the CBA provides to these immigrants are
translation/interpretation services when immigrants need to
appear in court.

--------------
Military Ties
--------------


13. (C) The Jamaica Defense Force (JDF) is immensely proud of
its heavily British military DNA, and most JDF train in the
U.K. as cadets at the Royal Military Academy, Sandhurst, or
at the Royal Marine officers course at Lympstone. Later in
their careers, many of these same JDF officers attend staff
courses or other specialized training in the U.S. U.K., or
Canada, and the JDF receives considerable amounts of
equipment from all three countries. Given these historical
links, the JDF officer corps tends to display a solidly
pro-Western (while still nationalist) orientation - even as
the prevailing political winds of successive national
governments shifted from the headiness of the early
independence period, to the "democratic socialism" of the
1970's, to the largely pro-U.S. orientation of the
early-to-mid 1980's, to today's "independent" orientation
with its grudging acceptance (and thinly veiled resentment
of) U.S. influence, while courting partners in the
developing world. In recent years, the GOJ's reluctance to
conclude an Article 98 Agreement with the USG appears to have
prompted the JDF leadership to look to build military links
to China in the event the USG were to cut off or reduce
military assistance upon which the JDF is heavily dependent.
Rear Admiral Hardley Lewin, JDF Chief of Staff, recently made
a trip to China on the PRC dime, and the JDF recently sent
its first officer to attend staff college in China.


14. (C) The PRC's military assistance to Jamaica has
generally come in the form of funds to purchase uniforms and
equipment. In December 2002, the PRC provided a grant of
JM$11.7 million (USD 240,000) for the procurement of military
logistics including uniforms. Another agreement signed in
November 2004 granted aid to the JDF in the amount of USD
362,000 for the procurement of additional uniforms, teaching
aids and tents. DATT notes that given the JDF's
traditionally pro-Western doctrinal and supply orientation,
from a logistical standpoint, diversifying from the
predominately western military equipment would prove
cumbersome and costly in the long run. China currently does
not have a military attach assigned to Jamaica, although the
Chinese ambassador has mused to emboff that one could be
assigned.

-------------- --------------
Jamaican Trade with China, January - September 2004
-------------- --------------


15. (SBU) Figures from the Statistical Institute of Jamaica
show that Jamaica-China trade from January through September
2004 (the most recent period of comprehensive figures
available) is largely in China's favor.

FOOD
Imports: 1,540,763. Domestic Exports: 1,848.
Re-exports: 0. Balance of Trade: -1,538,915.

BEVERAGES/TOBACCO
Imports: 0. Domestic Exports-0.
Re-exports: 0. Balance of Trade: 111,400,561.

CRUDE MATERIALS (EXCLUDING FUELS)
Imports: 148,869. Domestic Exports: 111,549,430.
Re-exports: 0. Balance of Trade: 111,400,561.

MINERAL FUELS
Imports: 361. Domestic Exports: 0.
Re-exports: 0. Balance of Trade: -361.

VEGETABLE OILS/FATS
Imports: 2,098. Domestic Exports: 0.
Re-exports: 0. Balance of Trade: -2,098.

CHEMICALS
Imports: 3,653,705. Domestic Exports: 6,343.
Re-exports: 20,782. Balance of Trade: -3,626,580.

MANUFACTURED GOODS
Imports:1 9,546,228. Domestic Exports: 53,319.
Re-exports:0. Balance of Trade: -19,492,909.

MACHINERY/TRANSPORT
Imports: 17,787,311. Domestic Exports: 0.
Re-exports: 0. Balance of Trade: -17,787,311.

MISCELLANEOUS MFG. ARTICLES
Imports: 28,886,482. Domestic Exports: 19,583.
Re-exports: 6,336. Balance of Trade: -28,860,563.

OTHER
Imports: 0. Domestic Exports: 0.
Re-exports: 0. Balance of Trade: 0.

TOTAL
Imports: 71565,817. Domestic Exports: 111,630,523.
Re-exports:2 7,118. Balance of Trade: 40,091,824

--------------
Comment
--------------


16. (C) While the GOJ and PRC continue to enjoy a good
bilateral relationship that is reinforced by high-level
diplomatic exchanges, for now the GOJ seems largely incapable
of mobilizing its efforts to take advantage of the resources
and projects that the Chinese have offered. Most of the
assistance China has provided has been publicly visible;
however, the GOJ may not be capable of deriving any economic
benefits. The GOJ and the country's private sector
understand the investment and assistance possibilities
created by China's ascent as an economic power and the recent
opening of Jamaica's first embassy in Beijing is concrete
testament to this reality. Without better coordination of
its efforts to exploit the opportunities offered by Beijing,
the GOJ risks losing out on the trade and investment
opportunities it cites as the pay-offs for closer ties with
Beijing. That said, and despite current shortcomings on the
GOJ side, we would expect Jamaica increasingly will "get its
act together" to benefit more from improved relations with
China. Post is unable to determine at this time the social
impact of China's assistance. End Comment.
VALDEZ