Identifier
Created
Classification
Origin
05MASERU478
2005-09-27 10:28:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Maseru
Cable title:  

LESOTHO: CHINA'S INFLUENCE IN AFRICA

Tags:  PREL CH LT UN 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 MASERU 000478 

SIPDIS

SENSITIVE

FOR AF/S

E.O. 12958: N/A
TAGS: PREL CH LT UN
SUBJECT: LESOTHO: CHINA'S INFLUENCE IN AFRICA

REF: (A) STATE 153199 (B) MASERU 245

MASERU 00000478 001.2 OF 002


-------------
Summary
-------------

UNCLAS SECTION 01 OF 02 MASERU 000478

SIPDIS

SENSITIVE

FOR AF/S

E.O. 12958: N/A
TAGS: PREL CH LT UN
SUBJECT: LESOTHO: CHINA'S INFLUENCE IN AFRICA

REF: (A) STATE 153199 (B) MASERU 245

MASERU 00000478 001.2 OF 002


--------------
Summary
--------------


1. (SBU) Lesotho's relationship with China appears to be
deepening as visits by dignitaries from both countries increase
and China's involvement in projects large and small expands.
The political aspect of the relationship is based on Lesotho's
acceptance of a "one china/two systems" policy palatable to the
PRC. Incorporation of Chinese experts into various aspects of
Lesotho's public sector is perceived as advantageous to the
small nation's development, although regard for the 5000-plus
people of Chinese origin here is often hostile. The significant
role the PRC is playing in renovating the telecommunications
infrastructure gives the Asian giant a large footprint in a tiny
space. End Summary.

--------------
Political Accord
--------------


2. (SBU) The Mountain Kingdom's grateful acceptance of Chinese
assistance was on display during the recent PRC National Day
reception. At the September 22 program, Lesotho's Minister of
Foreign Affairs announced the GOL Prime Minister's proposed
December 2005 official visit to Beijing. We understand from the
Chinese ambassador that discussions of the program are underway.
The Chinese Foreign Minister and Vice-foreign minister have
already been to the Mountain Kingdom this year and Lesotho's
Finance/Develop Planning and Telecommunications Ministers have
been hosted by the PRC.


3. (SBU) Lesotho has made public its adherence to a "one
China/two systems" policy. This position was reiterated during
the FonMin's September speech. The PRC was praised for its
"peaceful" resolution of conflict in Asia as well as its role in
the Six Party Talks. The GOL views China's presence as a
longstanding and beneficial one, particularly the PRC's building
of the new national library and archives (expected to open in a
few weeks) in addition to its previous construction projects,
such as the nation's convention center. China has been praised
by the GOL as providing the "best economic model" for the
developing world, partly because of its support to the G-77 and
cancellation of debt. The Forum on China - Africa Cooperation
(FOACC) and the PRC's growing role in Africa are seen in a
favorable light by the GOL. Lesotho plans to send a delegation
to the 2006 FOACC Ministerial conference in Beijing.


TRADE AND ASSISTANCE

--------------
Lesotho's Trade with China:
--------------


3. (SBU) Reliable statistics are not available. However, the
only significant commerce involves fabric (usually knitted
fabric) provided by Chinese factories to some garment
manufacturers here. The level of factory activity and type of
orders vary considerably, especially with the end of the
Multi-Fiber Agreement. Lesotho does not export any goods to
China. Neither China nor Lesotho has sought preferential trade
arrangements on a bilateral or regional basis.

--------------
(U) Environmental/Health Issues:
-------------- --

4. (SBU) The major environmental and health concerns stem from
the waste and waste water created by the manufacturing sector,
especially garment and textile factories. Taiwanese companies
own the vast majority of factories, however; there are no
Chinese-owned facilities. Thus, China's presence does not
directly create environmental or health hazards. China is not
engaged in addressing environmental or health-related concerns
resulting from the garment factories.

--------------
(U) Investment and Assistance:
-------------- -

5. (SBU) There is little or no investment by private sector or
state companies, as the garment factories are mainly owned by
Taiwan-based companies, plus elsewhere in Asia excluding China.
Chinese humanitarian assistance is sporadic and not
large-scale. Some Chinese doctors work at hospitals in Lesotho.
China occasionally makes humanitarian food assistance
donations, but is not a significant donor overall.


6. (SBU) Development assistance, in the form of grants, is
significant, concentrating mainly on infrastructure and
equipment for the government of Lesotho. Such projects are

MASERU 00000478 002.2 OF 002


typically at the request of Lesotho. China financed the
construction of the largest convention center in the county
(approximate cost of USD 16 million) and the nearly completed
new National Library and Archives building (USD 7 million). In
addition, the governments of China and Lesotho have signed a
grant agreement to design and install transmitter and other
equipment in Lesotho to update and expand television and radio
broadcast coverage in the country. Estimated cost of the
project is USD 6 million. Installation of the transmitters, to
be done by Chinese technicians, will begin in January 2006.
The GOL has approached the Chinese Embassy (and other diplomatic
missions) about support for building a new Parliament facility;
no decision has been made, to the best of post's knowledge.
(Note: During informal discussions with the Embassy, officials
at the PRC Embassy here did not seem enthusiastic about this
request.)

--------------
Military Contact and Assistance
-------------- --

7. (SBU) On the increase. China donated light trucks and
other equipment to the Lesotho Defense Force in 2004. The LDF
Commander visited China in March 2005 and mid-level military
personnel have been to China for training. Due to severe budget
constraints, Lesotho does not look to purchase significant
amounts of military equipment or supplies from any country.

--------------
Perceptions
--------------

8. (SBU) Strongly mixed views. The GOL appreciates the amount
of intention and assistance China provides, but the general
population can be suspicious of Chinese, seen as clannish,
culturally insensitive and taking business opportunities away
from Basotho. The "Chinese" business community is a mix of
Taiwanese and PRC nationals. The former are more prominent,
e.g., as owners/ top managers of garment factories. The two
groups seem to operate without conflict. (Note: Chinese number
over 5,000 in Lesotho, according to the Chinese Embassy,
although it is not clear if this includes Taiwanese, whom the
Chinese consider to also be their responsibility. Chinese
nationals are present not only in the garment industry, but are
also operating small businesses, some in remote areas of the
country.)

--------------
China/Taiwan
--------------

9. (SBU) Although the GOL supports a one-China policy, it
enjoys a good relationship with Taiwanese-dominated garment
industry. The PRC Embassy seems to take a hands-off approach
to the garment industry as well.

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


11. (SBU) The bilateral relationship between the kingdom of
Lesotho and the Peoples Republic of china seems a pragmatic one.
China is able to offer concrete and visible contributions to
the country. Her role in the human rights/democracy area is not
an active one and the ties with the local population are
tenuous, at best. In addition to the trips offered to senior
government officials to Beijing, there are short-term military
and business training programs provided by the PRC to Basotho
nationals. Travel to China, and aid while there, is a complete
package that seems readily accepted by Lesotho. The prominent
markers of Chinese presence here, as embodied in the national
library and the convention center , make a large footprint in
the capital, Maseru. Quarries and small businesses around
Lesotho suggest the PRC plans a long-term engagement strategy.
End Comment




PERRY