PRC PRESSES DOMINICAN REPUBLIC TO RECOGNIZE BEIJING

C O N F I D E N T I A L SECTION 01 OF 02 SANTO DOMINGO 000579 SIPDIS STATE FOR WHA/CAR, WHA, AND EAP NSC FOR SHANNON USDOC FOR 4322/ITA/MAC/WH/CARIBBEAN BASIN DIVISION USDOC FOR 3134/ITA/USFCS/RD/WH USSOUTHCOM ALSO FOR POLAD E.O. 12958: DECL: 02/04/2015 TAGS: PREL ETRD EINV DR CH TW SUBJECT: PRC PRESSES DOMINICAN REPUBLIC TO RECOGNIZE BEIJING REF: A. A. TAIPEI 315 ¶B. B. 04 SANTO DOMINGO 6472 Classified By: DCM Lisa Kubiske for Reason 1.5 (b) and (d). ¶1. (C) SUMMARY. A Chinese Communist Party delegation met with members of the ruling Dominican Liberation Party (PLD) and other Dominican political parties from January 24-27, seeking to strengthen ties to the Dominican Republic and pressing for formal diplomatic recognition. The delegation called on President Fernandez and representatives from the three major political parties, explicitly tying trade to diplomatic recognition of the PRC. These efforts come on the heels of increased commercial and investment interest in the Dominican Republic by the PRC. The Chinese charm campaign has gained some ground here, although we do not foresee a switch of diplomatic ties in the near term. END SUMMARY. ¶2. (U) Continuing the PRC's charm campaign in the Caribbean (Ref A),a Chinese Communist Party delegation called on members of the ruling Dominican Liberation Party (PLD) and other Dominican political parties January 24-27, seeking to strengthen ties to the Dominican Republic, one of a dwindling number of Caribbean nations that maintain diplomatic links to Taiwan. Led by Vice Minister of the International Liaison Department Cai Wu and Sub Director for Latin American Affairs Wang Yulin, the delegation came to the Dominican Republic after visiting Haiti. It met leaders from all the major political parties, pressing for formal diplomatic recognition of the PRC and linking diplomatic recognition to increased access to the PRC's vast markets. ¶3. (U) The ruling PLD had invited the Chinese Communist Party to visit. PLD Secretary General Reynaldo Pared Perez heard the PRC delegation urge the Dominican Republic to recognize Beijing. He later commented to the press that China "could become a great ally" and a model for development. On Dominican relations with Taiwan, he said that the government "has the legitimate right to have relations with whatever political parties it deems convenient" and that the PLD would continue to improve its relations with the Communist Party. (Note: Pared Perez is involved in running the President's party, but has no discernible role in foreign policy. End note.) ¶4. (C) Senator Jose Tomas Perez (PLD) told poloff that the Chinese explicitly linked future PRC investment and trade with diplomatic recognition and argued that without formal ties, traders and investors would "lack legal guarantees." According to Perez, MFA adviser Ambassador Miguel Mejia arranged the meetings in consultation with Pared Perez and President Fernandez, circumventing normal PLD political committee decision-making, Mejia, a long-established Dominican leftist from the miniscule "United Left Movement" known for his assertiveness, had arranged a November meeting between an earlier PRC visitor and President Fernandez (Ref B). He also served as a go-between with Venezuelan President Chavez. ¶5. (SBU) President Fernandez received the delegation in the presidential palace. After attending the meeting, Foreign Minister Carlos Morales Troncoso commented to the press that the Dominican Republic would need to consider its diplomatic options and decide which stance "will best represent our interests." Senator Perez, despite his criticism, foresaw that Fernandez might eventually recognize Beijing. ¶6. (U) The Chinese called on the two main opposition parties, the Dominican Revolutionary Party (PRD) and the Social Christian Reformist Party (PRSC). PRD Secretary General Rafael Subervi Bonilla, former vice president Milagros Ortiz Bosch, and others hosted the meeting at Subervi's home. Subervi said later that he favored establishing diplomatic and commercial ties with the PRC, calling it "a reality of the world" that the Dominican Republic cannot isolate itself from the PRC. Cai Wu in turn invited PRD officials and legislators to visit the PRC. The Chinese also met PRSC President Federico Antun Batlle and other PRSC leaders and legislators. ¶7. (C) The PRC increased its commercial visibility in advance of its latest political efforts. Dominican business interests report that the PRC's resident commercial representative has been instructed to increase the frequency of his contacts with local firms to at least four times a year. In addition, we understand Beijing has invited Agriculture Secretary Amilcar Romero to visit the PRC in March. ¶8. (U) According to the press, as a measure to counter the PRC's Caribbean campaign, ROC Vice President Annette Lu recently cautioned Dominican Ambassador in Taipei Victor Manuel Sanchez Pena not to try to use the threat of changing diplomatic ties to extract concessions. Lu reportedly discussed development projects that she was proposing in Latin America, including possible farm development in the Dominican Republic. ¶9. (C) Several Embassy contacts have expressed reservations about possible Chinese displacement of this country's traditionally close ties with the United States. At the same time, no influential Dominican politician has stood up strongly for maintaining relations with Taiwan. Many commentators have referred to the "dilemma" faced by the government, and some have characterized closer relations with Beijing as "inevitable." ¶10. (C) COMMENT. These meetings do not change our previous assessment (Ref B) that recognition of Beijing is unlikely to happen in the near term. That said, PRC representatives are mounting a sustained push for recognition, via increased political exchanges with the government and opposition and offers of trade and investment. Reactions have been mixed, but the campaign is already gaining some ground. It is ironic that at the same time the December 31, 2004 end of quotas under the Multi-fiber Accord gives China a possible opening to take away a large chunk of Dominican exports to the United States. END COMMENT. HERTELL