ETHNIC-CHINESE THAI IN THE FAR SOUTH: US, CHINA,

C O N F I D E N T I A L SECTION 01 OF 03 BANGKOK 004254

SIPDIS

SIPDIS

E.O. 12958: DECL: 07/17/2016
TAGS: PREL PGOV ECON KPAO TH CH
SUBJECT: ETHNIC-CHINESE THAI IN THE FAR SOUTH: US, CHINA,
AND SOUTHERN VIOLENCE


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Classified By: Political Counselor Susan M. Sutton, reasons 1.4 (B, D)


1. (C/NF) SUMMARY. As a southern province with a minority
of Muslim Thai, Songkhla is a relative safe-haven for
ethnic-Chinese Thai families living in the deep South. But
the southern unrest has taken a toll on Hat Yai, the trade
capital of Songkhla, where tourism has declined by over fifty
percent since 2003. Symbolic of our deteriorated public
image in southern Thailand -- when compared to the PRC -- the
former US Consulate General in Songkhla now belongs to the
Chinese. The theme of distrust and suspicion toward the USG
was repeated in Poloff's various meetings with the local
business community. Businessmen blame a weak Thai
government, the US, and Thailand's southern neighbors for the
South's troubles. In contrast, the PRC is seen as a major
contributing factor to rising rubber prices, one of southern
Thailand's most abundant natural resources, bringing economic
benefits to the region. End summary.


ETHNIC-CHINESE THAI IN THE SOUTH
--------------


2. (C) Poloff visited Songkhla Province as part of AmEmbassy
Bangkok's continuous effort to report on ethnic-Chinese Thai
and issues related to the southern violence. This is the
first of two cables.


3. (SBU) As the gateway for trade with the rest of the
Southern region, Hat Yai city's population is majority
ethnic-Chinese, whose merchant/worker ancestors arrived from
various provinces in southern China three to four generations
ago. While most of the prominent businesspersons are fluent
in both Thai and their native dialect in China, many also
speak Mandarin Chinese well enough to hold their meetings
with Poloff strictly in Mandarin. Citing the need to do
business with Malay-Chinese and Singaporeans as the stimulus
for Chinese language-learning, a number of these businessmen
have also traveled to China for both ancestor-worship and
business dealings.


4. (C) There are thirteen separate Chinese associations
organized by the province from which their ancestors
originated in Songkhla. Curiously, frequent intermarriages
among the ethnic-Chinese and the ethnic-Thai do little to
dilute their sense of ethnic-Chinese identity. Cai Jing Fu,
President of the Hokkien Chinese Association, explained that
the local population considered themselves "foremost Thai",
but they also "remembered their roots." Like the others with
whom Poloff met, Cai has vastly different Chinese and Thai
names that are used depending upon with whom he is
associating.


5. (C) Among the thirteen associations, the most active five
- Hakka, Tiewchow, Canton, Hokkien, and Hainan - formed
"Wu-Shi Hui Guan," a larger organization that brings together
the other various Chinese associations to plan disaster
relief/charity events as well as cultural festivals.
According to Fang Zhi Xiong, President of the Tiewchow
Chinese Association, their relationship with the local
government is "very close," which bodes well for their
businesses.


SOUTHERN VIOLENCE: A BLEAK PICTURE FOR BUSINESSES?
-------------- ---


6. (C) Although Songkhla/Hat Yai has witnessed several
bombings in the past two years -- including the April 3, 2005
attack on Hat Yai International Airport -- it is still
regarded to be relatively safe when compared with the
almost-daily violence in the other three provinces of
Pattani, Yala, and Narathiwat. As a result, many
ethnic-Chinese Thai from those three provinces have sent
their families to Hat Yai/Songkhla and even Bangkok for
refuge while the heads-of-households remained behind to tend
to their businesses by themselves. A number of Hat Yai
businessmen also professed that they are considering sending
their families to Bangkok, in order to escape "bombing
fears." As Mr. Li, Chairman for the Songkhla Chamber of
Commerce explained, "my business cannot be uprooted, but my
family can."


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7. (C) With safety concerns rising, business in the tourism
industry has also plummeted. Zhou De Tao, President of the
Canton Chinese Association and the owner of four hotels in
the South, lamented that "business dropped by over 50
percent" in the past three years. But at the same time,
Chang Mu Fa, President of the Thai-Taiwan Business
Association, explained that though tourism may be adversely
affected, other export industries -- such as shrimping,
lumbering, and food-processing -- remain unaffected. Fang of
the Tiewchow Chinese Association agreed, citing that the boom
in the rubber industry, since China's "huge demand for rubber
to make tires has caused prices to rise ten fold." (Note:
Albeit still a sizable increase, rubber prices have only
increased by over three-fold since 2001. Fang's exaggerated
sentiments, however, are echoed by others in separate
meetings. End note.)


THE USUAL SUSPECTS?
--------------


8. (C/NF) Suspicion for US interest and involvement in far
southern Thailand were evident, and Poloff was met with open
suspicion in meetings with various interlocutors. Two of the
three individuals from the Songkhla Chamber of Commerce
declined to provide Poloff with business cards. When asked
how should they be referred, one person replied that he can
be addressed as "Mr. Li." The other refused to provide his
last name, asking Poloff repeatedly, "Why are you really
here?" The same occurred during Poloff's meeting with the
various Chinese associations. Fang of the Tiewchow Chinese
Association was originally very reluctant to speak to Poloff,
wondering of the "real reason" for Poloff's visit to the
South. He further declared that he was "just a businessman
and did not know very much about politics."


9. (C/NF) However, suspicious as they may be, these
interlocutors were vocal with their views once they began
talking. The man who refused to be named offered his own
theory on the southern unrest, claiming that it is due to a
combination of "corrupt local officials, Singapore and the
US." He suspected Singapore to be involved (i.e. funding the
insurgency) because "a chaotic South translates into more
business opportunities (i.e, lower prices) for them." He
also claimed "since the US sees itself as the 'big brother'
of the world, it is inciting unrest with plans to step in
later in order to enhance its international reputation." He
then concluded that all this would not be possible unless
there is a "weak Thai government." The Songkhla businessman
lamented that the local Thai government is too weak and
corrupt, and thus is allowing the violence to occur because
"as long as there is violence, there is money to be taken."
When asked about the local separatists, "Mr. Li" replied that
the "local Muslims are too scattered," and are "dependent on
others for funding." He then asked rhetorically, "Why
doesn't Malaysia have any bombs?"


MI CASA IS NOW SU CASA
--------------


10. (C) In a courtesy call to the PRC Consulate General in
Songkhla, Poloff was reminded by Chinese Consul Wu Guo Ting
that their building housed the US Consulate General until

1993. With minimal PRC business interests in the region
(Note: China is mainly a rubber consumer and has very little
investment in the South. End note.),the Chinese Consulate
focuses mainly on providing visas to Thai nationals and
Malay-Chinese from across the border. They also furnish
travel documents for those ethnic-Chinese who have yet to
receive Thai citizenship. Chinese Consul Li Ru Zong
explained that the Chinese Consulate does very little
political monitoring in the region. (Comment: Despite this
claim, both Wu and Li were very well-versed in the political
situation in the South and have a strong hold on the local
socio-economic pulse. End comment.)


11. (C) Wu commented that there is still a strong bond
between the local ethnic-Chinese Thai and the PRC, and that
most of the ethnic-Chinese Thai are "pro-China," especially
when it comes to "the Taiwan issue." But Li reiterated that
"China's nature is passive," and "does not invade" others'
interests. They see China's economic growth as a "win-win"

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situation for both China and southern Thailand. Wu explained
that a "stronger Chinese economy translates into a stronger
local economy," and thus leads the locals to "place more
importance on China."


COMMENTS: MORE PD OUTREACH?
--------------


12. (C/NF) While academic institutions were, on the whole,
friendlier to Poloff than the local businessmen, US public
image in the South is clouded by suspicions over what role
the USG may be playing in the southern disturbances. A
general sense of antagonism toward US foreign policy was
evident. Zhou De Tao of the Canton Chinese Association
explained that though both of his children studied abroad in
the US, they came home weary of the USG's "insistence on
minding other people's business." Quite emotionally, Zhou
remarked, "first Iraq and now North Korea, why should anyone
listen to you (the US)?"


13. (C) Though comments such as these are unsettling, the
same people who made these comments also readily agreed to
meet with representatives from the US Embassy (and insisted
on taking her out to lunch). Whether it's cultural affinity,
or growing economic benefit, or both, the local population do
refer to the PRC in more favorable terms. Misunderstanding
of US foreign policy in the Songkhla/Hat Yai business
community may be due to limited exposure to the broader range
of US society, interests, and values. This misunderstanding
might be ameliorated by greater public diplomacy outreach
efforts in the South, currently concentrated on academe
through the American Corners in Pattani and Yala. End
Comment.
ARVIZU