CHINESE VICE PREMIER HUI,S VISIT: IT WAS ALL ABOUT

C O N F I D E N T I A L BRIDGETOWN 000142

SIPDIS

E.O. 12958: DECL: 03/02/2024
TAGS: PGOV PREL PINR CN XL
SUBJECT: CHINESE VICE PREMIER HUI,S VISIT: IT WAS ALL ABOUT
TAIWAN

Classified By: CDA D. Brent Hardt, for reasons 1.4 (b) and (d).

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Summary
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1. (C) The visit of Vice Premier Hui Liangyu to Barbados was
more style than substance, according to senior MFA officials.
The primary goal of the visit appears to have been to
reinforce China,s commitment to the region in order to
prevent any new flip-flops on the recognition of Taiwan
following St. Lucia,s switch from recognition of China to
Taiwan last year. Beyond showing the flag, the Vice Premier
signed minor agreements on agricultural and economic
cooperation, and agreed to continue to work on arrangements
to bring PRC tourists to Barbados. End summary.

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Hui Seeks to Avert Slippage in Recognition
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2. (C) MFA Permanent Secretary Teresa Marshall recently
reviewed the February 17-19 visit of Chinese Vice Premier Hui
Liangyu with the Charge, concluding that the visit "did not
produce anything novel." She said the visit -- and a
parallel one elsewhere in the region by another delegation --
sought to ensure that what happened in St. Lucia -- a switch
in recognition from the PRC to Taiwan -- would not happen
again. Marshall speculated that the PRC wants "to prevent
further slippage."

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Greenhouse Technologies and Cinema Restoration Top Agenda
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3. (C) The substantive aspects of the visit were light,
largely a continuation of ongoing discussions and programs.
The countries did sign an agreement on agriculture, largely
to provide technical cooperation particularly in developing
greenhouse technologies. (Note: Bridgetown is particularly
concerned about food security after last summer,s rapid
inflation in food prices and sees potential in expanding
greenhouse use. End note.) The Chinese also agreed to
conduct a feasibility study to renovate an historic movie
theater in Bridgetown. Marshall explained that Chinese money
previously committed to Barbados has not been obligated;
consequently, previously allocated funds would likely be used
for the theater project. The Chinese are increasingly
demanding that monies allocated to projects be backed-up by
feasibility studies, she added, noting that much of the
funding previously allocated by the PRC is tied up in
bureaucratic bickering within the Barbados government as
ministries vie for their pet projects.


4. (c) The Chinese are also reportedly looking at
investment possibilities in Barbados, but as there are few
Chinese companies operating at a high level in the
international tourism industry or the offshore banking
industry )- the only significant FDI recipients on the
island -- they are finding it difficult to match investors
with opportunities. Marshall also noted that there had been
an effort to add a trade component to the visit with the
addition businessmen from Guangdong Province; however, she
was unaware of any specific deals being made. All in all,
she noted there was perhaps $140,000 of new funds associated
with this visit.

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Tapping into a Billion Chinese Tourists?
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5. (C) For Barbados, as for other Caribbean tourism
destinations, the potential of increasingly wealthy Chinese
tourists continues to stir the imagination of Tourism
officials, and the Vice Premier explored with his Barbadian
counterparts prospects for such tours. Despite the strong
desire on behalf of the Barbadians, significant impediments
remain to the development of Barbados as anything more than a
niche destination for a few PRC nationals. The GOB is
supportive of the model used in Europe, where Chinese tour
companies prescreen visitors and they are granted visas on a
pro-forma basis by the consular authorities. Despite the
challenges presented by comparable and lower cost
destinations much closer to Mainland China, the GOB contends
that the real deal-breaker is the problem incurred when
trying to obtain transit visas for the U.S. or U.K. -- the
two most feasible airlift routes.

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Comment
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6. (c) The tight-lipped response of the Chinese Embassy in
Bridgetown to our repeated inquiries backed up Marshall's
analysis that this visit was more political form than
economic or development substance. The Chinese delegation
brought little new money to the table and little prospect for
a more comprehensive economic relationship. Ironically,
their willingness to lavish attention on "friendly" Caribbean
nations may have an effect opposite to that desired by the
Chinese. There are on-again, off-again discussions of the
need for a CARICOM-wide China policy that would have all
countries recognizing the PRC. But if that were to happen,
it would greatly reduce the incentive for China to come out
and invest heavily in the region. Thus the delegation,s
reactive presence may have inadvertently signaled that it
would be wise for the Caribbean to keep at least a couple of
countries in the Taiwan camp, if only to keep their other
Chinese suitors interested and engaged. And as China's
superpower status rises, Caribbean expectations for largesse
are likely to keep pace.
HARDT