CHINESE ENGAGEMENT IN LESOTHO AND POTENTIAL AREAS FOR

UNCLAS SECTION 01 OF 02 MASERU 000048

SENSITIVE
SIPDIS

DEPT FOR AF/S AND AF/RSA

E.O. 12958: N/A
TAGS: PREL EAID CN LT
SUBJECT: CHINESE ENGAGEMENT IN LESOTHO AND POTENTIAL AREAS FOR
COOPERATION

REF: STATE 10152

MASERU 00000048 001.2 OF 002


--------------
Introduction
--------------


1. (U) According to Gao Deyi, China's Ambassador to Lesotho,
there are approximately 5,000 Chinese in Lesotho (other figures
estimate 10,000),though the number has declined over the past
twenty years due to harsh living conditions and high rates of
crime targeted against Chinese. A study by Yoon Park and Barry
Sautman exploring anti-Chinese sentiment in southern Africa
revealed some of the reasons for crime targeted against ethnic
Chinese. They originally looked at Namibia, Zambia, and
Lesotho, and their research is continuing in South Africa and
Zimbabwe. Park and Sautman found that successive waves of
anti-foreigner violence in Lesotho in 1991, 1998, and 2007
mainly targeted Chinese immigrants.


2. (U) Traders are one of the major target groups for
anti-Chinese violence. Immigrants, mostly recent arrivals from
Fujian, attract the usual accusations of "clannishness," lack of
English or Sesotho, and selling poor quality goods and expired
foodstuffs. Their very presence is taken as proof of government
corruption, as the law is supposed to reserve small trade for
Lesotho nationals. Labor conditions in Chinese-owned textile
plants are another widely-quoted grievance, though labor union
leaders told Park and Sautman that conditions had improved
substantially since 2005. Paradoxically,
Chinese(Taiwanese)-owned factories are the hub of Lesotho's
economy, still employing around 32,000 people, down from 45,000
employees before the global recession. These textile and other
factories attract experienced Chinese to Lesotho. Ambassador
Deyi estimates that about 30% of the Chinese in Lesotho will
return to China at some point, but the remainder will stay in
Lesotho or move on to a third country.

-------------- --------------
Overall Chinese Engagement in Lesotho
-------------- --------------


3. (U) Political Relations: The People's Republic of China and
the Kingdom of Lesotho re-established diplomatic relations in
1994 and since then bilateral relations between the two counties
have been growing. Roughly 12 different ministers from the
government of China (GOC) have visited Lesotho for political
reasons, and senior officials from Lesotho's government (GOL)
have visited China. These include King Letsie III, Prime
Minister Mosisili, and several government ministers. The latest
visit was by the Minister of Communications, Science and
Technology, Mothetjoa Metsing, who was in China February 2-8,
2010, at the invitation of the Communist Party of China (CPC).
Metsing, also Secretary General of the governing Lesotho
Congress for Democracy (LCD) party, said the main purpose of his
visit was to deepen relations between the CPC and the LCD, and
to learn from China's successful experience of state governance
and economic development.


4. (U) Trade Relations and Economic Cooperation: The GOC has
helped Lesotho establish the Juncao mushroom cultivation
technology demonstration centre in Maseru. China introduced
this project to help Lesotho explore an innovative way to solve
the food shortage problem. Juncao technology has already been
promoted in 60 countries in Africa. Recently, the GOC donated
USD 13,333 to the GOL for its preparations for the World Expo
2010, which will run from May 1 to October 30 in Shanghai. The
GOL used part of these funds to contract a China-based company
to construct the Lesotho Pavilion at the Shanghai EXPO 2010.
The GOC has also granted Lesotho a concessional loan of USD30
million for the National Telecom Network Expansion project.


5. (U) Exchanges in the fields of culture, education and
health: China and Lesotho signed an implementation agreement on
cultural exchange. From 2001-2004, there was an exchange of
visits by culture ministers and cultural troops. Fine arts and
paintings from each nation were exhibited respectively in the
capitals of the two countries. The Chinese government donated a
computer lab to the National University of Lesotho and provided
17 scholarships to Basotho students who are currently studying
in China. The two governments also signed a protocol to send a
Chinese medical team to work in Lesotho for a period of two to
three years. So far, China has sent about 100 professional
doctors to practice at Lesotho's Queen Elizabeth II Hospital.
As part of human resource training cooperation, about 250
Basotho have been trained in China, including 6 military
officers.


6. (U) Assistance with Buildings: The government of China is
funding the ongoing construction of the new parliament building

MASERU 00000048 002.2 OF 002


for Lesotho. China has also funded the construction of the
National Convention Center, Butha-Buthe Industrial Park, the
National Library and Archives, and two rural secondary schools.

--------------
U.S.-China collaboration
--------------


7. (SBU) There is currently no U.S. - China collaboration in
Lesotho, nor is there evidence of any collaboration between
China and any third country in Lesotho. Although there is an
active local donor coordination group, the Development Partners
Consultative Forum, the Chinese typically do not participate
except to provide a silent presence at the group's meetings with
government ministers. Post interprets this as a China's desire
to focus exclusively on the bilateral relationship with Lesotho.


8. (SBU) Given the Chinese provision of doctors to Lesotho's
public hospitals, post feels that incorporating these human
resources into the health system strengthening aspects of its
PEFPAR projects might be an appropriate area for future
collaboration. There is a severe shortage of doctors and other
health care professionals in Lesotho, and PEPFAR's recently
signed Partnership Framework with the GOL places an emphasis on
strengthening this area.
NOLAN