P R 300436Z MAR 09
FM AMEMBASSY KOLONIA
TO SECSTATE WASHDC PRIORITY 2241
INFO AMEMBASSY MAJURO 
HQ USPACOM HONOLULU HI
AMEMBASSY BEIJING 
AIT TAIPEI 0020
AMCONSUL SHANGHAI 
COMNAVMARIANAS GU
AMEMBASSY KOLONIA

C O N F I D E N T I A L KOLONIA 000039 
 
 
E.O. 12958: DECL:  3/30/2019 
TAGS: PGOV PREL EAID PINR FM CH
SUBJECT: CHINESE AMBASSADOR CRITICAL OF FSM GOVERNMENT CAPACITY AND 
LACK OF PROGRESS, REQUESTS ASSISTANCE FOR VISA APPLICANTS IN SHANGHAI 
 
REF: Kolonia 35 
 
CLASSIFIED BY: DOUGLASSWD, CHARGE DE AFFAIRS, EMBASSY KOLONIA, 
DOS. 
REASON: 1.4 (b), (d) 
 
 
 
¶1.  (C) In a wide ranging discussion with U.S. Embassy officers 
on March 21, People's Republic of China Ambassador Liu Fei was 
critical of the FSM's capacity at both the state and national 
levels.  She then complained about the lack of an industrious 
attitude at the individual level.  Although China remains fully 
engaged in the FSM, this hard working Ambassador is clearly 
exasperated with the state of the relationship.  She expressed 
appreciation for any anticipated help that the Embassy could 
provide with Guam transit visas for Chinese workers.  On a final 
note, she conceded that working in the FSM was affecting her 
staff's morale.  END SUMMARY. 
 
 Capacity and Culture Limit Economic Development 
--------------------------------------------- ------------------ 
 
¶2.  (C) Liu hosted Ambassador Miriam Hughes, DCM William 
Douglass, and Econ/Conoff Jason Wemhoener-Cuite at a dinner with 
the staff of the Chinese Embassy on March 21.  During a wide 
ranging discussion, Liu often returned to her contention that 
Micronesia lacked the capacity to manage many of the programs it 
has and that even if the capacity were available, the 
Micronesians as individuals are not motivated to work.  Although 
citing a range of examples, Liu and her staff used a Chinese 
funded agricultural program as the primary example of the many 
shortcomings they perceive with the Micronesian workforce and 
government oversight. 
 
¶3.  (SBU) According to Liu, China funds a farming project in 
Pohnpei geared towards improving farming efficiency and possibly 
providing export opportunities.  Based on the produce grown, the 
project is a success.  China, however, is disappointed in the 
lack of cooperation by the host government and indifferent 
engagement by local farmers.  In addition to funding the 
project, China provides seven technicians who work and act as 
trainers on the farm. Liu contends that the Micronesians, as a 
government or as individuals, are not working as partners should. 
 
¶4.  (SBU) Produce grown on the farm was intended for training 
and sale by the Micronesians, but much is now given to the 
nominal Micronesian workers.  Liu commented that she did not 
want to give the produce away, but prior to giving it away the 
Micronesians working on the farm were just stealing whatever 
they wanted and China had no control.  Liu states that the FSM 
government should have stepped in to prevent the thefts, but did 
nothing. 
 
¶5.  (SBU) With the host government's assistance, China and the 
FSM had identified farmers who would profit from agricultural 
training.  However, Liu complained that the farmers who do show 
up are not studying the techniques taught or contributing to the 
farm in any substantive manner.  The farmers come in late, take 
long lunches followed by a nap, and then go home early.  They 
may work for a couple of hours before taking produce. 
 
¶6.  (SBU) Third Secretary and Commercial Officer Qing Xu stated 
that China had one success story from the farm project.  A young 
woman regularly came in and learned the techniques suitable on 
the farm.  She proved diligent and trustworthy as a student. 
After completing the training, she moved to Guam.  Qing opined 
that the United States offered motivated Micronesians more 
opportunities than what was available in the FSM.  Liu added 
that this seems to be the norm, i.e. those who could contribute 
positively to society often decide to leave. 
 
Visas for Chinese Workers 
-------------------------------- 
 
¶7.  (SBU) Further highlighting the work ethic of Chinese 
laborers vice their Micronesian counterparts, Liu commented that 
Pohnpei government officials have commented positively on the 
"small" Chinese laborers who are completing the new Pohnpei 
State Government headquarters, which may be the largest building 
in Pohnpei once completed.  Liu added that China had to bring in 
its own laborers because the local workforce was not reliable. 
In this regard, she stated the workers needed transit visas to 
go through Guam and hoped the U.S. Embassy could help.  She also 
insisted that she told the company in China only to choose the 
best laborers to come to the FSM.  (Note:  On multiple previous 
occasions the Chinese Embassy provided Post with details on 
laborers from Zhejiang Province who were applying for transit 
visas at the U.S. Consulate in Shanghai and asked Post to 
confirm to Consulate Shanghai that they were legitimate 
laborers.  Post has consistently replied that Consulate Shanghai 
must make visa determinations based on the individual applicants 
and that we have no role in that process.  End Note.) 
 
Keeping up Morale is Difficult 
------------------------------------- 
 
¶8.  (SBU) Ambassador Liu and her staff were also very candid 
about morale issues they were facing.  Of the seven Chinese 
diplomats currently working at the Embassy, four live on the 
compound in Palikir (two commercial officers live next to their 
office in Kolonia and a junior officer also lives in Kolonia). 
Palikir houses the capital offices, but it is distant from any 
town.  (Note:  Econoff noticed only one vehicle parked on the 
Chinese Compound, perhaps another indication of their isolation. 
 End Note.)  Staff members commented that once the office closes 
the only leisure activity they have is reading.  The junior 
officer, Attache Zheng Xu, has had other difficulties living in 
Kolonia.  Thieves stole one tire from his vehicle on two 
separate occasions. 
 
¶9.  (C) Liu also commented that although she had completed more 
than two years at post, sometimes "ambassadors were asked to 
stay on" until their successor is ready.  Her apparent 
frustration, compared to the boredom by her staff, seemed based 
on the relationship with the FSM and Pohnpei in particular. 
When referring to Pohnpei Governor Ehsa's budding relationship 
with Taiwan (reftel), she stated he lied to her.  She believes 
the government in general does not fulfill the obligations it 
takes on.  Whereas Liu's staff commented on the vibrancy, 
cultural history, art and other aspects of Beijing, Shanghai and 
numerous other locations in China and the lack of anything 
comparable in the FSM, Liu's comments focused on the perceived 
lack of capacity and industriousness of Micronesians. 
 
Comment 
------------ 
 
¶10.  (C) Although some of Liu's negativism may have reflected 
her inability to stem an emerging relationship between Taiwan 
and the Pohnpei state government, the overall tone of her 
discussions was one of exasperation with the FSM.  Theft from 
the Chinese funded farm, stealing of a diplomat's car tires, the 
Pohnpei Governor's supposed betrayal, and acknowledgment that 
her tour of duty in the FSM should already be over all 
highlighted the Ambassador's frustration.  Liu remains focused 
on her duties and she actively engages the FSM government at all 
levels.  However, FSM Foreign Affairs Secretary Lorin Robert 
recently told her unequivocally that Pohnpei State was free to 
engage with Taiwan on a commercial basis.  In Post's opinion, 
she is looking forward to leaving the FSM.  End Comment. 
 
 
HUGHES