This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 MASERU 000478 
 
SIPDIS 
 
SENSITIVE 
 
FOR AF/S 
 
E.O. 12958: N/A 
TAGS: PREL CH LT UN
SUBJECT: LESOTHO:  CHINA'S INFLUENCE IN AFRICA 
 
REF: (A) STATE 153199  (B) MASERU 245 
 
MASERU 00000478  001.2 OF 002 
 
 
------------- 
Summary 
------------- 
 
¶1.  (SBU)  Lesotho's relationship with China appears to be 
deepening as visits by dignitaries from both countries increase 
and China's involvement in projects large and small expands. 
The political aspect of the relationship is based on Lesotho's 
acceptance of a "one china/two systems" policy palatable to the 
PRC.  Incorporation of Chinese experts into various aspects of 
Lesotho's public sector is perceived as advantageous to the 
small nation's development, although regard for the 5000-plus 
people of Chinese origin here is often hostile.  The significant 
role the PRC is playing in renovating the telecommunications 
infrastructure gives the Asian giant a large footprint in a tiny 
space.  End Summary. 
 
-------------------- 
Political Accord 
-------------------- 
 
¶2.  (SBU) The Mountain Kingdom's grateful acceptance of Chinese 
assistance was on display during the recent PRC National Day 
reception.  At the September 22 program, Lesotho's Minister of 
Foreign Affairs announced the GOL Prime Minister's proposed 
December 2005 official visit to Beijing.  We understand from the 
Chinese ambassador that discussions of the program are underway. 
 The Chinese Foreign Minister and Vice-foreign minister have 
already been to the Mountain Kingdom this year and Lesotho's 
Finance/Develop Planning and Telecommunications Ministers have 
been hosted by the PRC. 
 
¶3.  (SBU) Lesotho has made public its adherence to a "one 
China/two systems" policy.  This position was reiterated during 
the FonMin's September speech.  The PRC was praised for its 
"peaceful" resolution of conflict in Asia as well as its role in 
the Six Party Talks.  The GOL views China's presence as a 
longstanding and beneficial one, particularly the PRC's building 
of the new national library and archives (expected to open in a 
few weeks) in addition to its previous construction projects, 
such as the nation's convention center.  China has been praised 
by the GOL as providing the "best economic model" for the 
developing world, partly because of its support to the G-77 and 
cancellation of debt.   The Forum on China - Africa Cooperation 
(FOACC) and the PRC's growing role in Africa are seen in a 
favorable light by the GOL.  Lesotho plans to send a delegation 
to the 2006 FOACC Ministerial conference in Beijing. 
 
TRADE AND ASSISTANCE 
 
----------------------------------- 
Lesotho's Trade with China: 
----------------------------------- 
 
¶3.  (SBU) Reliable statistics are not available.  However, the 
only significant commerce involves fabric (usually knitted 
fabric) provided by Chinese factories to some garment 
manufacturers here.  The level of factory activity and type of 
orders vary considerably, especially with the end of the 
Multi-Fiber Agreement.  Lesotho does not export any goods to 
China.   Neither China nor Lesotho has sought preferential trade 
arrangements on a bilateral or regional basis. 
 
--------------------------------------- 
(U) Environmental/Health Issues: 
--------------------------------------------- -- 
¶4.  (SBU) The major environmental and health concerns stem from 
the waste and waste water created by the manufacturing sector, 
especially garment and textile factories.   Taiwanese companies 
own the vast majority of factories, however; there are no 
Chinese-owned facilities.  Thus, China's presence does not 
directly create environmental or health hazards.  China is not 
engaged in addressing environmental or health-related concerns 
resulting from the garment factories. 
 
-------------------------------------- 
(U) Investment and Assistance: 
--------------------------------------------- - 
¶5.  (SBU) There is little or no investment by private sector or 
state companies, as the garment factories are mainly owned by 
Taiwan-based companies, plus elsewhere in Asia excluding China. 
 Chinese humanitarian assistance is sporadic and not 
large-scale.  Some Chinese doctors work at hospitals in Lesotho. 
 China occasionally makes humanitarian food assistance 
donations, but is not a significant donor overall. 
 
¶6.  (SBU) Development assistance, in the form of grants, is 
significant, concentrating mainly on infrastructure and 
equipment for the government of Lesotho.   Such projects are 
 
MASERU 00000478  002.2 OF 002 
 
 
typically at the request of Lesotho.  China financed the 
construction of the largest convention center in the county 
(approximate cost of USD 16 million) and the nearly completed 
new National Library and Archives building (USD 7 million).  In 
addition, the governments of China and Lesotho have signed a 
grant agreement to design and install transmitter and other 
equipment in Lesotho to update and expand television and radio 
broadcast coverage in the country.  Estimated cost of the 
project is USD 6 million.  Installation of the transmitters, to 
be done by Chinese technicians,  will begin in January 2006. 
The GOL has approached the Chinese Embassy (and other diplomatic 
missions) about support for building a new Parliament facility; 
no decision has been made, to the best of post's knowledge. 
(Note: During informal discussions with the Embassy, officials 
at the PRC Embassy here did not seem enthusiastic about this 
request.) 
 
--------------------------------------- 
Military Contact and Assistance 
--------------------------------------------- -- 
¶7.  (SBU) On the increase.   China donated light trucks and 
other equipment to the Lesotho Defense Force in 2004.  The LDF 
Commander visited China in March 2005 and mid-level military 
personnel have been to China for training.  Due to severe budget 
constraints, Lesotho does not look to purchase significant 
amounts of military equipment or supplies from any country. 
 
----------------- 
Perceptions 
-------------------- 
¶8.  (SBU) Strongly mixed views.   The GOL appreciates the amount 
of intention and assistance China provides, but the general 
population can be suspicious of Chinese, seen as clannish, 
culturally insensitive and taking business opportunities away 
from Basotho.  The "Chinese" business community is a mix of 
Taiwanese and PRC nationals.  The former are more prominent, 
e.g., as owners/ top managers of garment factories.   The two 
groups seem to operate without conflict.  (Note:  Chinese number 
over 5,000 in Lesotho, according to the Chinese Embassy, 
although it is not clear if this includes Taiwanese, whom the 
Chinese consider to also be their responsibility.  Chinese 
nationals are present not only in the garment industry, but are 
also operating small businesses, some in remote areas of the 
country.) 
 
------------------- 
China/Taiwan 
----------------------- 
¶9.  (SBU) Although the GOL supports a one-China policy, it 
enjoys a good relationship with Taiwanese-dominated garment 
industry.   The PRC Embassy seems to take a hands-off approach 
to the garment industry as well. 
 
-------------- 
Comment 
-------------- 
 
¶11.  (SBU) The bilateral relationship between the kingdom of 
Lesotho and the Peoples Republic of china seems a pragmatic one. 
 China is able to offer concrete and visible contributions to 
the country.  Her role in the human rights/democracy area is not 
an active one and the ties with the local population are 
tenuous, at best.  In addition to the trips offered to senior 
government officials to Beijing, there are short-term military 
and business training programs provided by the PRC to Basotho 
nationals.  Travel to China, and aid while there, is a complete 
package that seems readily accepted by Lesotho.  The prominent 
markers of Chinese presence here, as embodied in the national 
library and the convention center , make a large footprint in 
the capital, Maseru.  Quarries and small businesses around 
Lesotho suggest the PRC plans a long-term engagement strategy. 
End Comment 
 
 
 
 
PERRY