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R 020939Z JUN 06
FM AMEMBASSY BEIJING
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INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHBK/AMEMBASSY BANGKOK 4201
RUEHHE/AMEMBASSY HELSINKI 0773
RUEHSM/AMEMBASSY STOCKHOLM 1572
RUEHLO/AMEMBASSY LONDON 2868
RUEHTC/AMEMBASSY THE HAGUE 1329
RUEHNY/AMEMBASSY OSLO 0832
RUCNDT/USMISSION USUN NEW YORK 1344

UNCLAS SECTION 01 OF 02 BEIJING 011074 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO USAID 
BANGKOK FOR USAID/RDMA BEANS AND WHELDEN 
 
E.O. 12958:  N/A 
TAGS: EAID ECON PGOV PHUM SOCI CH
SUBJECT: UNDP PREPARES TO LAUNCH NEW TIBET PROGRAM 
 
 
¶1. (SBU) Summary: The United Nations Development Program 
(UNDP) hosted a Project Appraisal Committee (PAC) meeting 
in Beijing on June 1 to seek input from bilateral donors on 
its proposed USD 5 million Tibet Development and Poverty 
Alleviation Program that the UNDP plans to launch later 
this month.  The UNDP is seeking bilateral donor support 
for the program, which will focus on developing Tibet's 
tourism and handicrafts sectors.  It appeared from 
questions asked by donor representatives, however, that the 
program's deficiencies and vagueness will impede fund 
raising efforts.  Concerns were voiced about the program's 
lack of coordination with existing efforts, lack of details 
on funding levels for specific projects, how to ensure that 
Tibetans are the primary beneficiaries, and the extent to 
which NGOs will be involved in project implementation.  End 
Summary. 
 
UNDP Prepares To Launch New Tibet Program 
----------------------------------------- 
 
¶2. (SBU) The UNDP introduced its Tibet Development and 
Poverty Alleviation Program to bilateral donors and 
government officials from Tibet Autonomous Region (TAR) at 
a PAC meeting in Beijing on June 1.  According to Wang Yue, 
Director General, China International Center for Economic 
and Technical Exchanges (CICETE), the program aims to 
accelerate development in the tourism sector through 
projects that are both environmentally-friendly and 
culturally-sensitive. 
 
¶3. (SBU) The UNDP and CICETE, in cooperation with the TAR 
Government, plan to focus on five main objectives: 1) 
strengthening tourism for sustainability and poverty 
alleviation, 2) developing international trade and 
investment, 3) modernizing traditional artisan industry, 4) 
protecting and developing Old Lhasa City, and 5) 
establishing the Tibet Forum. 
 
¶4. (SBU) Peter Zetterstrom, UNDP Project Officer, stated 
that the TAR's Department of Commerce (DOFCOM) would be the 
coordinating agency for the overall program, with the Tibet 
Tourism Board coordinating the tourism sector project, the 
Enterprise Management Bureau (DOAAH) as the lead agency for 
the handicrafts project, Lhasa Municipal Construction 
Bureau as the lead for Old Lhasa City, and DOFCOM handling 
both the trade and Tibet Forum projects. 
 
Donors Voice Concerns 
--------------------- 
 
¶5. (SBU) According to Khalid Malik, UNDP Resident 
Representative, the UNDP has committed USD 2 million to the 
Tibet Development and Poverty Alleviation Program, and the 
Tibet Autonomous Region (TAR) has pledged an additional USD 
1 million.  Malik stated that the UNDP hopes to receive 
funding from the donor community to make up the final USD 2 
million, or else the program would have to curtail some of 
its activities.  He could not specify which activities 
would be affected. 
 
¶6. (SBU) Donors from five different European countries as 
well as the EU Mission voiced a number of concerns about 
UNDP's proposal.  One European diplomat questioned how much 
the UNDP's efforts would be combined with projects already 
on the ground in Tibet and how those projects would be 
coordinated.  He also questioned how projects will benefit 
poor Tibetans rather than other ethnic groups.  Another 
diplomat asked how the private sector would be leveraged to 
maximize returns on UNDP's initiative.  And all of the 
donors present expressed concern about the capacity- 
building piece of the program and how it would be 
implemented effectively.  Econoff and the EU rep both asked 
about the role of NGOs in the program and cited concerns 
that UNDP does not appear to have a plan of action for NGOs 
in project implementation.  Finally, one diplomat asked how 
aid from bilateral donors would be used and if it could be 
earmarked for certain projects.  The UNDP had no ready 
answers to any of these questions and plans for the project 
in general seemed vague.  Nevertheless, Malik indicated 
that the project launch would go ahead as scheduled in 
three weeks. 
 
BEIJING 00011074  002 OF 002 
 
 
 
Comment 
------- 
 
¶7. (SBU) UNDP's draft plan for the Tibet Development and 
Poverty Alleviation Program is not well-developed 
considering UNDP plans to launch the program in a few weeks. 
Reactions from other bilateral donor representatives at the 
meeting suggest that, in the program's current form, UNDP 
will face difficulties attracting funding support from 
other sources.  End Comment. 
 
RANDT