VZCZCXRO6955
RR RUEHGH RUEHVC
DE RUEHCN #0091/01 0960828
ZNY CCCCC ZZH
R 060828Z APR 07
FM AMCONSUL CHENGDU
TO RUEHC/SECSTATE WASHDC 2433
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHEHAAA/NSC WASHINGTON DC
RUEHCN/AMCONSUL CHENGDU 2950

C O N F I D E N T I A L SECTION 01 OF 03 CHENGDU 000091 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EAP/CM, DRL, AND G/STC 
BANGKOK FOR USAID/MSTIEVATER 
 
E.O. 12958: DECL:  4/6/2027 
TAGS: ECON PHUM PGOV CH
SUBJECT: VOCATIONAL TRAINING AND ECONOMIC OPPORTUNITIES FOR RESETTLED 
TIBETAN NOMADS 
 
REF: A) CHENGDU 83  B) 06 CHENGDU 1011  C) 06 CHENGDU 969  D) 05 CHENGDU 322 
 
CHENGDU 00000091  001.2 OF 003 
 
 
CLASSIFIED BY: Kathryn Pongonis, Acting Consul General, United 
States Consulate, Chengdu. 
REASON: 1.4 (b), (d) 
 
 
 
¶1. (C) Summary:  In the Tibetan Autonomous Region (TAR), local 
Poverty Alleviation, Animal Husbandry and Labor Bureaus are 
responsible for carrying out the job skills and vocational 
training programs that complement nomadic and pastoral 
resettlement policies.  Officials acknowledge that changing 
rural people's thinking is essential due to new employment 
opportunities as well as competition since the opening of the 
Qinghai-TAR Railroad.  They lament that even though new 
employment options are available, some Tibetans are unwilling to 
engage in those jobs.  It is clear that it will take time for 
resettled Tibetans to adapt to what for many is a completely 
foreign work environment, and that they will continue to face 
competition due to migration of workers from inland China.  End 
Summary. 
 
¶2.  (U) During a March reporting trip to the TAR, CG, Beijing 
POLMINCOUNS, and Chengdu CONGENOFF met with officials from the 
Naqu Prefecture Animal Husbandry and Labor and Social Security 
Bureaus, and TAR Poverty Alleviation and Animal Husbandry 
Bureaus, the principal offices tasked with carrying out nomadic 
and pastoral resettlement policies.  One of the principal 
aspects of these policies is provision of job skills and 
vocational training for newly settled Tibetan populations.  The 
Labor Bureau focuses principally on urban populations and the 
PAO and Animal Husbandry Bureau primarily dedicate resources to 
rural residents. 
 
¶3.  (C) In Naqu Prefecture, the TAR's largest nomadic area, 
Jique (one name only), the Deputy Director of the Labor and 
Social Security Bureau said his office has provided training to 
over 3,000 people.  He stated that approximately 72 percent of 
trainees get jobs.  In 2006, 3,100 people in Naqu became 
unemployed and were trained by the Bureau.  Two thousand of 
those individuals were later re-employed.  Jique said 
construction skills, woodworking and electronics are the most 
popular courses, but that there are no training classes on 
tourism or mining.  When queried by Congenoff about typical 
wages trainees could hope to earn, Jique responded that the 
bureau is not particularly concerned about how much money 
residents can make, but rather that they acquire skills to allow 
them to build their own houses and assist friends in building 
their homes.  Beijing POLMINCOUNS asked about competition for 
construction jobs between these Tibetans and Han Chinese who 
come from inland China to look for jobs in the TAR.  Jique said 
it is still very difficult for Tibetans to compete against more 
experienced Han for such job opportunities. 
 
¶4.  (SBU) TAR PAO Director Wang Jian said his bureau provides 
free training to assist rural youngsters in gaining employment. 
Cosmetology, hotel service, construction, woodworking, driving, 
traditional Tibetan tangka painting, security, and weaving are 
some of the courses offered.  In addition, as part of the 
bureau's mission to carry out comprehensive agricultural 
development, Wang said that his staff empower people to manage 
their land, for example, by providing professional training on 
planting trees and building greenhouses. 
 
¶5.  (SBU) International non-governmental organizations (NGOs) 
complement government efforts to provide skills training in the 
TAR.  The Bridge Fund (TBF) and the Tibet Poverty Alleviation 
Fund (TPAF), which receive funding from the United States Agency 
for International Development, both have skills training 
programs in the areas of public health care and Tibetan 
medicine, motorcycle repair, woodworking, and hotel/restaurant 
service.  Representatives of TPAF report that a number of 
graduates of their motorcycle repair courses have returned to 
their home communities and started successful businesses.  TPAF 
partners with the TAR PAO and TAR Academy of Animal and 
Agricultural Science.  During Consulate's visit, Director Wang 
of the TAR PAO praised the NGO's work in this area and said the 
government had a lot to learn from working closely with TPAF. 
Wang proudly displayed several Tibetan-language skills training 
manuals that were published as a part of this collaboration. 
 
Response to New Employment Competition 
--------------------------------------- 
¶6.  (C) The TAR Animal Husbandry Bureau Vice Director, Tsutrim 
(one name only) said changing rural people's thinking is 
important because of new employment competition since the 
opening of the Qinghai-TAR Railroad (Ref. A).  He echoed a 
statement from another official that there is stiff job 
 
CHENGDU 00000091  002.2 OF 003 
 
 
competition with people from inland China.  Tsutrim opined that 
the government should not practice local protectionism, and that 
he hoped job pressure would improve local people's sense of 
competitiveness.  In order to work toward this goal, the Animal 
Husbandry Bureau 1) offers technical training for farmers so 
that they can begin nonagricultural work, 2) organizes "labor 
export" to other areas of the region, 3) organizes rural 
construction teams, and 4) supports "industry-leading" poverty 
alleviation work by providing training in the first, second and 
third industries. 
 
¶7.  (C) Beijing POLMINCOUNS queried Tsutrim about the railroad's 
effect on prices of goods and services in the TAR.  Tsutrim said 
prices for produce and foodstuffs have increased slightly 
because of increased demand, but noted that the railway has also 
brought new employment opportunities due to increased 
consumption.  He claimed there had been a 17.2 percent increase 
in farmers' income since the opening of the line.  Tsutrim also 
added that the government controls the prices of goods so they 
have not risen too much. 
 
¶8.  (C) In a separate conversation, Wang from the TAR PAO said 
government agencies involved in poverty alleviation all hope 
local people will take advantage of new employment 
opportunities, but asserted they are not always interested.  For 
example, he stated that local Tibetan people don't want to wash 
other people's hair even though hairdressers can earn 1000 RMB 
(USD 129) per month.  Therefore, these types of jobs tend to be 
filled by outsiders even though Tibetans are receiving the 
requisite skills training (Ref. B).  In addition, Wang asserted 
local people's production capacity is too low.  Yogurt is a 
popular product and is widely produced and consumed in the 
region; however, local supply cannot keep up with demand, so 
"the only solution" is to import the product from inland China. 
Wang concluded by saying that while he had not heard of any 
local enterprises going bankrupt, he was sure they would 
continue face big challenges in light of the new competition. 
 
¶9.  (C) Wang expressed similar views about competition in the 
construction sector when Congenoff remarked on the strong 
presence of inland Han Chinese laborers in the Sister Lakes 
Special Administrative District (Tibetan: Tsonyi, Chinese: 
Shuanghu) in remote Naqu Prefecture.  During a 2006 reporting 
trip to the district, Congenoff interviewed workers from Sichuan 
and Gansu earning 80-150 RMB (USD 10-19) per day.  Wang 
responded that it was a "free market," and that "we can't force 
Tibetans into that business.  The only solution is to let other 
people fill those jobs."  He commented that he is not worried 
about Han Chinese diluting the Tibetan population in Shuanghu 
because it is very tough environment where Han will not stay for 
long.   Wang added that local people would rather raise yaks 
than earn 30 RMB (USD 3.90) per day running a small shop in a 
remote area.  "We want to help these local people and train 
them, but the result is very disappointing.  It is very hard to 
convince them to work in an urban area." 
 
New Economic Opportunities 
-------------------------- 
¶10.  (SBU) Dozha (one name only), Director of the Naqu Animal 
Husbandry Bureau said his office works to create new economic 
opportunities for resettled nomads.  In 2006, 383 million RMB 
(USD 4.9 million) in central level funding was allocated to 
resettle 7,340 households in the prefecture.  As a largely 
nomadic prefecture, the GDP from animal husbandry was 717 
million RMB (USD 9.2 million) in 2006 and the rural per capita 
income was 2,489 RMB (USD 321).  State-owned enterprises are 
shifting their aid from urban to rural areas and specifically to 
nomadic areas as a part of the great Western Development 
Initiative.  Dozha reported that recently Naqu has submitted 
proposals to central authorities to develop the cashmere 
industry in Nima, Bange, Shuanghu, Amdo and Shenzha counties. 
The Animal Husbandry Bureau is also closely involved in the 
management of caterpillar fungus collection which has become a 
competitive industry because the price has risen to 40,000 RMB 
(USD 5,161) per pound in the last year. 
 
¶11.  (U) Wang of the TAR PAO stated that the goal of the "Urban 
and Rural Township Poverty Alleviation Program" is to improve 
public participation in decision making about spending which has 
potential to increase economic benefits to communities.  As part 
of the program, each township was allocated 3 million RMB (USD 
387,000).  Wang said most communities opted to build roads and 
bridges.  Another PAO program is "Industry Leading Poverty 
Alleviation" which has a goal of helping villagers switch to 
higher income-producing crops and animals.  In the 
non-agricultural sector, the program seeks to achieve efficiency 
improvements in service industries, tourism and handicraft 
production. 
 
CHENGDU 00000091  003.2 OF 003 
 
 
 
Social Conflicts 
----------------- 
¶12.  (C) When asked whether there had been any increases in the 
crime rate as a result of economic pressures on resettled 
Tibetans, Dozha of the Naqu Animal Husbandry responded 
negatively.  With regard to social conflicts in the collection 
of caterpillar fungus that have occurred in Tibetan areas 
outside of the TAR (Ref. D), TAR Animal Husbandry Bureau 
Director Tsutrim said that potential conflicts would be 
regulated by a "Management Procedure" which requires every 
collector to apply for a license in order for the industry to 
develop sustainably. 
 
Comment 
------- 
¶13.  (C) While government bureaus and NGOs have programs in 
place to provide training in a variety of marketable skill 
areas, it is clear that it will take time for resettled Tibetans 
to adapt to what for many is a completely foreign work 
environment (REF B).  Competition from inland Chinese workers 
will only continue to increase as tourism, mining and other 
industries grow in the TAR. 
BOUGHNER