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C O N F I D E N T I A L SECTION 01 OF 06 CHENGDU 000061 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EAP/CM 
BANGKOK FOR USAID - STIEVATER 
 
E.O. 12958: DECL:  4/2/2033 
TAGS: PGOV PHUM CH
SUBJECT: SOUTHWEST CHINA:  TRYING TO CONTROL FOREIGN NGOS IN A 
TIBETAN PREFECTURE 
 
REF: A. A) CHENGDU 056 
     ¶B. B) 07 CHENGDU 231 
     ¶C. C) 06 CHENGDU 925 
 
CHENGDU 00000061  001.2 OF 006 
 
 
CLASSIFIED BY: James A. Boughner, Consul General, U.S. Consulate 
General, Chengdu. 
REASON: 1.4 (b), (d) 
 
 
 
¶1. (C) Summary:  While it remains unclear what impact recent 
unrest in Tibetan areas of China will have on the work of 
foreign non-governmental organizations operating in the region, 
according to a limited-distribution government document obtained 
by the Consulate, Ganzi Prefecture in western Sichuan Province 
already issued strict rules on NGO approval and oversight in 
November 2007.  Foreign NGOs in Ganzi began to face increased 
scrutiny during the tense security crackdown that followed a 
public call for the return of the Dalai Lama by some Tibetans at 
a public event held in the prefecture in early August.  As the 
new regulations require government officials to assume direct 
and personal responsibility for preventing any "improper 
activities," local authorities might feel little incentive, 
especially in light of the current political environment, to 
approve or engage in cooperative activities with foreign NGOs. 
End Summary. 
 
New Rules For Foreign, Hong Kong and Taiwan NGOs in Ganzi 
--------------------------------------------- -------------- 
------- 
 
¶2.  (C) Ever since the August 1 Litang Horse Race Festival 
"Incident" (ref b) in the Ganzi Tibetan Autonomous Prefecture 
(TAP), home to 700,000 ethnic Tibetans, foreign NGOs operating 
there report political sensitivities in the prefecture have made 
their work more difficult.  Consulate Chengdu recently obtained 
and translated a copy of the new regulations, issued as a 
limited-distribution government document, on the management of 
NGOs and foreign assistance.  The regulations went into effect 
on November 11, 2007 and would not have been officially shown to 
NGO representatives since they are internal instructions to 
government authorities. 
 
¶3. (C) Foreign NGO representatives, as well as some local 
officials with authority over them, have complained for years 
about the lack of a legal framework for registering and 
regulating NGOs in southwest China.  We understand the existence 
of various types of NGO's, such as associations (xiehui), 
foundations (jijin) and groups (zhuzhi), may have added further 
complexity to the Chinese government's attempts to codify a 
regulatory framework.  Ganzi's new rules, however, have an 
intimidating aspect since they focus on managing the risk to 
social stability that the foreign NGOs are seen to represent. 
The rules require local county authorities to sign documents 
accepting personal responsibility for overseeing NGO projects 
and preventing any possible "political agendas" from emerging. 
 
Regulatory Gap As Well as Political Anxieties 
--------------------------------------------- - 
 
¶4. (SBU) Chinese researcher Wang Wei, in an article entitled, 
"Studies on the Development of International NGOs in the Ganzi 
Tibetan Region," which appeared in the 2006 volume of "Economic 
Development and Social Change in the Tibet and Other Tibetan 
Regions," printed in Chengdu by the Sichuan University China 
Tibetology Institute, highlighted the views of Ganzi Foreign 
Affairs Bureau officials: 
 
-- A law on the regulation of foreign NGOs in China is needed to 
regularize their status and to make managing foreign NGOs easier. 
 
-- The Foreign Affairs Bureau wants NGOs in Ganzi to be 
proactive in informing government departments about the status 
of their projects so that the government can perform its 
functions of management and coordination.  It also requests 
foreign NGOs in Ganzi sign the "Guidelines for Implementation of 
Foreign NGO Assistance Projects" so that their project can be 
added into the government project management system. 
 
-- Ganzi FAO officials do not have enough personnel to follow 
NGO activities, lack a legal framework for managing NGOs, and 
have difficulty getting cooperation from other government 
departments on the management of foreign NGOs. 
 
Background: Foreign NGOs in Ganzi 
 
CHENGDU 00000061  002.2 OF 006 
 
 
-------------------------------------- 
 
¶5. (SBU) Wang Wei's article also provides an overview of NGO 
work in Ganzi as of 2006.  As of 2006, there were 23 
international foundations, four Taiwan foundations and four Hong 
Kong foundations providing assistance in the Ganzi TAP. 
Cumulative assistance provided between 1990 and May 2005 totaled 
44.51 million RMB or about USD 6 million.  Two thirds of 
international NGOs in Ganzi, including The Bridge Foundation, 
Winrock International, the Trace Foundation, and Kham Aid, are 
based in the United States.  Assistance from USAID for the 
three-year period August 2004 to August 2007 for Tibetan areas 
of China includes some support for the work of Winrock 
International, the Kham Aid Foundation, and Flora and Fauna 
International.  (Consulate Note:  USAID funding for Tibetan 
areas has been $4m per year since 2004, up to $5m for FY 08. 
End Note). 
 
Litang Horse Race Aftermath 
------------------------------ 
 
¶6. (C) On August 1, 2007, the public call made by Tibetans 
attending the traditional horse race festival in Litang for the 
return of the Dalai Lama resulted in a harsh crackdown by local 
authorities.  In addition to arrests and conviction of suspected 
subversives, the Ganzi TAP also oversaw a "Patriotic Education 
Campaign (ref a), which started in Litang itself and then spread 
to the entire prefecture in October 2007.  As note above, NGOs 
operating in Ganzi also felt the fall out.  For example, 
government authorities began to ask NGOs in Ganzi for:  detailed 
biographies of all staff; more detailed descriptions of projects 
to be provided to the appropriate county foreign affairs office; 
more detailed information about foreign NGO workers and project 
sites.  Some of these new requirements appear in the Ganzi TAP 
regulations, issued as an "Opinion" -- see below for Consulate 
translation.  (Note:  "Opinions" are policy statements that are 
sometimes combined with specific instructions that might come 
from a party committee or government body at various levels. 
End Note). 
 
Police NGOs Properly or Face Prosecution 
-------------------------------------------- 
 
¶7.  (C) One key passage of the new regulations warns officials 
of "sanctions" if NGO management is not done properly: "Taking 
responsibility for and actively managing the acceptance and 
implementation of assistance projects involving NGOs from 
outside the China Mainland is an important part of the social 
management function of every level of government.  Every country 
and functional department must fulfill their responsibilities 
and assist foreign affairs offices at every level in the 
performance of their work.   Any dereliction of duty or 
negligence or improper acts, if they result in adverse 
consequences, will be attributed to the principal leaders 
according to Party and government regulations.  Negligence or 
acts that constitute a crime will be passed to the courts for 
prosecution according to the law." 
 
¶8.  (C) Per our translation, copies of the new internal NGO 
oversight rules are being shared not only with the government 
offices directly involved but also with: the courts, the Party 
disciplinary commission, and the Ganzi military sub-district. 
 
¶9.  (C) Full text of translation follows: 
 
Begin Text 
 
Ganzi Tibetan Autonomous Prefecture People's Government Document 
Distributed by Ganzi TAP Government; No. 2007-80 
 
Ganzi Tibetan Autonomous Prefecture People's Government Opinions 
on Strengthening Management of NGOs From Outside the China 
Mainland and Foreign Assistance (Temporary) 
 
To the County People's Governments, Prefecture Level 
Departments, and Units of Prefecture and Provincial Level 
Administrative Enterprises: 
 
In order to strengthen the management of NGOs from outside China 
Mainland and foreign assistance, regulate foreign assistance and 
the acceptance of assistance, and to promote normal 
international exchanges and cooperation, based on the specific 
circumstances of our prefecture, the TAP government sets forth 
the following opinion. Please see that the opinion is 
 
CHENGDU 00000061  003.2 OF 006 
 
 
conscientiously implemented. 
 
¶I.  The scope of the management of the work of NGOs from outside 
China Mainland and foreign assistance, the organization 
responsible for the work, and work responsibilities. 
 
¶A.  An NGO from outside the China Mainland means an NGO 
registered in a region outside the China Mainland (including 
Taiwan, Hong Kong and Macao) or foreign country, or a non-profit 
civil organization that has received advisory status from a 
United Nations advisory Committee. 
 
¶B.  Assistance from an NGO outside the China Mainland refers to 
assistance in the form of capital, materials and technology 
provided by an NGO from outside the China Mainland for the 
public welfare or public infrastructure of our prefecture. 
 
¶C.  The Foreign Affairs Office of the Prefecture and County 
People's Governments provide management, supervision and policy 
guidance for assistance projects by NGOs from outside the China 
Mainland.  The concerned departments of the prefecture and the 
counties and the management office for the sector that receives 
assistance carry out management within its area of competence 
and the areas of responsibility specified in this opinion as 
well as assist the foreign affairs department in its work. 
 
¶D.  The assistance receiving work unit refers to the 
institution, social group, or other social organization that 
directly receives assistance or implements the assistance 
project.  The work responsibilities of the receiving work unit 
are: 
 
i. Draft a project proposal based on the type of assistance that 
the NGO from outside China Mainland (abbreviated henceforth as 
assistance provider) and the actual needs of the assistance 
receiving work unit and submit it to management department of 
the sector concerned for a preliminary assessment. 
 
ii. Conduct a social stability risk impact assessment on the 
project for which assistance is being received and assume 
responsibility for this risk. 
 
iii. Conscientiously implement the foreign assistance project. 
Make timely reports on the progress of the project to the 
foreign affairs department and the management department for the 
sector concerned.  Manage well the project capital and cooperate 
in arrangements for project inspection and auditing. 
 
iv. Summarize and spread the successful experience and fruits of 
cooperation gained from the project. 
 
¶E. The management department for the sector of the work unit 
receiving assistance means the sector administrative department 
for the institution, social body, or other social organization 
that receives or does the actual implementation of the 
assistance.  The sector management department's responsibilities 
are: 
 
i. According to laws, regulations, charters, sector rules or 
industrial policy, carry out a preliminary assessment of the 
foreign assistance project reported by the work unit receiving 
the assistance.  If the project is considered feasible, make a 
report to the people's governments of the prefecture and county 
in which the project is located. 
 
ii. Supervise the implementation of the assistance project by 
the work unit that is receiving the assistance. 
 
iii. Strengthen liaison work and cooperate with the foreign 
affairs organizations in jointly managing projects with 
assistance from outside the China Mainland. 
 
II.  Principles for Accepting and Managing Assistance from NGOs 
from Outside the China Mainland. 
 
¶A.  Principle of acceptable purpose for cooperation.  The 
assistance provider in providing assistance must have good 
intentions and goals.   It must not be involved in splitting the 
country, overthrowing the government, or terrorism, nationalism, 
extremist religious activities and must strictly abide by 
China's laws.  The assistance project should be suited to the 
social and economic development goals of Ganzi TAP have good 
social benefits, economic benefits, and ecological benefits. 
 
 
CHENGDU 00000061  004.2 OF 006 
 
 
¶B.  Principle that both sides must be willing.  Whether the 
assistance provider provides assistance and whether the 
assistance receiving side receives assistance, depends upon both 
sides being willing. 
 
¶C.  Principle that an agreement must be reached on the 
assistance.  The assistance project of the assistance provider 
should be fully discussed with the project receiving work unit, 
so that the two sides can jointly define how the assistance is 
to be provided, the numbers involved and who is to receive the 
assistance and other specific aspects of the assistance 
provided. 
 
¶D.  Principle of Management of Funds.  The assistance management 
funds should be managed in a special account of the assistance 
receiving work unit and disbursed as required for the needs of 
the project as a special fund for a specific purpose. 
 
The prefecture and county foreign affairs departments should 
inform assistance providers of these principles.  For projects 
that clearly are not in accord with the principles above, 
appropriate measures should be taken to guide, redirect, or 
reject them.  Any assistance project that might harm national 
security or the social stability of Ganzi Prefecture should not 
be accepted. 
 
III.   Acceptance of Assistance Projects by NGOs from Outside 
the China Mainland 
 
¶A.  Any assistance provider that wishes to provide assistance to 
any work unit or individual in our prefecture should apply to 
the foreign affairs department of the prefecture or of the 
county people's government and accurately fill out the "NGO from 
Outside China Mainland Application Form". 
 
These application forms should include the following: the 
purpose the assistance provider in coming to the prefecture; the 
background of the assistance provider; status of registration as 
a social organization; the person in charge and office of the 
assistance provider; and project funds; foreigners working for 
the assistance provider, employees, and other units cooperating 
with the assistance provider. 
 
Government workers in our prefecture may not also be employed by 
an NGO from outside the China Mainland. 
 
¶B.  The assistance provider and the assistance receiving work 
unit should discuss the proposed assistance with the department 
managing the sector in which assistance is to be provided.  If 
that department agrees, then it should submit a written 
"assistance project plan" to the county government where the 
proposed assistance project would take place for examination and 
approval.  After the county government examines and approves the 
proposed assistance project, it is submitted to the Prefecture 
People's Government for approval.  Once approval has been 
received from the Prefecture People's Government, assistance 
receiving work unit may receive assistance. 
 
¶C.  The responsible person for the work unit receiving 
assistance should sign with the prefecture and county foreign 
affairs departments a "responsibility document on assistance 
projects involving NGOs from outside the China Mainland", 
thereby assuming responsibility for handling abnormal incidents 
involving NGOs from outside China Mainland that might arise 
during the implementation of the project. 
 
¶D.  In the case of an assistance provider provides capital or 
material assistance to an individual citizen, the person 
receiving the assistance submits to the foreign affairs 
department in the county in which they reside will receive the 
application.  The foreign affairs department will examine the 
matter according to the conditions of the assistance provider 
and of the person receiving the assistance.  A record will be 
made of the assistance received that the person receiving the 
assistance will sign for.  Once the assistance has been 
provided, the foreign affairs department will make a report to 
the assistance provider. 
 
IV.   Implementation and Supervision of Assistance Projects of 
NGOs from Outside the China Mainland 
 
¶A.   Construction projects support by assistance must be in 
accord with city or rural planning and the national social and 
economic development plan. They must provide social, economic or 
 
CHENGDU 00000061  005.2 OF 006 
 
 
environmental benefits.  Requests for land needed for projects 
should be reported, examined and approved according to 
procedures set forth in the relevant state regulations. 
 
¶B.  The assistance-receiving unit should carry out the 
construction project built using assistance according to the 
relevant regulations of the administrative departments that 
manage infrastructure and construction.  Once construction has 
been completed, the construction must be approved by the local 
construction project quality oversight bureau and other relevant 
departments and then the assistance-receiving unit can use it. 
Once the receiving unit is using it, the receiving unit should 
strengthen management so that it will be used most effectively. 
 
¶C.  The assistance-receiving unit should sign a funds use 
responsibility document with the sector management department of 
the assistance-receiving unit.  Strengthen oversight and 
inspections of the receipts and expenditures and management of 
the assistance-receiving unit and create an overall project 
auditing and oversight system. The auditing department should 
audit the receipts and expenditures of the project. 
 
¶D.  Funds must be used only within the scope of the project 
agreement.  No unit or individual may misappropriate or use 
these funds for their own purposes or to arbitrarily decide that 
they should be used for some other purpose.  If there is 
definitely a need to change the purpose of the funds, this 
should be discussed and a consensus reached, and then be 
approved by the county foreign affairs office. 
 
¶E.  The assistance project funds must be handled according to a 
currently accepted financial system and recorded in an 
integrated business accounting and management system of the 
assistance receiving work unit.  The assistance receiving work 
unit should establish a comprehensive internal financial 
management system including special account management in order 
to ensure that special accounts are used for specific purposes. 
 
¶F.  The financial department of the assistance receiving work 
unit should establish a method for managing the use of the 
project capital.  The person in charge of the project is 
responsible to the work unit for the oversight and use of the 
project funds. 
¶G.  The assistance-receiving unit should procure materials 
needed for the project strictly according to the project 
agreement. 
 
¶H.  During the project implementation period, the assistance 
receiving work unit must establish a system for accounting for 
materiel received for the project.  Purchased or donated 
materiel and equipment must be registered and managed so that 
they will be used strictly in accordance with the project 
agreement.  Once the project has been completed, the management 
department for the assistance receiving work unit should direct 
the assistance receiving unit to make a timely submission of 
documentation of funds and property transferred and follow 
registration procedures, and manage the assistance assets 
together with the all the assets of the assistance receiving 
unit. 
 
¶I.  During the project implementation process, the assistance 
receiving work unit should make periodic project progress 
reports to the department that manages the assistance-receiving 
unit.  If a serious problem or a sudden development arises, the 
department managing the assistance-receiving unit should make an 
immediate report to the local foreign affairs department. 
 
¶V.  Termination of the Implementation of Assistance Projects by 
NGOs From Outside the China Mainland 
 
If the following occur during project activities, the prefecture 
and the county people's government have the authority to decide 
to terminate project implementation: 
 
-- Serious violation of the project agreement 
-- Suspicion of a political agenda 
-- If an event beyond any control occurs that forces termination 
-- Other circumstances that force termination of the project 
 
VI.   Taking responsibility for and actively managing the 
acceptance and implementation of assistance projects involving 
NGOs from outside the China Mainland is an important part of the 
social management function of every level of government.  Every 
country and functional department must fulfill their 
 
CHENGDU 00000061  006.2 OF 006 
 
 
responsibilities and assist foreign affairs offices at every 
level in the performance of their work.  Any dereliction of duty 
or negligence or improper acts, if they result in adverse 
consequences, will be attributed to the principal leaders 
according to Party and government regulations.  Negligence or 
acts that constitute a crime will be passed to the courts for 
prosecution according to law. 
 
Whosoever receives assistance or gifts from the assistance 
provider will, according to relevant regulations, will result in 
a strict holding to accounts for the leaders of both the 
assistance receiving work unit and the management department of 
the receiving work unit.   If a crime has been committed, the 
case will be passed to the courts for appropriate handling 
according to law. 
 
(Seal of Ganzi Tibetan Autonomous Prefecture People's Government) 
 
November 4, 2007 
 
Subject categories:  Foreign Affairs, Management  NGO, Opinion 
 
Copies to Prefecture Party Committee office, Prefecture People's 
Congress office, Prefecture People's Consultative Congress 
office, Prefecture Party Committee Disciplinary Commission, 
Prefecture Court, Prefecture Procuratorate, Ganzi Military Sub 
district 
 
Printed by Ganzi Tibetan Autonomous Prefecture People's 
Government Office     November 6, 2007 
 
Typist:  Li Shaorong      Proofreader: Zhang Yao     (260 copied 
printed) 
 
End Text. 
BOUGHNER