US embassy cable - 05SANTODOMINGO579

C O N F I D E N T I A L SECTION 01 OF 02 SANTO DOMINGO 000579 
 
SIPDIS 
 
STATE FOR WHA/CAR, WHA, AND EAP 
NSC FOR SHANNON 
USDOC FOR 4322/ITA/MAC/WH/CARIBBEAN BASIN DIVISION 
USDOC FOR 3134/ITA/USFCS/RD/WH 
USSOUTHCOM ALSO FOR POLAD 
 
E.O. 12958: DECL: 02/04/2015 
TAGS: PREL, ETRD, EINV, DR, CH, TW 
SUBJECT: PRC PRESSES DOMINICAN REPUBLIC TO RECOGNIZE BEIJING 
 
REF: A. A. TAIPEI 315 
 
     B. B. 04 SANTO DOMINGO 6472 
 
Classified By: DCM Lisa Kubiske for Reason 1.5 (b) and (d). 
 
1. (C) SUMMARY.  A Chinese Communist Party delegation met 
with members of the ruling Dominican Liberation Party (PLD) 
and other Dominican political parties from January 24-27, 
seeking to strengthen ties to the Dominican Republic and 
pressing for formal diplomatic recognition.  The delegation 
called on President Fernandez and representatives from the 
three major political parties, explicitly tying trade to 
diplomatic recognition of the PRC.  These efforts come on the 
heels of increased commercial and investment interest in the 
Dominican Republic by the PRC.  The Chinese charm campaign 
has gained some ground here, although we do not foresee a 
switch of diplomatic ties in the near term.  END SUMMARY. 
 
2. (U) Continuing the PRC's charm campaign in the Caribbean 
(Ref A), a Chinese Communist Party delegation called on 
members of the ruling Dominican Liberation Party (PLD) and 
other Dominican political parties January 24-27, seeking to 
strengthen ties to the Dominican Republic, one of a dwindling 
number of Caribbean nations that maintain diplomatic links to 
Taiwan.  Led by Vice Minister of the International Liaison 
Department Cai Wu and Sub Director for Latin American Affairs 
Wang Yulin, the delegation came to the Dominican Republic 
after visiting Haiti.  It met leaders from all the major 
political parties, pressing for formal diplomatic recognition 
of the PRC and linking diplomatic recognition to increased 
access to the PRC's vast markets. 
 
3. (U) The ruling PLD had invited the Chinese Communist Party 
to visit.  PLD Secretary General Reynaldo Pared Perez heard 
the PRC delegation urge the Dominican Republic to recognize 
Beijing.  He later commented to the press that China "could 
become a great ally" and a model for development.  On 
Dominican relations with Taiwan, he said that the government 
"has the legitimate right to have relations with whatever 
political parties it deems convenient" and that the PLD would 
continue to improve its relations with the Communist Party. 
(Note:  Pared Perez is involved in running the President's 
party, but has no discernible role in foreign policy.  End 
note.) 
 
4. (C) Senator Jose Tomas Perez (PLD) told poloff that the 
Chinese explicitly linked future PRC investment and trade 
with diplomatic recognition and argued that without formal 
ties, traders and investors would "lack legal guarantees." 
According to Perez, MFA adviser Ambassador Miguel Mejia 
arranged the meetings in consultation with Pared Perez and 
President Fernandez, circumventing normal PLD political 
committee decision-making,  Mejia, a long-established 
Dominican leftist from the miniscule "United Left Movement" 
known for his assertiveness, had arranged a November meeting 
between an earlier PRC visitor and President Fernandez (Ref 
B). He also served as a go-between with Venezuelan President 
Chavez. 
 
5. (SBU) President Fernandez received the delegation in the 
presidential palace.  After attending the meeting, Foreign 
Minister Carlos Morales Troncoso commented to the press that 
the Dominican Republic would need to consider its diplomatic 
options and decide which stance "will best represent our 
interests."  Senator Perez, despite his criticism, foresaw 
that Fernandez might eventually recognize Beijing. 
 
6. (U) The Chinese called on the two main opposition parties, 
the Dominican Revolutionary Party (PRD) and the Social 
Christian Reformist Party (PRSC).  PRD Secretary General 
Rafael Subervi Bonilla, former vice president Milagros Ortiz 
Bosch, and others hosted the meeting at Subervi's home. 
Subervi said later that he favored establishing diplomatic 
and commercial ties with the PRC, calling it "a reality of 
the world" that the Dominican Republic cannot isolate itself 
from the PRC.  Cai Wu in turn invited PRD officials and 
legislators to visit the PRC.  The Chinese also met  PRSC 
President Federico Antun Batlle and other PRSC leaders and 
legislators. 
 
7. (C) The PRC increased its commercial visibility in advance 
of its latest political efforts.  Dominican business 
interests report that the PRC's resident commercial 
representative has been instructed to increase the frequency 
of his contacts with local firms to at least four times a 
year.  In addition, we understand Beijing has invited 
Agriculture Secretary Amilcar Romero to visit the PRC in 
March. 
 
8. (U) According to the press, as a measure to counter the 
PRC's Caribbean campaign,  ROC Vice President Annette Lu 
recently cautioned Dominican Ambassador in Taipei Victor 
Manuel Sanchez Pena not to try to use the threat of changing 
diplomatic ties to extract concessions.  Lu reportedly 
discussed development projects that she was proposing in 
Latin America, including possible farm development in the 
Dominican Republic. 
 
9. (C) Several Embassy contacts have expressed reservations 
about possible Chinese displacement of this country's 
traditionally close ties with the United States. At the same 
time, no influential Dominican politician has stood up 
strongly for maintaining relations with Taiwan. Many 
commentators have referred to the "dilemma" faced by the 
government, and some have characterized closer relations with 
Beijing as "inevitable." 
 
10. (C) COMMENT.  These meetings do not change our previous 
assessment (Ref B) that recognition of Beijing is unlikely to 
happen in the near term.  That said, PRC representatives are 
mounting a sustained push for recognition, via increased 
political exchanges with the government and opposition and 
offers of trade and investment.  Reactions have been mixed, 
but the campaign is already gaining some ground.  It is 
ironic that at the same time the December 31, 2004 end of 
quotas under the Multi-fiber Accord gives China a possible 
opening to take away a large chunk of Dominican exports to 
the United States.  END COMMENT. 
HERTELL