US embassy cable - 05MASERU245

C O N F I D E N T I A L SECTION 01 OF 02 MASERU 000245 
 
SIPDIS 
 
DEPT FOR AF/RSA - JOHN NAY AND KATHLEEN MOODY AND 
PDAS - M. RANNEBERGER 
 
E.O. 12958: DECL:  5/12/2015 
TAGS: PREL, LT, CH 
SUBJECT: INPUT FOR HIRC CHINESE TESTIMONY 
 
REF: MAY 11 E-MAIL FROM AF/RSA 
 
CLASSIFIED BY: JUNE CARTER PERRY, AMBASSADOR, EXEC, STATE. 
REASON: 1.4 (b), (d) 
 
 
 
CLASSIFIED BY: JUNE CARTER PERRY, AMBASSADOR, EXEC, STATE. 
REASON: 1.4 (b), (d) 
 
 
 
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SUMMARY 
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1.  (C)  China continues to demonstrate significant interest in 
Lesotho as noted in Para. 2.  In addition to those activities, 
post has observed that senior members of government have 
participated in travel to China over the past 12 months.  These 
officials included the Prime Minister, the Deputy Prime 
Minister, the Foreign Affairs Minister, the Finance Minister and 
the Commander of the Lesotho Defense Force.  The Chinese 
Ambassador has been quite open in discussing with us China's 
plans, particularly their involvement in revamping the 
communications sector.  This particular activity, which is 
expected to take a number of years, will give China a 
significant footprint in Lesotho.  The Chinese are also 
bolstering their efforts in the area of education by offering 
training to Basotho in China, a result (from the PRC's view) of 
tighter USG visa requirements.  They expect to continue 
educational efforts with the people of Lesotho, particularly in 
terms of the National Defense College near Beijing.  We expect 
that China will continue to press the GOL towards a closer 
bilateral relationship and will do this by continuing to offer 
sweeteners and tangible incentives.  There are approximately 
5,000 Chinese in country with the majority of those being 
resident throughout the nation.  Their presence is visible 
outside the capital in many small businesses, and in Maseru 
itself, they are primarily present in the textile industry. 
U.S. Interests:  We should continue to show visible results of 
our major initiatives in order to keep  the GOL and the public 
keenly aware of our long-term interest in Lesotho's future.  END 
SUMMARY 
 
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2.  (SBU) Lesotho Input for Preparations for HIRC Hearing on 
China in Africa 
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Trade:  Trade varies significantly, as the only significant 
commerce involves fabric provided by Chinese factories to some 
garment manufacturers here.  Level of factory activity and type 
of orders thus influence the amount and value of China-Lesotho 
trade. 
 
Exports:  Lesotho does not export any goods to China. 
 
Director Investment:  Little or none by private sector or state 
companies, as the garment factories are mainly owned by 
Taiwan-based companies, plus elsewhere in Asia excluding China. 
 
Humanitarian and Development Assistance:  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. 
 
Development assistance is significant.  China has announced 
plans to help Lesotho revamp and upgrade its radio and 
television technology infrastructure.  The Chinese government 
paid for the construction of a convention center in Maseru and 
is funding construction of new facilities for the National 
Library and Archives.  The GOL has approached the Chinese 
Embassy (and other diplomatic missions) about support for a new 
Parliament building. 
 
China's Presence:  Chinese number over 5,000 in Lesotho, 
according to the Chinese Embassy.  Present not only in the 
garment industry, but now operating small business, some in 
remote areas of the country. 
 
Mil-Mil Relationship:  On the increase.  China donated light 
trucks and other equipment to LDF within the last ;year.  LDF 
Commander visited China in March 2005.  Mid-level military 
personnel have been to China for training. 
 
Perceptions:  Strongly mixed views.  GOL appreciates the amount 
of intention and assistance China provides (see projects, 
military aid described above); general population can be 
suspicious of Chinese, seen as clannish, culturally insensitive 
and taking business opportunities away from Basotho. 
 
MASERU 00000245  002 OF 002 
 
 
 
Corruption:  No real effect on corruption in Lesotho. 
 
Business Community:  "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. 
 
China/Taiwan:  Although the GOL supports a one-China policy, it 
enjoys a good relationship with Taiwanese-dominated garment 
industry.  PRC Embassy seems to take a hands-off approach to the 
garment industry as well.  Note:  A significant number of PRC 
nationals work in the factories, despite the plants being 
Taiwanese-owned.  The PRC Embassy considers itself to have 
responsibility for both Taiwanese and PRC nationals. 
 
Impact on U.S. Interests:  Competition to some extent for 
influence with the GOL, as China appears to have "deep pockets" 
and is willing to finance projects that other donors would not: 
e.g., convention center, library and archives.  Also, a majority 
of high-level GOL officials (including the Prime Minister, 
Deputy PM, Minister of Foreign Affairs, LDF Commander, and 
others) have visited China, at the PRC's expense. 
 
Countering Activities:  MCC, AGOA, and expanded assistance to 
fight HIV/AIDS give U.S. considerable influence with GOL.  GOL 
reiterates frequently that it considers USG one of its strongest 
allies, due to long history of assistance and continuous 
diplomatic presence.  (Many diplomatic missions closed in 
Lesotho after the end of apartheid.)  USG's credibility as a 
proponent of democratization (boosted by our financial support 
for election-related activities) is another strong element of 
the bilateral relationship.