US embassy cable - 05GABORONE1444

UNCLAS  GABORONE 001444 
 
SIPDIS 
 
 
SENSITIVE 
 
DEPT FOR AF/S (MUNCY), EAP/CM (CRANE), AF/RSA (NAY) 
 
E.O. 12958: N/A 
TAGS: PREL, PGOV, CH, BC, China 
SUBJECT: CHINA WOOS BOTSWANA THROUGH EXCHANGE VISITS, 
ASSISTANCE 
 
REF: A. 04 GABORONE 1519 
 
     B. GABORONE 934 
 
1. (SBU)  SUMMARY:  China uses exchanges, assistance and 
trade as three primary tools to strengthen its ties with 
Botswana.  According to the Director for Asia and Africa 
Mr. Manyepedza Lesetedi in the MFA, nearly two-dozen GOB 
officials traveled to China this year to participate in 
short courses on topics ranging from horticulture to the 
media.  He reported that an additional 30-odd Botswana 
Defense Force personnel would participate in similar trips 
this year.  Low-interest loans from the Chinese Government 
support infrastructure development projects carried out by 
one of ten Chinese parastatals active in Botswana. 
Consumer goods account for the bulk of Chinese exports to 
Botswana.  If direct marketing of diamonds becomes a 
reality, China's importance as a trade partner would 
quickly magnify.  While the GOB is happy with the 
assistance provided by the PRC, Batswana generally take a 
dim view of the Chinese businesses here, which they 
perceive as creating few jobs and adding little to the 
national income.   END SUMMARY 
 
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CHINA REACHES OUT THROUGH EXCHANGE VISITS 
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2. (SBU)  Over twenty government officials have traveled to 
China this year to participate in short courses or themed 
visits, Director of Asia and Africa Mr. Manyepedza Lesetedi 
told PolOffs on September 19.  Invitees included the 
Ministers of Lands and Housing and Labor and Home Affairs 
and subjects addressed on these trips ranged from media to 
immigration to horticulture.  Mr. Lesetedi judged these 
visits to China both productive and popular among 
government officials.  University students, in contrast, 
frequently are not interested in studying in China and turn 
down opportunities to do so, preferring Australia, the UK 
or the US. 
 
3. (SBU)  Although he was not able to comment in detail on 
military exchanges, Mr. Lesetedi estimated that some thirty 
Botswana Defense Force personnel would travel to China this 
year, including four expected to travel in the next two 
months. 
 
4. (U)  China's hospitality has extended beyond government 
officials to include members of the ruling party.  In May, 
the Botswana Democratic Party's Executive Secretary Batlang 
Serema, Youth Wing Chair Peter Meswele, and three party 
colleagues traveled to China at the invitation of the 
Chinese Communist Party to learn about its operations. 
 
5. (U)  The following month, Botswana hosted an 
eight-person delegation from the Ethnic Affairs Committee 
of China's National People's Congress.  Although the 
delegation head Fulin Kui said he hoped to learn from 
Botswana's management of ethnic differences, he described 
the purpose of the visit as deepening friendship between 
Botswana and China. 
 
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LOW-INTEREST LOANS SUPPORT INFRASTRUCTURE DEVELOPMENT 
--------------------------------------------- -------- 
 
6. (SBU)  As reported in Ref A, the PRC has extended 
low-interest loans to the Government of Botswana to support 
infrastructure development.  One Chinese diplomat estimated 
to PolOff that this aid averaged BWP 200 million 
(approximately USD 42 million) per year.  These moneys go 
toward contracts with one of ten Chinese-owned construction 
firms present in Botswana.  These companies have 
significantly reduced project costs for the Government but 
also inspired resentment among local and South African 
companies who have lost contracts. 
 
7. (SBU)  The PRC has also established a relationship with 
the Ministry of Health through which a few Chinese doctors 
and other health professionals help staff the Princess 
Marina Hospital in Gaborone.  Each team stays in Botswana 
for about one year and is replaced by other colleagues from 
China.  The Chinese Commercial Officer informed EconOff 
that his Embassy also provides aid to fund training for 
doctors. 
 
8. (U)  At the Chinese National Day celebrations on 
September 28, Foreign Minister Merafhe praised China for 
 
 
its provision of military training, USD 50,000 to help 
fight HIV/AIDS, and furniture for the MFA's headquarters. 
 
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POPULAR RESENTMENT TOWARD CHINESE TRADERS 
----------------------------------------- 
 
9. (U)  The Chinese Commercial Officer estimated that China 
exports roughly USD 50 million to Botswana each year and 
imports only USD 3 million.  Chinese exports to Botswana 
consist largely of cheap consumer goods.  The bulk of 
Chinese businesses in Botswana are small traders selling 
clothing and household items.  As the Government of 
Botswana looks at directly marketing some portion of the 
diamonds produced within the country, mineral exports could 
provide one means of balancing Botswana's trade with 
China.  To date, the Chinese have not invested in 
exploitation of natural resources in Botswana. 
 
10. (U)  Mr. Lesetedi echoed comments made to PolOff during 
a trip to Francistown, Botswana's second largest city (Ref 
B), that popular resentment toward Chinese businesspeople 
runs high.  Contrary to local expectations, he said, 
Chinese businesses have created few jobs, most of which are 
entry level and pay poorly, and contribute little to 
expanding the national income.  As reported in Ref B, the 
GOB is still deliberating the institution of restrictions 
on the issuance and transfer of trading licenses to prevent 
expatriates (primarily Chinese and South Asians) from 
dominating that market.  According to Norman Molele, Deputy 
Director of the Botswana Confederation of Commerce, 
Industry and Manpower, the desire to avoid a sudden drop in 
demand for retail space has delayed a decision on this 
matter.  One possible outcome is the placement of 
restrictions on the future issuance and transfer of trade 
licenses, grandfathering in those who already hold these 
permits. 
 
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COMMENT 
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11. (SBU)  Despite the significant cultural distance 
separating Batswana from the Chinese, respect for their 
economic achievements and the PRC's intense efforts to 
build rapport through exchange visits is likely to 
positively color local attitudes toward China in the 
future.  Direct export of diamonds to China would 
dramatically strengthen bilateral ties and increase Chinese 
influence in Botswana.  Thus far, it appears that China is 
focused on accumulating political capital - other than a 
determined effort to persuade the GOB to oppose Japan's 
candidacy for the UN Security Council, it is not clear 
whether the PRC has sought any specific deliverables from 
its friendship with Botswana.  Mission will continue 
expanding its contacts among Chinese officials and business 
people to monitor China's relationship with Botswana. 
CANAVAN 
 
 
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