US embassy cable - 05KINGSTON2680

C O N F I D E N T I A L SECTION 01 OF 04 KINGSTON 002680 
 
SIPDIS 
 
STATE FOR EAP/CM KAYE LEE; WHA/PCP JEFF BISCHOFF; AND 
WHA/EPSC LAWRENCE GUMBINER 
 
E.O. 12958: DECL: 12/05/2015 
TAGS: ECON, PREL, ETRD, ETTC, EINV, ENRG, PHUM, CH, JM 
SUBJECT: PRC ACTIVITIES IN JAMAICA 
 
REF: A. SECSTATE 138041 
     B. SECSTATE 143649 
     C. KINGSTON 00386 
 
Classified By: CHARGE Thomas C. Tighe, for reasons 1.4 (b) and (d). 
 
1. (U) This message responds to Ref A Tasking.  Post regrets 
the lateness of submission. 
 
-------- 
Overview 
-------- 
 
2. (SBU) It is not surprising that both economic and 
political calculations underlie the GOJ's efforts to enhance 
ties with the People's Republic of China (PRC), while Beijing 
seems interested more in the economic aspects of the 
relationship.  To the extent he has political principles, 
Prime Minister Patterson looks to steer as "independent" a 
course in foreign policy by enhancing ties with Beijing and 
Venezuela (and maintaining cordial relations with Cuba) as a 
means of counterbalancing Jamaica's heavy reliance on, inter 
alia, tourists, remittances, cultural influences, disaster 
and counternarcotics assistance from the U.S.  Though the GOJ 
also views Chinese investment in Jamaica as an important 
source of employment opportunities, it has not taken 
advantage of the momentum created by the February 2005 
China-Caribbean Economic Trade Cooperation Fair and Forum nor 
other investment opportunities the Chinese have offered.  The 
GOJ and PRC enjoy very good bilateral relations, but for now, 
only the PRC appears poised to capitalize on the relationship. 
 
3. (U) Jamaica became independent in 1962, and Kingston and 
Beijing established full diplomatic relations in 1972. 
Unofficial ties, however, pre-date that development by more 
than a century, as the first Chinese immigrants arrived in 
Jamaica as indentured servants in 1854.  Jamaicans of Chinese 
descent have periodically faced backlash and/or heightened 
resentment from other Jamaicans.  Today, ethnic Chinese make 
up only about one percent of the population but they play a 
significant role in Jamaica's economy. Though it is still not 
uncommon to hear other Jamaicans refer off-handedly to 
Jamaicans of Chinese descent with unfortunate terms such as 
"Mr. Chin", "Chineyman" or "Chinaman", Chinese-Jamaicans (and 
their "Jamaican-ness") are now widely accepted. 
 
--------------------------------------------- -- 
Jamaica Looks to Tap into China's Economic Boom 
--------------------------------------------- -- 
 
4. (SBU) In February 2005, amid great (Jamaican) fanfare, a 
high-level Chinese trade delegation visited Jamaica touting 
mutually beneficial - though largely unspecified - trade 
opportunities (Ref C).  Prime Minister P.J. Patterson 
announced that Beijing had named Jamaica an "approved 
destination" for Chinese tourists, raising the tantalizing 
prospect of throngs of sun-seeking, money-spending Chinese 
visitors arriving to help boost the island's tourism sector. 
Privately, however, local business sector contacts reacted 
with skepticism, noting that Jamaica is unprepared to 
accommodate any significant number of Chinese tourists due to 
a lack of Mandarin linguistic capacity, as well as general 
unfamiliarity with Chinese needs and preferences.  Beijing 
has provided a Mandarin language lab to the University of the 
West Indies, and a Beijing-funded language instructor 
reportedly is being arranged. 
 
5. (C) According to Courtenay Rattray, Director for Bilateral 
Affairs at the Ministry of Foreign Affairs and Foreign Trade 
(MFAFT), Beijing's interest in Jamaica centers mainly on the 
Port of Kingston as a potential trans-shipment hub for 
Chinese goods.  With nine percent economic growth 
undergirding China's ascent as an economic power, he said, 
Beijing seeks a geographically centralized point of access to 
the Western Hemisphere for its cargo ships and goods.  Both 
Jamaica and China would benefit from Chinese interest in 
Jamaica as a trans-shipment point.  Rattray observed that the 
Port Authority of Jamaica (PAJ) has made great strides in 
modernizing its operations and in positioning itself as an 
attractive hub.  China, he continued, provided several large 
gantry cranes to the PAJ as part of the latter's upgrade 
process. 
 
6. (C) In recent years, the GOJ initiated several 
unsuccessful efforts to rehabilitate Jamaica's dilapidated, 
colonial-era railroad system, which had been allowed to fall 
into utter disrepair and which ceased operations in the 
mid-90s.  The system requires a complete overhaul, and the 
Patterson administration opened talks with the Chinese 
government, the Jamaican Railroad Corporation (JRC) and 
Jamaica's National Commercial Bank (NCB) to re-establish 
passenger rail service between Kingston and May Pen, 
Clarendon.  A team of Chinese railroad engineers recently 
visited Jamaica to conduct feasibility studies.  In addition 
to infrastructural investment, the railroad rehabilitation 
project would probably also require Chinese rolling stock. 
--------------------------------------------- ---------- 
GOJ Struggles to Capitalize on Investment Opportunities 
--------------------------------------------- ----------- 
 
7. (C) Dalton Yap, President of Jamaica's Chinese Benevolent 
Association (CBA) and a member of the Prime Minister's 
twenty-person delegation that visited China in July, 2005 for 
the opening of Jamaica's new embassy in Beijing, described 
the visit to China as "extraordinary", and claimed that the 
GOC "really rolled out the red carpet."  Yap stated that 
although the visit went well and Chinese investment in 
Jamaica is welcomed by the GOJ, the GOJ has been slow to take 
advantage of the opportunity.  He lamented that the PRC is 
getting much more out of this relationship and stated that 
"We should not fool ourselves.  We know the Chinese want one 
thing, and that's why they're here.  The sourcing of raw 
materials, mainly bauxite." 
 
8. (C) Yap explained that the Prime Minister has two main 
projects that are close to his heart and that he specifically 
asked President Hu Jintao for assistance: the redevelopment 
of downtown Kingston and "telemedicine" (Note:  Yap described 
telemedicine as the ability for patients to receive a 
clinical diagnosis remotely from a licensed nurse.  End 
note.)  Yap expressed, however, serious reservations about 
the GOJ's ability to make the most of the relationship with 
the PRC and the PM's ability to lobby successfully for the 
funding needed to see the two projects through.  Yap noted 
that of all the projects that have been discussed between the 
GOJ and PRC, his view is that the telemedicine project is the 
least feasible for Jamaica. 
 
9. (C) Referring to the February 2005, China-Caribbean 
Economic Trade Cooperation Forum and Trade Fair, Yap stated 
that at that time Jamaica had "China fever", and projects 
such as the rehabilitation of the island's railway system, a 
feasibility study for further development of the 
transshipment terminal, a language laboratory as well as 
sports complexes received much publicity, and were touted as 
opportunities that would provide employment for Jamaicans. 
Yap stated that to date, most, if not all projects have been 
put on hold.  In addition, he commented that the GOJ does not 
have a "strategy or plan" as to the way forward and that no 
one within the GOJ is "responsible" for any of the projects. 
He stated that as a businessman, he could not understand how 
a government functions without having someone responsible for 
following through on such important opportunities. 
 
--------------------------------- 
The Chinese Population in Jamaica 
--------------------------------- 
 
10. (C) Despite the PRC's certification of Jamaica as an 
approved tourist destination for its nationals, Yap contended 
the GOJ and the private sector have no idea how to entice the 
Chinese to travel to Jamaica.  He stated that not only is 
there a language and food barrier, but no research has been 
done or is even being contemplated to determine exactly what 
the Chinese want in a tourist destination.  Yap also said 
that he expressed his concerns to Prime Minister Patterson 
and China's Vice-Minister of Tourism about issuing Jamaican 
visas to Chinese citizens.  Yap warned that illegal Chinese 
migrants were already a problem, contributing to a high level 
of fraud and straining Jamaica's poor immigration controls, 
creating what he described as a "recipe for disaster."  Labor 
Minister Horace Dalley told Poloff separately that Chinese 
immigrants to Jamaica tend to come from Hong Kong, rather 
than mainland China.  He said that individuals are generally 
able to secure genuine visitor's visas by presenting valid 
credentials at the Jamaican Consulate in Hong Kong.  However, 
he suspected that those credentials - a healthy bank account, 
for example -- might be shared by many individuals, and used 
repeatedly to support visa applications by intending 
immigrants. 
 
11. (C) According to Dalley, there is a problem with illegal 
Chinese migration.  In particular, he said that Chinese 
nationals often arrive in Jamaica with valid visitor's visas, 
but then remain in the country illegally.  In some cases, he 
said they marry Jamaicans of Chinese descent to gain Jamaican 
citizenship.  He further speculated that many Chinese then 
apply for visitor's visas to travel to (and remain in) the 
U.S.  Dalley characterized the situation as beyond the 
control of the GOJ.  He said that raids by immigration 
authorities might be a solution, but implied that this was 
highly unlikely, presumably due to resource constraints. 
 
12. (C) The CBA's Dalton Yap observed that Chinese-speaking 
immigrants have distanced themselves from the 
Chinese-Jamaican community and that this was due to the 
perception that third and fourth generation Chinese in 
Jamaica have largely assimilated into Jamaican society, with 
many unable to speak any Chinese.  Yap admitted that the CBA 
has not been successful in reaching out to Chinese-speaking 
immigrants and claimed this was due to the small number of 
volunteers that work at the CBA.  Most of the services that 
the CBA provides to these immigrants are 
translation/interpretation services when immigrants need to 
appear in court. 
 
------------- 
Military Ties 
------------- 
 
13. (C) The Jamaica Defense Force (JDF) is immensely proud of 
its heavily British military DNA, and most JDF train in the 
U.K. as cadets at the Royal Military Academy, Sandhurst, or 
at the Royal Marine officers course at Lympstone.  Later in 
their careers, many of these same JDF officers attend staff 
courses or other specialized training in the U.S. U.K., or 
Canada, and the JDF receives considerable amounts of 
equipment from all three countries.  Given these historical 
links, the JDF officer corps tends to display a solidly 
pro-Western (while still nationalist) orientation - even as 
the prevailing political winds of successive national 
governments shifted from the headiness of the early 
independence period, to the "democratic socialism" of the 
1970's, to the largely pro-U.S. orientation of the 
early-to-mid 1980's, to today's "independent" orientation 
with its grudging acceptance (and thinly veiled resentment 
of) U.S. influence,  while courting partners in the 
developing world.  In recent years, the GOJ's reluctance to 
conclude an Article 98 Agreement with the USG appears to have 
prompted the JDF leadership to look to build military links 
to China in the event the USG were to cut off or reduce 
military assistance upon which the JDF is heavily dependent. 
Rear Admiral Hardley Lewin, JDF Chief of Staff, recently made 
a trip to China on the PRC dime, and the JDF recently sent 
its first officer to attend staff college in China. 
 
14. (C) The PRC's military assistance to Jamaica has 
generally come in the form of funds to purchase uniforms and 
equipment. In December 2002, the PRC provided a grant of 
JM$11.7 million (USD 240,000) for the procurement of military 
logistics including uniforms.  Another agreement signed in 
November 2004 granted aid to the JDF in the amount of USD 
362,000 for the procurement of additional uniforms, teaching 
aids and tents.  DATT notes that given the JDF's 
traditionally pro-Western doctrinal and supply orientation, 
from a logistical standpoint, diversifying from the 
predominately western military equipment would prove 
cumbersome and costly in the long run.  China currently does 
not have a military attach assigned to Jamaica, although the 
Chinese ambassador has mused to emboff that one could be 
assigned. 
 
--------------------------------------------- ------ 
Jamaican Trade with China, January - September 2004 
--------------------------------------------- ------ 
 
15. (SBU) Figures from the Statistical Institute of Jamaica 
show that Jamaica-China trade from January through September 
2004 (the most recent period of comprehensive figures 
available) is largely in China's favor. 
 
FOOD 
Imports: 1,540,763. Domestic Exports: 1,848. 
Re-exports: 0.  Balance of Trade: -1,538,915. 
 
BEVERAGES/TOBACCO 
Imports: 0. Domestic Exports-0. 
Re-exports: 0. Balance of Trade: 111,400,561. 
 
CRUDE MATERIALS (EXCLUDING FUELS) 
Imports: 148,869. Domestic Exports: 111,549,430. 
Re-exports: 0. Balance of Trade: 111,400,561. 
 
MINERAL FUELS 
Imports: 361. Domestic Exports: 0. 
Re-exports: 0. Balance of Trade: -361. 
 
VEGETABLE OILS/FATS 
Imports: 2,098. Domestic Exports: 0. 
Re-exports: 0. Balance of Trade: -2,098. 
 
CHEMICALS 
Imports: 3,653,705. Domestic Exports: 6,343. 
Re-exports: 20,782. Balance of Trade: -3,626,580. 
 
MANUFACTURED GOODS 
Imports:1 9,546,228. Domestic Exports: 53,319. 
Re-exports:0. Balance of Trade: -19,492,909. 
 
MACHINERY/TRANSPORT 
Imports: 17,787,311. Domestic Exports: 0. 
Re-exports: 0. Balance of Trade: -17,787,311. 
 
MISCELLANEOUS MFG. ARTICLES 
Imports: 28,886,482. Domestic Exports: 19,583. 
Re-exports: 6,336. Balance of Trade: -28,860,563. 
 
OTHER 
Imports: 0. Domestic Exports: 0. 
Re-exports: 0. Balance of Trade: 0. 
 
TOTAL 
Imports: 71565,817. Domestic Exports: 111,630,523. 
Re-exports:2 7,118. Balance of Trade: 40,091,824 
 
------- 
Comment 
------- 
 
16. (C) While the GOJ and PRC continue to enjoy a good 
bilateral relationship that is reinforced by high-level 
diplomatic exchanges, for now the GOJ seems largely incapable 
of mobilizing its efforts to take advantage of the resources 
and projects that the Chinese have offered.  Most of the 
assistance China has provided has been publicly visible; 
however, the GOJ may not be capable of deriving any economic 
benefits.  The GOJ and the country's private sector 
understand the investment and assistance possibilities 
created by China's ascent as an economic power and the recent 
opening of Jamaica's first embassy in Beijing is concrete 
testament to this reality.  Without better coordination of 
its efforts to exploit the opportunities offered by Beijing, 
the GOJ risks losing out on the trade and investment 
opportunities it cites as the pay-offs for closer ties with 
Beijing.  That said, and despite current shortcomings on the 
GOJ side, we would expect Jamaica increasingly will "get its 
act together" to benefit more from improved relations with 
China.  Post is unable to determine at this time the social 
impact of China's assistance.  End Comment. 
VALDEZ