HAVANA, Jan 3 (Reuters) - China has made its first investment in Cuba's tourist industry with a 110-seat Chinese restaurant at the beach resort of Varadero, state media reported on Saturday.

The furniture and other equipment at the Lai Lai restaurant, such as chopsticks and porcelain bowls, were all provided by China, the Cuban Communist Party daily Granma said.

Granma said the restaurant, which it described as an "economic association'' between China and Cuba, cost $151,000. But it gave no details of exactly how the association was structured.

The restaurant was inaugurated in Varadero, 75 miles (120 km) east of Havana, by Cuban Vice President Carlos Lage and China's ambassador to Havana, Liu Peigen.

China is a major trading partner of the communist-ruled Caribbean island. REUTERS.

15:42 01-03-98