INTERVIEW-China, Latam ties move beyond resources - BoA

* Long-term relations depend on diversified strategy

* China interested in Latam's ag-businesses, fisheries

BEIJING, Sept 23 - Chinese investments in Latin America are moving rapidly beyond the resources sector, but a manufacturing or financial services deal is still a year or two away, Bank of America-Merrill Lynch executives said on Wednesday.

China has been snapping up raw material assets in developing countries to secure supplies for its manufacturing sector, but mineral-rich countries are beginning to demand more, James Quigley, the bank's head of Latin America, said in an interview.

"For the Chinese to be very successful in Latin America ... They need to become much more effective at employing and managing local labour," Quigley said on the sidelines of an investment forum bringing Chinese and Latin American businesses together.

"This is a hot button" issue in Latin American countries, he said.

This year alone, China extended a $10 billion loan to Brazil's Petrobras, Venezuela promised to send China fuel oil for three years for $8 billion and Chinalco said it would start construction of its $2.2 billion Peruvian copper mine.

But Beijing is now encouraging overseas investment in other sectors as well, in part to ease the upward pressure on the yuan and domestic asset prices created by the more than $2 trillion in foreign currency reserves.

Chinese investors are interested in paper pulp facilities in Brazil, fisheries in Peru and even financial institutions in the region, said Quigley.

"China's involvement with Latin America is just beginning," said Richard McCormack, bank vice chairman.

"They have to have a politically sophisticated strategy to be commensurate with the economic investments they are making there for their own interests," said McCormack.

Latin American corporate debt and equity issues are also attracting interest from Asian and Chinese investors.

"I can't think of a transaction we will be working on where there is not an Asian leg to a roadshow," said Quigley. ($=6.83 yuan)