Run under paramilitary supervision, the camp will train cadres sent out across Tibet to monitor Tibetans' loyalty to Beijing.
Government speeches, travel restrictions, and heavy police presence create an atmosphere of intimidation, sources say.
Chinese authorities fear reinforcement of Tibetan national and cultural identity in the younger generation, sources say.
Tashi Wangchuk was given a five-year prison term for peacefully promoting the use of his native language in Tibetan areas of China.
But Chinese fishermen caught fishing illegally in the lake are usually released, local sources say.
They are lured by promises of government help, but find life difficult in their new homes, local sources say.
Even courses in Tibetan medicine and ethnic studies are now taught only in Chinese, sources at the school say.
The order issued in Lhoka Tsethang city bans enrollment in workshops and religious classes, sources say.