You can resize this after you're done, or start out with a smaller or larger size.
Open a new image, transparent, 300x300, 16 million colors
Add the basket tube, I did mine at 75 scale, move it to the bottom of the graphic.

Then with your lasso tool you want to select the "back" of the basket. With these settings:

You need to be rather steady handed on the front edge, the back just select around it cause it's transparent after it anyway.

On your keyboard hold ctrl then hit c to Copy. Then hit delete. You're deleting the backside of the basket, it should look like this.

Now on your keyboard hold ctrl and hit e to paste as a new selection. Move the piece so it fits exactly where it was before, DO NOT DESELECT!

Now go to your layer palette,

Right click on Floating Selection and click on Promote to Layer
At the top of your screen click on Layers, New Raster Layer.
Go to the Layer palette you should see:

Now you need to move the layers around a bit, the piece should be on the bottom (Promoted Selection), then your blank layer (Layer 2) then basket (Layer 1) at the top. Click and hold on Layer, and drag it to move them. They should look like this.

Make sure you have Layer 2 selected. Now you have a layer that you can add anything you want and it will look like it's inside the basket, I'm just gonna stick some lilies in there for an example to show you how it looks.

You're DONE!