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### Viewing cable 06GUANGZHOU14707, Long March: Country Roads Bring Tourists, Trade,

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06GUANGZHOU14707 | 2006-05-16 09:56 | 2011-08-23 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Consulate Guangzhou

`

    VZCZCXRO5913
    RR RUEHAG RUEHCN RUEHDF RUEHGH RUEHIK RUEHLZ
    DE RUEHGZ #4707/01 1360956
    ZNR UUUUU ZZH
    R 160956Z MAY 06
    FM AMCONSUL GUANGZHOU
    TO RUEHC/SECSTATE WASHDC 8021
    INFO RUEHOO/CHINA POSTS COLLECTIVE
    RUCNMEM/EU MEMBER STATES COLLECTIVE
    RUCPDOC/USDOC WASHDC
    RUEAIIA/CIA WASHDC
    RUEKJCS/DIA WASHDC
    RHHMUNA/HQ USPACOM HONOLULU HI

` `

    UNCLAS SECTION 01 OF 03 GUANGZHOU 014707

    SIPDIS

    SENSITIVE
    SIPDIS

    STATE FOR EB, R, EAP/CM, EAP/PD, DRL
    STATE PASS USTR - STRATFORD, CELICO
    USDOC FOR 4420/ITA/MAC/MCQUEEN, DAS LEVINE
    USPACOM FOR FPA

    E.O. 12958: N/A
    TAGS: ECON ETRD EINV PHUM CMGT CH
    SUBJECT: Long March: Country Roads Bring Tourists, Trade,
    and Stability to Longyan

    Ref: A) 05 Guangzhou 23050, B) Guangzhou 13562, C) Guangzhou
    13384, D) Guangzhou 13385

    ¶1.  (SBU) SUMMARY: Longyan Prefecture in western Fujian
    Province is literally at a crossroads.  Newly constructed
    highways and some still in the works are central to the
    area's plans to increase tourism, diversify agriculture,
    expand exports, and improve rural conditions.  Leaders in
    the Prefecture's center, Longyan, have identified some
    concrete plans to pay for much needed roads, and attract new
    industry similar to its economic powerhouse and largest
    taxpayer, Longyan Tobacco.  In the smaller Yongding County,
    a sub-unit of the Prefecture, rural residents are counting
    on new roads to bring tourist revenue and the benefits of
    the city to the region's largely Hakka population. END
    SUMMARY

    Almost Heaven, West Fujian
    --------------------------

    ¶2. (U) As part of Consulate Guangzhou's "long march,"
    following visits to Heyuan and Meizhou in Guangzhou Province
    (ref A), the Congenoffs drove to Longyan Prefecture in
    southwest Fujian and met with leaders in both Longyan
    Prefecture and its subset, Yongding County.  Qiu Yuyan
    Director of Longyan Foreign Affairs Office and prefecture
    leaders provided an overview of the Prefecture's 11th five-
    year plan, while Wu Ruiling Director of the Standing
    Committee of Yongding County People's Congress, met with the
    Consul General in Yongding County.  In both places, leaders
    focused on increasing tourism, expanding trade, and
    improving rural conditions.

    Life Is Old There, Older Than the Trees
    ---------------------------------------

    ¶3.  (U) Located in the mountainous and previously isolated
    region of western Fujian, Longyan Prefecture governs Longyan
    and Zhangping cities, Changting, Wuping, Liancheng,
    Shanghang and Yongding counties.  The Prefecture's area of
    19,000 square kilometers accounts for 15% of Fujian Province
    and is home to 2.6 million people, more than 70% of whom
    reside in rural areas.  Longyan City is the political,
    economical, and cultural center of the Prefecture.  The area
    is known for its large Hakka population, which began
    settling the area as migrants from northern China over 1,000
    years ago.  The municipality's RMB 38.5 billion (USD 4.8
    billion) GDP comes predominantly minerals - iron, copper,
    gold, and coal, machinery production, tobacco, and to a
    lesser extent, tourism.

    Country Roads Take Me Home
    --------------------------

    ¶4.  (U) Several newly constructed highways serve as the
    backbone of the Prefecture's plans to increase access to the
    region, improve tourism, diversify agriculture, increase
    exports, and improve rural conditions.  Signaling their
    commitment to infrastructure improvement, Longyan's leaders
    plan to spend RMB 23 billion (approximately USD 2.9 billion)
    during the 11th five-year plan on freeways, RMB 4 billion
    (USD 500 million) on state highways, and RMB 300 million
    (USD 37.4 million) for road maintenance.  Longyan
    transportation officials intend to fully pay for these roads
    in 15 to 20 years through tolls.  Two national highways also
    run through the Prefecture.

    Growing Life a Breeze
    ---------------------

    ¶5.  (U) In comparison with previous visits to the region
    (ref A) done on poorly paved, bumpy roads, traveling within
    the prefecture is faster and more comfortable with the
    majority completion of highways connecting other cities
    within Fujian (the highways to Guangdong and Jiangxi
    Provinces have yet to be completed).  In addition, two
    railways connect the area to neighboring Guangdong and
    Jiangxi as well as other parts of China.  During a briefing
    in Longyan, Prefecture leaders were quick to admit that
    there are still problems with the roads, in particular,

    GUANGZHOU 00014707  002 OF 003

    unevenness where roads connect, a fact noted in detail by
    those driving to the area.  Area leaders remain optimistic
    that these new corridors will bring an increase in tourists
    and revenue to the region.

    ¶6. (U) A new network of highways and rural roads winds past
    Longyan's numerous villages symbolizing the high percentage
    of rural residents in the area.  Longyan and Yongding
    officials emphasized their goals to improve the conditions
    of the area's rural residents, who represent 79% of the
    Prefecture's population).  Officials hope to raise the
    present average per capita rural income from RMB 4,430 (USD
    553) to RMB 5800 (USD 724) within five years.  In an effort
    to bring the benefits of the city to the rural areas, the
    "Building the New Socialist Countryside" part of the 11th
    five-year plan to improve rural society, officials will
    focus on developing rural roads, clean water supplies,
    better sanitation and waste management, improve access to
    education and health, and development ways to increase rural
    incomes.

    ¶7.  (U) Agricultural development initiatives in the
    Prefecture are focused on raising the average income by
    developing value added agricultural industries.  In
    Yongding, for example, officials are working to develop the
    dried mustard leaf industry.  Since the vegetables grow
    during winter months when grain will not grow in the area
    the vegetable can provide additional revenue to rural
    farmers.  The Yongding leaders are further focused on
    developing value added industries for their persimmon crop
    with a goal of processing 40% of the annual crop into
    vinegar, cakes, and wine during the next five years.

    I Should Have Been Home Yesterday
    ---------------------------------

    ¶8.  (U) A slow and bumpy ride down a narrow mountain road
    leads visitors to the well-preserved Hakka Village of Chuxi
    in Yongding County.  Here, 11 kilometers from the town
    center, visitors find a symbol of tourism efforts in the
    prefecture and county: historic round and square rammed-
    earth houses known as "tulou."  Tourism remains one of the
    fastest growing industries in the prefecture, and is a
    source of optimism for government officials.  Prefecture
    leaders boasted that between 2000 and 2005 tourist revenue
    in the prefecture grew from 1.29 Billion RMB (USD 160
    million) to 3.89 Billion RMB (USD 485 million), a trend they
    expect to continue.  The county currently receives 3.89
    million tourists per year, most of them coming from other
    parts of China.  Efforts are focused on three areas: green
    tourism, red tourism, and cultural tourism.  Green tourism
    refers to the natural beauty of the area, cultural tourism
    relates to traditional Hakka food, architecture, and
    culture, while red tourism focuses on historic sites related
    to the communist revolution.  Red tourism is primarily aimed
    at patriotic Chinese citizens rather than overseas visitors.
    Qiu Yuyan of the Longyan FAO indicated that the impetus for
    opening the Chuxi tulou area to tourists came not from the
    government, but from villagers themselves.  In fact, the
    government official admitted some concern for the
    maintenance of the village and the poor condition of the
    narrow dirt road leading to the village, and said that the
    government was not encouraging excessive traffic to the
    village.  Villager residents receive the bulk of the site's
    tourist revenue.

    All My Memories Gathered Round Her
    ----------------------------------

    ¶9.  (U) Visitors to Longyan come predominantly from other
    areas in China.  But better highways could bring more
    Chinese visitors by road as well as international visitors
    on short package tours via larger cities such as Xiamen and
    Guangzhou.  Of the Prefecture's overseas visitors, most are
    currently ethnic Hakka from South-east Asia returning to
    visit relatives, see cultural sites, or pay respect to
    ancestors.  Of non-Hakka foreign tourists, Japan is the
    largest market due to high exposure of the Prefecture's
    rammed-earth houses in Japanese media.  The Prefecture
    receives approximately 1,000 visitors from the United States

    GUANGZHOU 00014707  003 OF 003

    per year.

    Miners Lady, Stranger to Blue Water
    -----------------------------------

    ¶10.   (U) The prefecture's roads wind through beautiful
    mountains, along winding streams and past countless mines
    producing such resources as iron, gold, copper, and coal,
    many of the latter mines small, dangerous, and illegal.  The
    scene reminds travelers of both the rich natural resources
    in the area and the potential effect of increasing
    industrial output on the environment.  Longyan officials
    express desire to reduce the rate of pollution (per portion
    of GDP) while increasing industrial output.  How such a goal
    would be achieved was not as clearly articulated.

    ¶11.  (U) Just outside Longyan's city center, and right off
    of a main Highway is the Longyan Tobacco Company.  A tour of
    the facility by Chen Wannian, Deputy Director of the
    Factory, showed how far the factory has come since its
    humble beginnings in 1958.  The once small tobacco company
    is now the largest taxpayer in Fujian Province.  Congenoffs
    were wowed by the state-of-the-art facility located in the
    heart of the otherwise sleepy Longyan.  This world-class
    manufacturing facility completed in 2004 at a cost of RMB
    8.5 million (slightly more than USD one million) serves as a
    showplace of modern industry from the musical fountains at
    the entrance to the robotic forklifts inside.  Opting for
    efficiency over cheap labor, the company utilizes state-of-
    the-art machinery capable of rolling 7000 cigarettes and
    packing 400 boxes per minute.  The company is one of two
    companies in China just being licensed to make Marlboro
    cigarettes.

    Comment: Country Roads Indeed
    -----------------------------

    ¶12.  (U) Longyan, once isolated, is now connected to larger
    cities in Fujian, Guangdong, and Jiangxi through an
    expanding network of highways and railways. These corridors
    have brought an increase in tourism, industry, and GDP
    growth.  By contrast, the smaller Yongding County remains
    far from the developed coastal cities of Fujian and
    Guangdong Provinces.  With heavy reliance on mining and
    subsistence agriculture, Yongding Officials hope to balance
    the area's economy with an increase of tourists as local
    roads are upgraded during the next several years.
    Prefecture planners have a clear vision of the challenges
    and opportunities that await them; converting country roads
    to highways is one of the issues that delay them from moving
    forward faster.  End Comment.

    ¶13. (U) Persons met in Yongding/Longyan:
    Wu Ruilin Chair, Yongding Congress
    Lai Xiujin     Vice County Mayor of Yongding
    Jiang Dizhang  Executive Vice Mayor, Longyan Government
    Tang Zhongling Deputy Secretary General, Longyan Government
    Zhong Meiying  Deputy Secretary General, Longyan Government
    Liu Guangxiang Deputy Director, Agricultural Bureau, Longyan
    Government
    Chen Qingru    Deputy Director, Communication Bureau,
    Longyan Government
    Lu Yanming     Assistant Research Fellow, Development and
    Reform Commission, Longyan Government
    Qiu Yuyan Director, Longyan Government, Foreign Affairs
    Office (FAO)
    Lu Dian        Deputy Director, Longyan FAO
    Li Dongting,   Section Chief, Longyan FAO
    Chen Wannian   Deputy Director, Longyan Cigarette Factory.

    ROCK

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