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### Viewing cable 06GUANGZHOU20883, British Discuss South China: Economic/Political

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06GUANGZHOU20883 | 2006-07-05 07:58 | 2011-08-23 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Consulate Guangzhou

`

    VZCZCXRO8922
    RR RUEHCHI RUEHCN RUEHDT RUEHGH RUEHHM RUEHNH
    DE RUEHGZ #0883/01 1860758
    ZNR UUUUU ZZH
    R 050758Z JUL 06
    FM AMCONSUL GUANGZHOU
    TO RUEHC/SECSTATE WASHDC 4227
    INFO RUEHC/SECSTATE WASHDC 4228
    RUEHOO/CHINA POSTS COLLECTIVE
    RUCNASE/ASEAN MEMBER COLLECTIVE
    RUCPDOC/USDOC WASHDC
    RUEAIIA/CIA WASHDC
    RUEKJCS/DIA WASHDC
    RHHMUNA/HQ USPACOM HONOLULU HI

` `

    UNCLAS SECTION 01 OF 03 GUANGZHOU 020883

    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 PGOV SENV PHUM ASEC CVIS CH
    SUBJECT:  British Discuss South China: Economic/Political
    but Security Concerns as well

    ¶1. (SBU) SUMMARY:   At a recent meeting with British
    Consulate colleagues, the topics for discussion included
    growth in the high-end real estate market, prospects for
    continued economic growth in South China, successful
    strategies for requesting meetings with local officials on
    sensitive topics, and the growing population of foreign
    Muslims.  We also heard how our British counterparts have
    approached the issues of building rule of law and fighting
    corruption as long-term goals best achieved through small-
    scale projects, such as scholarships that expose promising
    young Chinese to life in Britain.  On visa affairs, we
    learned that despite high issuance rates there is still a
    perception that getting a British visa is difficult.  As
    part of ongoing efforts to curb fraud, the British will
    begin fingerprinting applicants next year, are promoting
    legal routes to obtaining a visa, and are cooperating with
    local officials on forgery training.  An ongoing human
    rights dialogue with the Chinese government in Beijing will
    include a visit to Guangzhou this year so that UK
    participants can meet with local groups involved in the
    themes of this year's meeting -- legal representation in the
    courts and workers rights.  END SUMMARY.

    ¶2. (SBU) The Consul General and Econoffs recently met with
    British Consul General Chris Wood and Deputy Consul General
    David Lusher for a periodic meeting to discuss South China
    political and economic issues.  This was the final meeting
    between Consul General Dong and our British Colleagues, who
    expressed a keen interest in continuing these meetings once
    incoming Consul General Goldberg arrives at Post.

    Adding Hunan Province
    ---------------------

    ¶3. (SBU) CG Wood began by noting that Hunan Province had
    been added to his consular district, and as a result, he had
    recently paid a familiarization visit to that province.  He
    noted that he was surprised by the large amount of South
    Korean investment he saw there.  He explained that Hunan
    Province will be the United Kingdom's third largest market
    after Guangdong and Fujian, and he also noted that the
    British Council sees a huge potential market in Hunan for
    students who want to study in the UK.

    Who is Buying all the Apartments?
    ---------------------------------

    ¶4. (SBU) Several times throughout our meeting CG Wood
    expressed his curiosity about the local real estate market,
    asking rhetorically, who is buying all the luxury apartments
    that are being built in the region?  He commented that given
    China's weak banking system and the lack of either risk
    assessment or credit systems he was very surprised that
    people were able to buy high-end apartments at a rate that
    would justify the growth in this market.

    What Will Stop the Growth?
    --------------------------

    ¶5. (SBU) The discussion of the real estate market led Wood
    to ask rhetorically what it would take to stop the economic
    growth that South China has been experiencing.  To this end,
    we discussed the local water shortage, noting that while the
    region also lacks power, power can be created, unlike water.
    Econoff commented that further complicating the water
    shortage issue is the fact that in addition to the shortage,
    much of the limited water that is available is heavily
    polluted.

    It's All in the Marketing: "Energy Efficiency" is In
    --------------------------------------------- -------

    ¶6. (SBU) In discussing the local water and power shortages,
    Wood emphasized that China energy issues and climate change
    are at the top of his government's agenda.  As such, the
    British have recently named a new climate change envoy --
    who incidentally is considered a "China hand" -- and the
    topic of "climate security" is being addressed by his
    consulate at the local level.  He explained to us that in

    GUANGZHOU 00020883  002 OF 003

    his experience, local officials -- such as interlocutors
    from the Development and Reform Commission -- will not meet
    with officers from his consulate to discuss "climate
    change," but they will meet if the meeting is framed as an
    opportunity to discuss "energy efficiency."  His said that
    despite their interest in this topic, many officials appear
    to be focused solely on energy efficiency at the industrial
    level, to the exclusion of the consumer level.

    Changing Society One Person at a Time
    -------------------------------------

    ¶7. (SBU) The group next discussed the problems of corruption
    and weak rule of law in China.  Consul General Dong
    commented that one advantage China has in the struggle
    against corruption is that in China corruption is seen by
    most people as morally wrong, which is not true in all
    countries.  This basic belief gives the Chinese government
    some leverage for change in the fight against corruption.
    Wood agreed and pointed out that his consulate is
    approaching these issues through small-scale projects.  He
    explained that, for example, they have scholarship programs
    to expose intelligent young people to life in the UK and to
    free debate to help them learn more about these issues.  He
    said that his government sends roughly 200 scholars from
    across China to study in the U.K. each year.

    Visa Affairs
    ------------

    ¶8. (SBU) Our British colleagues shared with us their belief
    that there is a perception in South China that getting a
    visa to the U.K. is difficult, despite an issuance rate of
    roughly 85-90%.  They noted that in regard to student visas,
    they are seeing fewer applications, but the approval rates
    for these applications are going up, which leads them to
    believe that their outreach efforts are indeed educating the
    general public about visa requirements and are encouraging
    qualified applicants to apply.  Lusher mentioned that they
    would begin fingerprinting visa applicants next year.

    ¶9. (SBU) Lusher also mentioned that he had recently visited
    Fujian Province to discuss visa issues.  Exhibiting his
    typical understated humor, Lusher noted that he went to
    Fujian -- a region infamous for visa fraud -- because it is
    home to "many of the people who come to see us without
    documents."  Lusher explained that he and his colleagues
    wanted to share their expertise with Fujian officials, but
    they encountered a good deal of denial from local officials,
    who maintained that everyone who left had proper documents.
    They claimed that any illegal activities that occur were
    happening overseas.  We have also encountered this type of
    response when dealing with Fujian officials.

    ¶10. (SBU) To counteract the levels of fraud the British
    Consulate is encountering, Wood mentioned that his staff is
    working to promote the legal route to obtaining a British
    visa as a way to stop applicants from taking illegal routes
    (snakeheads) or from becoming involved with visa brokers.
    Wood commented that his consulate is also cooperating with
    officials on forgery training.

    Human Rights Dialogue
    ---------------------

    ¶11. (SBU) Wood next noted that his government has a human
    rights dialogue with the Chinese government two times each
    year.  He explained that the China portion of the dialogue
    would be occurring the week of 3 July.  It would begin with
    formal meetings in Beijing, followed by the U.K.
    participants visiting Guangdong for two to three days.
    During that time, the group would visit entities such as the
    Federation of Trade Unions, the Public Security Bureau, and
    various research institutes.  The themes of this year's
    dialogue are legal representation in the courts and workers
    rights.

    ¶12. (SBU) In discussing workers rights, Wood mentioned that
    the UK Ministry of Commerce is more interested in the issue

    GUANGZHOU 00020883  003 OF 003

    of corporate social responsibility (CSR) than it has been in
    the past.  He commented that at the local level his
    consulate is involved in a "good practices" CSR working
    group.  He said he hopes that a local group will eventually
    take the lead in this effort, but thus far no group has
    offered to fill this role.

    Growing Foreign Muslim Presence
    -------------------------------

    ¶13. (SBU) Turning to another topic, Wood also mentioned the
    large number of itinerant Muslim traders in Guangzhou,
    saying that their growing presence "give us pause for
    thought."  He said that based on his understanding, the
    large number of foreign Muslim traders in Guangzhou do not
    associate with either the local Hui Muslims or Xinjiang
    Muslims.  Underscoring his interest in this topic, Lusher
    mentioned on another occasion that the growing Muslim
    presence is of great interest to security officials at the
    British Consulate.

    Comment:  Preaching to the Choir
    --------------------------------

    ¶14. (SBU) We find these periodic meetings with our British
    counterparts to be quite useful as a means to "compare
    notes" on our respective activities.  It is also a good way
    to share examples of what works when dealing with local
    officials -- who can be quite cagy about agreeing to meeting
    requests -- and more importantly perhaps, what does not
    work.  Because our two consulates share many of the same
    goals in our work in South China, we often do not learn of
    any surprising events or issues.  Nonetheless, it is good to
    get together periodically to know that we are not a lone
    voice advocating for change in areas such as rule of law,
    transparency, and CSR.

    MARTIN

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