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### Viewing cable 07GUANGZHOU997, Pearl River Flotsam and Jetsam, September 5, 2007

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07GUANGZHOU997 | 2007-09-05 02:56 | 2011-08-23 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Consulate Guangzhou

`

    VZCZCXRO8083
    RR RUEHCN RUEHGH RUEHVC
    DE RUEHGZ #0997/01 2480256
    ZNR UUUUU ZZH
    R 050256Z SEP 07
    FM AMCONSUL GUANGZHOU
    TO RUEHC/SECSTATE WASHDC 6431
    INFO RUEHOO/CHINA POSTS COLLECTIVE
    RUEAIIA/CIA WASHDC
    RUEKJCS/DIA WASHDC
    RUCPDOC/DEPT OF COMMERCE WASHDC
    RUEATRS/DEPT OF TREASURY WASH DC

` `

    UNCLAS SECTION 01 OF 02 GUANGZHOU 000997

    SIPDIS

    SENSITIVE
    SIPDIS

    E.O. 12958: N/A
    TAGS: ELAB EAIR ECON PINR EFIN PGOV CH
    SUBJECT: Pearl River Flotsam and Jetsam, September 5, 2007

    (U) THIS DOCUMENT IS SENSITIVE BUT UNCLASSIFIED.  IT SHOULD NOT BE
    DISSEMINATED OUTSIDE U.S. GOVERNMENT CHANNELS OR IN ANY PUBLIC FORUM
    WITHOUT THE WRITTEN CONCURRENCE OF THE ORIGINATOR.  IT SHOULD NOT BE
    POSTED ON THE INTERNET.

    ¶1. (U) SUMMARY: This is the second in a series of periodic cables
    that will feature snapshots of the Guangzhou consular district.
    Highlights of this installment include: official anger and apathy
    over food and product safety; an ambitious labor lawyer; an
    anniversary for China Southern Airlines; Party and government
    personnel changes; a crackdown on underground money shops; a
    vanishing debate about public funds; more cars for Guangzhou; and
    more toilets for Shenzhen. END SUMMARY

    Guangzhou Vice Mayor Scolds Officials on Product Safety
    --------------------------------------------- ----------

    ¶2. (U) New Guangzhou Vice Mayor Cao Jianliao harshly criticized some
    municipal districts for sending only low-level representatives to
    attend a city-sponsored conference on food safety and product
    quality, according to the Southern Metropolis Daily. The organizers
    of the August 20 conference, which was attended by the mayor and all
    vice mayors, had requested that leaders of municipal districts all
    attend, but many sent only staff members on their behalf.

    ¶3. (U) Cao said, "[The situation at the conference] shows that those
    districts' government leaders are not taking food safety issues
    seriously.  If district leaders aren't serious about it, how can you
    ask leaders of streets and neighborhoods to care about it?"  Cao
    also alluded to corruption at the local level being a problem,
    saying that without the protection of "relevant personnel" in the
    streets and neighborhoods, "[producers and sellers of fake goods]
    would have no place to hide."

    Workers' Rights Lawyer Hopes to Publish his Case Files
    --------------------------------------------- ---------

    ¶4. (SBU) Self-educated lawyer Zhou Litai told Congenoff that he had
    preliminary plans to organize and publish his archives, which
    document more than 7,000 lawsuits.  Zhou said these files, which
    encompass cases from every part of China except Tibet, truly
    reflected the history of China's migrant workers.  He envisions them
    serving as valuable primary source materials for individuals
    researching China's labor situation. However, limited financial
    resources could delay publication of the files.

    ¶5. (SBU) Zhou, whose license to practice law was revoked in 2002 (an
     incident cited in that year's Human Rights Report), said that most
    of his cases involved demanding compensation for workplace injuries,
    recovering unpaid wages, or compelling employers to pay for workers'
    pensions and medical insurance. The Zhou Litai Law Firm is
    headquartered in Chongqing with a branch office in Shenzhen, and
    will soon open an additional branch in the Wanzhou district of
    Chongqing.

    China Southern Toasts its Past
    ------------------------------

    ¶6. (SBU) The China Southern commemoration of the tenth anniversary
    of the airline's first B777 trans-Pacific flight (with GE engines)
    was a lively affair, filled with reminiscences and -- of all things
    -- comments about how the airline would likely not be the ninth
    largest in the world today were it not for that historic event.  The
    reminiscences were provided by the primary pilot of that first
    flight, current Minister of Civil Aviation Yang Yuanyuan, who
    interestingly enough kept using one of Deng Xiaoping's favorite
    expressions ("seek truth from facts") and went on to speak in
    glowing terms about the impact of "reform and opening" on aviation.

    ¶7. (SBU) In a separate discussion with the Consul General, Minister
    Yang affirmed again that the time had not yet come for open skies in
    passenger flight; the U.S. side, the Minister said without
    elaboration, understood the reasons why.  The Minister also said
    that CAAC was continuing to work to expand the amount of airspace
    controlled by civil authorities, though he noted that his many
    friends in the military also had continuing reservations about
    ceding control.

    Promotions and Transfers
    ------------------------

    ¶8. (SBU) Former Guangzhou Vice Mayor Wang Xiaoling was promoted this
    month to the position of Director-General of the Propaganda
    Department of the Guangzhou Communist Party.  Ms. Wang, who was born
    in Shandong province in July 1955, joined the Communist Party in
    August 1978.  She rose quickly through the ranks of the Guangzhou
    Administration of Industry and Commerce Development Zone Bureau

    GUANGZHOU 00000997  002 OF 002

    (1990-1994) and the Free Trade Zone Bureau of Guangzhou
    Administration of Industry and Commerce (1994-1998).  Following
    municipal-level Party assignments in 1998 and 2001, Wang was
    appointed one of Guangzhou's eight vice mayors in 2003.  Wang's
    replacement as vice mayor is Cao Jianliao. (See paragraph 2, above.)

    Eastern Union
    -------------

    ¶9. (U) According to media reports, Police in Shenzhen and the State
    Administration of Foreign Exchange (SAFE) Shenzhen branch conducted
    a joint operation in early August to expose a network of
    "underground money shops," which provide a channel for transferring
    large amounts of money while circumventing the international banking
    system and national tax bureaus.  Police arrested six suspects on
    the spot and froze 55 bank accounts totaling RMB 4.2 million. The
    illegal foreign exchange trading network covered 31 provinces in
    China, with major clients in Guangdong, Jiangsu and Zhejiang
    provinces.

    The Debate is Over -- Or Has at Least Disappeared
    --------------------------------------------- ----

    ¶10. (U) An internet posting which sparked spirited public debate
    over the appropriate use of public funds has been removed, the
    Consulate discovered August 7.  All that is left of the debate,
    which examined whether the Guangdong Provincial Government should be
    paying for wealthy Cantonese entrepreneurs to attend the Central
    Party School, is an early August report by the government-controlled
    Nanfang Daily.  The article stated that some "netizens" questioned
    the necessity and value of paying training costs for the young and
    elite entrepreneurs, many of whom are billionaires.  Supporters of
    the program argued, however, that the government was wise to
    showcase the traditional innovation and independence of Cantonese
    businessmen to the politically conservative Party school, according
    to the Nanfang Daily.  One wealthy anonymous entrepreneur cited by
    the paper said he was accustomed to being used by the government as
    an "ATM machine" for charity, disaster relief, or poverty abatement
    programs, and he was surprised that he was not required to pay to
    attend the Central Party School.

    Guangzhou: Too Many Cars! Shenzhen: Too Few Toilets!
    --------------------------------------------- -------

    ¶11. (U) A Honda Accord sedan became Guangzhou's 1 millionth licensed
    car on August 15, signifying that one in ten Guangzhou residents is
    now a car owner.  With more than 600 automobiles licensed in the
    city every day, experts estimate that in 5 to 7 years Guangzhou will
    have two million cars on the road. Vice Mayor Gan Xin declared that
    Guangzhou would not restrict the issuance of car licenses, but
    offered no solutions to the problems of parking shortages, heavy
    pollution, or traffic jams.

    ¶12. (U) The same day, the City Management Bureau of Shenzhen
    announced that the city would build 375 new public toilets over the
    next three years, an increase of 25 percent over current numbers.
    Almost no new public toilets have been built in Shenzhen since
    ¶1995.

    JACOBSEN

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