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### Viewing cable 06GUANGZHOU18748, WHERE LONELY PLANET DOES NOT GO: A VISIT TO XILIN

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06GUANGZHOU18748 | 2006-06-23 08:34 | 2011-08-23 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Consulate Guangzhou

`

    VZCZCXRO8387
    OO RUEHCN RUEHGH
    DE RUEHGZ #8748/01 1740834
    ZNR UUUUU ZZH
    O 230834Z JUN 06
    FM AMCONSUL GUANGZHOU
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 2081
    INFO RUEHOO/CHINA POSTS COLLECTIVE
    RUCPDOC/USDOC WASHDC
    RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
    RUEAIIA/CIA WASHDC
    RUEKJCS/DIA WASHDC
    RHHMUNA/HQ USPACOM HONOLULU HI

` `

    UNCLAS SECTION 01 OF 04 GUANGZHOU 018748

    SIPDIS

    STATE FOR EAP/CM AND DRL
    USDA FOR FAS/ITP AND FAS/FAA
    USDOC FOR 4420/ITA/MAC/MCQUEEN
    USPACOM FOR FPA

    SENSITIVE
    SIPDIS

    E.O. 12958: N/A
    TAGS: PHUM PGOV SOCI EAGR EINV CH
    SUBJECT: WHERE LONELY PLANET DOES NOT GO: A VISIT TO XILIN

    (U) THIS DOCUMENT IS SENSITIVE BUT UNCLASSIFIED.  PLEASE
    PROTECT ACCORDINGLY.

    ¶1. (SBU) Summary.  A visit to Guangxi's Xilin County
    revealed one of the poorest and most remote areas in
    Guangzhou's consular district.  Despite the area's overall
    poverty, there were marked distinctions between relatively
    prosperous Xilin Town and the county's backward countryside.
    The Zhuang minority dominates in the town, while large
    numbers of Miao, Yao and other groups live in the rural
    areas.  Industry is largely inexistent around Xilin Town,
    but its service sector is up and coming.  Locals claim they
    do not read newspapers or worship, but area youths are avid
    Internet users.  Civic pride is strong, and in a sense
    understandable, since the public-service infrastructure
    appears adequate, and not particularly inferior to that
    available even in the most developed areas of our district.
    All in all, if this is as depressed as South China gets,
    then the region is not doing that badly.  End summary.

    ¶2. (U) EconOff and EconPolAsst recently visited Xilin, the
    westernmost county in the Guangzhou consular district.
    Nestled in the mountains of Guangxi's northwestern "tail",
    Xilin falls under the jurisdiction of Baise, the largest
    prefecture in the provincial-level Guangxi Zhuang Autonomous
    Region.  Baise is also one of the poorest prefectures in
    South China, with ten of its 11 counties considered national-
    level poor counties, including Xilin.

    The Economy
    -----------

    ¶3. (U) Xilin is heavily rural, with 90% of the county's
    127,500 inhabitants living outside of the small eponymous
    town that serves as its administrative and commercial
    center.  In 2004 (the last year for which figures are
    available), Xilin County's gross domestic product (GDP) was
    RMB 472 million (USD 59.01 million; all conversions made at
    the rate of USD 1 = RMB 7.998), up 16.3% year-on-year.  The
    agricultural sector accounted for 50.4% of the GDP.  Despite
    the fact that the industrial sector contributed RMB 126
    million (USD 15.75 million) to the GDP that year, the only
    visible manufacturing facility near the town was a brick
    factory on the road to Yunnan.

    ¶4. (SBU) Xilin Town is a fairly clean and prosperous place,
    with a surprisingly strong and diverse retail sector.  In
    2004, retail sales in the county (the vast majority of which
    must have taken place in Xilin Town) reached RMB 103 million
    (USD 12.88 million), up 10% year-on-year.  Since then, the
    situation has apparently continued to improve.  Septwolves,
    a relatively upscale Chinese men's clothing cQin, recently
    opened an outlet in downtown Xilin, and its shopkeepers
    claimed that business was good.  There is also a medium-
    sized supermarket that offers a decent selection of
    products, albeit mostly of minor brands.  The only global
    brand represented was Nestle, and we suspect the candies may
    have been counterfeits.

    ¶5. (SBU) Outside of town, the situation is definitely not as
    rosy.  In 2004, the average per capita income of Xilin's
    urbanQesidents was more than 3.5 times higher than that of
    their rural neighbors (USD 673.92 and USD 183.55,
    respectively).  As EconPolAsst noted, a Xilin farmer would
    have to spend an entire month's income to afford one of the
    meals we had in Xilin, which was a modest affair by
    Guangzhou standards; a shirt at Septwolves costs almost two
    months' income for the same farmer.  Even the small
    settlements astride the main, two-lane highways of the
    county were quite squalid.  At one of these settlements, the
    restroom facilities at the local government center were
    described by EconPolAsst as the worst he had seen in his
    life - no small feat for a Guangzhou native.  At the same
    time, at least along the highways, the health infrastructure
    seemed adequate, with fair-sized dispensaries available even
    in very remote stretches.

    We Accept RMB...Sort Of
    -----------------------

    ¶6. (U) The currency of choice in Xilin is the RMB 1 bill,

    GUANGZHOU 00018748  002 OF 004

    which is equal to USD 0.13.  Rarely was there a need to use
    RMB 5 bills (each worth USD 0.63), let alone a RMB 10 bill
    (worth USD 1.25).  One shopkeeper admitted that the RMB 50
    (USD 6.25) bill we used to pay was the first he had seen -
    and he was working in a riverside recreation area that
    catered to Xilin's small "elite" (composed of men who had a
    vehicle and could afford to laze away a few hours in the
    company of a lady friend.  In the end, we had no choice but
    to be short-changed, as the man was not accustomed to
    customers using large bills and just did not have enough
    change.

    ¶7. (U) Even the small `mao' bills, treated dismissively in
    China's cities as disease-carrying, wallet-cluttering wastes
    of ink and paper, are important monetary units in Xilin.
    (Note: `Mao' bills are available in three denominations: RMB
    0.50 (USD 0.06), RMB 0.20 (USD 0.03) and RMB 0.10 (USD
    0.01).  End note.)  A bean-paste bun at the bus station, for
    example, costs five mao (USD 0.06).

    Bring Cash!
    -----------

    ¶8. (U) Although there is at least one bank in Xilin, there
    are no cash machines.  Meanwhile, credit cards are not
    accepted anywhere in Xilin.  As EconPolAsst astutely pointed
    out, what kind of bank would issue credit cards in a town
    where the average monthly income is 56 U.S. dollars.

    Meet The Locals
    ---------------

    ¶9. (U) Ninety percent of Xilin's population belongs to one
    of fourteen minorities present in the county.  The Zhuang
    are the largest group, but not the most visible.  Physically
    similar to the Han, the Zhuang in Xilin, as in other parts
    of Guangxi, nicely fill in for the Han, dressing like them
    and engaging in mainstream, less "quaint" activities, such
    as keeping shops and working in government.  Meanwhile,
    others such as the Miao and the Yao dress and act in more
    "folkloric" ways.  That said, the Zhuang do have their own
    language, also called Zhuang, which is widely spoken in
    Xilin, and is not readily understood by Mandarin- or
    Cantonese-speakers.

    ¶10. (U) In the mornings, the "real" minorities walk or ride
    their donkeys into Xilin Town from the surrounding mountains
    to trade.  Most of them bring vegetables or animals, many of
    them of the "exotic" variety, such as snakes and, in one
    case, some grubby puppies, which we suspect were not meant
    to serve as pets.  Meanwhile, they pick up clothing and
    household items, and more conventional food items such as
    live chickens and pork.

    Getting There And Away
    ----------------------

    ¶11. (U) It is not easy to get to Xilin.  The nearest
    commercial airports, in Nanning and Kunming, are both at
    least nine hours away by public transport.  Meanwhile, the
    nearest train station, Tianlin, on the Nanning-Kunming line,
    is still more than a couple of hours away.  From there it
    then takes a few hours to get to Baise.  At least there are
    plenty of buses connecting Xilin to all these regional hubs
    and other destinations, including Guangzhou (25 hours).

    Xilin: Wired, Educated And Healthy?
    -----------------------------------

    ¶12. (U) Despite its physical isolation, Xilin Town is well
    connected to the outside world via the Internet.  There are
    at least three cyber-cafes in Xilin, including one run by
    China Post.  Most of the cafes' clientele consisted of young
    persons playing computer games, and some using instant
    messaging applications such as QQ.  As in Guangzhou, CNN's
    website was accessible, while those of the White House, the
    State Department and the BBC were not.  At RMB 5 (62 cents)
    for over two hours, the surfing fees were a steal.

    ¶13. (U) Nonetheless, there are no newspapers available for
    sale in Xilin.  While looking in vain for a local newspaper,

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    EconPolAsst was bluntly told by more than one local that
    people in Xilin simply do not read newspapers.

    ¶14. (U) Xilin Town had at least one large school, which did
    not look very different from schools in Guangzhou in terms
    of physical infrastructure.  There were also sport
    facilities available for public use.  In addition to a
    hospital, Xilin also has a clinic that unabashedly announces
    its specialty in preventing and treating sexually
    transmitted diseases (STD).  Despite the town's size - or
    perhaps because of it - prostitution did not seem to be a
    discreet trade in Xilin.  In the first hotel where we
    stayed, for example, a condom was thoughtfully provided in
    each hotel room, discreetly stashed in the cylinder of a
    toilet paper roll, with no mention of extra charges for use.

    Where To Stay
    -------------

    ¶15. (U) With relatively luxurious amenities such as condoms
    and hot water on tap, the USD 6.25 it cost to stay a night -
    or a few hours - at that hotel were well-spent.  However,
    the best accommodation in town was the Xilin government's
    guesthouse.  Because of low occupancy, the guesthouse made
    us an offer we could not refuse: one of their best rooms for
    RMB 100 (USD 12.50), instead of the usual RMB 160 (USD 20).
    Sadly, though, even this deluxe suite was bereft of a
    Western-style toilet.

    Xilin's Place In History
    ------------------------

    ¶16. (U) Xilin is not without historical significance.  In
    1856, Auguste Chapdelaine, a French priest who has since
    been canonized, was executed in Xilin for his proselytizing
    activities and other alleged offenses - or martyred,
    depending on who is telling the tale.  The "Chapdelaine
    Incident" prompted French involvement in the Second Opium
    War.  We asked some taxi drivers if they could take us to
    what remains of Chapdelaine's old church, but none of them
    knew what we were talking about.

    Imagine No Religion
    -------------------

    ¶17. (U) We then asked to be taken to a church or a temple -
    any church or temple - but were told there were none in
    Xilin.  Correctly guessing that we were Yunnan-bound, one of
    the drivers helpfully added that there were temples in
    Yunnan.  Asked where people in Xilin went to pray, one of
    the drivers replied that Xilin people had no time for that.

    True Believers
    --------------

    ¶18. (U) Part of Xilin's aversion to religion may stem from
    the bad aftertaste of the Chapdelaine Incident.  At the same
    time, Xilin is still in many ways an old-school Communist
    stronghold.  Xilin's only "attraction" is a monument to
    martyrs of the Revolution, and the town wakes up in the
    morning to the strains of the national anthem and other
    patriotic songs broadcast through loudspeakers.  Meanwhile,
    billboards and murals call for a harmonious society and
    equal opportunities in education for rural residents, not to
    mention family planning.  One billboard urges families to
    welcome both male and female newborns, letting Mother Nature
    decide the composition of families.  This devotion may exist
    in part because of the area's history:  Baise was the site
    of a 1929 Communist uprising, led by Deng Xiaoping.

    ¶19. (SBU) Most Xilin residents, however, are not subject to
    the limitations of the one-child policy, because they belong
    to minority groups, members of which are allowed to have two
    or three children, depending on circumstances.  Perhaps the
    propaganda is there to encourage them to have smaller
    families voluntarily.  One wonders how the few Han in the
    county react to this reminder of their inability to legally
    have more than one child, while surrounded by larger
    minority families.  Maybe the local authorities in such a
    sparsely populated place are more willing to turn a blind
    eye to a "mistake" in the count.

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    The Future Of Xilin?
    --------------------

    ¶20. (U) Perhaps the most surprising encounter in Xilin took
    place in the city's market, where we met a young
    entrepreneur who had moved from Baise to open up an English-
    language instruction center.  Her target clientele consisted
    of children, and she said many Xilin parents were eager to
    enroll their own, despite the relative poverty of the town.
    However, opportunities to practice the language will be
    limited, as only a smattering of tourists, mostly Americans
    and Canadians, visit Xilin every year.

    Comment:  It's Not That Bad
    ---------------------------

    ¶21. (SBU) Would we be willing to move to Xilin?  No.  That
    said, we cannot honestly describe what we saw in harrowing
    terms.  Our visit to Xilin left EconOff with the impression
    that even the roughest parts of South China are not that far
    off from reaching some basic levels of prosperity.  People
    are poor, but not abjectly.  They clearly enjoy a basic
    level of social services that most people in the developing
    world do not.  There are dispensaries and schools throughout
    the county, and the signs point to a better future.  And if
    there is hope for isolated Xilin, there must be hope for
    every other county in the South.

    ¶22. (SBU) While the older generation leads a life that is
    essentially detached from the outside world, Xilin's Net-
    savvy youngsters have the means to connect themselves to the
    wider goings-on in their country.  Meanwhile, transportation
    is slowly improving, bringing Xilin closer to the rest of
    Guangxi and China.  The nearest railroad, while admittedly
    not that close to Xilin, is of relatively recent
    construction.  Highway projects in both Yunnan and Guangxi
    are shortening travel times for Xilin residents heading to
    the big cities.

    ¶23. (SBU) Meanwhile, our trip to Xilin reinforced the notion
    that, at least in South China, rural unrest is not so much
    of a function of poverty itself, but rather of the
    corruption and inequities (such as the rigid `hukou' system)
    that aggravate and perpetuate poverty.  In Xilin - where
    there is not that much for corrupt government officials to
    pilfer - residents seem to take their poverty in stride.
    This attitude, as well as their patriotism, may stem partly
    from the fact that they have vivid memories of a past that
    was much worse.

    ¶24. (SBU) Even the wide gap between town and country in
    terms of income does not seem to be a major source of
    strain.  The attitude seems to be a more positive one:  If
    you want the riches of the city, hop on a bus and go
    somewhere that's better off.  And for someone in Xilin, even
    a relatively humble place like Baise will do.

    DONG

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