VZCZCXRO7829
RR RUEHGH
DE RUEHCN #0018/01 0260912
ZNR UUUUU ZZH
R 260912Z JAN 10
FM AMCONSUL CHENGDU
TO RUEHC/SECSTATE WASHDC 3705
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/USDOC WASHDC 0051
RUEHCN/AMCONSUL CHENGDU 4428

UNCLAS SECTION 01 OF 02 CHENGDU 000018 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EINV ELTN EAIR PGOV PINR SENV BEXP CH
SUBJECT: SW CHINA: CHENGDU MAYOR GE MEETS CONSULATES 
 
REF: A) 08 CHENGDU 251; B) 09 CHENGDU 232; C) 09 CHENGDU 310;  D) 09 CHENGDU 81 
 
CHENGDU 00000018  001.2 OF 002 
 
 
¶1. (SBU) Summary: Chengdu will build on its strengths in high 
tech areas such as IT, software services, and the aircraft 
industry, Mayor Ge Honglin said January 22.  Chengdu will lead 
in cutting carbon emissions: it closed all coalmines in the 
larger Chengdu municipal region, and is now replacing smaller 
cement plans with larger ones using French technology. 
Chengdu's first subway line will being trial runs in October 
2010; another three lines are under construction or in the 
advanced planning stage.  Two-thirds of the townships in Chengdu 
have their own sewage treatment; the remainder will have it by 
the end of 2010.  Only 300,000 of Chengdu's 11 million people 
are poor; the city government provides them with free medical 
care and a minimum income higher than most other Chinese cities. 
 End Summary. 
 
 
 
Chengdu Mayor Ge Honglin's Q&A with SW China Consulates 
 
--------------------------------------------- ---------- 
 
 
 
¶2.  (SBU) Chengdu Mayor Ge Honglin (refs A and B) met diplomats 
in southwest China January 22 for an hour-long session.  Ge, who 
has impressed us with his command of detail, pragmatism, and 
good humor, opening the session with: "I gave you a hand out on 
Chengdu, so no need to repeat what's there.  Let's do a question 
and answer session."  (This meeting, and a January 21 meeting 
with Sichuan Party Secretary Liu Qibao, were organized at the 
request of Consul General Brown, acting on behalf of all Consul 
Generals and Consuls in Chengdu and Chongqing.) 
 
 
 
¶3.  (SBU) Mayor Ge responded to questions by explaining that 
2010 was the last year of China's 11th five-year plan, and that 
Chengdu was thus reviewing its longer-term economic plans. 
Chengdu will build on its strengths in high-tech fields, 
focusing particularly on IT, software services, and the aircraft 
industry, the mayor said.  On February 27, non-stop air service 
will begin from Chengdu to Bangalore, the center of India's 
software industry.    Chengdu Airlines made its first flight on 
January 23, Ge noted.  The airline is a re-launch of the defunct 
United Eagle, and is a joint venture of a trio of state-owned 
enterprises: COMAC, Sichuan Airlines, and the Chengdu 
Transportation Investment Group. 
 
 
 
Large Infrastructure Projects; Opportunities for Foreign Firms 
 
--------------------------------------------- ----------------- 
 
 
 
¶4. (SBU) Large infrastructure construction through 2020 (refs C 
and D), will include a second airport for Chengdu, and light 
rail links from Chengdu's downtown to all the secondary cities 
in the six counties under the Chengdu city government.  The 
Chengdu-Dujiangyan high-speed rail line will open on May 12, 
¶2010.  Trial operation of the Chengdu subway system's line 1 
(north to south) will begin in October.  Construction of line 2 
(east to west) is already well underway.  Construction of line 4 
starts during 2010.  Planning of line 3 is well advanced.  Ge 
mentioned that these projects have created opportunities for 
foreign investors, mentioning a U.S. company's joint venture 
with a Chinese firm in the Chengdu suburb of Longquanyi, where 
the company makes boring equipment for tunnels and heavy 
equipment for highway construction.  (Note: With involvement of 
the FCS advocacy program, Motorola won a contract for subway 
line 1, and hopes to win the contract for line 2.  End Note.) 
 
 
 
¶5. (SBU) U.S., French, and German, companies are doing well in 
Chengdu, Ge said.  The Singapore CG responded with a 
question-comment indicating her concerns about the investment 
climate in Chengdu.  She said that Singapore is the third 
largest investor in Chengdu after Hong Kong and the Virgin 
Islands. 
 
 
 
 
 
Chengdu - Chongqing Compete to Become Carbon Demonstration City 
--------------------------------------------- ------------------ 
 
 
 
CHENGDU 00000018  002.2 OF 002 
 
 
 
¶6. (SBU) "Chengdu has won an award for being a leading Chinese 
low-carbon emissions city! Look at today's newspaper," Mayor Ge 
exclaimed. Indeed, on January 22, the Sichuan cities of Chengdu 
and Guanyuan won the title of contributor to the lowering of 
carbon emissions at the first annual meeting of the "Low Carbon 
China Forum" [Ditan Zhongguo Luntan] meeting in Beijing.   Mayor 
Ge mentioned two ways Chengdu how won the low carbon city title: 
closing coalmines and small cement plants.  The cement plants 
were replaced with big cement plants that use the low pollution 
technology of France's La Farge, the world's largest cement 
company.  Chengdu set aside 400 million RMB (USD 70 million 
dollars) to help laid off workers from the small cement plants 
to find new jobs, Ge explained. 
 
 
 
¶7. (U) Chengdu and Chongqing are competing for the 
national-level designation as a "low carbon economy 
demonstration city," following on Premier Wen Jiabao's November 
2009 statement at the "S&T Driven Sustainable Economy 
Conference" that China would make creating a low carbon economy 
a high priority, according to a January 25 Lianhe Zaobao 
(Singapore) report.  Chengdu will stress development of low 
carbon emission energy sources and industries such as solar, 
nuclear and wind power, and LED lighting.  Chongqing 
Municipality pledged to reduce its carbon intensity to 40 
percent below the 2005 level by 2020. See URL 
tinyurl.com/chengdu-low-carbon.) 
 
 
 
 
 
 
 
The Environment and Poverty Alleviation 
 
--------------------------------------- 
 
 
 
¶8. (SBU) Mayor Ge responded to two questions from the Pakistani 
CG on environmental quality, and poverty alleviation, noting 
that: 
 
 
 
-- Chengdu is working to reduce the stink of stagnant waters, 
including in the area near the U.S. Consulate in Chengdu.  He 
said the rivers in Chengdu area are wide and shallow and are 
often slow moving.  Sometimes water flow is cut off at 
Dujiangyan in the wintertime for renovations there.  The Mayor 
said that two-thirds of the towns of the nine districts, six 
counties and four cities in which the 11 million people of 
Chengdu live already have water treatment plants; the remaining 
one third will have them by the end of 2010. 
 
 
 
-- About 300,000 of Chengdu's 11 million people live are poor. 
Chengdu has one of the highest guaranteed minimum incomes in 
China and provides housing and health care to the poor.  The 
beggars on Chengdu's streets all come from out of town, he 
asserted. Ge said his top priority as mayor has been to reduce 
the urban-rural income gap in Chengdu.  The stress on spending 
extra resources to rural development is what makes Chengdu's 
path to development distinctive, he felt. 
 
 
 
 
 
No Response to Question on Overheated Chengdu Housing Market 
 
--------------------------------------------- --------------- 
 
 
 
¶9. (SBU) ConGenOff asked Mayor Ge whether the Chinese 
government's 4 trillion RMB fiscal stimulus package may cause 
the Chengdu housing market to overheat.  The Mayor gave an 
unresponsive answer, noting that Chengdu is not pushing prices 
up and is implementing the central government's policy.  Note: 
Chengdu housing prices declined beginning in late 2007, but have 
risen rapidly in recent months. 
BROWN