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R 160956Z MAY 06
FM AMCONSUL GUANGZHOU
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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