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ZNR UUUUU ZZH
R 170917Z MAY 06 ZDK CTG RUEACSA 4323 1381110
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 8141
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UNCLAS SECTION 01 OF 03 GUANGZHOU 014818 
 
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 ETRD ELAB CH
SUBJECT: Long March: Restoring Streets, Harbor, and Pride in 
Zhangzhou 
 
Ref:  A) Beijing 2459 (notal) B) 05 Guangzhou 23050 C) 
 
Guangzhou 13362 D) Guangzhou 13384 E) Guangzhou 13385 F) 
14707 
 
GUANGZHOU 00014818  001.2 OF 003 
 
 
¶1.  (SBU) SUMMARY: Zhangzhou Prefecture, in southwest 
Fujian, was once a major Chinese port. Today leaders are 
trying to restore the area to its golden era by developing 
the Zhangzhou harbor, attracting business, strengthening 
ties with Taiwan, and renovating cultural and historical 
sites.  Leaders in the prefecture have a clear vision of the 
future and pragmatic policies to see it to completion. 
END SUMMARY 
 
A Clear Vision 
-------------- 
 
¶2. (U) As part of Consulate Guangzhou's "long march," 
following visits to Yongding and Longyan, the Consul General 
and Conoffs drove to Zhangzhou Prefecture in southwest 
Fujian and met with local leaders.  Wu Jianzhu, Secretary- 
General of the Zhangzhou Municipal People's Government 
provided an overview of the Prefecture's 11th five-year 
plan.  The leaders articulated a clear vision for future 
development of the region focusing on developing the 
logistics industry, expanding relations with Taiwan, 
improving rural conditions, and increasing tourist revenue. 
Zhangzhou leaders were well prepared for the briefings, 
answered questions quickly and thoroughly, and even provided 
printed copies of the prefecture's 11th five-year plan, 
unlike any other city visited during the long march. 
 
¶3. (U) Located in southeast Fujian Province, Zhangzhou 
Prefecture was once a major port city.  Today, prefecture 
leaders are trying to restore the city's role and establish 
the area as a distribution center for commercial cargo. 
Zhangzhou's 12.6 thousand square kilometers of land are 
divided into one city with two districts, and eight 
counties, home to 4,600,000 residents.  The prefecture's RMB 
62.64 billion (USD 7.8 billion) GDP saw an 11% increase in 
2005, mostly as a result of expanding food, manufacturing, 
furniture and pharmacy industries. 
 
Harbor - Infrastructure and Access 
---------------------------------- 
 
¶4. (U) Zhangzhou leaders are eager to expand business at the 
prefecture's large, underdeveloped port.  By the leaders' 
own admission the port lacks development, but has remarkable 
potential.  There are currently eight berths available for 
cargo and other ships.  The port's size, however, is large 
enough and sufficiently deep for the creation of up to 120 
berths.  In 2005, Zhangzhou Port handled a healthy 47.7 
million tons of bulk cargo.  The key to increasing this 
capacity will be investing in the infrastructure necessary 
to take full advantage of the port's size, however a central 
government announcement in May linking Zhangzhou's port with 
Xiamen Port as part of a major port hub program is likely to 
encourage investors.  Zhangzhou port will handle an 
increasing amount of oil and gas imports, according to the 
announcement. 
 
¶5. (U) A major selling point of Zhangzhou's port is it's 
proximity to two major railroad lines; one connecting the 
city to Jiangxi to the west, another under development will 
connect Xiamen to Shenzhen to the south.  In addition, a 
cross-harbor bridge that will connect Zhangzhou to Xiamen 
with its large port, the seventh busiest in the world, is in 
the works.  Leaders admit that the key to successful 
marketing of the port relies on the proximity to railroad 
lines and easy access to distribution channels. 
 
Friendly Neighbors to the East? 
------------------------------- 
 
¶6. (U) The people, industry, and culture of Zhangzhou remain 
closely linked to Taiwan.  The prefecture is located just 
120 nautical miles from the central Taiwan city of Taichung. 
Leaders estimate that 35% of people in Taiwan can trace 
their origins to the prefecture.  Notable Zhangzhou 
decedents include Taiwan's current leader, Chen Shuibian and 
 
GUANGZHOU 00014818  002.2 OF 003 
 
 
Lien Chan, former leader of Taiwan's opposition Kuomintang 
(KMT).  In addition, the Mingnan dialect prevalent in 
Zhangzhou is also spoken throughout Taiwan.  These social, 
cultural, and linguistic ties make Zhangzhou a convenient 
destination for Taiwan tourists and business people.  As a 
result, Zhangzhou enjoys healthy investment from Taiwan 
firms, and ranks number three behind Suzhou and Dongguan 
among Chinese cities receiving Taiwan investment.  The 
majority of this investment is in manufacturing. 
 
Wanlida: Passion, Innovation, Commitment 
---------------------------------------- 
 
¶7. (U) In addition to foreign and Taiwan invested 
enterprises, Zhangzhou Prefecture is home to successful 
local businesses.  Wanlida Company a major electronics 
producer, was started in 1984 with just RMB 80,000 (USD 
10,000) investment by the company's founder, Wu Huitian, a 
native of Zhangzhou.  Wu personally showed the group around 
his modern electronics manufacturing facility located just 
outside the city center.  The company now boasts 10,000 
employees, factories in several mainland China locations, 
and representative offices in Hong Kong and the United 
States.  The majority of the company's business is original 
equipment manufacturing (OEM) for such large companies as 
Polaroid, Zenith, and other international brands as well as 
a house brand for domestic sales. 
 
¶8. (U) Wu seemed particularly proud of the benefits he 
provides to the company's employees including insurance, 
salary, and housing.  Wu claims his company's benefits are 
better than those of government employees.  Working 
conditions for company employees seem relatively 
comfortable, as well, as the factory is audited by its 
customers to assess working and environmental conditions. 
Company employees were quick to point out elaborate 
ventilation systems for solder fumes, air-conditioning 
systems, and safety equipment.  During a tour of the company 
showroom Wu proudly introduced a flat screen television with 
the capability of attaching and removing modularized 
accessories such as a DVD player, internet connection, or 
home security monitoring system to the back of the 
television, a feature he developed. 
 
Green Acres 
----------- 
 
¶9. (U) Like other prefectures visited on the long march, 
Zhangzhou continues to struggle with the gap in government 
services and infrastructure, income levels, and employment 
opportunities between rural and urban residents.  Of the 
Prefecture's 4.6 million residents, 75% (3.8 million) live 
in rural areas.  Leaders see transportation, education, and 
sanitation as the major challenges facing rural residents 
and ones which they hope to address during the next five 
years. 
 
¶10. (U) Zhangzhou has a reputation domestically for 
agriculture, particularly for fruits and flowers.  The area 
has a reasonably well-developed agricultural industry, and a 
fair export market.  Currently Zhangzhou exports fruit and 
tea to Europe, and mushrooms to Japan.  Agricultural GDP saw 
a 3.7% increase in 2005 to RMB 15.4 billion (USD 1.3 
billion).  Traditional industries such as fruit, vegetables, 
flowers, aquaculture products, livestock, and tea industries 
remain constant.  The processing of agricultural products 
continues to be a focus of development efforts in the 
Prefecture.  In recent years, Zhangzhou has become a center 
of food processing and logistics with large capacity for 
storage of frozen seafood, a trend that local leaders hope 
to continue. 
 
This Old House - Fujian Style 
----------------------------- 
 
¶11. (U) Located on the coast of Fujian Province and not far 
from economic powerhouse Xiamen, Zhangzhou enjoys healthy 
tourism from both domestic and Taiwan markets.  Temperate 
climates, and long stretches of beach attract the majority 
of domestic visitors.  Many Taiwan visitors come to the 
 
GUANGZHOU 00014818  003.2 OF 003 
 
 
region to connect with their roots, or pay homage to their 
forbearers.  Zhangzhou officials have taken steps to 
encourage resort tourism along the coast, and cultural 
tourism in the city. 
¶12. (U) The centerpiece of Zhangzhou's historic development 
efforts is a series of renovated streets.  The area, located 
near the city center, contains 400-year-old stone archways, 
a temple, and several historic storefronts.  Streets, 
sidewalks, and facades have all been renovated to meticulous 
standards.  As a result, the renovation project received an 
Honorable Mention in the annual UNESCO Asia-Pacific Heritage 
Awards program in 2004.  Zhangzhou leaders hope the 
renovated street will cement the area's cultural and 
historical tourism efforts. 
Comment: Prepared, but Ready? 
----------------------------- 
 
¶13. (SBU) Zhangzhou is not a city one thinks of when 
thinking of economic centers of Fujian Province.  Zhangzhou 
leaders acknowledged their unknown status but appeared well 
prepared to attempt to change the city's reputation from 
backwater to rapidly developing economy.  Most of 
Zhangzhou's plan for growth hinges on investments in 
infrastructure funded by investors who recognize its obvious 
benefits as a transportation hub, and that infrastructure 
being used by manufacturers who recognize its utility and 
convenience.  With Xiamen Port rapidly expanding in light of 
the success of its IPO last year, Zhangzhou, with its newly 
announced link with Xiamen Port, should more easily be able 
to attract investors to succeed in realizing its plans. 
 
¶14. (U) Official met in Zhangzhou included: 
He Jinlong     Mayor 
Wang Yaoquan   Vice Mayor 
Hong Lizhuan   Director, Development and Reform Commission 
Wu Jianzhu     Secretary General, Zhangzhou Government 
Li Linsheng    Director, Zhangzhou Government, FAO 
Lian Sile      Deputy Director, FAO 
Wu Huitian     President, Wanlida Group Co. Ltd (Malata) 
Song Xiangguan GM Assistant, Wanlinda Group Co. Ltd 
 
ROCK