VZCZCXRO4204
PP RUEHCN RUEHGH RUEHVC
DE RUEHGZ #0122/01 2580956
ZNR UUUUU ZZH
P 150956Z SEP 06
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC PRIORITY 3357
INFO RUEHBY/AMEMBASSY CANBERRA 0373
RUEHNE/AMEMBASSY NEW DELHI 0099
RUEHUL/AMEMBASSY SEOUL 1427
RUEHKO/AMEMBASSY TOKYO 1212
RUEHOO/CHINA POSTS COLLECTIVE
RUEAEPA/HQ EPA WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 02 GUANGZHOU 030122 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR OES/WATSON, OES/EGC-DEROSA-JOYNT AND OES/PCI 
STATE FOR EAP/CM - WARD 
STATE PASS TO CEQ CONNAUGHTON AND BANKS 
STATE PASS TO NSC FOR HUNTER 
DOE FOR INTERNATIONAL/PUMPHREY AND GEBERT 
EPA FOR INTERNATIONAL/MCASKILL 
 
E.O. 12958: N/A 
TAGS: SENV ENRG TSPL BEXP CH
SUBJECT: ASIA PACIFIC PARTNERSHIP ON CLEAN DEVELOPMENT AND 
CLIMATE: CEQ CONNAUGHTON MEETS WITH THE GUANGDONG 
DEVELOPMENT AND REFORM COMMISSION 
 
 
¶1. (U) Summary:  In a September 1 meeting with Guangdong 
Province Development and Reform Commission (DRC) Deputy 
Director Li Miaojuan, White House Council on Environmental 
Quality (CEQ) Chairman James Connaughton called for 
eliminating tariffs on environmental technology products; 
he told Li that U.S. technology providers are working to 
make the latest technologies affordable for sale in China. 
Connaughton and Li discussed the Asia Pacific Partnership 
on Clean Development and Climate (APP) as well as ways in 
which we could share information and cooperation on 
environmental issues bilaterally.  Li stated she was 
looking forward to learning more about the APP and working 
with U.S. agencies and organizations.  End Summary. 
 
¶2. (U) On September 1, CEQ Chairman Connaughton met with 
DRC Deputy Director Li Miaojuan to discuss the APP and 
opportunities for information sharing and cooperation. 
Also present were the respective Chiefs of the DRC?s Energy, 
Industry, Investment, and Regional Economy Sections. 
 
¶3. (U) Connaughton said his senior-level discussions in 
Beijing had focused on promoting the APP and a stronger 
dialogue between governments and industry to control 
pollution, reduce greenhouse gases, and ensure energy 
security.  He had come to Guangzhou to learn about local 
conditions and policies, and to discuss best practices and 
the latest environmental protection technologies.  In 
addition to clean coal cooperation, Connaughton said the 
APP was interested in renewable fuel, natural gas turbines, 
and clean diesel engines. 
 
¶4. (U) Li stated that she too was ?very interested? in 
these issues, wanted to learn more about the APP, and was 
prepared to cooperate with U.S. agencies and organizations. 
She outlined the challenges facing the Province in 
balancing environmental protection and economic growth.  Li 
also mentioned the provincial government?s efforts to 
implement the 11th Five-year Plan with regard to energy and 
the environment, specifically, efforts to promote liquefied 
natural gas (LNG) and nuclear power for the region, as well 
as research into wind and solar energy, methane power 
generation in villages, power plant desulphurization 
projects, and the elimination of the small, high-polluting 
cement factories and ?backyard? power plants.  As part of 
the Five-year Plan, Guangdong?s Clean Production Program 
required that by 2008, 100% of the power plants in the 
Province had to install desulphurization devices; this was 
double the 50% target set at the national level. For all 
new coal-fired power plants, the provincial government had 
also requested the installation of nitrogen removal devices. 
To the best of her knowledge, Li said, no other province 
had advocated this measure. 
 
¶5. (U) Li concluded that in order to advance the APP 
locally, the Partnership countries should first seek 
Central Government support.  They should then encourage 
local governments to increase communication and urge tax 
incentives be provided to encourage enterprises? 
participation. 
 
¶6. (U) Connaughton emphasized the need for high level 
cooperation between industrial leaders, facilitated by 
governments, to take full advantage of the APP.  He pointed 
out that his discussions in Beijing had positive with 
regard to the APP and other matters and said that U.S. 
technology providers were working to make the latest 
technologies affordable.  He urged APP countries to 
eliminate tariffs on environmental products.  Connaughton 
expressed a desire to move forward on the zero-tariff 
discussions which have been delayed in WTO negotiations. 
 
¶7. (U) COMMENT: While Li appeared receptive to the APP and 
cooperative efforts to protect the environment, Chinese 
company representatives with whom the Chairman met in a 
subsequent meeting hosted by the Guangdong Economic and 
Trade Commission were less enthusiastic.  Representatives 
 
GUANGZHOU 00030122  002 OF 002 
 
 
from Shaoguan Iron and Steel, Guangdong Yudean Group, China 
Petroleum and Chemical Corporation, and Zhujiang Brewery 
appeared more interested in personnel, technology, and 
possible financial support that could be provided by the 
APP countries.  End Comment. 
 
¶8. (U) Chairman Connaughton has cleared this message. 
 
GOLDBERG