VZCZCXRO0582
RR RUEHCN RUEHGH RUEHVC
DE RUEHGZ #2439/01 3550126
ZNR UUUUU ZZH
R 210126Z DEC 06
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 5610
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/USDOC WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC
RHHMUNA/HQ USPACOM HONOLULU HI
RUEAEPA/HQ EPA WASHDC

UNCLAS SECTION 01 OF 02 GUANGZHOU 032439 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/CM 
STATE FOR OES/OGC, OES/ENV, AND OES/PCI/STEWART 
USDOC FOR 4420/ITA/MAC/MCQUEEN, DAS LEVINE 
USPACOM FOR FPA 
EPA FOR OFFICE OF WATER 
EPA ALSO FOR INTERNATIONAL/THOMPSON 
 
E.O. 12958: N/A 
TAGS: SENV PGOV SOCI CH
SUBJECT: Major Environmental Incidents in South China 
 
REF: A) Guangzhou 93 
     B) Guangzhou 3754 
 
¶1. (U) SUMMARY AND COMMENT: Enforcement of environmental 
regulations remains problematic in South China.  Major 
environmental incidents occur with disturbing regularity, 
despite greater efforts by provincial and local governments 
to avert them.  Increased reporting about such incidents 
does suggest that there is greater transparency with 
respect to environmental matters.  Guangdong officials 
filed and investigated 5,000 environmental cases, closing 
1,300 enterpries, in the first nine months of 2006.  Major 
environmental incidents in the region during the past two 
years include cadmium and xylene spills, arsenic and acid 
waste contamination, and illegal waste water discharge. 
END SUMMARY AND COMMENT. 
 
ENFORCEMENT STATISTICS 
---------------------- 
 
¶2. (U) In the first nine months of 2006, Guangdong 
environmental enforcement officials inspected over 100,000 
enterprises that discharge pollutants.  Guangdong officials 
filed and investigated 5,000 cases, resulting in RMB 78 
million (USD 9.9 million) in fines and the closing of 1,300 
enterprises.  More than 6,600 factories were warned about 
environmental violations and were required to remedy them 
within a given period of time. 
 
CADMIUM SPILL 
------------- 
 
¶3. (U) Shaoguan Smelting Factory's illegal discharge of 
cadmium-carrying waste caused serious pollution in the 
Beijiang River in December 2005, affecting the water supply 
of over 100,000 residents downstream (refs A and B). 
Cleanup efforts lasted nearly one month.  Ten employees of 
the state-owned smelter received punishments for their 
roles in the spill.  Two people were fired, two were 
demoted, two received warnings or demerits, and the cases 
of another three were sent to the Public Security Bureau 
(PSB) for criminal investigation.  Shaoguan Smelting has 
invested RMB 80 million (USD 10.3 million) in waste-water 
treatment since the incident and is expected to achieve 
zero discharge of untreated water next year. 
 
ARSENIC POISONING 
----------------- 
 
¶4. (U) Yingde Sulfuric Acid Factory illegally discharged 
pollutants with a high concentration of arsenic in November 
2005, causing arsenic poisoning in 29 villagers who drank 
contaminated water.  The Director of the Yingde Municipal 
Environmental Protection Bureau (EPB) was required to 
submit written self-criticisms.  Five workers were 
disciplined by the Party and several were detained by the 
PSB pending criminal charges. 
 
ACID WASTE 
---------- 
 
¶5. (U) Guangzhou Haibei Petro-Chemical Distribution Company 
illegally dumped acid waste and caused serious pollution in 
the Foshan waterway of the Pearl River from May to 
September 2005.  One person was sentenced to three years 
probation.  The company was fined RMB 100,000 (USD 12,800). 
 
XYLENE SPILL 
------------ 
 
¶6. (U) A truck driver was sentenced to nine months behind 
bars for illegally driving a truck overloaded with the 
hazardous material xylene (a solvent used in the printing, 
rubber, and leather industries) in January 2006.  The truck 
ran off the road and plunged into a waterway near the 
Xinjie River in the Huadu District of Guangzhou.  Nearly 
one ton of xylene spilled into the waterway.  The local 
media reported that prompt action in containing the spill 
prevented any injuries or contamination of the water 
 
GUANGZHOU 00032439  002 OF 002 
 
 
supply. 
 
TEXTILE FACTORY WASTE WATER 
--------------------------- 
 
¶7. (U) Dongguan Fuan Textiles Ltd., fully owned by Hong 
Kong-listed Fountain Set (Holdings) Ltd., secretly released 
more than 10 million tons of waste-water over the past two 
years through an underground pipe.  In June 2006, the 
company was fined RMB 210,000 (USD 26,900) and asked to pay 
an additional RMB 11.5 million (USD 1.47 million) in 
retroactive discharge fees. 
 
UPSTART EPB'S 
------------- 
 
¶8. (U) Longchuan County EPB was criticized for bypassing 
the Guangdong Provincial EPB in lowering thresholds for 
various environmental requirements and illegally approving 
a mineral exploration project in 2005.  Separately, the 
Boluo County EPB was criticized for bypassing Guangdong 
Province EPB's review and approving highly polluting 
projects from 2002 to 2005. 
 
GOLDBERG