VZCZCXRO4083
RR RUEHGH RUEHVC
DE RUEHCN #0140/01 1550848
ZNR UUUUU ZZH
R 040848Z JUN 07
FM AMCONSUL CHENGDU
TO RUEHC/SECSTATE WASHDC 2520
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHEHAAA/NSC WASHINGTON DC
RUEHCN/AMCONSUL CHENGDU 3048

UNCLAS SECTION 01 OF 02 CHENGDU 000140 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM, DRL, AND G/STC 
 
E.O. 12958: N/A 
TAGS: ECON PGOV SOCI CH
SUBJECT: NOMADIC RESETTLEMENT AND THE NEW SOCIALIST COUNTRYSIDE IN 
SICHUAN PROVINE'S ABA PREFECTURE 
 
REF: A. A) CHENGDU 137 
 
     ¶B. B) CHENGDU 138 
     ¶C. C) CHENGDU 90 
     ¶D. D) CHENGDU 91 
 
CHENGDU 00000140  001.2 OF 002 
 
 
¶1.  (SBU) Summary:  According to local Animal Husbandry Bureau 
officials in Hongyuan County of western Sichuan Province's Aba 
(Tibetan:  Ngaba) Prefecture, the central government has 
invested 30 million RMB (USD 3.9 million) to implement the "New 
Socialist Countryside" and facilitate the transition from a 
traditional to a modern animal husbandry industry.  The 
production level in the largely nomadic county is relatively 
low, so nomads are being resettled into villages and encouraged 
to look for labor work.  The West Yak Corporation purchases yak 
milk from 16,000 nomads to process into a UHT boxed milk product 
for sale in inland China.  Our local hosts were eager to 
describe the benefits of the nomadic resettlement policy, but 
there was little opportunity to speak to local Tibetans 
privately to solicit more candid views on changes in their 
traditional lifestyle.  End Summary. 
 
¶2.  (U) During a recent reporting trip to western Sichuan 
Province's Aba Tibetan and Qiang Autonomous Prefecture, CG and 
Congenoff were hosted for a working lunch by the director of the 
Hongyuan County Animal Husbandry Bureau and a representative of 
the West Yak Corporation, an enterprise founded in 1956.  The 
officials briefed us on economic development in the county, the 
nomadic resettlement policy, and the contributions of the 
private corporation. 
 
Investment in Hongyuan County's New Socialist Countryside 
--------------------------------------------- ------------ 
 
¶3.  (SBU) The director of the Animal Husbandry Bureau said the 
central government has invested 30 million RMB (USD 3.9 million) 
to implement the "New Socialist Countryside" in Hongyuan County, 
and an additional 10 million RMB (USD 1.3 million) specifically 
for ecological protection.  The county is undergoing a 
transition from traditional animal husbandry to modern animal 
husbandry, and Government resources are being used to smooth the 
transition, particularly for improving yak quality.  When 
queried by CG about the policy of fencing off sections of 
grassland traditionally used by nomadic herders, the director 
claimed locals welcomed the policy.  He asserted there was not 
enough grassland to go around, and that there were "conflicts" 
before.  He added that eighty percent of the cost of the fences 
is subsidized by the government, so there is not an excessive 
burden on the herders. 
 
¶4. (SBU) When asked about possible social conflicts due to 
disputes over harvesting of the valuable caterpillar fungus, the 
director claimed there were no conflicts because the price of 
the fungus is regulated in order to protect the environment. 
(Note:  We learned in other conversations that caterpillar 
fungus currently sells for 30-40 RMB (USD 3.95 - 5.26) each, or 
upwards of 80,000 RMB (USD 10,526) per kilogram.  Conflicts 
between Tibetan nomads and newcomers to the region have been 
known to occur when non-residents attempt to partake in 
caterpillar fungus harvesting.  End Note). 
 
Nomadic Resettlement Policy 
--------------------------- 
 
¶5.  (SBU) According to the director, the production level in the 
largely nomadic county is relatively low, so the government is 
forming villages of nomads and encouraging them to look for 
labor work.  He lamented that, although the government provides 
skills training for the nomads, the "results have not been 
good."  He emphasized that nomadic families are being resettled 
in concentrated population centers where they now have access to 
electricity, water, and transportation infrastructure, and that 
they like their new houses and communities.  Of Hongyuan 
County's 30,000 nomads, 20,000 have already been resettled.  The 
Aba Foreign Affairs Office (FAO) official accompanying our group 
offered to take us to see one of the new villages en route to 
our next stop. 
 
Nomads "Happy" With New Homes 
----------------------------- 
 
¶6.  (SBU) Hongyuan officials drove us to a new village of 
approximately 40 homes in a relatively remote section of the 
county.  They introduced us to a man they said was the head of 
the village and invited us to visit his home.  (Ref. B).  The 
house was constructed with rectangular cement blocks and was 
painted white.  It did not have any characteristic Tibetan 
decoration or design.  The former nomad showed us the main 
sitting room of his home that had a traditional yak dung-burning 
stove for heat, electricity, a television, and a small picture 
 
CHENGDU 00000140  002.2 OF 002 
 
 
of the Dalai Lama. 
 
¶7.  (SBU) During the course of the visit, officials repeatedly 
emphasized that resettled nomads built their own homes using 
government subsidies to cover eighty percent of the cost of the 
dwellings.  When asked if he was satisfied with his new home and 
lifestyle in the presence of local officials, the former nomad 
replied that he was "very happy."  (Note:  In a conversation out 
of earshot of the officials, Congenoff learned that the houses 
in the village were all built by construction workers from 
inland China, rather than by the nomads themselves.  End Note). 
 
West Yak Corporation Markets Yak Milk 
------------------------------------- 
 
¶8.  (SBU) Liao Yong, a Han Chinese from Chengdu is the manager 
of the West Yak Corporation's Aba Prefecture headquarters in 
Hongyuan County.  During a tour of the milk-processing factory, 
he said the corporation has invested 30 million RMB (USD 3.9 
million) in the business in order to contribute to the 
development of the local economy (Ref. B).  The corporation 
processes yak milk it purchases from approximately 80 percent of 
the 20,000 nomads in the county.  Liao said the company pays 1.3 
RMB (USD 0.17) for each pound of milk.  The final product, a 
half-pound UHT box of yak milk retails for 12 RMB (USD 1.58) in 
inland China.  The company markets the product as a much more 
nutritious drink than cow's milk.  In response to a question 
from Congenoff about the total number of Tibetan employees, Liao 
responded that most of the company's employees were "locals." 
(Note:  In a side conversation during the factory tour, 
Congenoff learned that of 200 employees, forty are Tibetan.  Of 
those, four are receiving technical training and the others 
collect milk.  One of the four Tibetans is the Deputy Manager of 
the factory.  End Note). 
 
Comment 
------- 
 
¶9.  (SBU) Our local hosts seemed very eager to describe the 
benefits of the nomadic resettlement policy and to present 
"happy" nomads living in settlements with electricity and 
running water.  There was little opportunity to speak to local 
Tibetans privately or to solicit more candid views on changes in 
their traditional lifestyle.  In conversations on this issue in 
other prefectures, we have learned that there are varying 
opinions on the benefits of nomadic resettlement, and that some 
resettled Tibetans struggle to acquire skills that will allow 
them to transition to more modern means of production (Reftels C 
and D). 
BOUGHNER