VZCZCXRO0593
RR RUEHCN RUEHGH RUEHVC
DE RUEHGZ #1095/01 2710839
ZNR UUUUU ZZH
R 280839Z SEP 07
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 6501
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC
RUEAEPA/HQ EPA WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 GUANGZHOU 001095 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SENV ECON PGOV CH
SUBJECT: EPA General Counsel Martella Talks Environmental Law in 
Guangzhou 
 
 
¶1. (U) SUMMARY: Inadequate fines for polluters and lack of funding 
for inspectors have made punishment of environmental violations 
difficult in south China, according to local environmental 
officials. Public complaints about the quality of the environment 
are on the rise, and the proliferation of private automobiles 
continues to be a challenge. Chinese officials told U.S. 
Environmental Protection Agency (EPA) General Counsel Roger Martella 
that they were interested in U.S. approaches to environmental 
protection and want to increase interaction with EPA. END SUMMARY. 
 
The Cost of Doing Business 
-------------------------- 
 
¶2. (SBU) There is a popular saying in China that "the cost of 
environmental compliance is high and the cost of breaking the law is 
low," according to Wu Hongjie, Director of the General Office of 
Environmental Inspection of the Guangdong Environmental Protection 
Bureau (EPB). On September 3, 2007, Wu told General Counsel Martella 
that the RMB 100,000 maximum fine for a single case is widely 
considered by polluters to be a cost of doing business. He said such 
fines do not deter factories because an owner can make up the cost 
after only one day of illegally discharging untreated water. Wu also 
complained that low levels of funding mean that fewer than 2,000 of 
the approximately 9,000 "environmental police" under his direction 
are available for site inspections. The rest have only 
administrative duties. 
 
Complaints on the Rise 
---------------------- 
 
¶3. (SBU) Public complaints about the environment were on the rise, 
according to Zheng Zewen, Chief of the Policies and Regulations 
Division of Guangzhou Environmental Protection Bureau. Last year, 
the city registered 18,000 complaints, which accounted for three 
percent of complaints nationwide and 24 percent of complaints in the 
province. Of these, 87 percent were related to waste gas and dust 
from factories and noise from construction sites and vehicles. Zheng 
also pointed out that China has a 24-hour environmental complaint 
hotline. 
 
¶4. (SBU) Zheng believes that Guangzhou has done "a good job" of 
cutting pollution while maintaining economic growth. He noted that 
Guangzhou's 2004 GDP was RMB 440 billion and SO2 concentration was 
0.077mg/ml. In 2006, the city's GDP reached RMB 680 billion, but SO2 
concentration dropped to 0.053mg/ml.  In addition, Zheng said the 
city's annual sulfur-removal capacity grew from less than 20,000 
tons in 2004 to 98,000 tons in 2006. 
 
¶5. (SBU) Zheng predicted that vehicle emissions would continue to be 
a major environmental challenge. The number of cars on the road in 
Guangzhou recently passed the one-million mark, and vehicle 
emissions contribute 40 percent of air pollutants in the city. The 
municipal government hopes that advanced technology, including the 
use of cleaner fuels, will help to alleviate the problem. 
 
Looking to the United States for Ideas 
-------------------------------------- 
 
¶6. (SBU) Both provincial and municipal officials showed interest in 
Martella's presentation on U.S. environmental law and the increasing 
use of environmental conflict resolution or "alternative dispute 
resolution" (ADR). The Chinese officials all expressed eagerness to 
increase cooperation with the U.S. EPA.  Academics also took 
advantage of the visit to learn more about the U.S. system. Dean of 
the Sun Yat-sen University Law School Liu Heng, whose work 
concentrates on China's administrative remedy system, asked about 
the issue of legal standing to bring suit in U.S. environmental 
cases. Sun Yat-sen University professor Li Lei requested that 
General Counsel Martella outline environmental protection strategies 
for rural areas in the United States. 
 
The Role of SEPA's South China Center 
------------------------------------- 
 
¶7. (U) Yuan Dongling, Deputy Director General of the State 
Environmental Protection Agency (SEPA) South China Center, explained 
that his office, which was established in July 2006, is one of six 
regional centers throughout China. Though the Center is relatively 
new, Yuan said that it had already inspected 500 factories and was 
actively involved in inter-provincial environmental dispute 
resolutions. Future expansion plans include a staff increase from 
the 30 current workers to 65 employees, and the naming of two vice 
directors general. Yuan highlighted the challenge of protecting the 
environment while maintaining economic growth and also noted 
considerable room for improvement in funding levels and the legal 
 
GUANGZHOU 00001095  002 OF 002 
 
 
framework. 
 
¶8. (U) The EPA delegation reviewed this cable before transmission. 
 
GOLDBERG