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R 080914Z MAY 08
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 7094
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UNCLAS GUANGZHOU 000256 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM AND EAP/TC 
 
E.O. 12958: N/A 
TAGS: EINV ECON PREL TW CH
SUBJECT: Guangdong Property Tycoon Sees Opportunities in Taiwan 
 
 
(U) THIS DOCUMENT IS SENSITIVE BUT UNCLASSIFIED.  IT SHOULD NOT BE 
DISSEMINATED OUTSIDE U.S. GOVERNMENT CHANNELS OR IN ANY PUBLIC FORUM 
WITHOUT THE WRITTEN CONCURRENCE OF THE ORIGINATOR.  IT SHOULD NOT BE 
POSTED ON THE INTERNET. 
 
¶1. (SBU) Summary: After participating in a delegation of mainland 
property tycoons who visited Taiwan in late April, Li Sze Lim (Li 
Silian), a well-placed and successful real estate entrepreneur, is 
considering investing in the island's hotel sector.  Li said his 
interest was contingent on further cross-strait opening, especially 
direct air links; he is optimistic real progress is possible and 
said mainland real estate developers are ready to take advantage of 
new opportunities.  End Summary. 
 
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Looking for a Deal 
------------------ 
 
¶2. (SBU) Nine mainland China real estate tycoons visited Taiwan in 
late April to assess investment opportunities on the island.  R&F 
Properties Chair Li Sze Lim (Li Silian), who is originally from Hong 
Kong and who was a member of the delegation, told the Consul General 
that he believed there would be opportunities for his firm to build 
hotels in Taiwan.  R&F Properties is one of China's largest real 
estate development firms and was China's biggest real estate sector 
tax payer in 2007.  (Forbes recently estimated Li's personal fortune 
at US$3.5 billion.)  Li said that Taiwan currently lacks the 
capacity and experience to accommodate the huge numbers of mainland 
tourists - tens of thousands - who will visit the island after it 
opens further during Ma Yingjeou's term in office. 
 
¶3.  (SBU) Hong Kong's experience with mainland travelers, Li said, 
would likely be replicated in Taiwan.  A friend of his who is the 
exclusive franchise retailer in Hong Kong for a luxury brand of 
watches sold out all but 12 watches during the Chinese New Year. 
The demand all came from mainland holiday visitors.  Li also claimed 
that rates in Hong Kong's three-star hotels had tripled over the 
last few years due to mainland tourists. 
 
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Blues Roll Out Red Carpet 
------------------------- 
 
¶3. (SBU) The property delegation was greeted warmly by high-profile 
Kuomintang (KMT) politicians, according to Li.  The trip was 
organized by Liu Changle, Chair of Hong Kong's Phoenix TV, with 
stops in Taipei, Taichung and Kenting.  The delegation had 
originally planned on Kaohsiung as the third stop but substituted 
the resort area of nearby Kenting due to opposition from local 
Democratic Progressive Party (DPP) politicians, according to Li. 
However, Li was impressed when Liu was able to arrange a lunch with 
some local DPP legislators under the auspices of a local Buddhist 
monk.  In Taipei and Taichung, the delegation met with KMT Chair Wu 
Po-hsiung, Taipei Mayor Hau Lung-bin and Taichung Mayor Jason Hu. 
 
------------------------------- 
Lots of Ifs, but Worth the Risk 
------------------------------- 
 
¶4. (SBU) Li emphasized that his interest in investing in Taiwan was 
contingent on further cross-strait opening, especially direct 
flights and mainland tourism.  There would likely be opposition in 
Taiwan from the DPP and others, who would complain about the impact 
large numbers of mainlanders would have on social order and public 
health in Taiwan.  Investors like R&F Properties will need local 
support in Taiwan if they invest there.  Hotel development, he said, 
was particularly promising as it would be less controversial and 
would increase nearby property values.  Despite possible opposition, 
Li is optimistic about the prospects for Taiwan opening up to 
mainland investment.  He believes the two will eventually reunite 
and noted that top Chinese leaders are becoming more rational and 
patient in their dealings with Taiwan.  For now, he and other 
mainland developers are watching the cross-strait situation closely 
and will be ready to take advantage of opportunities when they 
arise. 
 
GOLDBERG