VZCZCXRO2641
PP RUEHCN RUEHGH RUEHVC
DE RUEHBJ #3155/01 2310552
ZNR UUUUU ZZH
P 180552Z AUG 08
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC PRIORITY 9237
RUCPDOC/USDOC WASHDC
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHIN/AIT TAIPEI 7050
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 BEIJING 003155 
 
SENSITIVE 
SIPDIS 
 
FROM AMBASSADOR RANDT TO E-U/S JEFFERY 
STATE FOR EEB/EPPD/NSMITH-NISSLEY 
STATE FOR EAP/CM/JHABJAN/PARKP 
 
E.O. 12958: N/A 
TAGS: BEXP EINV TBIO SENV ELAB ETRD CH
SUBJECT: AWARD FOR CORPORATE EXCELLENCE (ACE) DUE DILIGENCE 
- CARGILL 
 
REF: STATE 84836 
 
¶1. (SBU) Summary: I have reviewed Cargill's performance as 
requested in reftel regarding nominees for the 2008 
Secretary's Award for Corporate Excellence (ACE). I can 
reaffirm that the company's performance in China has been 
exemplary.  End summary. 
 
¶2. (U) Specific answers to the questions posed in reftel 
below: 
 
A) Could there possibly be any downside or embarrassment 
caused by the selection of your post's nominee? 
 
Post is not aware of any potential downside or 
embarrassment.  Cargill is widely recognized in China as a 
leader in the field of corporate and social responsibility. 
In fact, several local organizations recognized Cargill's 
contributions in 2007 and 2008, including the China 
Children and Teenager's Fund award to Cargill for its 
commitment to building schools and educating youth in rural 
areas.  In addition, Cargill's "Animal Nutrition and Farmer 
Training Program" (CAN) has trained over 2 million farmers 
in China in modern farming and animal nutrition techniques 
and continues to train 200,000 farmers annually at 15 CAN 
farmer-training centers across China. 
 
B) Do you have any information concerning job creation in 
the United States resulting from the operations of the 
company you nominated? 
 
Cargill's operations in China have a positive impact on job 
creation in the United States.  Cargill is the world's 
largest grain exporter, and China is Cargill's largest 
market for soybean trade, exporting over 1.5 million tons 
of soybeans per year.  The firm's sales in China of 
soybeans, cotton, fertilizer and agricultural commodities 
create jobs in the United States and contribute to 
employment in the agricultural and food processing sectors 
in the United States including tens of thousands of United 
States Cargill employees. 
 
C) What is your assessment of the company's trade and 
investment activities with regard to helping stimulate 
economic growth in the U.S. and increasing American exports 
(what is the U.S. content of its products)? 
 
Cargill's trade and investment activities in China 
stimulate economic growth in the United States and increase 
American exports.  Cargill is expanding rapidly in China. 
In 2007, the company reported total revenue of USD 88.3 
billion.  Cargill's current annual trade with China exceeds 
USD 5 billion.  Cargill China's focus is the importation 
and sale into the Chinese market of United States grain, 
agricultural commodities, livestock feed and ingredients 
for processed foods and pharmaceuticals.  This process 
substantially boosts American exports of agricultural 
commodities and stimulates economic growth for farmers and 
food processors in the United States. The steady increase 
in Cargill's sales revenues in China has contributed to the 
overall increase in the volume of American exports to China. 
Cargill's exports to China also provide food security for 
millions of Chinese people and support the Chinese 
Government's efforts to raise the incomes and living 
standards of its rural population. 
 
D) What is the state of labor conditions in the company's 
facilities and are workers unionized? 
 
Post is not aware of any labor problems at Cargill's 
facilities.  Cargill has demonstrated its commitment to 
providing a respectful, safe and supportive workplace. 
Many employees spend their entire careers with the company. 
Cargill China told Embassy officials that it is not aware 
of any unions that represent its approximately 320 mostly 
white collar workers at its headquarters in Shanghai and 
Beijing.  However, many of its plant operators, rural sales 
agents, and factory plant workers are unionized. Cargill 
employs local people from the rural communities in which it 
operates, and says it does not make hiring decisions based 
on union affiliation. 
 
E) Are you aware of any litigation pending in local courts 
involving the company? 
 
BEIJING 00003155  002 OF 002 
 
 
 
Cargill China's legal department told Embassy officials 
August 15 that there are four cases pending in local courts 
against Cargill China involving Cargill China as a 
defendant. 
 
-- One case involves an individual employed by a Cargill 
service provider, Cargill Feed in Zhengjiang, Hunan 
Province, requesting severance and overtime payments from 
Cargill.  Cargill China received favorable decisions from 
the labor arbitrator and the district court.  The plaintiff 
has now appealed the decision to the intermediate court. 
 
-- A second case involves a former employee of Cargill 
Grain and Oilseeds in Yangjiang, Guangdong Province who 
claimed he was entitled to overtime payments.  Cargill 
received a favorable decision from the labor arbitrator and 
the plaintiff has appealed the decision to the district 
court. 
 
-- A third case involves the investment company Crosstown 
China Investments 2, LLC in Xiamen.  This company sued 
Cargill over actions that Cargill says it took to protect 
its investment after the plaintiff sold an asset owned by 
Cargill to a related party of the plaintiff for an 
unreasonably low value.  Cargill believes that its actions 
were legal and consistent with business practices in China. 
 
-- The last case involves Crosstown China Investments 5, 
LLC in Changsha, Hunan Province. Cargill alleges that the 
plaintiff introduced improper evidence regarding a debt 
repayment case and Cargill has appealed this decision to 
the Hunan High Court. 
 
F) Please confirm that the Chief of Mission and others 
involved in the nominating process do not hold share of 
stock or have other financial interests in the company. 
 
Cargill is a privately-held company.  Neither I nor any 
other member of the Embassy involved in the nominating 
process holds stock or has any financial interest in 
Cargill. 
 
RANDT