VZCZCXRO6657
RR RUEHCN RUEHVC
DE RUEHGH #0402 2631019
ZNR UUUUU ZZH
R 191019Z SEP 08
FM AMCONSUL SHANGHAI
TO RUEHC/SECSTATE WASHDC 7167
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHGH/AMCONSUL SHANGHAI 7753

UNCLAS SHANGHAI 000402 
 
SENSITIVE 
SIPDIS 
 
FRANCISCO FRB FOR CURRAN/GLICK; NEW YORK FRB FOR 
CLARK/CRYSTAL/DAWSON 
STATE PASS CFTC FOR OIA/GORLICK 
CEA FOR BLOCK 
USDOC FOR ITA/MAC DAS KASOFF, MELCHER AND OCEA/MCQUEEN 
TREASURY FOR AMB.HOLMER, WRIGHT AND TSMITH 
TREASURY FOR OASIA - DOHNER/HAARSAGER/CUSHMAN 
TREASURY FOR IMFP - SOBEL/MOGHTADER 
NSC FOR LOI 
USTR FOR STRATFORD, WINTER 
 
E.O. 12958: N/A 
TAGS: EFIN ECON EINV PGOV PREL CH
SUBJECT: SHANGHAI AUTHORITIES ALSO DEMAND ASSURANCES FROM AIG 
 
REF: SHANGHAI 399 
 
(SBU) According to a Shanghai-based American International Group 
(AIG) General Insurance Company China high level official, the 
Shanghai Municipal Financial Service Office requested a detailed 
status report on Thursday, September 18.  The summons was lodged 
a day earlier and came on the heels of the request for 
accounting from the China Insurance Regulatory Commission (CIRC) 
in Beijing on Tuesday September 16 (reftel). The official said 
that Shanghai authorities were very concerned about the 
viability of AIG China's operations.  They were particularly 
pointed in their questioning of AIG's coinsurance agreements and 
any guarantees of support made between AIG China and other AIG 
affiliates or subsidiaries outside China.  Shanghai officials 
initially demanded an immediate cessation of any such 
cross-border arrangements and threatened to stop their 
operations in Shanghai if they felt there was not enough 
insulation between AIG China and AIG entities outside China. 
According to the AIG official, Shanghai authorities in the end 
were sufficiently satisfied with AIG China's September 18 
explanation of the company's current operations and arrangements 
in China. 
 
CAMP