VZCZCXRO2020
RR RUEHCN RUEHGH
DE RUEHGH #0229/01 1450909
ZNR UUUUU ZZH
R 250909Z MAY 09
FM AMCONSUL SHANGHAI
TO RUEHC/SECSTATE WASHDC 7955
INFO RUEHBJ/AMEMBASSY BEIJING 2800
RUEHSH/AMCONSUL SHENYANG 1979
RUEHGZ/AMCONSUL GUANGZHOU 0445
RUEHCN/AMCONSUL CHENGDU 1988
RUEHHK/AMCONSUL HONG KONG 2157
RUEHIN/AIT TAIPEI 1776
RHEHAAA/NSC WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC
RUEHGH/AMCONSUL SHANGHAI 8601

UNCLAS SECTION 01 OF 04 SHANGHAI 000229 
 
SENSITIVE 
SIPDIS 
 
STATE ALSO FOR EAP/PD - STOLTZ, GALT AND EMMONS 
STATE ALSO FOR ECA 
STATE ALSO FOR S/S-P JAMES GREEN 
USDOC FOR ITA/MAC/OCEA 
NSC FOR LOI, SHRIER 
 
E.O. 12958: N/A 
TAGS: PGOV ECON PREL BEXP OVIP PELOSI NANCY CH
SUBJECT: CODEL PELOSI MEETING WITH SHANGHAI PEOPLE'S CONGRESS 
CHAIRMAN 
 
¶1.  (SBU)  Summary:  Welcoming Speaker of the U.S. House of 
Representatives Nancy Pelosi and a delegation of five additional 
House members on May 24, Shanghai Municipal People's Congress 
(MPC) Standing Committee Chairman Liu Yungeng characterized the 
Speaker's visit to Shanghai as good both for China and for the 
municipality.  Liu acknowledged the global financial crisis had 
slowed Shanghai's growth but believed Central Government 
economic stimulus policies and popular expectations for the 2010 
World Exposition are helping to reenergize the local economy. 
He acknowledged rapid growth has led to challenges for the 
municipal leadership, particularly in dealing with citizens' 
discontent over relocation as a result of urban redevelopment. 
The Speaker thanked Liu and his colleagues for their efforts on 
the delegation's behalf and indicated she would work with 
Secretary of State Clinton on U.S. representation at the 2010 
Expo.  End summary. 
 
 
 
U.S.-China Relations "Positive, Cooperative, Comprehensive" 
 
--------------------------------------------- -------------- 
 
 
 
¶2.  (SBU)  Following introductions of the Chinese attendees at 
the May 24 meeting with Speaker Pelosi, Shanghai Municipal 
People's Congress Standing Committee Chairman Liu Yungeng 
welcomed the Speaker's delegation and observed relations between 
the United States and China have been developing "steadily and 
progressively" since President Obama took office in January. 
President Obama and Chinese President Hu Jintao, he noted, had 
reached a consensus at the London G20 meeting in April on 
establishing a "positive, cooperative, and comprehensive" 
relationship between the two countries.  Liu praised the 1999 
establishment of the parliamentary exchange between China's 
National People's Congress Standing Committee and the U.S. House 
of Representatives as another bridge for friendly interaction 
between U.S. and Chinese legislators. 
 
 
 
¶3.  (SBU)  Liu stressed that the delegations decision to make 
Shanghai their initial stop on their visit to China was good not 
only for China but particularly for Shanghai in its own effort 
to build ties with other countries and regions.  Shanghai, Liu 
noted, has sister-city relations with San Francisco and Chicago. 
 He hoped the Speaker and other members of the delegation would 
leave Shanghai with a better understanding of the city and 
invited them to be candid in any suggestions they might have on 
how to improve it. 
 
 
 
Effects of Financial Crisis Appear to Be Easing 
 
--------------------------------------------- -- 
 
 
 
¶4.  (SBU)  Reviewing Shanghai's development, Liu observed the 
municipality had enjoyed double-digit economic growth both in 
gross domestic product and in citizens' incomes for many years. 
The global financial crisis had caused growth to slow in 2008 to 
9.7 percent, but central government policies to boost domestic 
demand have started to create a "warming" of the local economy. 
In particular, policies aimed at aiding enterprises had led to a 
pick-up both in the stock market and in the housing market 
during the first four months of 2009.  Strong growth in retail 
sales during the January-April period shows the ability and 
willingness of Shanghai residents to consume more.  Moreover, 
the Central Government has reiterated its support for Shanghai 
to develop its service and advanced manufacturing sectors and to 
act as China's leading financial and shipping center. 
Expectations for the Shanghai 2010 World Exposition (Expo) have 
also strengthened the confidence of Shanghai residents in the 
municipality's future, Liu stressed.  According to Liu, 238 
 
SHANGHAI 00000229  002 OF 004 
 
 
countries and regions have confirmed their participation in the 
Expo, of which over 40 had agreed to build pavilions.  This 
effort will give a strong boost to the Shanghai economy. 
 
 
 
¶5.  (SBU)  Nevertheless, Liu acknowledged Shanghai's development 
has its challenges as well, notably the ubiquitous construction 
sites that create substantial inconvenience to its citizens.  In 
addition, Shanghai has had to relocate about one million 
households in order to improve living standards.  He admitted 
not all citizens have welcomed relocation.  If even just one 
member of each household opposes relocation, that means one 
million unhappy people, Liu observed. 
 
 
 
¶6.  (SBU)  Liu briefly described the organization and functions 
of the Shanghai Municipal People's Congress.  Using energy 
issues as an example, he indicated the congress has increasingly 
passed more detailed local legislation in contrast to the very 
general statutes of earlier years in order to strengthen 
regulation.  The congress is also focusing on improving the 
administrative regulations of the municipal government. 
 
 
 
¶7.  (SBU)  In response to question from Representative Markey on 
energy efficiency standards in Shanghai, Liu noted he had 
personally made inspection tours of building sites to observe 
the installation of energy saving measures.  For example, new 
government buildings and factories are required to install 
energy-efficient lighting and automatic switches to reduce power 
consumption.  In addition, the Shanghai Municipal Government is 
providing subsidies to car owners that encourage them to switch 
to more fuel-efficient vehicles, Liu stated.  Shanghai also has 
a number of solar power and wind power facilities, and the 
municipality's Tongji University has been pioneering several new 
energy-saving technologies that have yet to be commercialized. 
Liu indicated that, according to a municipal government report, 
Shanghai's coal consumption per RMB 10,000 of GDP has fallen 
over 11 percent over the past three years. 
 
 
 
Speaker:  Important to See China First-hand; Support for U.S. 
Presence at 2010 Expo 
 
--------------------------------------------- ---------------- 
 
 
 
¶8.  (SBU)  Speaker Pelosi recounted her meeting earlier in the 
date with Catholic Bishop Jin Luxian (septel), who had noted 
how, despite the improvements in communication in the modern 
world, there is still no substitute for seeing something in 
person.  She thanked Liu for the compliment he and the other 
Chinese participants had given to the U.S. delegation in the 
time and effort they had contributed to allowing the members to 
experience China first hand.  She indicated the main purpose of 
the delegation was to discuss energy and climate change, a 
pillar of President Obama's policy agenda, with their Chinese 
counterparts. 
 
 
 
¶9.  (SBU)  The Speaker added that she could not imagine the 
Shanghai 2010 Expo without a U.S. national pavilion and 
indicated she would work with Secretary of State Clinton on U.S. 
representation at the Shanghai Expo. 
 
 
 
¶10.  (SBU)  Participants: 
 
 
 
 
SHANGHAI 00000229  003 OF 004 
 
 
Chinese Participants 
 
 
 
Liu Yungeng, Chairman of Shanghai MPC Standing Committee 
 
Li Zhaoxing, Chairman of NPC Foreign Affairs Committee 
 
Zhou Wenzhong, Chinese Ambassador to the United State 
 
Hu Wei, Vice Chairman of Shanghai MPC Standing Committee 
 
Yao Mingbao, Secretary General of Shanghai MPC Standing Committee 
 
Gan Zhongze, Member of Shanghai MPC Standing Committee and 
Chairman of Shanghai NPC Urban Construction and Environment 
Protection Committee 
 
Ms. Ying Peiyi, Member of Shanghai MPC Standing Committee and 
Chairman of Shanghai MPC Overseas Chinese, Ethnic and Religious 
Affairs Committee 
 
Li Mingjun, Director General of Shanghai Municipal Government 
Foreign Affairs Office 
 
Ms. Yang Jiaying, Vice Secretary General of Shanghai MPC 
Standing Committee 
 
Xu Yi, Deputy Director of Shanghai MPC General Office 
 
Chen Guomin: Minister-Counselor of the Chinese Embassy to the 
United States 
 
Peng Fang, Director, General Office of NPC Foreign Affairs 
Committee 
 
Xu Dong, Deputy Director, General Office of NPC Foreign Affairs 
Committee 
 
Zhao Yong, Deputy Director-General of Foreign Affairs Bureau of 
the General Office of NPC Standing Committee 
 
He Shaoren, Deputy Director-General of the Information Bureau of 
the General Office of NPC Standing Committee 
 
Cheng Lei, Counselor and Director of Department of North 
American and Oceanian Affairs, Ministry of Foreign Affairs 
 
 
 
U.S. Participants 
 
 
 
Speaker Nancy Pelosi and Mr. Paul Pelosi 
 
Rep. Edward Markey and Dr. Susan Blumenthal 
 
Rep. James Sensenbrenner and Mrs. Cheryl Sensenbrenner 
 
Rep. Earl Blumenauer and son Jon Blumenauer 
 
Rep. Jackie Speier 
 
Acting United States Consul General in Shanghai Simon Schuchat 
 
Professional Staff Members to the Speaker and Representatives 
 
Christopher Beede, Consulate Political and Economic Section 
Chief 
 
Christopher Wurzel, Consul (notetaker) 
 
Fei Yuying, Consulate Interpreter 
 
 
 
 
SHANGHAI 00000229  004 OF 004 
 
 
¶11.  (U)  The Speaker's delegation has cleared this message. 
SCHUCHAT