VZCZCXRO7187
RR RUEHCN RUEHGH
DE RUEHGH #0259/01 1630342
ZNR UUUUU ZZH
R 120342Z JUN 09
FM AMCONSUL SHANGHAI
TO RUEHC/SECSTATE WASHDC 8036
INFO RUEHBJ/AMEMBASSY BEIJING 2873
RUEHSH/AMCONSUL SHENYANG 2045
RUEHCN/AMCONSUL CHENGDU 2054
RUEHGZ/AMCONSUL GUANGZHOU 0511
RUEHHK/AMCONSUL HONG KONG 2222
RUEHIN/AIT TAIPEI 1841
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHGH/AMCONSUL SHANGHAI 8683

UNCLAS SECTION 01 OF 05 SHANGHAI 000259 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EAP/CM, EAP/EX, EAP/PD (EMMONS), ECA/PE/C (KORYCKI), 
OES/IHB 
STATE PASS USTR FOR STRATFORD, WINTER, MCCARTIN, ALTBACH 
DOC FOR ITA/MAC - DAS KASOFF, MELCHER, SZYMANSKI, COUCH, LEHRMAN 
TREASURY FOR OASIA - DOHNER/HAARSAGER/CUSHMAN 
NSC FOR LOI 
 
E.O. 12958: N/A 
TAGS: PREL CASC PGOV ECON TBIO KFLU ASEC AMGT CVIS
OFDP, CH 
SUBJECT: SHANGHAI FOREIGN AFFAIRS OFFICE HOLDS "UNPRECEDENTED" 
MEETING TO INVITE CONSULATES' FEEDBACK ON IMPROVING CITY SERVICES 
 
Summary 
 
------- 
 
 
 
¶1. (SBU) The Shanghai Municipal Foreign Affairs Office (FAO) 
convoked Consular Corps representatives on June 9 for an 
"unprecedented" meeting on improving Shanghai's service 
environment for foreigners.  With the Shanghai 2010 World Expo 
approaching, relevant municipal government authorities must ask 
themselves if Shanghai's goal of becoming an "international 
metropolis" will be met, said FAO Deputy Director General Shao 
Huixiang.  Consulate representatives expressed appreciation for 
the FAO's support during the H1N1 flu crisis, but diplomats from 
Singapore and France expressed concern that the FAO's 
notification to Consulates of foreign visitors in health 
quarantine has not been consistent.  Several diplomats raised 
questions about government transparency in the run-up to the 
Expo, and they pointed out that the lack of legal registration 
for national chambers of commerce inhibits business cooperation. 
 A recent traffic accident between a taxi and a public bus that 
resulted in the deaths of four Korean residents prompted a 
discussion on traffic safety in Shanghai.  A proposal to post 
all information pertinent to foreigners on one municipal 
government website elicited an enthusiastic response from the 
FAO.  The diplomats complained about the amount of time required 
for new arrivals to receive diplomatic identification, which 
then delays receipt of their personal effects.  At the meeting's 
conclusion, the FAO representatives thanked the assembled 
diplomats for their recommendations and promised to hold similar 
meetings every 3-4 months to "hear about your difficulties." 
End Summary. 
 
 
 
Shanghai FAO Holds "Unprecedented" Meeting 
 
------------------------------------------ 
 
 
 
¶2. (SBU) Shao Huixiang, Deputy Director General of the Shanghai 
Municipal Foreign Affairs Office (FAO) chaired the June 9 
meeting on improving the city's service environment for 
foreigners, which was attended by representatives of the 
Consulates of the United Kingdom, France, Germany, Australia, 
Japan, South Korea, and Singapore, as well as Pol/Econ Chief and 
PolOff.  Shao noted that he has worked for the Shanghai FAO for 
27 years, but he sees the next year as a critical time for the 
city's development.  With the Shanghai 2010 World Expo just 300 
days away, he said, addressing the needs of foreigners and 
foreign organizations is more important than ever.  Shanghai 
must endeavor to improve its service environment for foreigners, 
and all relevant municipal government organizations must ask 
themselves if Shanghai's goal of becoming an "international 
metropolis" will be met by the time the Expo opens its six-month 
run on May 1, 2010.  (Note:  City officials have predicted as 
many as ten million foreign visitors to Shanghai during the 2010 
Expo, as well as sixty million domestic visitors.  End note.). 
 
 
 
¶3. (SBU) Shao stated that Shanghai now has more than 150,000 
long-term (more than six months) foreign residents and last year 
the city attracted approximately 6.5 million foreign visitors. 
Whether in Shanghai for long- or short-term duration, foreign 
visitors have high expectations for their living and working 
environment, as well as for education and medical services, he 
said.  Many foreigners say Shanghai's service environment has 
improved, but there is still much work to be done, Shao added, 
pointing out that there remain significant language barriers and 
burdensome administrative procedures.  Shao told the assembled 
Consular Corps that the goal of the June 9 meeting would be for 
 
SHANGHAI 00000259  002 OF 005 
 
 
the FAO to be "on the receiving side" to accept suggestions and 
advice from Shanghai-based diplomats on how to meet foreigners' 
needs. 
 
 
 
H1N1 Support Good, But Need More Consistency 
 
-------------------------------------------- 
 
 
 
¶4. (SBU) As the major issue of the moment, the H1N1 influenza 
and Shanghai's efforts to control the spread of the disease were 
a major topic of discussion during the meeting.  Australian 
Consul General Tom Connor expressed appreciation for the FAO's 
cooperation during the H1N1 crisis, particularly the FAO's 
"quick advice and feedback" on cases involving Australian 
citizens.  Ang Choo Pin, Singapore's Deputy Consul General, and 
Guillaume Roy from the French Consulate, however, both expressed 
concern that the FAO's notification to Consulates of foreign 
visitors in health quarantine has not been consistent.  Ang Choo 
Pin cited the case of the son of a Singaporean Minister who had 
been quarantined without the Consulate's knowledge, and he 
encouraged the Shanghai FAO to "write down in black and white" 
the municipal government's quarantine procedures and provide 
better contact information for those FAO officials who could 
answer questions about specific cases. 
 
 
 
¶5. (SBU) Shao responded that the FAO's H1N1 "Command Center" 
always is reachable to obtain information on quarantine cases 
involving foreigners.  At the same time, he apologized to the 
Singaporean Consulate for the "failure of the FAO's work" during 
the case of the Minister's son.  There still is much work to be 
done on quarantine notifications, Shao admitted.  Shao also 
explained that Chinese health authorities are not permitted to 
publicly identify specific individuals in quarantine, whether 
there for sickness or just for suspected exposure, without the 
consent of the individuals. 
 
 
 
Transparency and the 2010 World Expo 
 
------------------------------------ 
 
 
 
¶6. (SBU) Several diplomats raised questions about government 
transparency in the run-up to the Shanghai 2010 World Expo. 
Australian Consul General Connor encouraged the FAO to promote a 
"high level of transparency" as the Expo approaches, letting 
foreigners know "what to expect and why," informing them of any 
regulatory changes at the earliest possible stage.  Pol/Econ 
Chief added that foreign transportation companies in particular 
are concerned about possible last-minute changes in regulations 
that might affect shipping during the Expo's six-month period. 
The German Consul General asked how security procedures during 
the Expo might affect the resident foreign community.  Shao 
admitted that Shanghai's focus on security during the Expo might 
cause inconveniences, but "greater security" would be for the 
"greater good" during the Expo.  Shao added that he does not 
anticipate Beijing 2008 Summer Olympics-like problems obtaining 
visas to visit Shanghai for the Expo since it is a six-month 
long event.  Shanghai Customs also is working to speed up its 
clearances process, Shao added. 
 
 
 
¶7. (SBU) At the same time, Consulate representatives pointed out 
that the lack of legal registration for national chambers of 
commerce inhibit business cooperation with government officials. 
 
SHANGHAI 00000259  003 OF 005 
 
 
 Connor complained that the Australian Chamber of Commerce in 
Shanghai is not legally registered, which deters stronger 
business ties.  In addition, the German Consul General noted 
that Chinese companies are not permitted by law to join the 
German Chamber.  Pol/Econ Chief supported Connor's point, citing 
the experience of the Shanghai American Chamber of Commerce 
(Amcham), which remains an unregistered entity due to Chinese 
law allowing only one chamber of commerce per nation in China. 
Shao stated that many laws and regulations (especially those 
pertaining to business) in China remain "backward," and 
developing a proper legal framework for business associations 
would need to be addressed by the Central Government. 
 
 
 
Tragic Accident Prompts Discussion of Traffic Safety 
 
--------------------------------------------- ------- 
 
 
 
¶8. (SBU) The circumstances surrounding an early June Shanghai 
traffic accident between a taxi and a public bus that resulted 
in the deaths of four Korean residents of Shanghai prompted a 
discussion on traffic safety in Shanghai.  The Korean 
representative at the meeting characterized the city's traffic 
safety situation as "very serious," stating that foreigners are 
beginning to perceive Shanghai as a "dangerous" place to live. 
Pol/Econ Chief added that emergency services are slow and 
unreliable, meaning that if public buses or taxis run red lights 
or pass illegally (as they often do in Shanghai), the odds of 
surviving a serious accident are low, as was tragically 
demonstrated by the recent accident involving the four Koreans. 
Shao replied that traffic safety is very important, and the city 
is implementing a new call center hotline number (912288) on 
July 1, 2009 that foreigners can call either to seek language 
interpretation help to communicate with their taxi driver about 
their destination or to complain if the driver is driving 
dangerously. 
 
 
 
Foreigners Looking Online for One-Stop Info Shop 
 
--------------------------------------------- --- 
 
 
 
¶9. (SBU) Following the traffic safety discussion, Pol/Econ Chief 
pointed out that municipal government information available 
online -- for example, including the new taxi hotline number but 
also information on visa procedures, tax regulations, school 
enrollment, obtaining Chinese driver's licenses and registering 
automobiles, etc. -- is often confusing, housed on different 
websites, and usually not in English.  He proposed the FAO post 
all information pertinent to foreigners on one municipal 
government website.  (Note: Consulate's American Citizen 
Services (ACS) section was the source of the proposal, having 
discovered most bureaucratic and legal procedures are unknown to 
the majority of Americans.  End Note.)  The proposal elicited an 
enthusiastic response from the FAO.  Shao called it a "very good 
recommendation," admitting that most municipal government 
departments still have only Chinese websites, and if they are 
translated into English, then the information is "not very 
deep." 
 
 
 
¶10. (SBU) Shao said municipal government authorities and the 
Shanghai CPC Committee already had tasked the FAO to improve 
information flow to foreigners, and the FAO would appreciate 
Consulates' feedback on what information to include in such a 
website.  The Singapore Deputy Consul General noted that 
Consulate websites also are an effective means to disseminate 
 
SHANGHAI 00000259  004 OF 005 
 
 
information, and he encouraged the FAO to share more information 
with Consulates about existing regulations pertaining to 
foreigners and timely notification of changes or new regulations 
so that relevant information could be posted on their websites 
and best targeted to those affected by those regulations. 
 
 
 
Red Flags on "Red Cards" 
 
------------------------ 
 
 
 
¶11. (SBU) The diplomats complained about the amount of time 
required for new arrivals in Shanghai to receive diplomatic 
identification ("red cards" or "green cards" depending on 
status) from the Ministry of Foreign Affairs in Beijing, which 
then delays receipt of their personal effects here.  There 
appeared to be a disconnect between the FAO's understanding and 
the Consulates' experiences with FAO representatives believing 
the red card application process had been recently streamlined 
to three weeks duration from application to receiving the red 
card from the Ministry of Foreign Affairs in Beijing, while 
Pol/Econ Chief, UK Consulate reps and others responded that the 
time often continues to exceed six weeks.  Shao himself 
complained about the Customs policy that "contradicts itself" by 
not releasing personal effects until a diplomat has received a 
red card, and he insisted that the Shanghai FAO is trying to 
provide a letter to Shanghai Customs that authorizes the release 
of effects prior to receiving the red card. 
 
 
 
¶12. (SBU) The Australian Consul General pushed the matter 
further, stating that a three-week process for diplomats to 
receive red cards remains unsatisfactory.  He stated that the 
Australian Foreign Ministry in Canberra can approve red cards 
for Chinese diplomats at constituent posts in Sydney or 
Melbourne in three workdays.  He stated that the Australian 
Foreign Ministry would be happy to share the details of their 
diplomatic identification procedures with the Chinese Ministry 
of Foreign Affairs. 
 
 
 
Diplomats to FAO -- Other Odds and Ends 
 
--------------------------------------- 
 
 
 
¶13. (SBU) H1N1 influenza, transparency and the Shanghai 2010 
World Expo, traffic safety, municipal government information, 
and diplomatic red cards dominated discussion during the 
two-hour meeting; however, Consulate representatives also raised 
the following issues: 
 
 
 
--concern about the destruction of Shanghai's architectural 
heritage; 
 
 
 
--impact on foreigners of Shanghai's designation by the State 
Council as a financial and shipping center; 
 
 
 
--hassling of foreign tourists by beggars, shoe shiners, and 
pick pockets; 
 
 
 
SHANGHAI 00000259  005 OF 005 
 
 
 
--improving vocational training to meet foreign companies' human 
resource needs; 
 
 
 
--improving the protection of intellectual property, especially 
at retail outlets; 
 
 
 
--streamlining investment approval procedures; 
 
 
 
--providing more opportunities for foreigners to worship in 
their chosen religious traditions; 
 
 
 
--improving handicap access facilities at the Longyang Station, 
where the Pudong International Airport magnetic levitation train 
meets the municipal subway system; 
 
 
 
--increasing English language signage throughout the city prior 
to the predicted arrival of millions of foreign visitors for the 
2010 World Expo; 
 
 
 
--the desire to see a public education campaign against 
spitting; and 
 
 
 
--a request to the Shanghai FAO to hold more regular briefings. 
 
 
 
¶14. (SBU) Pol/Econ Chief added the Consulate's thanks for the 
FAO's support to official USG visits in the past year, but he 
also expressed the Consulate's hope that the FAO would not 
interfere in Consulate receptions in the future as had been the 
unfortunate case once earlier in 2009.  (Shao and his colleagues 
made no response on that point.) 
 
 
 
FAO:  "We Want to Hear about your Difficulties" 
 
--------------------------------------------- -- 
 
 
 
¶15. (SBU) At the meeting's conclusion, the FAO representatives 
thanked the assembled diplomats for their complaints and 
constructive recommendations and promised to hold similar 
meetings every 3-4 months to "hear about your difficulties." 
Shao reiterated that the meeting was the "first of its kind" and 
said he hoped there will be similar exchanges in the future. 
SCHUCHAT