Identifier
Created
Classification
Origin
06GUANGZHOU14707
2006-05-16 09:56:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Guangzhou
Cable title:  

Long March: Country Roads Bring Tourists, Trade,

Tags:  ECON ETRD EINV PHUM CMGT CH 
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RR RUEHAG RUEHCN RUEHDF RUEHGH RUEHIK RUEHLZ
DE RUEHGZ #4707/01 1360956
ZNR UUUUU ZZH
R 160956Z MAY 06
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 8021
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUCPDOC/USDOC WASHDC
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC
RHHMUNA/HQ USPACOM HONOLULU HI
UNCLAS SECTION 01 OF 03 GUANGZHOU 014707 

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EB, R, EAP/CM, EAP/PD, DRL
STATE PASS USTR - STRATFORD, CELICO
USDOC FOR 4420/ITA/MAC/MCQUEEN, DAS LEVINE
USPACOM FOR FPA

E.O. 12958: N/A
TAGS: ECON ETRD EINV PHUM CMGT CH
SUBJECT: Long March: Country Roads Bring Tourists, Trade,
and Stability to Longyan

Ref: A) 05 Guangzhou 23050, B) Guangzhou 13562, C) Guangzhou
13384, D) Guangzhou 13385

UNCLAS SECTION 01 OF 03 GUANGZHOU 014707

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EB, R, EAP/CM, EAP/PD, DRL
STATE PASS USTR - STRATFORD, CELICO
USDOC FOR 4420/ITA/MAC/MCQUEEN, DAS LEVINE
USPACOM FOR FPA

E.O. 12958: N/A
TAGS: ECON ETRD EINV PHUM CMGT CH
SUBJECT: Long March: Country Roads Bring Tourists, Trade,
and Stability to Longyan

Ref: A) 05 Guangzhou 23050, B) Guangzhou 13562, C) Guangzhou
13384, D) Guangzhou 13385


1. (SBU) SUMMARY: Longyan Prefecture in western Fujian
Province is literally at a crossroads. Newly constructed
highways and some still in the works are central to the
area's plans to increase tourism, diversify agriculture,
expand exports, and improve rural conditions. Leaders in
the Prefecture's center, Longyan, have identified some
concrete plans to pay for much needed roads, and attract new
industry similar to its economic powerhouse and largest
taxpayer, Longyan Tobacco. In the smaller Yongding County,
a sub-unit of the Prefecture, rural residents are counting
on new roads to bring tourist revenue and the benefits of
the city to the region's largely Hakka population. END
SUMMARY

Almost Heaven, West Fujian
--------------


2. (U) As part of Consulate Guangzhou's "long march,"
following visits to Heyuan and Meizhou in Guangzhou Province
(ref A),the Congenoffs drove to Longyan Prefecture in
southwest Fujian and met with leaders in both Longyan
Prefecture and its subset, Yongding County. Qiu Yuyan
Director of Longyan Foreign Affairs Office and prefecture
leaders provided an overview of the Prefecture's 11th five-
year plan, while Wu Ruiling Director of the Standing
Committee of Yongding County People's Congress, met with the
Consul General in Yongding County. In both places, leaders
focused on increasing tourism, expanding trade, and
improving rural conditions.

Life Is Old There, Older Than the Trees
--------------


3. (U) Located in the mountainous and previously isolated
region of western Fujian, Longyan Prefecture governs Longyan
and Zhangping cities, Changting, Wuping, Liancheng,
Shanghang and Yongding counties. The Prefecture's area of
19,000 square kilometers accounts for 15% of Fujian Province
and is home to 2.6 million people, more than 70% of whom
reside in rural areas. Longyan City is the political,

economical, and cultural center of the Prefecture. The area
is known for its large Hakka population, which began
settling the area as migrants from northern China over 1,000
years ago. The municipality's RMB 38.5 billion (USD 4.8
billion) GDP comes predominantly minerals - iron, copper,
gold, and coal, machinery production, tobacco, and to a
lesser extent, tourism.

Country Roads Take Me Home
--------------


4. (U) Several newly constructed highways serve as the
backbone of the Prefecture's plans to increase access to the
region, improve tourism, diversify agriculture, increase
exports, and improve rural conditions. Signaling their
commitment to infrastructure improvement, Longyan's leaders
plan to spend RMB 23 billion (approximately USD 2.9 billion)
during the 11th five-year plan on freeways, RMB 4 billion
(USD 500 million) on state highways, and RMB 300 million
(USD 37.4 million) for road maintenance. Longyan
transportation officials intend to fully pay for these roads
in 15 to 20 years through tolls. Two national highways also
run through the Prefecture.

Growing Life a Breeze
--------------


5. (U) In comparison with previous visits to the region
(ref A) done on poorly paved, bumpy roads, traveling within
the prefecture is faster and more comfortable with the
majority completion of highways connecting other cities
within Fujian (the highways to Guangdong and Jiangxi
Provinces have yet to be completed). In addition, two
railways connect the area to neighboring Guangdong and
Jiangxi as well as other parts of China. During a briefing
in Longyan, Prefecture leaders were quick to admit that
there are still problems with the roads, in particular,

GUANGZHOU 00014707 002 OF 003


unevenness where roads connect, a fact noted in detail by
those driving to the area. Area leaders remain optimistic
that these new corridors will bring an increase in tourists
and revenue to the region.


6. (U) A new network of highways and rural roads winds past
Longyan's numerous villages symbolizing the high percentage
of rural residents in the area. Longyan and Yongding
officials emphasized their goals to improve the conditions
of the area's rural residents, who represent 79% of the
Prefecture's population). Officials hope to raise the
present average per capita rural income from RMB 4,430 (USD
553) to RMB 5800 (USD 724) within five years. In an effort
to bring the benefits of the city to the rural areas, the
"Building the New Socialist Countryside" part of the 11th
five-year plan to improve rural society, officials will
focus on developing rural roads, clean water supplies,
better sanitation and waste management, improve access to
education and health, and development ways to increase rural
incomes.


7. (U) Agricultural development initiatives in the
Prefecture are focused on raising the average income by
developing value added agricultural industries. In
Yongding, for example, officials are working to develop the
dried mustard leaf industry. Since the vegetables grow
during winter months when grain will not grow in the area
the vegetable can provide additional revenue to rural
farmers. The Yongding leaders are further focused on
developing value added industries for their persimmon crop
with a goal of processing 40% of the annual crop into
vinegar, cakes, and wine during the next five years.

I Should Have Been Home Yesterday
--------------


8. (U) A slow and bumpy ride down a narrow mountain road
leads visitors to the well-preserved Hakka Village of Chuxi
in Yongding County. Here, 11 kilometers from the town
center, visitors find a symbol of tourism efforts in the
prefecture and county: historic round and square rammed-
earth houses known as "tulou." Tourism remains one of the
fastest growing industries in the prefecture, and is a
source of optimism for government officials. Prefecture
leaders boasted that between 2000 and 2005 tourist revenue
in the prefecture grew from 1.29 Billion RMB (USD 160
million) to 3.89 Billion RMB (USD 485 million),a trend they
expect to continue. The county currently receives 3.89
million tourists per year, most of them coming from other
parts of China. Efforts are focused on three areas: green
tourism, red tourism, and cultural tourism. Green tourism
refers to the natural beauty of the area, cultural tourism
relates to traditional Hakka food, architecture, and
culture, while red tourism focuses on historic sites related
to the communist revolution. Red tourism is primarily aimed
at patriotic Chinese citizens rather than overseas visitors.
Qiu Yuyan of the Longyan FAO indicated that the impetus for
opening the Chuxi tulou area to tourists came not from the
government, but from villagers themselves. In fact, the
government official admitted some concern for the
maintenance of the village and the poor condition of the
narrow dirt road leading to the village, and said that the
government was not encouraging excessive traffic to the
village. Villager residents receive the bulk of the site's
tourist revenue.

All My Memories Gathered Round Her
--------------


9. (U) Visitors to Longyan come predominantly from other
areas in China. But better highways could bring more
Chinese visitors by road as well as international visitors
on short package tours via larger cities such as Xiamen and
Guangzhou. Of the Prefecture's overseas visitors, most are
currently ethnic Hakka from South-east Asia returning to
visit relatives, see cultural sites, or pay respect to
ancestors. Of non-Hakka foreign tourists, Japan is the
largest market due to high exposure of the Prefecture's
rammed-earth houses in Japanese media. The Prefecture
receives approximately 1,000 visitors from the United States

GUANGZHOU 00014707 003 OF 003


per year.

Miners Lady, Stranger to Blue Water
--------------


10. (U) The prefecture's roads wind through beautiful
mountains, along winding streams and past countless mines
producing such resources as iron, gold, copper, and coal,
many of the latter mines small, dangerous, and illegal. The
scene reminds travelers of both the rich natural resources
in the area and the potential effect of increasing
industrial output on the environment. Longyan officials
express desire to reduce the rate of pollution (per portion
of GDP) while increasing industrial output. How such a goal
would be achieved was not as clearly articulated.


11. (U) Just outside Longyan's city center, and right off
of a main Highway is the Longyan Tobacco Company. A tour of
the facility by Chen Wannian, Deputy Director of the
Factory, showed how far the factory has come since its
humble beginnings in 1958. The once small tobacco company
is now the largest taxpayer in Fujian Province. Congenoffs
were wowed by the state-of-the-art facility located in the
heart of the otherwise sleepy Longyan. This world-class
manufacturing facility completed in 2004 at a cost of RMB
8.5 million (slightly more than USD one million) serves as a
showplace of modern industry from the musical fountains at
the entrance to the robotic forklifts inside. Opting for
efficiency over cheap labor, the company utilizes state-of-
the-art machinery capable of rolling 7000 cigarettes and
packing 400 boxes per minute. The company is one of two
companies in China just being licensed to make Marlboro
cigarettes.

Comment: Country Roads Indeed
--------------


12. (U) Longyan, once isolated, is now connected to larger
cities in Fujian, Guangdong, and Jiangxi through an
expanding network of highways and railways. These corridors
have brought an increase in tourism, industry, and GDP
growth. By contrast, the smaller Yongding County remains
far from the developed coastal cities of Fujian and
Guangdong Provinces. With heavy reliance on mining and
subsistence agriculture, Yongding Officials hope to balance
the area's economy with an increase of tourists as local
roads are upgraded during the next several years.
Prefecture planners have a clear vision of the challenges
and opportunities that await them; converting country roads
to highways is one of the issues that delay them from moving
forward faster. End Comment.


13. (U) Persons met in Yongding/Longyan:
Wu Ruilin Chair, Yongding Congress
Lai Xiujin Vice County Mayor of Yongding
Jiang Dizhang Executive Vice Mayor, Longyan Government
Tang Zhongling Deputy Secretary General, Longyan Government
Zhong Meiying Deputy Secretary General, Longyan Government
Liu Guangxiang Deputy Director, Agricultural Bureau, Longyan
Government
Chen Qingru Deputy Director, Communication Bureau,
Longyan Government
Lu Yanming Assistant Research Fellow, Development and
Reform Commission, Longyan Government
Qiu Yuyan Director, Longyan Government, Foreign Affairs
Office (FAO)
Lu Dian Deputy Director, Longyan FAO
Li Dongting, Section Chief, Longyan FAO
Chen Wannian Deputy Director, Longyan Cigarette Factory.

ROCK