Major Environmental Incidents in South China

UNCLAS SECTION 01 OF 02 GUANGZHOU 032439 SIPDIS SIPDIS STATE FOR EAP/CM STATE FOR OES/OGC, OES/ENV, AND OES/PCI/STEWART USDOC FOR 4420/ITA/MAC/MCQUEEN, DAS LEVINE USPACOM FOR FPA EPA FOR OFFICE OF WATER EPA ALSO FOR INTERNATIONAL/THOMPSON E.O. 12958: N/A TAGS: SENV PGOV SOCI CH SUBJECT: Major Environmental Incidents in South China REF: A) Guangzhou 93 B) Guangzhou 3754 ¶1. (U) SUMMARY AND COMMENT: Enforcement of environmental regulations remains problematic in South China. Major environmental incidents occur with disturbing regularity, despite greater efforts by provincial and local governments to avert them. Increased reporting about such incidents does suggest that there is greater transparency with respect to environmental matters. Guangdong officials filed and investigated 5,000 environmental cases, closing 1,300 enterpries, in the first nine months of 2006. Major environmental incidents in the region during the past two years include cadmium and xylene spills, arsenic and acid waste contamination, and illegal waste water discharge. END SUMMARY AND COMMENT. ENFORCEMENT STATISTICS -------------- ¶2. (U) In the first nine months of 2006, Guangdong environmental enforcement officials inspected over 100,000 enterprises that discharge pollutants. Guangdong officials filed and investigated 5,000 cases, resulting in RMB 78 million (USD 9.9 million) in fines and the closing of 1,300 enterprises. More than 6,600 factories were warned about environmental violations and were required to remedy them within a given period of time. CADMIUM SPILL -------------- ¶3. (U) Shaoguan Smelting Factory's illegal discharge of cadmium-carrying waste caused serious pollution in the Beijiang River in December 2005, affecting the water supply of over 100,000 residents downstream (refs A and B). Cleanup efforts lasted nearly one month. Ten employees of the state-owned smelter received punishments for their roles in the spill. Two people were fired, two were demoted, two received warnings or demerits, and the cases of another three were sent to the Public Security Bureau (PSB) for criminal investigation. Shaoguan Smelting has invested RMB 80 million (USD 10.3 million) in waste-water treatment since the incident and is expected to achieve zero discharge of untreated water next year. ARSENIC POISONING -------------- ¶4. (U) Yingde Sulfuric Acid Factory illegally discharged pollutants with a high concentration of arsenic in November 2005, causing arsenic poisoning in 29 villagers who drank contaminated water. The Director of the Yingde Municipal Environmental Protection Bureau (EPB) was required to submit written self-criticisms. Five workers were disciplined by the Party and several were detained by the PSB pending criminal charges. ACID WASTE -------------- ¶5. (U) Guangzhou Haibei Petro-Chemical Distribution Company illegally dumped acid waste and caused serious pollution in the Foshan waterway of the Pearl River from May to September 2005. One person was sentenced to three years probation. The company was fined RMB 100,000 (USD 12,800). XYLENE SPILL -------------- ¶6. (U) A truck driver was sentenced to nine months behind bars for illegally driving a truck overloaded with the hazardous material xylene (a solvent used in the printing, rubber, and leather industries) in January 2006. The truck ran off the road and plunged into a waterway near the Xinjie River in the Huadu District of Guangzhou. Nearly one ton of xylene spilled into the waterway. The local media reported that prompt action in containing the spill prevented any injuries or contamination of the water GUANGZHOU 00032439 002 OF 002 supply. TEXTILE FACTORY WASTE WATER -------------- ¶7. (U) Dongguan Fuan Textiles Ltd., fully owned by Hong Kong-listed Fountain Set (Holdings) Ltd., secretly released more than 10 million tons of waste-water over the past two years through an underground pipe. In June 2006, the company was fined RMB 210,000 (USD 26,900) and asked to pay an additional RMB 11.5 million (USD 1.47 million) in retroactive discharge fees. UPSTART EPB'S -------------- ¶8. (U) Longchuan County EPB was criticized for bypassing the Guangdong Provincial EPB in lowering thresholds for various environmental requirements and illegally approving a mineral exploration project in 2005. Separately, the Boluo County EPB was criticized for bypassing Guangdong Province EPB's review and approving highly polluting projects from 2002 to 2005. GOLDBERG