Andale, Pues: Mexico Establishes Consulate in

UNCLAS SECTION 01 OF 02 GUANGZHOU 005696

SIPDIS

SENSITIVE
SIPDIS

STATE PASS TO ALL US CONSULATES IN MEXICO COLLECTIVE
STATE FOR WHA, EB, EAP/CM, CA
STATE PASS USTR
USDOC FOR DAS LEVINE, 4420/ITA/MAC/MCQUEEN, DAS LEVINE
USPACOM FOR FPA

E.O. 12958: N/A
TAGS: PREL ECON EINV CONS PINR CH
SUBJECT: Andale, Pues: Mexico Establishes Consulate in
Guangzhou; Peru, Chile, Brazil, and (Sigh) Cuba In Train

Ref: Guangzhou 3619 (notal)

(U) THIS DOCUMENT IS SENSITIVE BUT UNCLASSIFIED. PLEASE
PROTECT ACCORDINGLY. NOT FOR RELEASE OUTSIDE U.S.
GOVERNMENT CHANNELS. NOT FOR INTERNET PUBLICATION.


1. (SBU) Summary: Mexico has opened a Consulate in
Guangzhou. In the celebratory event, Mexican
Undersecretary for Foreign Affairs Lourdes Aranda cited the
heavy weight economic power of Guangdong Province not to
mention the fact that most Chinese-Mexicans trace their
roots to south China as the chief reasons for opening the
post, which initially will cover only Guangdong Province.
Other factors included Guangdong's active wooing of Mexico
and the fact that Mexican Ambassador to China Sergio Ley is
himself a Chinese-Mexican with roots in Zhongshan -- a
heartland city of Guangdong. Guangdong Foreign Affairs
Office officials noted that Mexico is only the first of
many Latin American countries intending to establish
Consulates in Guangzhou -- in train are those of Peru,
Chile, Brazil, and, regretfully, Cuba. End Summary.

"Hemos Llegado"
--------------

2. (U) On February 22, the United Mexican States
officially celebrated the opening of its Consulate in
Guangzhou. In town especially for the occasion, Mexico's
Undersecretary for Foreign Affairs Lourdes Aranda noted
that Guangdong is the acknowledged economic power house
province in China, accounting for one third of China's
total trade and increasingly interested in investing
abroad, including in Mexico. All told, Guangdong-Mexico
trade and investment activities amount to USD 2 billion.
She also noted that the vast majority of family-related
immigration from China to Mexico originates in Guangdong
and that the Consulate would have a role in facilitating
that immigration as well. She also cited the high level
interaction between national leaders of both countries and
the specific interest of the Guangdong government in
cementing relations.

Welcome, Welcome, Welcome
--------------

3. (U) Echoing the Undersecretary's remarks, Guangdong
Province Deputy Secretary General Liu Youjun emphasized the
marvelous reception received by a delegation headed by
Governor Huang Huahua during a visit in October, 2005 (in
the continuation of a major delegation trip to the United
States that saw 600 Guangdong Provincial and Municipality
officials and business representatives meeting in San
Francisco). He said that Mexico is increasingly an
important market for Guangdong, and, mirroring
Undersecretary Aranda, he emphasized Guangdong's great
interest in seeing the expansion of Mexican investment in
south China.

Initially Limited to Guangdong
--------------

4. (SBU) Initially, the Mexican Consulate in Guangzhou
will be headed by Consul Leopoldo Marin and its scope of
work will be concentrated on Guangdong. The Guangzhou
Consulate is staffed initially by only two home-based
officers, neither of whom are fluent Chinese speakers, and
one of whom is an Entry Level Officer on her first tour.
She was, however, the officer who got the Consulate up and
running in a matter of weeks (the Belgians who are
establishing a Consulate General in Guangzhou have yet to
have an official opening two months after arriving in
town). Accordingly, a lot of support would still need to
come from the Mexican Consulate General in Hong Kong, which
has trade and investment promotion capabilities that the
Consulate in Guangzhou will initially not have. The
eventual aim, however, is to convert the Consulate into a
Consulate General and expand operations to Guangxi and
Hainan -- which are theoretically already covered in
Mexico's arrangement with the Chinese Ministry of Foreign
Affairs.

GUANGZHOU 00005696 002 OF 002



"Guanxi" in Play
--------------

5. (SBU) Although he did not make formal remarks at the
ceremony, Mexican Ambassador to China Sergio Ley clearly
had a hand in the establishment of the new Consulate. A
Chinese-Mexican, Ambassador Ley is a highly gregarious
businessman from Sinaloa and is the owner of, among other
enterprises, the "Tomateros" in the Mexican Baseball
League. Most importantly, Ley's family originates in
Zhongshan, the birthplace of revolutionary hero Dr. Sun
Yatsen, and one of the most important and influential
heartland cities in Guangdong Province (Executive Vice
Governor Tang Bingquan, for example, hails from Zhongshan
as do large numbers of up and comers in the provincial
government and party). Certainly the Ambassador did not
play down his connections to Zhongshan in particular and
Guangdong in general in his genial conversations during the
reception following the official opening ceremony.

Salsa En-Tangoed
--------------

6. (SBU) Both the Mexican and the Guangdong officials made
much of the fact that Mexico is the first in a number of
Latin American countries intending to establish diplomatic
posts in Guangzhou. Guangdong Foreign Affairs Office
Deputy Director General Fu Lan said that the province was
looking forward to seeing Brazil, Chile, and Peru moving
quickly to establish Consulates because these represented
the most important economic powers in South America. Fu
added sotto voce that Cuba, which is not an economic power
house, still remains interested in moving forward with its
plans in Guangzhou (reftel).

Comment
--------------

7. (SBU) The Mexican presence in what is sometimes
referred to as the "industrial workshop of the world" is
important for Mexico's understanding of what might
constitute its biggest global competitor. We hear many
stories here of American and other third country firms
which have closed down or scaled back maquiladora
operations in Mexico in order to set up shop in Guangdong,
and we intend to be in close contact with our Mexican
colleagues to see how they see Guangdong.


8. (SBU) The establishment of the Mexican Consulate
"completes" the representation of NAFTA in Guangdong, as
many people jokingly said during the reception. ASEAN is
"missing" three countries -- Brunei, Burma, and Laos -- but
there is no indication at all that any are interested in
diplomatic representation in Guangdong. The most glaring
"missing" member of the European Union is Spain, which has
very extensive commercial interests in south China but
which covers the territory from elsewhere. Guangdong is
apparently very interested in attracting Spain, however,
and the further addition of a Hispanic flavor to Guangdong
would be welcome -- unless it comes with a Castro-ite odor.

DONG