LANZHOU: ISLAMIC LINKS, UNDERDEVELOPMENT KEEP

C O N F I D E N T I A L SECTION 01 OF 03 BEIJING 007576

SIPDIS

SIPDIS

E.O. 12958: DECL: 12/20/2027
TAGS: PHUM PGOV PREL KIRF EINV CH TW
SUBJECT: LANZHOU: ISLAMIC LINKS, UNDERDEVELOPMENT KEEP
GATEWAY TO WESTERN CHINA FEELING FAR FROM BEIJING

Classified By: Classified by Political Minister Counselor Aubrey Carlso
n.
Reasons 1.4 (b/d).


1. (C) SUMMARY: Contacts in Lanzhou, capital of Gansu
Province in western China, told EmbOffs that Gansu sees
things differently from Beijing on a range of issues. They
stressed that western provinces now believe it is their turn
to enjoy the fruits of China's rapid economic development and
expect new resources from Beijing in the name of "Scientific
Development." An academic suggested that these high
expectations create a challenge for Beijing, especially as
the contrast between the poor interior and prosperous coast
has grown. Many in Gansu also share cultural and religious
affinities with Central Asian and Middle Eastern countries,
further distancing them from Beijing. Local officials were
quick to echo the party line on Taiwan, however. END SUMMARY.


2. (SBU) EmbOffs traveled to Lanzhou, Gansu Province,
November 26-29 to launch the Lanzhou Virtual Presence Post
(VPP). This cable reports on meetings with academics and
provincial officials; EmbOffs' visit to Lanzhou-based
"Duzhe," China's highest circulation magazine, will be
reported septel.

Gansu: Gateway to the West
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3. (SBU) Stretching from the fertile plains of central China
to the western deserts, Gansu Province links the ethnic Han
area of China to the Muslim, Tibetan and Mongolian regions to
the north and west. With per capita GDP barely topping USD
1000 per year, Gansu is China's second poorest province, and
Lanzhou is one of the most polluted cities in the world.
While Gansu hosts one of China's satellite launch centers and
some high-profile joint ventures, including a tie-up between
a local company and American oil rig producer National
Oilwell, these projects translate into few tangible benefits
for most local people. Approximately eight percent of
Gansu's 26 million people are ethnic Hui Muslims, and smaller
groups that follow Islam exist as well, such as the
Dongxiang, Bohan and Sala minorities. Tibetans, Mongolians,
and 40 other ethnic groups, most of which speak non-Chinese
languages in addition to Mandarin, create a challenge for
policy-makers trying to promulgate President Hu's "Harmonious
Society" concept of social stability and integration.

Lanzhou University Roundtable
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4. (C) At a roundtable discussion, EmbOffs heard views on a
range of domestic and international issues from professors at
Lanzhou University. The school is the only national-level
university in the province and enjoys a surprisingly strong
academic reputation within China given its remoteness from
the traditional centers of Chinese academic life. We had the
chance to hear the ideas of Professors Zhang Xinping, Wang
Jinguo, Meng Hui and Wang Mingfang from the School of
Politics and Administration, and Dean Mao Gang and Lecturer
Song Ling from the English Department. Officials from
Lanzhou University's Foreign Affairs Office attended as well.

Western China's Islamic Identity Affects Sino-U.S. Relations
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5. (C) Professor Wang Jinguo noted the strong historical and
cultural links among Gansu's Muslim population and the
countries west of China, stressing that Islam acts as a
unifying principle among western Chinese provinces and
Central Asian states, ultimately linking them all culturally
to the Middle East. These links to the Islamic world affect
public opinion on a range of issues, including Iran,
stability in the Middle East and counterterrorism. Professor
Wang Mingfang echoed this sentiment, suggesting that the
"dilemma" of Islam in western China argues for greater
China-U.S. cooperation. An understanding of western Chinese
attitudes on such issues, she added, is essential for U.S.
understanding of the domestic political variables the
leadership in Beijing must consider when weighing foreign
policy decisions.

The West: A Challenge for Beijing
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6. (C) Lanzhou's position at the geographic center of China,
Wang stressed, marks the beginning of the major non-Han parts
of China and the gateway to the enormous western provinces.
The sheer scale of the geography of Gansu, Xinjiang, Qinghai
and the Tibet Autonomous Region (TAR),Wang said, is seen by
Beijing as a major security challenge, exacerbated by the
affinities people in western China feel for the predominantly
Muslim countries to the west. According to Wang, Beijing has

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come to view "soft power" as the primary means for countering
this natural pull, and is attempting to foster an inclusive
culture in provinces such as Gansu with a diverse ethnic mix.
In this context, Wang stressed, the growing imbalance
between strong eastern development and unremitting poverty in
some western areas creates dangerous tension. The need to
ease this tension, he said, is the genesis for Beijing's push
for "Scientific Development" and a "Harmonious Society."
Provincial officials underscored the high expectations locals
have for the new policy slogans (see paragraphs 12-13).

Education Links to Central Asia, Elsewhere
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7. (C) University officials noted that Lanzhou University
hosts "over 100" graduate students from overseas, and said
this number is growing, with the majority coming from Central
Asian countries. Students in Lanzhou normally come to study
Chinese, but often go on to full courses of study, and
continue to come despite the low level of financial aid
available. Japanese and Korean students are also
well-represented, and the school this year opened a Japanese
language department.

Brain Drain; Democratic Spirit among Those Who Remain
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8. (C) Dean Mao said that graduates of the English program,
who are well-trained to work with foreign companies, suffer
from a lack of opportunities in Lanzhou. Joint ventures in
Gansu are few and growing only slowly, he said, and many of
his graduates migrate east after graduation, further
inhibiting Gansu's climate for inward direct investment.
Still, Mao said, Lanzhou continues to act as a magnet for
students and recent graduates from "all over western China,"
due to even more limited opportunities elsewhere in the
region.


9. (C) Mao also noted that local authorities in Gansu are
increasingly allowed to experiment with democratic methods
for determining local leadership. Gansu, with its
multi-ethnic population, history of immigration and "frontier
spirit," is a natural fit for such democracy experiments.
This is especially the case in Gansu's two autonomous
regions, which are nominally run by Hui and Tibetan leaders,
respectively.

Russia, SCO Seen from China's West
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10. (C) Wang, a Russia specialist, said that despite the
recent warming trend, Russian links with China continue to
lack depth, in contrast to the links the western China
maintains with the Islamic world. He said that western
provinces like Gansu might be expected to have closer ties to
Russia given their geographic proximity both to Russia and
its Central Asian sphere of influence, but this is not the
case. Indeed, the primary purpose of the Shanghai Cooperation
Organization (SCO) is to deepen Sino-Russian relations
through an artificial mechanism. The SCO also serves as a
mechanism for leveraging the historical connection many
western Chinese feel with Central Asian countries by showing
Beijing's interest in the region. Wang said this is aimed at
undermining "destabilizing forces" within China.

"Scientific Development": It's the West's Turn
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11. (C) EmbOffs met separately with officials from the Gansu
Provincial Government, including Liu Jiehua from the
Commercial Affairs Office, Zhang Jun from the Development
Planning Office, and Cao Tianmin, Director of the Planning
and Reform Office.


12. (C) Asked to interpret the concept of "Scientific
Development" being promulgated by Beijing, Zhang said that
Gansu's current relative economic backwardness is "part of
the plan." He explained that development of the eastern
provinces was prioritized in the 80's and 90's as a way to
bring about rapid economic development. From Gansu's
perspective, Zhang said, Beijing is indicating that "now it
is our turn," and he expects Beijing to turn its attention to
central and western provinces in a renewed development push.
Success in this push, he implied, will be critical for the
Central Government's continued legitimacy in this ethnically
and religiously diverse province.


13. (C) At the same time, Zhang said he expects additional
initiatives from Beijing on environmental protection and
sustainable deveopment for Gansu. Agricultural development
rmains a high priority for the Provincial Government, he
added, but he hopes new priorities in national development

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will help Gansu move into higher value-added industries.
Provincial officials are creating incentives, for example, to
diversify from petroleum production to petroleum engineering
services and petrochemicals and from traditional agriculture
to agricultural processing. Zhang acknowledged that Gansu
suffers from many geographic disadvantages and persistent
poverty, and that in the near-term exploitation of Gansu's
natural resources will continue to serve as the major focus
of development. Zhang also expressed frustration at the trap
that Gansu's remoteness and lack of capital has created: what
the province most needs is the development of its human
capital, but its natural limitations make this very difficult
to achieve.

Interaction with the United States: Lots of Visitors, Not
Much Cash
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14. (C) Zhao Shenglan, Deputy Director of the Provincial
Foreign Affairs Office, pointed with pride to the large
number of semi-official visitors Lanzhou hosts from the
United States. Drawing on their active sister state program
with Oklahoma and two smaller scale sister-city arrangements,
the FAO office sees dozens of U.S. visitors a year, including
mayoral visits and Congressional staff delegations. The
volume of visitors has yet to translate into large-scale
investment for Gansu, however. A deal with the U.S. firm
National Oilwell International to produce petroleum
engineering equipment in Lanzhou is Gansu's most visible
joint venture, and officials are clearly pleased with its
high technology content and growth potential. Hopes that
this venture, which dates back to 2000, would provide a model
for other U.S. companies have yet to be realized, Zhao said.

Olympics: Pride, Tempered by Frustration
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15. (C) Asked about the view of the Beijing Olympics from
Gansu, the Development Planning Office's Zhang stressed that
the Games are a "national project," although he acknowledged
Gansu has no specific role to play. Calling the event "big
business," he stressed that people in Gansu support the
project, but wished that Beijing would recognize that the
Games should be an "all-China Olympiad," and share the
economic benefits as well.

Even in Gansu, Taiwan is Not Far Away
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16. (C) Liu treated EmbOffs to a lengthy complaint about U.S.
policy toward Taiwan, saying that he wanted to discuss the
"big question" facing China in its efforts to improve
U.S.-China relations. He pointed to recent tensions arising
from the proposed UN referendum in Taiwan. Liu stressed that
the United States and China, as two major powers in the
world, have a responsibility to make the world more secure.
While noting that the United States and China share a broad
and thriving economic relationship, Liu asked pointedly, "Why
must you make Taiwan an issue?" EmbOffs referred Liu to
recent comments on Taiwan by high-level U.S. officials, which
underscore yet again U.S. commitment to the one China policy
and a peaceful resolution to cross-Strait issues.
RANDT