NOMADIC RESETTLEMENT AND THE NEW SOCIALIST COUNTRYSIDE IN

UNCLAS SECTION 01 OF 02 CHENGDU 000140

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EAP/CM, DRL, AND G/STC

E.O. 12958: N/A
TAGS: ECON PGOV SOCI CH
SUBJECT: NOMADIC RESETTLEMENT AND THE NEW SOCIALIST COUNTRYSIDE IN
SICHUAN PROVINE'S ABA PREFECTURE

REF: A. A) CHENGDU 137


B. B) CHENGDU 138

C. C) CHENGDU 90

D. D) CHENGDU 91

CHENGDU 00000140 001.2 OF 002



1. (SBU) Summary: According to local Animal Husbandry Bureau
officials in Hongyuan County of western Sichuan Province's Aba
(Tibetan: Ngaba) Prefecture, the central government has
invested 30 million RMB (USD 3.9 million) to implement the "New
Socialist Countryside" and facilitate the transition from a
traditional to a modern animal husbandry industry. The
production level in the largely nomadic county is relatively
low, so nomads are being resettled into villages and encouraged
to look for labor work. The West Yak Corporation purchases yak
milk from 16,000 nomads to process into a UHT boxed milk product
for sale in inland China. Our local hosts were eager to
describe the benefits of the nomadic resettlement policy, but
there was little opportunity to speak to local Tibetans
privately to solicit more candid views on changes in their
traditional lifestyle. End Summary.


2. (U) During a recent reporting trip to western Sichuan
Province's Aba Tibetan and Qiang Autonomous Prefecture, CG and
Congenoff were hosted for a working lunch by the director of the
Hongyuan County Animal Husbandry Bureau and a representative of
the West Yak Corporation, an enterprise founded in 1956. The
officials briefed us on economic development in the county, the
nomadic resettlement policy, and the contributions of the
private corporation.

Investment in Hongyuan County's New Socialist Countryside
-------------- --------------


3. (SBU) The director of the Animal Husbandry Bureau said the
central government has invested 30 million RMB (USD 3.9 million)
to implement the "New Socialist Countryside" in Hongyuan County,
and an additional 10 million RMB (USD 1.3 million) specifically
for ecological protection. The county is undergoing a
transition from traditional animal husbandry to modern animal
husbandry, and Government resources are being used to smooth the
transition, particularly for improving yak quality. When
queried by CG about the policy of fencing off sections of
grassland traditionally used by nomadic herders, the director
claimed locals welcomed the policy. He asserted there was not
enough grassland to go around, and that there were "conflicts"
before. He added that eighty percent of the cost of the fences
is subsidized by the government, so there is not an excessive
burden on the herders.


4. (SBU) When asked about possible social conflicts due to
disputes over harvesting of the valuable caterpillar fungus, the
director claimed there were no conflicts because the price of
the fungus is regulated in order to protect the environment.
(Note: We learned in other conversations that caterpillar
fungus currently sells for 30-40 RMB (USD 3.95 - 5.26) each, or
upwards of 80,000 RMB (USD 10,526) per kilogram. Conflicts
between Tibetan nomads and newcomers to the region have been
known to occur when non-residents attempt to partake in
caterpillar fungus harvesting. End Note).

Nomadic Resettlement Policy
--------------


5. (SBU) According to the director, the production level in the
largely nomadic county is relatively low, so the government is
forming villages of nomads and encouraging them to look for
labor work. He lamented that, although the government provides
skills training for the nomads, the "results have not been
good." He emphasized that nomadic families are being resettled
in concentrated population centers where they now have access to
electricity, water, and transportation infrastructure, and that
they like their new houses and communities. Of Hongyuan
County's 30,000 nomads, 20,000 have already been resettled. The
Aba Foreign Affairs Office (FAO) official accompanying our group
offered to take us to see one of the new villages en route to
our next stop.

Nomads "Happy" With New Homes
--------------


6. (SBU) Hongyuan officials drove us to a new village of
approximately 40 homes in a relatively remote section of the
county. They introduced us to a man they said was the head of
the village and invited us to visit his home. (Ref. B). The
house was constructed with rectangular cement blocks and was
painted white. It did not have any characteristic Tibetan
decoration or design. The former nomad showed us the main
sitting room of his home that had a traditional yak dung-burning
stove for heat, electricity, a television, and a small picture

CHENGDU 00000140 002.2 OF 002


of the Dalai Lama.


7. (SBU) During the course of the visit, officials repeatedly
emphasized that resettled nomads built their own homes using
government subsidies to cover eighty percent of the cost of the
dwellings. When asked if he was satisfied with his new home and
lifestyle in the presence of local officials, the former nomad
replied that he was "very happy." (Note: In a conversation out
of earshot of the officials, Congenoff learned that the houses
in the village were all built by construction workers from
inland China, rather than by the nomads themselves. End Note).

West Yak Corporation Markets Yak Milk
--------------


8. (SBU) Liao Yong, a Han Chinese from Chengdu is the manager
of the West Yak Corporation's Aba Prefecture headquarters in
Hongyuan County. During a tour of the milk-processing factory,
he said the corporation has invested 30 million RMB (USD 3.9
million) in the business in order to contribute to the
development of the local economy (Ref. B). The corporation
processes yak milk it purchases from approximately 80 percent of
the 20,000 nomads in the county. Liao said the company pays 1.3
RMB (USD 0.17) for each pound of milk. The final product, a
half-pound UHT box of yak milk retails for 12 RMB (USD 1.58) in
inland China. The company markets the product as a much more
nutritious drink than cow's milk. In response to a question
from Congenoff about the total number of Tibetan employees, Liao
responded that most of the company's employees were "locals."
(Note: In a side conversation during the factory tour,
Congenoff learned that of 200 employees, forty are Tibetan. Of
those, four are receiving technical training and the others
collect milk. One of the four Tibetans is the Deputy Manager of
the factory. End Note).

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


9. (SBU) Our local hosts seemed very eager to describe the
benefits of the nomadic resettlement policy and to present
"happy" nomads living in settlements with electricity and
running water. There was little opportunity to speak to local
Tibetans privately or to solicit more candid views on changes in
their traditional lifestyle. In conversations on this issue in
other prefectures, we have learned that there are varying
opinions on the benefits of nomadic resettlement, and that some
resettled Tibetans struggle to acquire skills that will allow
them to transition to more modern means of production (Reftels C
and D).
BOUGHNER