SHANGHAI PARTY SECRETARY XI JINPING OPENS NINTH PARTY

UNCLAS SECTION 01 OF 02 SHANGHAI 000308 SIPDIS SENSITIVE SIPDIS STATE PASS USTR FOR STRATFORD, WINTER, ALTBACH, MCCARTIN AND READE TREASURY FOR OASIA - DOHNER/HAARSAGER/CUSHMAN COMMERCE FOR ITA/MAC - DAS KASOFF, MELCHER, MCQUEEN NSC FOR WILDER AND TONG E.O. 12958: N/A TAGS: PGOV PINR CH SUBJECT: SHANGHAI PARTY SECRETARY XI JINPING OPENS NINTH PARTY CONGRESS SHANGHAI 00000308 001.2 OF 002 (U) Sensitive But Unclassified; Not For Use Outside USG Channels; Not For Internet Distribution ¶1. (SBU) The Ninth Shanghai Party Congress opened on May 24 at the Shanghai Exhibition Center; the meeting will run through May ¶28. In addition to the 810 delegates elected at the previous day's preparatory session, representatives from China's minority parties, a delegation from the Organization Department of the Central Committee in Beijing; and representatives from the local People's Congress and Political Consultative Congress attended the meeting. Furthermore, the diplomatic community was invited to observe, with each Consulate allowed to send a single observer. The report was delivered, however, entirely in Chinese without any interpretation. There were also some representatives of foreign press organizations resident in Shanghai in attendance. Although delegates had a written text to follow, this was not made available to foreign observers. ¶2. (SBU) After a brief introduction by Mayor Han Zheng, newly appointed Party Secretary Xi Jinping delivered a two-hour work report. Xi read in a clear, relaxed manner; although he mopped his brow several times in the course of the speech, in general he seemed entirely at ease in this somewhat exhausting task. ¶3. (SBU) Xi's report covered seven general areas, including: -- a summary of the Party's achievements in the past five years; -- a work plan for the coming five years; -- the city's economic development; -- strengthening "socialist democratic construction;" -- cultural development; -- constructing a "harmonious society;" and -- Party development. ¶4. (SBU) Among the achievements of the past five years since Shanghai's Eighth Party Congress which Xi outlined were "stable and healthy economic development," "deeper opening and reform in 'rule of law' and private economic development;" "new progress in building spiritual civilization;" improving living conditions in urban and rural areas; and continuous "Party-building". Interestingly, a section on the importance of environmental protection directly followed one on economic construction. ¶5. (SBU) Xi noted the importance of anti-corruption efforts and stated that "Comrade Chen Liangyu's" pension scandal damaged the local leadership, destroyed the image of Shanghai and the local Party and had a negative impact on Shanghai's reform and development. He said the serious punishment for Chen Liangyu's violation of the law reflected the Central Committee's firm determination in its anti-corruption work. The scandal also had exposed weakness in the Party's institutional development, including an inadequate recognition of the complexity, difficulty, urgency and timespan of the anti-corruption task; immature systematization; a lack of democracy in the Party's decision-making process; an immature cadre selection system; and lack of attention to developing an appropriate work style among cadres. Xi added that any person who violated laws and regulations, no matter what position they had been appointed to, would receive serious punishment. Xi concluded that the Shanghai government, overall, had gained good experience and learned lessons in the past five years. He encouraged officials to improve the Party's governance capacity, be concerned about people's well being and quality of life issues and strengthen power supervision. ¶6. (SBU) In terms of the city's economic development, Xi said Shanghai faced a number of challenges including shortfalls in natural resources, inadequate development of a modern service industry; insufficient innovatiion; inadequate development of the private sector; an increasingly aging society; problems in creating employment; and gaps between urban and rural areas. Future work priorities were to hold a successful World Expo in 2010 and fulfill the "four centers" -- to develop Shanghai into a global economic, trade, financial and shipping center. However, it was important to keep the bigger picture in mind, and ensure that Shanghai's future development was consistent SHANGHAI 00000308 002.2 OF 002 with national macro policies, including development of the Yangtze River Delta region, in order to achieve smooth development and build a harmonious society. ¶7. (SBU) From an ideological point of view, Xi noted repeatedly the importance of the "scientific development viewpoint" as well as the "three represents," the "four leads," "building a harmonious society," and Deng Xiaoping Theory, including "liberate thinking" and "seek truth from facts." There was a single mention of Marxism and none whatsoever of Mao Zedong Thought. ¶8. (SBU) Comment: Although we are routinely invited to observe the opening sessions of the Shanghai Municipal People's Congress and Political Consultative Conference, this was the first time in the collective memory of the Shanghai Consular Corps that diplomats have been invited to observe a Party Congress. Furthermore, the session was broadcast live on local television and radio, in what appears to be an effort at somewhat greater transparency. End Comment. JARRETT