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