Identifier
Created
Classification
Origin
07SHANGHAI580
2007-09-07 04:59:00
CONFIDENTIAL
Consulate Shanghai
Cable title:  

COMMENTS ON FORMER SHANGHAI PARTY SECRETARY CHEN LIANGYU'S

Tags:  PGOV PREL PINR CH 
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RHEHAAA/NSC WASHINGTON DC
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C O N F I D E N T I A L SHANGHAI 000580 

SIPDIS

SIPDIS

DEPARTMENT FOR EAP/CM, INR/EAP
NSC FOR WLDER

E.O. 12958: DECL: 9/7/2032
TAGS: PGOV PREL PINR CH
SUBJECT: COMMENTS ON FORMER SHANGHAI PARTY SECRETARY CHEN LIANGYU'S
CORRUPTION CASE


CLASSIFIED BY: Simon Schuchat, DPO, Amcongenl Shanghai, DOS.
REASON: 1.4 (b),(d)



C O N F I D E N T I A L SHANGHAI 000580

SIPDIS

SIPDIS

DEPARTMENT FOR EAP/CM, INR/EAP
NSC FOR WLDER

E.O. 12958: DECL: 9/7/2032
TAGS: PGOV PREL PINR CH
SUBJECT: COMMENTS ON FORMER SHANGHAI PARTY SECRETARY CHEN LIANGYU'S
CORRUPTION CASE


CLASSIFIED BY: Simon Schuchat, DPO, Amcongenl Shanghai, DOS.
REASON: 1.4 (b),(d)




1. (C) Summary: A Shanghai legal expert told us that Chen
Liangyu's corruption case represented a serious loss of face for
Shanghai. Politically, Shanghai was too important to be allowed
to differ from Beijing. Our interlocutor predicted that Chen
would be sentenced to 20 years imprisonment, and might be
transferred to house arrest after 8 years in jail. End summary.


2. (C) On September 6, DPO discussed the ongoing corruption case
of former Shanghai Party Secretary Chen Liangyu with Shen
Guoming (please protect),Director of the Legal Affairs
Committee of the Standing Committee of the Shanghai Municipal
People's Congress, and concurrently a Vice President of the
Shanghai Academy of Social Sciences.


3. (C) Shen, who raised the subject during conversation at a
banquet attended by, inter alia, Shanghai Mayor Han Zheng, said
that Chen Liangyu's case was a major loss of face for Shanghai,
which by virtue of its relatively high degree of economic and
social development, ought to be free of such serious corruption.
Shen argued that "rule of law" consciousness was more advanced
in Shanghai than anywhere else in China, although nevertheless
not as strong as in Hong Kong.


4. (C) Chen was initially investigated for unauthorized
investments of the Municipal Social Security funds. DPO observed
that according to some reports, all the monies had been repaid
to the fund, which had suffered no loss. Shen responded that
there had been a loss, and in any case, Chen's most serious
embezzlement had involved turning over city lands to his brother
for development. This land was worth millions of RMB, which
went to the Chen family and not the state.


5. (C) DPO noted that, even before Chen Liangyu's initial
detention in September 2006, the Hong Kong press had widely
reported his defiance of Premier Wen Jiabao with respect to
China's overall development policy, and that many observers
believed that had been a key factor in his case. Shen responded
that before his fall from power, Chen had ranked 20th in the
national Communist Party hierarchy, and it was crucial that the
Party maintain unity. Furthermore, the national leadership had
to maintain a close relationship with Shanghai's leadership.
Shanghai currently provides one-sixth of the central
government's revenues and is politically very important.
Shanghai officials have a generally higher level of educational
and other qualifications, and are frequently brought to Beijing
to take on national responsibilities. This has been the case no
matter what policies the center pursued.


6. (C) Shen thought that Chen's case was more serious than that
of former Beijing Mayor Chen Xitong (who was removed from the
Politburo and given a 16 year sentence for corruption in the
1998, and was released "on medical parole" in 2006). Shen
predicted that Chen would be sentenced to 20 years imprisonment.
In such high-level cases, it was generally the case that the
offender would be released into house arrest after serving 8
years of their prison sentence.


7. (C) Comment: Shen did not explicitly say when Chen's trial
would take place, but implicit in his raising the topic seems to
be that it is either already underway, or to begin very soon.
End comment.

JARRETT